Whenever massage therapists start talking about setting prices for their massage business the discussion can get quite interesting. There is such a wide range of thinking and also a wide range of pricing.
Franchises have set low rates to try to get more clients over everyone else. Many think that these low rates are hurting the massage profession. Massage therapists who are located near these places feel that they can’t compete with such low prices or they lower their rate to match or undercut the franchises. On the other hand, many of these franchises actually have extensive advertising budgets and have commercials on TV and in major magazines such as Oprah. Not everyone signs up for their memberships so in a way it is advertising for the massage profession.
On the other hand are the MT who charge way more than the going rate. I have heard people who charge double and triple the going rate in an area. It is illegal to do that when an insurance company is paying as far as I know. What are they doing for the profession? They of course also have to target people who have more money. Why should people with more money have to pay more? Are they really worth that much more? When you charge more, you need to have more value or provide a specialized service.
Massage therapists who are just starting out will often feel like their work is not worth charging more. They have less experience and are not as skilled as someone who may have been in the business for 5 or 10 years. I have also seen many MT who have been in the business for 10 year or more who have never raised their rates and started out low to begin with. How can someone charge so much for something so wonderful?
When I first started out in massage, I opened my practice in a health club renting a treatment room. A friend of mine from massage school had just started there and had taken the practice over from a guy who was charging really low rates even for that time. I can’t remember exactly what he was charging but I know we raised them a little to be more of the going rate for the area. A year or so later, I was talking to a client who was also an accountant about raising rates and he said flat out not to raise my rates because I will lose too many clients. I didn’t listen to him and went ahead and raised my rates. I might have lost a few but I also gained many. It was really scary to raise them thinking that I would lose too many clients. What I found though that there were people willing to pay more for my massage services. My schedule was filled with people who were doing just that. Yahoo!!! Making more money!
Every few years I raise my rates. I do give regular clients discounts when they buy packages of massage up front. I have had all sorts of experiences when raising rates. I had one client who was really wealthy and never minded me raising my rates every so often until one year he started complaining saying that he came so often that I should give him a discount. He was also my most difficult and physically demanding client to work on. I did raise his rates despite his complaints and he was unhappy and looking for another MT but was also moving out of town soon so didn’t bother to change. I had another client once tell me – “You never have to explain why you are raising your rates and I would think less of you if you didn’t raise your rates each year. It is just business.”
That brought me out of the fear of charging more and raising my rates each year. That’s what it is all really about I think – the fears. If I don’t charge lower rates than everyone else I won’t get any clients. If I charge too much, I won’t get any clients. Either way it is just fear. It takes time to work through those fears or you can take the leap and charge what you need to to make a decent living right from the beginning. You have to be worth it -in skill and in self confidence. The process can move faster when you have a mentor or group for support.
What is a massage worth? What is your time worth? That is what you are really being paid for – your time away from your family and friends. How many people on their death beds have said “I wish I had worked more”?
My goal is to work less and make more. Yes many will probably think that is being greedy. I see it as one of the highest forms of self care.
A few years ago, I decided to stop taking clients who had a certain insurance plan that paid the lowest out of any insurance company. At first, it hurt my business for a few months but I stuck to it and all of a sudden my schedule was filled with clients who had the insurance that paid the most. I had never had many of those clients previously. I just thought it was because no companies in my area carried that insurance or something. It wasn’t true.
Recently, I have had to make big changes in my massage business. One of the insurance companies who paid the most out of all of the insurance companies, cut their allowable fee almost in half. Half of my massage business last year was working on those clients. This year I have had to focus on getting more cash clients to make up the difference.
It takes time to adjust to price changes usually, but it is well worth it in the long run. Working for less than you need to make can be draining and make you feel resentful. (Yes, massage therapists may have bad feelings toward people who pay less. We are human!)
People are willing to pay more for a massage (or anything for that matter) when you offer something with more value. Value determines price. The thing though is in defining value. It is basically what your client wants or needs. If your massage business looks like and feels like everyone other massage business, then your potential clients can not easily decide on who to go to so they will choose the massage therapist with the lower price. (As I just wrote that, it made me think of the many massage franchises out there. Are they able to have lower rates and be successful because most massage therapists don’t know how to separate themselves from everyone else? Hmm..just a thought.)
Separating your massage business from everyone else can be a challenge for many MT. I separate myself from others simply by writing about massage and what it does extensively on my office website. I don’t do any other marketing or advertising. I provide the information that shows that I am different than a franchise or local chain that has lower prices. My massage is unique. I do deep tissue work but use a lot of triggerpoint work combining the two. It just works for me.
When it comes down to competing on price alone, no one wins. Someone will always be out there offering a lower rate. Someone is always going to charge more.
