Raising the Stakes and Stopping a Deal

-or- Making more money & giving fewer discounts

I got a great email the other day with a fabulous question from Leishaan:

My sister helped me design my business cards and thought it would be a good idea to put a punch card on the back: come in for 5 massages and get 6th for 1/2 off.  I charge $50. This is my 7th year of massage, 3rd year full time and I’ve never raised my prices.  My regulars love the punch card, but I’m not so stoked on it. I’m thinking I should change to $5 or $10 off 6th massage, not half.  Also, seriously considering raising price to $55.  I’ve added Soapvault and Schedulicity to my costs. I’m kinda banging my head to figure out what to do.

I think the answer is here: “I’m not so stoked on it.” If you’re no longer cozy with the deal, change it. Don’t offer discounts that make you uncomfortable. Period.

How should you handle the discontinuation of this deal? Get new business cards without the deal. Inform your current clients that you will no longer be offering that deal, but I would consider letting them use up any cards they’ve already started. Maybe put a time limit on it, something like 6 months so people who have just started a card have plenty of time to finish it without feeling like they got tricked. Offer some new package pricing that rewards people who come in regularly. Resist the urge to dramatically reduce a package price, I like something 5 to 7 % off, whatever works out to a round number. Or, if you feel strongly about continuing a punch card deal, perhaps change it to upgrading the final massage by 30 minutes, rather than giving a financial bonus. Remember, these people already like your services. You just want to reward loyalty, you don’t have to entice them to buy your service. You did that already. If anyone gives you grief (they likely won’t, but it’s always nice to have a script ready) just say, “I loved offering that deal when I was building my business, but it’s really outlived its usefulness. Instead I’m offering this new package pricing!” That’s it. No excuses or apologies.

Now, about the pricing change. I think it is indeed time. If you’ve been doing this for seven years, I would bet your skills have improved and increased dramatically. Your rates should reflect that. (Also, I happened to look up Leishaan and she was voted “Best Massage Therapist” in her area a few years ago. Clearly, people appreciate her skills.) Increasing your rates can be hard to do, it can feel awkward to explain to current clients. If you use email to communicate with your clients, put the new pricing in an email, give them at least 30 days notice (I like 60 days) and perhaps the opportunity to buy a package at the old pricing. Put up signs in your office and tell people when they see you that the price will increase at their next appointment. (And I looked up the typical rates for MT’s in Leishaan’s area, I think she should raise to $60/hour at least.) Yes, you may lose a few clients. But you’ll likely end up working less and making the same amount of money, or as you take on new clients, making more money as you re-grow.

I also noticed that Leishaan offers a considerable discount for senior citizens. Love it. Remember that increasing your prices (and your income) will give you more time and financial freedom to offer those types of discounts. I personally love working with kids, so I offer a pediatric rate, and I donate time regularly to a local school for children with Autism Spectrum Disorders.

Take this opportunity to look at everything you offer. Are there therapies you have offered as complimentary that are increasing your expenses? <<cough>> aromatherapy <<shrug>>. Consider that. Perhaps you can still offer a complimentary version, but also have an upgrade to a super-special version with a take-home item. <<eyebrow raise>> Add 15 minutes, and $20, for extra aromatherapy foot massage and a 2 ounce bottle of fancy foot cream? <<wink>>

And hey, are there any therapies you currently offer that you don’t like really doing? Stop. Take them off your menu and have someone in mind to refer to for clients who want that modality. Now’s your chance.

There will always be a few clients who grumble, change is tough. But it’s more likely that that bulk of your regulars will say, “Good for you, it’s about time you get a raise!”

If you don’t feel confident that your skills match your pricing, neither will your clients. Confidence is key. You don’t need to talk about the increase in expenses. Your personal reasons for wanting to make more money are nobody’s business. Simply say, “I’ve been a massage therapist for 7 years and I think this pricing better reflects my skill level.” Before you sit down to refigure your pricing, read through all those testimonials. Look at all your education certificates. Sleep with that “Best Massage Therapist” plaque under your pillow (don’t really do that, you might drool on it).

You are skilled. You are worthy. Go make some money & save the world.

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