When raising rates...

[Tim S]

I am increasing the rates at the DC office I IC for and I am trying to figure out how to word my display sign.When raising rates do you feel it is necessary to provide a reason why?"Due to increasing costs, the massage therapy rates will be increased"Or do you think it is fine just to say they are increasing and leave it at that?Also, I am increasing the rates by $10 for hour and $5 for half hour ($60 to $70 and $30 to $35 for deep tissue).  Too much too soon or is it expected after all this time?  I have not increased the prices in 4 years and the new prices are going rate in my area.   I figure most clients are covered by insurance so the increase won't be affecting their wallets directly.

 

[Pompal 09.]

When raising rates...

I don't think you have to justify your rates publicly.Just say "Effective X date, rates will be Y, Z and AA"There is no way you will ever convince anyone that your costs have gone up $5-10 per massage, and even if you could, why open that can of worms?Your costs are your business - and your problem - not the clients.I do, however, take offense to your comment about services being covered by insurance. These are exactly the attitudes that have led us to such exhorbitant health care costs. Your client will only pay a penny more in the long run, but the other 999 saps in the group plan will also pay a penny more because health care providers think that money grows on insurance company trees.If your services are worth more, charge more. Period.If you think you should charge people based on their ability to pay, then don't set rates and just ask for a tithe - like an hour's worth of their salary.

 

[gman]

When raising rates...

I do, however, take offense to your comment about services being covered by insurance. These are exactly the attitudes that have led us to such exhorbitant health care costs. Your client will only pay a penny more in the long run, but the other 999 saps in the group plan will also pay a penny more because health care providers think that money grows on insurance company trees.

I meant no offense by that comment.

I was just stating that most clients probably won't think twice about an increase because they don't have to pay for it out of their own pockets (taking it for granted themselves).  While the cash paying clients will have to pay for the increase.

If I wanted to take advaneforum.xxxe of the insurance companies I could just do what the DC I work for does and bill $300 for a 5 min. adjustment with as many add on's as possible.  Very few clients even question the charges as long as the insurance pays for it.

I don't get extra pay for TP therapy, stretching, client education, re-evaluations ect.  But, I am more than happy to give those additions to my clients free of charge.  

The real injustice in this situation is the fact that the DC already bills $75 for an hour massage (for a $60 cash charge) to the insurance company so I am sure that they will be increasing that amount also to cover the increase of what they will be paying me.

I am just trying to cover my costs.  I am not trying to rip off the insurance companies or the people who pay the insurance premiums (included is me and my husband-paying 100% of our premiums).  

 

[Bobbie]

Masthera...I just recently raised my rates for services provided $5.00 - $10.00.  About a month prior, I placed a notice stating, "Please note, as of July 1, 2005 there will be a slight increase to the massage sessions offered.  Please see the brochure menu for new pricing.  We thank you for your continued patronage."  As of yet, not one of my clients has questioned the increase.  Most are aware of rising overhead costs and some have even expressed, "it's about time", since my services were underpriced to begin with.  I too debated on how I would announce/word the increase and finally decided to be direct and to keep it short.  I now feel my pricing better reflects the services I render and am glad I did it.  My best to you,Connie

 

[terry t]

Generally when I raise rates I give a months notice similar to the one Connie included.  It isn't necessary to justify the increase through signage -- it is what it is.  You may want to practice different  answers addressing your rate increase should your customers inquire.  It is always easier to answer these questions if you are prepared ahead of time.  I think it is natural for a few clients to drop off -- you never know where people draw their own lines about what they are willing to pay or think they can afford -- and you can't worry about them.  As some clients will drop off new ones will find their way to you.Good luck.

 

[Justice]

Thank you Connie and Kathy! I definetly think that keeping it short, but having answers ready is the way to go.So many things have changed in the last 4 years, so I am hoping that an increase won't be a shock to anyone.  Especially since I have never increased the rates.The DC suggested to me that I should raise the rates about 2 months ago, but I always hesitate to mess with something that people have become used to.  My fault for not increasing them before.I was going to give 2 weeks notice, but I will increase it to a month since you both have recommended that.I am sure that it will be fine just like when I raised them at the chair massage job a few months ago.  

 

[kittyluvrs18]

You do not have to give a reason to increase your rates.  Matter of fact, if you do, it may look like you feel bad or not confident about your decision.  Just like the rest posted, put a sign up in your office stating the facts and when it goes into effect.  I have never had a problem with raising rates.  I even had one client say, "It's about time".  

 

[louise d]

When raising rates...

Masthera,Look at the brighter side. Increasing rates may give you a difficult moment or two, getting yourself "set" for possible questions, etc, BUT it also gives you the opportunity to advertise or talk more about your maintenence plan!I was just talking with a dear friend about how I couldn't bear to do the $5 rate increase I had planned on when I first opened GBs. I feel it'll be the right timing at our year anniversary. But that got me to thinking: I still have those wonderful 'standing appts'. Since my increase is small, I thought it'd be an even better deal for them if I let them know they could remain at the same 'standing rate'... in fact, saving THAT much might attract more people into the standing program.Jill/Sagetherapist

 

[lichen]

When raising rates...