What is right for you depends on how much you need to make, how many hours a week you are able to work and the rate that you charge. You need to be able to stay in business. You will need to take a salary and pay your bills, stay or get out of debt, take nice vacations, get a massage once a week and save for retirement. Just set your fees according to what you need to make! It is also about what you feel comfortable charging and working towards developing your skills and confidence to be able to charge more. What is your time worth? What is it worth to be able to give someone their life back who has been living in pain for the past few years? What is it worth to provide regular massage to a world class athlete to allow them to be the best in their field? What is is worth to give a massage to someone who just lost their spouse or are in the end stages of life? What is it worth to give a massage to a homeless person who is in pain from living on the streets? What is it worth to give a celebrity a massage or CEO of Microsoft? What is it worth to give a massage to the local grocery clerk or factory worker?
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A superb post! Situation such as a price war is indeed occurring not just in the massage industry but also in other businesses. And as an MT at the same time a massage business owner, this has been one of my dilemmas. Should I be raising the price bar so I can satisfy my monetary needs or should I keep it low so I can get more clients? It is true that when it comes to making decision like this, fear is your enemy. And what I did not know while I am fearing charging high rates, the clients are also fearing low rates for they are thinking that lower rates is equal to lower quality. So lesson learned and I realize that I should be charging what my services are really worth. The quality of service that you provide your clients that will make them go back for more.
I think a massage Therapist should charge what they are worth.
Franchises do have lower prices but they tend not to give the same service as a independent therapist.
People pay for the best and if that is what you give than they will pay the higher price.
This is a great post, one I think every therapist should put great thought into! I was scared of charging a high rate when I first started also. I have now been in business 6 years and charge one of the highest rates in my town. I hire one other massage therapist and my massage business is booming.
Sometimes our own feelings can get in the way of how the public percieves you and your business. If you position yourself and your business as expert and professional I think you can charge whatever you like. That’s what I’ve done in specializing and providing high quality Central Coast Remedial Massage Services.
Massage is of great value and can really help people overcome many phsyical, mental, and emotional problems. Don’t underestimate your value. There are people out there who will pay for your great serivce!
Great article and makes a lot of sense. As a male therapist it hasn’t been easy for me to get new clients but one thing suggested was to charge half as much as my competitors which is not good for obvious reasons (as you’ve stated).
Recently I offered 30 minutes free as a way to attract new customers but as Kate Mills has explained, the customers attracted to this don’t come back once the deal is over.
If people (qualified and unqualified therapists) are charging ridiculously low or high prices it’s only to the detriment of the industry.
Great post. In this age of cut throat competition and soaring prices, one needs to differentiate himself to create a niche for himself in the massage industry. Reasonable pricing, great service and superior massage products(tables and chairs) remain the key parameters to strive.
I agree with the comments about charging more for added value. I’ve been a massage therapist for 12 years, and I saw very early that when I first got out of school and charged a minimal amount my clients expected a very basic massage with no frills. As my rates increased, client expectations increased until at a certain point they actually started bringing in paperwork from their doctors and had real pathology issues to deal with. Using massage for pathology is why I got into to this field, and making sure that my knowledge and expertise has grown steadily in order to be effective for my clients has been one of the most rewarding endeavors of my life. I love this work, and I love that I charge a reasonble amount to get the respect and type of client work I am passionate about. Thanks for you post!
Hi Julie,
I am the owner of a massage franchise for the past 2 plus years and before that I helped my husband, a massage therapist, with his private practice of 15 years. I have held firm in my belief that going to the lower price point is not healthy for the totality of massage therapists and lowers the bar and self esteem for all MT’s. I have tried the low price point when we first opened and we attracted the bargain shoppers thus they did not want to rebook and stay with us. When we offered $10 off your first massage we attracted quality clients that have been with us for over a year or more. Charge what you are worth and go for it. The massage industry will benefit greatly. Thanks for your thoughts!
Just found your web site today and appreciate it very much. I have only been practicing for 6 months, having graduated from school last September. Am currently working at a spa very part-time as we are in “snowbird” country and this time of the year is our slow time. So the dilemma is to find a direction which is difficult having come from a medical field and discovering what helping people in a hands-on sort of way is like. Such a change from giving medications and “sticking” people with needles and such…. This is much harder than I would have thought, the practice of business, that is. I will keep reading, though, and am trying to be “up” for the adventure of creating my practice.
Julie- you touch on some really fabulous points in this post about an issue that is very complex for most massage therapists and holistic solopreneurs.
Putting a price on our services and skills can be both a practical and emotional issue for massage therapists, and one that I’ve seen so many struggle with.
And what a fabulous paradigm that you can actually attract more people who value your work more by charging more. It’s very compelling what your client said about thinking less of you if you didn’t raise your rates!
I know a massage therapist who said it perfectly when she said “the gifts I share with you are free of charge. My time, however, comes at a premium.
Thanks for the great post!
Jessica
Great post! I completely agree with you, raising rates, while it may be a little scary, is something that needs to be done. I also think that when people are looking for a massage therapist, going with the lowest rates implies the lowest quality massage. What’s the point of a massage if it’s not even good? Keep up the good work.
Great post, Julie. Thanks for the food for thought!