Suze Orman

[Cov]

So I'm watching the PBS special on Suze Orman tonight....I like her anyway, but when she mentioned massage therapists, my ears perked up. She said a number of MTs and hair stylists have said to her that they simply CANNOT raise their rates, for fear of losing clients. Suze said that we, as women (sorry, guys, the show tonight was geared towards women! :} ) CANNOT put ourselves on "sale". We de-value our work, and when we do that, customers value what we do less as well. It made me think about all the times I sold GC to family at a discount, or offered a discount to clients, thinking it would keep them. I am standing firm from now on. I will not be afraid to raise my rates when I see fit, and I will not offer discounts simply because someone asks for one!
Just had an empowering moment tonight, wanted to share!! :}

 

[Alex M]

I love Suze Orman, I have one of her books (can't think of the name of it). But, I think that is a brilliant point. Last Christmas was the first time I didn't discount my services, and I sold more gift certificates/packages than I had in previous years. I feel that people really believe "you get what you pay for".

 

[MOMMY SINCE 07-31-09]

I caught part of that show. What struck me was when she said that anytime she speaks at an all-female event, the introductory speaker will always talk about the importance of volunteering, stressing that every woman should volunteer. But when Suzy speaks at an all-male event, the introductory speaker doesn't mention volunteering at all, and certainly doesn't tell all the men in the audience that they need to volunteer. I found that very interesting.

 

[MixedMojo]

Excellent points on not discounting or charging too little. I remember one of the worst experiences was working on a client that I had 'over the phone' offered two for discount. Well she was a wreck and needed a bunch of work. After the first session I was hoping she wouldn't come back. Well she called me again to get her other discounted massage.
:roll:

After the second discounted massage I never saw or head of her again. Man never again. :?

Jason

 

[Bec]

I tend to be very skeptical of advice from the famous, but even I will admit that I worship Suze.

 

[wannamcfranzwiththat]

Im the same way about advice from the rich & famous. I tend to stop listening when they start in with their sales pitch "just buy my yadda-yadda-yadda & you TOO, can make millions!" I do love watching Suze, though. Even if she DID try to sell me something at the end of the program...CLICK over to M*A*S*H lol

 

[Shania]

I received a massage this week from a therapist who posts a Sliding Fee Scale in her office. Her price range is $25-$55/hour (depending on income) when the average price for a massage in my town is $65-70 per hour. I paid her at the top end of her range, plus tip, because I don't feel I need any sort of discount. Her goal is to make massage available to everyone, regardless of income. And while that's an admirable goal, I realized that if a therapist does this on a regular basis, they can actually end up putting themselves below poverty level. That's because we're not a volume business. There's a limit to how much massage we can each do per week. Add to that our business expenses & self-employment taxes, and we make a modest income even when we charge full-price. Cut that in half, and we sacrifice our own financial wellbeing.

I got the feeling this therapist wished I would offer a sliding fee scale as well, and at first, I felt a little guilty about the difference in our rates. Then, I remembered your post Bodymovers. I have the right to make a good living, and there's nothing immoral about that choice.

 

[ryuzog]

Great topic! I have recently been wrestling with these sorts of issues in my practice. On one hand (pun absolutely intended), I want to remain competitive in an already saturated market and also be able to retain some of my cleints that seem to be slipping away due to increasingly difficult economic conditions. Yet on the other, I feel like I may be discounting myself out of business. I recently instituted a sliding scale of $45-$65 for 1 hour sessions in hopes that it may intice some of those former clients back into my office. However I'm starting to feel like the sliding scale may be more of a slippery slope.

 

[stallion]

Yes, we do have a right to make a good living! I give discounts to a few clients who are on fixed income, but for the most part, my clients get discounts through my referal program, which is subject to change at any time. I want to change it to a bonus service instead of $$ off, especially when I hire on an employee. My bonus will be an extra 10 minutes on a 30, 60 or 90 minute session OR a minty foot masque with hot towels (which is also an additional 10 minutes.) Clients can have their choice of the two services.

