rate increase wording

[Pipes]

I have just realized that in the 8 years that I have worked at the salon I work at..I have raised my rates ONE time and that was like 2 years ago. and it was only a $5 increase!.but I am on the low end as of now and want to raise my rates $10 dollars..my rates right now are:
$30 for half hour
$50 for hour
$70 for an hour and a half.

Anyway..I feel guilty for raising them because i did two years ago, but cost of living is certainly going up..

so, my main reason for this post is this:

I am sending postcards out to regulars informing them of my October 1 rate increase..is that enough notice? AND them main reason I'm writing is this, whats a good wording to use informing clients?

 

[Risika]

I haven't raised my rates yet, so I don't have wording for you, but I think a month notice is just fine! $10 is not a huge increase at all.

I've been working just under 5 years and haven't felt the need yet, but don't feel guilty. The cost of living and the cost of doing business *does* just keep going up.

 

[Annie]

I haven't raised my rates yet, so I don't have wording for you...

I think you have a good start with this

The cost of living and the cost of doing business *does* just keep going up.

How about this:
With the cost of living and the cost of doing business continually on the rise, it is necessary for me to attempt to keep up with the pace

As of October 1st, the following rates will be in effect.
*$40 for half hour
*$60 for hour
*$80 for an hour and a half.

Thank you for your understanding and continued patronage.

To your good health,
Jacqueline

 

[Someone]

I just put up a sign in my treatment room that states
"as of Sept 1st, Rates will be: ...."

No need to "justify" it

 

[Angelina]

Don't waste your money sending out postcards informing people of the increase. Things go up all the time and we are given no warning.

How many other businesses send out notice of rate increasees?? Does your hair dresser? Does your chiropractor? Your doctor?

As a courticy, I inform my regular clients of the rate increase about 6 weeks before it happens as they are paying for their session. I let people buy an extra package at the old price if they want.

I highly recommend rethinking the price of your half hour. Have you thought of only raising your half hour by $5, your hour by $5 or $10, and your 90 by $10 or even $15? Perhaps you don't like half hours? Is that why you want to increase them so much? Personally, I really dislike when someone has an hour only $10 to $20 more than the half hour price. Why even bother having a half hour then? A lot of places are getting away from having half hour sessions. Maybe consider dropping the half hour and having 60, 75, and 90 minute sessions instead.

Just my 2 cents.

 

[princess]

Actually both my chiropractor and my hair dresser informed their clients of rate increases.

I think a month notice is great. I like to send out postcards to my clients because it always generates appointments from the "I'm going to call one of these days" type of clients.

Angela

 

[Da laiker]

your right...maybe $40.00 is too much for a half an hour...thank you!

I like the wording for raising rates too!

 

[Android]

To peacenut: I believe the reason that 30 minute sessions cost so much more per minute than 60 min sessions or longer is that they actually cost more per minute. The time for intake, the client dressing and undressing is the same, you have the same laundry costs, etc. A half hour should not cost half of what a 60 minute costs. It should cost almost the same.

As far as pricing goes, there should be a base cost simply for seeing the person, no matter how long you see them for. Maybe that would be $30. Then you can charge .50 per minute on top of that. Therefore the 30 minute would be $45, and the 60 minute would be $60, 90 minute would be $75. This is how many places do their pricing (even if they use different numbers, it's the same concept).

Many business-oriented places (like spas) are getting away from having half hours because it is simply not worth the time it takes to see a person, when you're only making a small amount of money. The price should be high, or they should not have them at all.

So jacqueline, I support the price you have for your 30 minute sessions and I believe it reflects the actual cost. Good luck raising your rates! The suggestions you've gotten have been good.

 

[johnny fettcakes]

To peacenut: I believe the reason that 30 minute sessions cost so much more per minute than 60 min sessions or longer is that they actually cost more per minute. The time for intake, the client dressing and undressing is the same, you have the same laundry costs, etc. A half hour should not cost half of what a 60 minute costs. It should cost almost the same.

As far as pricing goes, there should be a base cost simply for seeing the person, no matter how long you see them for. Maybe that would be $30. Then you can charge .50 per minute on top of that. Therefore the 30 minute would be $45, and the 60 minute would be $60, 90 minute would be $75. This is how many places do their pricing (even if they use different numbers, it's the same concept).

Many business-oriented places (like spas) are getting away from having half hours because it is simply not worth the time it takes to see a person, when you're only making a small amount of money. The price should be high, or they should not have them at all.

So jacqueline, I support the price you have for your 30 minute sessions and I believe it reflects the actual cost. Good luck raising your rates! The suggestions you've gotten have been good.

ShivaShiva,

I can see your point, and it is a valid one. Let me express my view.

I have found my 30 minute clients to be the most frequent of all of my clients. My area is a little blue behind the collar. Lots of working class folks around here. I have one woman coming in twice a week for 30's, I have one weekly client for 30's, and at least 5 clients who come in every two weeks for 30's.

Personally, I don't think I would be as successful as I am today if I had a higher priced 30 minute session. Let's face it, a good massage isn't cheap. 30 minutes is enough to get people to try you out without breaking the bank. 30 minutes is what a lot of newbies start with. I can gaurantee you will get your hands on more people if your 30's are lower. The more people you get your hands on, the more people you can give coupons to give their friends and family. Then you can upsell the hour and it's benefits. Heck, give them a 90 minute session for the price of an hour and maybe you can get them hooked on bigger money maker.

