how often do you raise your rates?

[livinnbfe]

I wonder how many of my regular clients think my rates are low...

Do you think it is better to have a big jump in rates every 3 or 4 years or smallers jumps equaling the same amount every 1 or 2 years??

For example, instead of raising rates $5 every year or two, you raise your rates $10 every three or four years.

In one respect, it seems you are raising your rates more often, but in the other not so often but in larger amounts. Which do you think clients would take more easily?

 

[lame]

Personally, (as a client) I would prefer to see rate hikes happen less often, even if they are for a larger amount when it happens. Yearly increases makes me feel like I'm dealing with the cable company. But that's just me. More frequent (small) increases tend to be absorbed more easily into someone's budget, but on a psychological level, everytime you raise your rates, your clients will do this little evaluation about whether they want to continue treatment. You will invariably lose some.

I will raise mine in December'07 with trepidation. I lost 1/2 my clients the first time I raised my rates. But I only had a few at that time. Even if I only lose 20% with another rate increase, this time that will be significant. Although I book full enough so it won't impact me too much, I'll just have less on the schedule 3-4 weeks out for awhile.

 

[R2 Ranch]

No kidding, BJB. I didn't even know a massage could be had in your area for those prices.

LOL! Up until a couple months ago there was another practitioner across the hall from me calling herself "Bellingham's Best Massage," charging FORTY an hour for FBSM and SIXTY for an hour of LaStone! With so many newbies opening up weekly, you can actually find people offering coupons for a $35 hour, and one place is advertising heavily THREE one-hour sessions for $99! How these kids are going to stay in business is beyond me, but at least they take care of advertising the fact that massage exists around here.

To answer GL's question: I think you can't specifically plan to keep a rate for 3-4 years in my area. I mean it may work out that way, but around here you just have to see how things are going. Sometimes everybody jumps suddenly; sometimes things are stable for some time. I definitely notice that it's tied to all other economic indicators, a big one being construction/housing prices.

 

[Chad_1_1]

I know some on this board give their regulars a discount without prepayment if they reschedule within a certain time frame.

I really like this idea and the layout, very easy to understand and follow:

http://www.auburnmassage.com/standing.htm

(Tricia has been a poster on this board. Her name here is 14health).

 

[laracroft79]

11 years ago I started doing massages at $35 hour. That was the going rate around here then. 2 years later the rate went to $40/hr. 3 years later to $45/hr. Moved into a new space, less rent, more utilities, and I ate the costs to me until I couldn't bear the pain any longer. Rates went to $50/hr. Bought our house, moved the practice into it -- 4 months later, in January rates went to $60 for non-prescription massage which includes the sales tax [after Ohio instituted sales tax on massages] and $55/hr for Rx massage. In January 2008, rates are going up again. I cannot afford to eat the increase in my utilities any longer. Up another $5 it will be. Clients understand, and for those whom the increase poses a financial difficulty, we have "private" rates to help them with their finances, and still keep them in the massage office as well. Works out for all of us and no one has complained yet, except one gal who tells me my rates are "ridiculously low for the quality and talent that you literally bring to the table" Her sugggested rate is $80/hr. which would be great, but, is way out of where my folks can generally afford at this time.