pricing options, looking for feedback pls

[Pompal 09.]

I recently found this forum and it's amazing! You all have such great advice, thank you for sharing. I have started a chair massage business and have done pretty much everything except go out and get clients. I feel much better about that part tho after finding this forum. Anyway, I was looking for feedback about my prices. I live outside of Philly and if the employees pay for the massage I am going to charge $20 for 15 minutes. The massage will be a full 15 minutes long in 20 minute time slots. If the employer pays I was thinking of charging $75/hr if I'm there for 3 hours or less and on an infrequent basis, $65 if I'm there for more than three hours and on an infrequent basis. Then $70 for 3 hours or less on a frequent basis, or $60 for more than 3 hours on a frequent basis. Is this making things too complicated? I would like to offer an incentive to book me for more than 3 hours and also to book me on a regular basis. Do you guys charge differently based on how long you're there or how often you're booked? Thanks so much!

 

[greatdeals_007]

You seem to be on the right track.

Our rules of thumb are:

1) Chair Massage is ALWAYS more expensive than local office/clinic rates
2) Employee paid is ALWAYS more expensive than employer paid.
3) Contract rate discounts kick in after SIGNIFICANT commitment -- at 5x, 10x and 20x your average one-time event, for instance. Businesses understand this -- typically supplies give a 2% discount for every DOUBLING of volume.

Simple is always best.

One thing to be careful of is the 15 paid minutes out of 20 set aside.

If you are fully booked = 3 clients that hour = you only make $60. All of your Employer rates are higher than this, because they end up paying for that extra 5 mins.

 

[happy]

Thank you for your reply. I've been having issues with coming up with pricing. Why should employee paid be more expensive than employer paid? That doesn't make sense to me can you please elaborate? Also, I only want to do three 15 minute massages per hour to ensure that I stay on schedule, that people don't feel rushed out of the chair, that I don't efel rushed, etc. How do you work it by having 4 an hour? Also, do you find that it's not a huge issue at most companies if you don't adhere strictly to the schedule? I appreciate your feedback!

 

[teresa j]

Regarding Employee paid vs. Employer paid...

Employee-paid means you are going to have unpaid gaps in your schedule. People don't sign up, they are out sick, forget or have to cancel and won't want to pay you. When you account for all of the standing around time, the $80 - $90/hour you charge nets out to about $60 - $70.

Secondly, if a company is going to the trouble of setting up a wellness program, contracting your services, organizing the sign ups, paying you for idle time, commit to regular visits (read: volume!) etc etc, why should you charge them more than if they did none of those things and just let you and the employees fend for themselves, so to speak. The company is a much better customer than individual employees and should be treated as such in your pricing.

We do stick to a schedule. If you run late, you get what time remains. But our 15 minute slots include any chair adjustments. It is hard to make any money when you are idle 25% of your hour. None of our therapists have ever complained. We also schedule a lunch break after two hours (never do chair massage before 10AM, so it fits in just fine)

 

[Louise C]

Hmm, this is giving me a lot more to think about. Do you mind if I ask what you charge if employees pay? Do you have any policies in place for lateness, absences, etc when employees pay? What perceneforum.xxxe of your contracts are employer paid?

I get what you're saying about rewarding the employer for paying. Everything you said makes a lot of sense.

The one thing I don't like is using the massage time for chair adjustment, etc. I also like to have a minute or two to chat with the client without having to get them on the chair asap. You said that if the client is late they get what time remains, but what if the therapist is late?

 

[Brian]

Do you mind if I ask what you charge if employees pay?

$20 for 15 mins.

Do you have any policies in place for lateness, absences, etc when employees pay?

They get what time remains. No same day cancellations, or they have to settle up before their next session.

What perceneforum.xxxe of your contracts are employer paid?

All but one (one of the parent companies that owns many of our hotel clients). We got out of the user-pays business. Too much work, too little return, too many cancellations to make it worth while.

You said that if the client is late they get what time remains, but what if the therapist is late?

Then the therapist gives free massages to all affected clients. If the therapist wants to get compensated for client screw ups, they have to be willing to compensate clients for their own shortcomings. Very effective.

 

[Anna I]

So do the employees do a pretty good job of coming on time and realizing that they can't stick around to chitchat? Are the employees good at paying for sessions they missed?

Did you have any trouble when you stopped having the employee paid option or did you implement that after you were well established?

I really appreciate your replies, you've given me quite a bit to think about!Thank you

 

[Julissa R]

Safe yourself all the trouble....

And ask that payment be collected upfront. I always ask the "contact/scheduler" person at each workplace (where employees pay) to present me with a cheque or cash as soon as I get there for the scheduled day. This way I get paid no matter what and the onus is on the patient/clients to make sure they come get their massage AND come on time!

On the rare occassion someone cant make it because of an emergency, I will just write their name down so they have a "credit" for the next time I come. I don't re-imburse and have never had any trouble doing it this way.

 

[MamaBas]

Safe yourself all the trouble....

Love the idea of collecting payment ahead of time. I've been seeing that a lot and will definitely implement it. Thanks. I also created a policy form that I'll have everyone sign and keep a copy of just to make sure they are aware of everything and there are no surprises.

Do you mind if I ask what you charge for employer pay and employee pay?

 

[Your Next Ex Wife]

How much I charge...

