Mini-rant, want opinions...

[hot potato]

The owner of the salon I work at seems to want at least a little control in me setting my prices. I basically tell her to tend to her business and I'll tend to mine (in a nice way, of course). Well, today she told me she has a project for me and my friend, the other MT there. She wants us to call other salons and establishments and find out what their rates are. She said that when people call and ask what our rates are, the receptionist tells them, and they say "Thanks, I'll call back." We charge $40/hr. It's a great price, and is the going rate in our area. The salon is used to charging $35.I really don't see why she wants us to do this as a 'project'. If I wanted to know what everyone else in my area is charging, I would call and ask. I personally don't really care what everyone else is charging. The only reason I'd call around is if I'm wanting to increase my prices to see if I'm going too high above going rate, and even then it's more of a personal decision. I will not work for under $40/hr, period. I've told her this, and she seems set on my friend and myself charging $5 less. Just wondering what your opinions on this is?

 

[sensesfail2490]

  In my opinion, if she wants to know so badly, then SHE should sit down and make a few phone calls. Your'e only charging $40 an hour already? Your clients are getting a good deal. $35 just seems like an insult to you and the other MT.   I own my own shop, and I would never think about asking anyone to make calls like that. I also live in a very small town (small number of people, and alot of small minds, too). I charge $50 an hour. Some people think its too much, most dont.   Just my opinion :}

 

[UditaC]

Mini-rant, want opinions...

Are you a contractor or employee? If IC, then its not really her business. She knew your rates when you started right? And I assume that you're getting appointments?Tell her that many people call around for rates before making an appointment, and just because they don't make an appointment then and there doesn't mean that the rates are too high and you're not changing your prices. If she wants the research that bad to do it herself. I wonder what she is worrying about.

 

[Poster]

I agree with bodymovers completely!!!  Where do you live???  I should go there for massage.The rates where I am from range from  $50- $75 an hour... and people pay it.!!I really think that you are correct and should only modify the price if it is an increase.

 

[Whitna]

Mini-rant, want opinions...

I'm average cost for going rate in my area, from what I understand. The spa in the next city is $65/hr, and that's for the "spa experience". I rent space, so she's not my employer. I even told her this one day when she referred to all of us in her shop as her 'employees'. I piped up and said "As soon as you start paying my taxes, you'll get the priviledge to call me your employee." I'm in charge of setting my own fees, deciding which services I want to perform, etc.I'm getting appointments by my clients who followed me to the salon and to existing gift certificates they'd already sold (they had the gift certs on sale for $25 before I got there! That's what a STUDENT massage costs!), but it seems most of the people that frequent the salon are used to the $25 or $35/hr massage. She seems to be afraid that my business will not build, thinking I am charging too high.She is really sweet, and she really cares about my friend's and my success. We get along great (sometimes I have to put her in her place, but that's strictly business) and even went tanning today *avoids thwap*. She seems very concerned, but I don't think she realizes how much work is put into doing a massage, and to charge such a low rate is down-right degrading. Sure the money would be nice, but I'd rather not have the work if that's the cost of it.

 

[Belly Jeans]

Mini-rant, want opinions...

I agree with Bodymovers, if she wants to know have her make the phone calls. Maybe you could ask her what the real problem is? Maybe she doesn't realize the work that goes into this profession and what it is worth. And if you are an IC then she can't assign you "projects" Perhaps there is a way to reassure her?

 

[Yimei]

I'd point out the problem may be the receptionist - she is obviously just going "$40" (or maybe even apologising for $40 "it's $40, it's a bit more than usual"). If she said something like "$40, we have an experienced team of professional massage therapists that can customise their treatment to just what you need.  We don't just give everyone the same massage by numbers."  If the person on the phone can't sell your services maybe it's the person on the phone that needs to be educated.  Has she had treatments from both of you? Is she impressed? Do you need to charm her more so she will get a happy voice when she talks about "our team of massage professionals"? Maybe she needs to do the phoning around project to see how other places deal with "how much is a massage?" and learn from that experience.

 

[Ashwin]

Mini-rant, want opinions...

I live in a fairly small community. The going rate here is $50, though I know some therapists who make $60 and up per massage.They charge $25 for student massages at our clinic and $35 for an alumni massage (with a student that has graduated from the program but hasn't passed the Nat'l exam yet so they can't practice on their own). I didn't think anyone would go for the $35 alumni massage when they can get a student massage for less. But a lot of clients are willing to pay more for someone slightly more experienced. I've lived around the country a bit and I haven't seen any LMT's yet that charged less than $40. In fact, I don't know if I've even seen an LMT charge under $50 an hour in the past few years - - except for specials, for MT students, or for family and friends.Man, if I'm ever driving through your community, I'm stopping to get a massage from you for sure!