Shiva, your idea would suit a very successful therapist well. I had my pay increase planned for the next time already. After reading your post, I am rethinking it.

So, to the OP, if you have a thriving practice, I would recommend keeping your half hour on the higher end and if you are still building your base clientel, keep it on the lower end.

Let us know what you decide to do.

 

[meanolmaw]

I'm going to start a spin-off thread about pricing a 30 minute massage to keep the topic seperate from the discussion about raising prices overall.

New Thread Here: http://massageplanet.com/forum/viewtopic.php?p=122074#122074

Angela

 

[Pompal 09.]

I always send out a letter when we raise rates. Last time was a number of years ago. I think it lends toward a more professional feel, and gives the client some time to digest the new increase.

I don't care if others don't that. It is what I feel is the right thing to do when possible.

 

[Wendy b]

If were to recieve such a letter and I was opposed to a rate increase, that letter might give me enough reason to shop around by making a few phone calls.

I tell my regular clients face to face about the rate increase. It's free, it's easy, and its more honest. I don't mention the economy or anything. I just say our rates are going up on this Date. I usually send a newsletter at the same time the rate increase starts and list the prices, but I don't say Look! We raised the rates!

I don't make a big deal out of raising my rates. No fan fare, no talk of the economy, and no letter or postcard. Two weeks before the increase you will be swamped, and for a month after you could be slooowwww.

When I collect payment, I always say how much the session cost. For those who come in infrequently I will just say what the price happens to be. If they comment on the increase, I will tell them when I raised my rates.

Plus, I have a price list on the wall that clients can't miss. This makes it hard for clients to argue, hey, the price is right up there!

 

[ruckus1837]

I can understand your view as well peace, but my clients would be upset (as would I) if I planned to play $50.00 as always and the therapist says "oh I went up, its now $60.00.." sounds sneaky to me or maybe if not sneaky, just unfair..I think a warning is fair and I would appreciate it..trust me , my clients may look around for a cheaper price, but I've already checked and I will STILL be along one of the cheapest in this area..

it's also a good idea to tell them in person too, and to post it in your room, but some people who only come once every few months won't be there to read it, so I think a friendly card to inform them is a good idea.

 

[anlibeth2000]

I don't feel it is sneaky. Not all of your clients will even read the postcard.

I know this to be true because once in a while I send out postcards to all of my clients with a special offer, usually a completely free add on. All they have to do is bring it in with their appointment and I will honor it. Of course there are those who book infrequently and book to use the coupon, but I am always shocked by how many regular clients (monthly or more frequent) don't try to use the coupon. There is no catch, it is 100% free!

My thoughts on this are that not everyone reads their junk mail, or they don't flip it over. The last one I sent out was a big over sized postcard, about 5.5 inches by 8 inches. I sent out nearly 700 postcards last time and only got back about 30 coupons, 75% of those were infrequent clients. The promotion has 2 more weeks left and I am sure a few more will trickle in.

 

[Robert T]

Question. When you do rate increases and let people pre-pay for packages - do you put an expiration date on the package and if yes, how long is it good for? We just raised our rate for couples massage and some people pre-paid. Our normal expiration date on GC's is 1 year.

 

[kazi]

If were to recieve such a letter and I was opposed to a rate increase, that letter might give me enough reason to shop around by making a few phone calls.

I tell my regular clients face to face about the rate increase. It's free, it's easy, and its more honest.

I don't mind if my clients "shop around". If you aren't sending a letter because you are trying to keep them from shopping around, I can only say, raising rates and telling them at the office, isn't going to make a difference. If they don't like the increase, it won't matter if they get a letter or are told face to face. I also don't see that it being more (or less) honest to tell someone when they come in the office (instead of sending a letter), that there will be a rate increase.

I don't quite get that.

I send for my reasons, you don't for yours. Different strokes for different folks and for different clients. My clients appreciate it when they are told most anything in advance, and I try to do it at leat 3 months prior when possible. I don't like being "sprung" on, and neither do the people I work on.

BTW, here's a copy of my past letter (from an older thread)

My letter from 2005 - I haven't raised rates since that time.


Dear clients,

In the seven years since our office moved to our current location in 1998, we have successfully kept our services at the same rates.

Effective November 1st, 2005 we will have new rates:

All massage and therapeutic bodywork
1 hour - $75
1 1/2 hours - $115
2 hours - $160

Please forgive us the inconvenience.

Sincerely,

nnn

 

[tvcclan1]

A street detour is an inconvenience.

I am from the school of thought not to make a big deal out of it and certainly not make it an official anouncement of it.

 

[Unpretty]

I would post the new rates in your office and the effective date. For the post card I wouldn't explain or apologize people know the cost of living increases.

 

[grandma zaza]

I have decided to post it in my treatment room and I am sending out postcards and I didn't say why..i Just simply stated the fact that effective october 1, my rates would be ....and stated the prices. and I thanked them for they're business.. :

 

[school]

I guess if you have a small practice, sending post cards won't break the bank. But I have nearly 1000 addresses to mail to, so it costs me more. I prefer to send out postcards for multiple reasons.