I still have those wonderful 'standing appts'. Since my increase is small, I thought it'd be an even better deal for them if I let them know they could remain at the same 'standing rate'... in fact, saving THAT much might attract more people into the standing program.

Does that mean those clients would save $15 when they keep their standing appointment?  Would new clients joining the maint. plan save $10 still?  

I don't want to hijack this thread...is it safe to ask how many of us would keep our regulars at the old price and just raise the price for those once-in-a-while clients and all the new clients?

I have known some therapists to do it this way.  

Masthera- I agree that no explaination needs to be given, just plenty of time to be aware of it.

 

[MichealUllman]

Masthera, Look at the brighter side. Increasing rates may give you a difficult moment or two, getting yourself "set" for possible questions, etc, BUT it also gives you the opportunity to advertise or talk more about your maintenence plan!

Good thought, but I only offer the maintenance plans to my personal clients and not the ones at the DC. آ About 95% of the clients at the DC are insurance paid so they are not really interested in those types of plans.

I don't want to hijack this thread...is it safe to ask how many of us would keep our regulars at the old price and just raise the price for those once-in-a-while clients and all the new clients?

I have done this before. آ I gave the flyer to the DC today.  I'll post more later about that. :

 

[Kanchan]

When raising rates...

Does that mean those clients would save $15 when they keep their standing appointment?  Would new clients joining the maint. plan save $10 still?  

My personal answer is that they stay at the current rate (that would be $15 off!). I don't want to keep track of pricing tiers, etc, so each new person would be the same if they jump on the bandwagon. I won't be losing out - its a fair rate to me now, so should be fair a few months from now. remember, I've done the math - I'm still getting paid for 17 per year instead of 12; more from those who do every two weeks, or every week.

Jill/Sagetherapist

 

[i like grapes.]

I recently raised my rates on my website and brochures but had the timing coincide with my quarterly newsletter. I let all my existing clients know that this does not apply to them until the first of next year so they feel that they have a six month grace period for being with me this long.  That has gone over well.  I also point out the ways which they can still keep costs down through multiple bookings per household and advance group gift certificate purchases.  Nobody is unhappy or questioning the reasons as they know I am busy. Seems to be a good middle of the road approach.Steve

 

[dorkydes]

I agree with everyone who has indicated that a justification to clients for your rate increase is unnecessary.  I would also add that when I have raised rates in the past I usually make the announcement in tandem with another one that offers an added benefit to clients.  For example, I sent out a letter to clients this past January giving them 3 months advance warning of a rate increase for the spring.  At the same time, I also knew that I would be adding heated stone massage to my services menu in the fall so I gave them a heads up on that as well.  It's all about balance!It's also been my experience  that clients don't tend to balk at a price increase as long as they feel they continue to receive excellent service from their MT.  Several of my clients even mentioned they were happy to see me increase my rates as they thought it was about time I gave myself a raise  

 

[PAYET M]

I have a question? No ones clients said any thing negative?  I haven't raise my rates in three (3) years.  And not sure how to raise them only $5.00. All, not all, but nearly all my clients come to me cause of the rate I charge. (about $5.00 to $10.00 below the others)

 

[Kitt Shelby]

When raising rates...

Unless you are WalMart, competing on price is a losing proposition.If your clients mainly come to you because you are the cheapest, you have a couple of major issues to deal with.1) It tells all your clients you are not as good as the other therapists. If you charged what the others charged, your clients would stop coming to you.2) If someone prices lower than you, you lose all your clients.It must be devastating to be in a position to nurture and soothe and know they don't come to you for your nurturing and soothing touch, but rather to save a few bucks.You should raise your rates and focus on the clients that come to you for you. If that means you have to do massage PT and work at a non-massage job to make ends meet, you will probably be happier for it. You will have much more positive energy for the clients that remain, and you might even attract new clients who see you as being on par with the competition.

 

[jflmt]

No reason needed to raise your rates, so long as it's been a reasonable amount of time since your last increase.  Masthera, question though, why don't you upcharge your clients for additional services like TP therapy, etc?  They are valid extra services.   When you get your hair cut, they charge extra for color, deep conditioning, highlights, etc, don't they?  Personally, I would always prefer to do less clients at a higher rate than more clients at a lower rate.  If you want to keep the lower rate people at that rate institute a plan like sagetherapist (Jill) has recommended.  I always up my discount offering (somewhat) when I raise my rates to guarantee more visits from good clients but even they end up paying a little more.  I look at it this way, if they leave because of your rate that simply opens your schedule for clients willing to pay your new rate.  It's inevitable, clients will always try to bargain shop the best therapists.  I tell them good luck in their endeavor.  More than not, they find their way back to you -- for the work, regardless of the price.  I've had clients threaten to leave because of price increases, it's their choice.  Your rates are justified for your area and more importantly, for the work you do.  Good luck, charge what's fair based on the work you do and the work will come to you.  So often on the board we hear the desperation in therapists' posts that they CAN'T raise their rates because of fear.  Unfortunately, some clients are counting on that.  Market yourself when you're slow and keep the flow of business coming in your door and never be so beholden to any client, only thankful. Good luck, Joe E.