I charge the same as RelaxandRejuvenate...$20 for 15 minutes right now. I get resistance when I try and charge more at this time. However, I'm in Canada so I guess with our stronger dollar right now I'm making more than you U.S. therapists....lol.

 

[Xylon]

How much I charge...

Do you also do four massages in one hour? And do you then charge $80 for employer paid?

Our dollar has taken a tumble!

 

[Tina B]

People/hour and rate

Currently, I don't treat 4 people per hour. Assuming were talking 15 minute treatments, I do 3/hour with 5 minute breaks for transition time and relationship building/question & answer period. My opinion is that the information you offer people right after the treatment is equally as important as the treatment itself.

If an employer is paying, I currently charge $70 per hour. However, I am reviewing this as well.

Dave

 

[Yavish]

People/hour and rate

I don't want to do 4 people per hour, I would rather do three and that's what I am going to do for the exact same reason that you are doing it.
How you price is exactly what I want to do but I am getting static for it from some people on other boards which is why I have so many questions. I will be making a bit less money if the employees pay but I don't mind that. I am trying to nail down what to charge if employers pay and $70 was the number I came up with. A lot of people are saying that if employees pay I should make more and make less when the employer pays. But the way I look at it, the employer can afford to pay a bit more and I'm not going to try to fit in 4 fifteen minute massage per hour if the employees pay so I am willing to take that cut if they pay.
Do you get what I'm saying? I'm so glad you posted because how you are doing it is exactly how I want to start, I'm just surprised at some of the static I've been getting when I ask about it.

I also was thinking of charging the employer more if they only have me come in a few times a year and charging less for more frequent visits, you know, to try to encourage more frequent visits. What do you think of that?

 

[Chris Haggard]

People/hour and rate

Dave, do you offer a discount to the members of your networking group(s)? If so, do you mind if I ask what it is?

Thanks

 

[maliboo_girl]

BNI is a great networking group my mother has participated in. They only allow one representative for each business type though so I know in Ft Smith the massage therapy is already taken.

It's been a very good contact system for her personally (working with another business).

Angela

 

[Bizz]

Here I am again with a different look at things. I always schedule my appointments with a 5 minute "buffer"......it gives me time to answer any client questions they might have (like stretches or self massage they can do at home). Plus it gives me time to get to know them. I don't know about others, but I like a personal style of running a business. Having worked at the post office for 22 years, I know all about time schedules, deadlines, job success based on numbers, not people, working unhealthy amount of hours. The stress is high. So I choose to be very flexible, laidback and people oriented with my chair business. I learn about my clients and their families, their hobbies, etc. and they know about me. It works for me. That's why I've had a couple of my companies on board for 5 years. So that 5 minutes is very important.

As far as companies dumping paying for their employees because the rate is higher than if the employees paid themselves.....again, no problem. The companies I target are so wellness oriented....they have gyms, organize fun runs.....have their own healthy food selections massageplaneteterias, flex schedules......they really care about their employees and they show it. They're not concerned about the cost........they don't want their employees to have to pay.

R&R, I wish I could charge the rates that you do. But this is Salt Lake and a lot of business here is dependant one way or another on the Mormon religion.....so I have to contend with not only touch issues, but money issues. Plus, it seems to me we have an unusually large number of therapists (incl. a lot of new graduates) who seem intent on competing to see who can charge the least. I've had a number of them approach some of my companies and offer their services at almost 40% of what I charge. However, because of the relationships I've formed with my clients, they are very loyal. So, kudos to you for grabbing that kind of dollars.

Just another viewpoint.

 

[Akshay]

I would only suggest if employee's are going to be paying, they pay the company and the company pays you one check. You don't want to have to deal with collecting money on such strike time frames. I have gone places and can't even tell you who paid, all I know is who ever I deal with (human resources) writes me a check. There were times where the employee paid a portion of it, I believe.

And yes, if someone is late, they lose, you can't make every person run late, they are at work, meetings, ect.

 

[The King Of Kings]

Since I put the 5 minute buffer between appts., I've never had a problem with collecting payments from the employees. Most of 'em, in fact, have their checks already made out. I've only had 1 person in 7 years write me a hot check. I also have a credit card machine which some use....and some pay cash.

 

[Noni J]

People/hour and rate

Dave, do you offer a discount to the members of your networking group(s)? If so, do you mind if I ask what it is?

Thanks

I don't offer discounts because our provincial regulations in Ontario for massage do not allow it.

 

[Pompal 09.]

People/hour and rate

"I also was thinking of charging the employer more if they only have me come in a few times a year and charging less for more frequent visits, you know, to try to encourage more frequent visits. What do you think of that?

I keep my hourly rate consistent no matter who is paying -- I like simple. Plus, (gulp! I have to agree with my regulatory body on this view..) we are regulated health professionals like Doctors, Dentists, Physio, Nurses, etc. in Ontario here. It gives me ammo to keep my rate the same, especially when management asks me if I discount my prices for "volume". I say no and if they press for it I ask them if they ask their Doctor or Dentist for discount pricing on seeing them a lot.

I also explain that massage does not work like a business producing a product via economies of scale (meaning the more a business produces a product, the cheaper its fixed costs get so they can reduce their price and keep their profit margin up over all due to sheer volume). I tell management that the more I massage, the harder it is on my body so in affect this works in reverse and I really should be charging more the longer hours I work in one day...lol. I get funny responses to this sometimes (usually a laugh) but it seems to help. I've only lost 1 business for pricing which in my opinion is no big deal.