 

[sweetpeach]

Yay Suze Orman ;-)

When I graduated I set my rates at about mid-level for the market... after about a year, I got a new client who convinced me to raise my rates.

Frankly, I'm not affordable for a large perceneforum.xxxe of people who manage to live here. I'm still dealing with that, rooting out every last bit of guilt... it helps when new clients affirm that I'm worth what I charge.

It also helps to use the Cost of Living Calculators online to determine differences between areas. I'm not sure why the price of massage seems so "flat" across the nation, relative to the very "spiky" cost of living.

Anyway, why do you need to charge less when she's making massage affordable for those who can't pay you? There are plenty of massage therapists charging half my rate, so why feel guilty? I'm not denying anyone the benefits of massage.

Meanwhile, there are plenty of people who CAN afford my rates. And their Gucci shoes, or their classic car, or a car at all in the city, for that matter.

When seeking to "not deny anyone" one must include one's self in the picture.

 

[mo ree uh]

When seeking to "not deny anyone" one must include one's self in the picture.


amen to that :}

 

[Blinkie]

I raised my rates and I did lose clients but the one I lost where the one's who cancelled last minute or didn't show.

 

[Sallow]

I tend to charge the going rate in the community. However, to encourage consistancy and pre-booking appts, I do offer a discount on a pkg of 3 massages. They must be used within a specified period of time and if they need an extention, they will pay a fee. I also charge a little bit more for g/c. I know many on the board felt that wasnt good business but it has worked out fine.
I guess that doesnt really deal with the issue of determining your worth and charging accordingly but it works for now.

 

[jonathan st.thomas]

Someone in an email group brought up Suze again and got me thinking.

A lot of businesses discount, not just massage practices. But, lets not forget... we are in business! I am sure you all know of businesses who have loyalty cards: spend so much get $$$ off. Get so many punches and get a free sub. Sales here, discounts there... buy something get something free....

I still do my $10 off for a referal, I have a problem getting away from it and offering a free 15 minutes instead. I really thought about it and here is my conclusion:

If I offer a free 15 minutes instead of $10 off, it is going to screw up my schedule. I put 30 minutes in between clients. If I had someone else in my office this might be okay, but being the only one working in my office I can forsee clients waiting outside for me to unlock the door and getting behind because one of my sessions went over. Eventually, giving away 15 minutes here and there will cost me money anyway because I do my best to limit my massage hours. If I give away enough, it will keep me from accepting a paying client.

I have been toying with the idea of having a monthly fishbowl drawing, but that still is giving something away. Get a 15 or 30 minute massage, enter once. Get a 60 minute massage enter twice. Get a 90 minute massage enter 3 times. Buy a gift certificate enter once. Give a referal enter 4 times. Buy $10 or more in retail enter once. I could give away retail or massage.

I can tell you once I have an employee, my referal program will need to change. How can I afford to carry on my referal program with the clients of the employee? A new employee would be bringing in lots of new clients through referals (hopefully!) and I would have to pay my employee AND give a discount?? That will be the straw that breaks the camels back.

 

[Darlene]

I have been toying with the idea of having a monthly fishbowl drawing, but that still is giving something away. Get a 15 or 30 minute massage, enter once. Get a 60 minute massage enter twice. Get a 90 minute massage enter 3 times. Buy a gift certificate enter once. Give a referal enter 4 times. Buy $10 or more in retail enter once. I could give away retail or massage.

WOW GL, that's an AWESOME idea! It accomplishes a couple neat things: (in no particular order)
1) It motivates people to sign up for longer sessions.
2) It puts a reasonable time limit on the amount of services you give away.
3) It's an easy thing to work into your schedule.
4) Most important, it gives the client a more tangible event. This helps point out to them more directly that you're giving them something, rather than just uneventfully slipping them an extra 15 mins into a massage that might be easily forgotten. A drawing is perfect to focus ppls' attention.