 

[Ed34]

When raising rates...

You should raise your rates and focus on the clients that come to you for you. If that means you have to do massage PT and work at a non-massage job to make ends meet, you will probably be happier for it. You will have much more positive energy for the clients that remain, and you might even attract new clients who see you as being on par with the competition.

 HappyHands I agree with R&R.  Written so well I have nothing to add. Here is the update with the rate increase (I will try to keep it short):I gave the DC the flyers so he could look over them before I put them up.  They ended up in the hands of the office manager who then told me that since the insurance companies won't pay anymore (because they are already billing $75 [5-15min. increments] for a $60 hour massage and probably can't get away with doing more-this is what I know and have nothing to do with) and because they lose out on money with PI and WC cases (because she doesn't follow through on them) that the increase would only be for the cash paying clients(about 5% of my clients there).  After feeding me a load of BS and me calling her out of some of it, I ended the conversation with "I will not charge the cash clients more than the insurance clients.  That is like punishing them because they don't have the insurance coverage for massage."  took my flyers and went back to work.  I feel that everyone deserves to move up the ladder in life (which usually requires money) and if I have to remain working there for the same amount of money after 4 years I would rather chew my arm off!  I decided to raise my rates on the recomendation of the DC!  Now they are telling me it only affects 5% of my clientel.  That is unfair to me and to the clients that are in that 5% IMO!  He won't give me more that 50% of the charge and that is fine since they provide so much, but what about being paid more for my time there, experience, ect.I know that I have complained in past posts about this place and I always end up staying.  I figured it has been the "adult" thing to do so that I can continue to save money and get set up to get an office of my own instead of working at home the rest of the time.  But I have had it.  I feel that I was treated like a moron, disrespected as a professional, and taken advaneforum.xxxe of.   I WILL be quitting and going off on my own. Now I just need to know what to write in a resignation letter and/or whether I need to write one?I have built up a great clientel at my home office.  They are a fantastic and loyal bunch.  I offer maintenance plans, table massage discounts for the clients that get regular chair massage, ect. I have been focusing my attention to my home office and not so much the DC office for a while knowing that one day I would be leaving.  I can't rely on the DC office for anything (making accurate appointments, calling about cancellations, ect) and I would rather put my attention into my home office and get that off and running than deal with anything extra there.What I have done at the DC works, I am booked ahead solid for 2-3 weeks and have been for years, so don't mess with it.  Now the time has come for me to move on as a professional and do what I have always wanted to do.Moving on and gaining back my sanity override the desire to stay there under stress and save money.  Thank you for dealing with me through all of this.  Feels good to know that I am DONE!  ;D

 

[Carton Size]

When raising rates...

So often on the board we hear the desperation in therapists' posts that they CAN'T raise their rates because of fear.  Unfortunately, some clients are counting on that.  Market yourself when you're slow and keep the flow of business coming in your door and never be so beholden to any client, only thankful.

Good luck, Joe E.

True words of wisdom Joe E., thank you!

 

[iluvemocharlybrown]

Masthera, question though, why don't you upcharge your clients for additional services like TP therapy, etc?  They are valid extra services.   When you get your hair cut, they charge extra for color, deep conditioning, highlights, etc, don't they?  

I like to keep the freedom of services so that I can offer whatever is needed in a session without having to charge more for it.  I always hated working for spas and having to determine the difference between services and then charge accordingly.I like to charge a little more overall, but include everything.

 

[juank243]

When raising rates...

That is like punishing them because they don't have the insurance coverage for massage

Sadly, this happens every day, but also in reverse. Medicare - the biggest insurer in the country - pays fixed, very low rates to medical professionals for each approved procedure. If you are elderly but economically overqualified for Medicare, you or your private insurance company, pay a higher price for those same services.

Nothing is going to be fair. When  you are on your own billing insurance claims, you will face the same ceiling on rates. Yes, you will get 100% of your fee, but you also get 100% of the claim filing work.

What is unfortunate is that only 5% of your clients could have their rates raised. That works out to pennies across every massage you do.

Resigning is easy. You just put in writing you give two weeks notice. No other information necessary.

Or you can do like our reservationist did today - decide staying at home to wait for a couch to be delivered was more important than coming in to work, knowing we were leaving on a business trip at noon! That is more like getting fired!