Please let us know how that works out for you if you decide to do it

Hugs,
~Jyoti

PS: That could work for referrals, too! (I've been toying with a drawing type of idea as a referral thank-you myself. )

 

[DOLL]

If I offer a free 15 minutes instead of $10 off, it is going to screw up my schedule. I put 30 minutes in between clients. ...Eventually, giving away 15 minutes here and there will cost me money anyway because I do my best to limit my massage hours. If I give away enough, it will keep me from accepting a paying client.

$10 off is money out of your pocket. 15 mins of your effort when you are not otherwise booked does not reduce your income, just makes you a little more tired!

Until you are booked solid every day, this won't be an issue.

I have been toying with the idea of having a monthly fishbowl drawing, but that still is giving something away. Get a 15 or 30 minute massage, enter once. Get a 60 minute massage enter twice. Get a 90 minute massage enter 3 times. Buy a gift certificate enter once. Give a referal enter 4 times. Buy $10 or more in retail enter once. I could give away retail or massage.

We live in an instant gratification society. People want something now instead of a chance at something later.

I can tell you once I have an employee, my referal program will need to change. How can I afford to carry on my referal program with the clients of the employee? A new employee would be bringing in lots of new clients through referals (hopefully!) and I would have to pay my employee AND give a discount?? That will be the straw that breaks the camels back.

I don't see why. Make it a condition of employment. One of the few benefits of having an employee is YOU set the terms. The referrals will come to the practice - some of yours will go to her and vice versa. THat also helps create a sense of teamwork if you are helping each other out.

 

[Ima Stoodint]

RandR, I agree with the instant gratification thing. That is one reason why I opted for giving $10 off instead of having clients refer 4 or 5 people and then getting a free session. The other reason is because I didnt want to keep track of the referals.

GrateLakes wrote:

I can tell you once I have an employee, my referal program will need to change. How can I afford to carry on my referal program with the clients of the employee? A new employee would be bringing in lots of new clients through referals (hopefully!) and I would have to pay my employee AND give a discount?? That will be the straw that breaks the camels back.


I don't see why. Make it a condition of employment. One of the few benefits of having an employee is YOU set the terms. The referrals will come to the practice - some of yours will go to her and vice versa. THat also helps create a sense of teamwork if you are helping each other out.

What was the condition of employment you are talking about?? Do you mean I should pay the employee less when they have a referal come in if I offer a referal discount? :? Could you please explain a bit further? Thanks

 

[Rick Carson]

Thou shalt give complimentary 15 min. upgrades to clients who refer others to our practice.

 

[Big Yoda]

Discounts

I don't like giving discounts i charge $90 and most clients pay $120. clients i have had for 8 years, i do charge 1.00 a minute minimum of 35 minutes and they bring there own sheets. My practice is successful and i have 2 therapist on staff. I know it can be tough, especially around the holidays, but dont do discounts, honor the clients you currently have so they feel special and stay loyal knowing there getting a great deal. But new clients--- no discounts, you will see an increase in $$$ even if you loose a client, its well worth the long term investment of earning what your worth.

 

[All Star]

For another perspective I have for this past year tried something kind of different. I tell all my in-call clients (not outcall) that they can pay me whatever they want, whatever they feel good about. I started it as an experiment because I just wanted to see what would happen.

What happened is that my in-call revenues are up considerably this year. People are just giving me more than ever and I'm not even sure why. Perhaps the psychological effect of having free will has taken over and they don't feel pressured by a hard line price.

Some even give me too much and I give them some back saying "Thanks for your generosity but I don't want you to paint yourself in a corner by giving me too much because you feel good right now. Here's a little back for your next visit." I'd rather have them come back regularly then feel "Darn, I gave him so much last time I'm afraid to come back because I can't afford that today."

It's been an interesting experiment and I plan to keep it going. Wonder what Suze would say to that?