 

[Coolguy101]

$40 is a great deal. Anything less than that, and I wonder if people may react by questioning the quality...like.... "why is this massage so cheap?..can't be anything like the more expensive massages."Melb's right, a little sales talk wouldn't hurt. And she does need a massage from your group to do that authentically well! Nothing sells like experience. You never waste a cent ever massaging the desk...even for free! How better to show your consideration for their promoting you and keeping your book, anyway. Ethically, it can appear an undercut to competitors...she should feel confident to win that game with your excellence  

 

[DavidBrain]

I agree with what everyone else has said.  I wonder if these calls are really coming in or if she's just fabricating them to try to get you to go lower on the prices because she doesn't agree with them in the first place.  Of course, there are some people who are going to leave over a $5 increase.  I don't think these are the clients you want to keep anyway.  Who knows, IF these calls are real, maybe they are other salon owners calling to check out YOUR prices.  Maybe they are clients from a $50 salon and calling to find your prices are $40 and are thinking "Oh boy, they must not be very good if that's all they are charging."  Did she know your prices before you started?  If so, remind her of that.  In any case, stick to your guns.  Politely and tactfully remind her that you are a renter.  Remind her that you are already lower than some area spas.  Remind her you have experience.  Let her know that you don't want to attract the "K-Mart Shoppers", but that you want good quality clients who can afford the service.  And, $5 should not be that big of a deal to them.  If she comes back and says it shouldn't be that big of a deal to you, then remind her that it's $5 to the client, but is $20/day for your based on 4 clients a day, which makes a difference of $100 a week!Are all the prices in her salon lower than the area?

 

[Zumaria]

Mini-rant, want opinions...

That's the thing, the prices at our salon are more than others' in the area. Pedicures are $25, and many people in the area (the mom&pop oriental shops) charge $15. People around here complain about that. "I can get a pedicure down the street for $10 less." The way I see it, they can bring their arse down the street and get the $15 nail clip. But if they want quality, they'll come to us. The salon owner is a nail tech only. Seems she would know this and understand why my friend and I charge more.I have asked the receptionist (another really sweet lady, she loves Daniel and me) how she tells the clients about the massage, but I've never really tried calling there myself and asking about the massage pricing. Maybe I'll give the salon a call today while I'm on break...Wow, if nobody else has heard of MTs charging under $50/hr, I REALLY need to move. Many people around here charge $35 to $40 for a massage. I just need to get outa here! lol

 

[Pompal 09.]

I have a few more months till I graduate. And I figure that when I do, even though the advertised going rate in town is $50 and up, my beginning clientele will be made up mostly of family and friends at a family and friends discount of probably $25, which is what they are paying now at the school's clinic. Then I'll have to have some kind of promo to build up my clientele, like a 30 min free massage with an upgrade option, or a 1.5 hour massage for the price of an hour massage. So, even though the going rate in our town is higher than it is in yours, Seforum.xxxg, it'll probably be a while before I'll be making $40 and up per hour.  What's the going rate there for outcalls?

 

[errant Terran ranter]

Mini-rant, want opinions...

As a freelancer your rate i set by you, it is what you feel reflects your skill, ability and quality of treatment. If you are getting clients and those clients appreciate the massage and are becoming repeat clients then the rate shouldn't be a problem.I've just checked and my rate (£28) at current exchange rates is approximately $52 so fairly similar either side of the pond.As long as she understands that the pricing difference for massage is the same as the nail treatments there shouldn't be a problem.Hope it all gets sorted out soonMat xx

 

[answer my question!]

 It sounds like the owner is just looking for a polite way to mention she thinks you charge too much.  Next time she says something, smile and tell her you are already aware of what other salons are charging.  I have worked in the salon environment and find it is very important to educate the receptionist on your work and how to properly handle massage calls.  I have even written things down and put them by the phone so they don't forget.

 

[XIXIX]

Mini-rant, want opinions...

Seforum.xxxg,Don't fret over your pricing. You did your research and you should feel comfortable with charging what you are. Don't forget the cost of living in your area is lower than a lot of the posters (who are adding to this thread) in their area, especially if they are in rather large metro areas in California or on the East coast. As for your salon owner, I would submit a written letter to her underlining (in summary format) the parts of your (signed) contract where it states you are the decider in your massage rates and no one else and would appreciate any "harrassment" regarding your business decisions to cease immediately.Even though you get along great with her now; over time, her professional relationship could start to frustrate you to the point where you don't want to continue on a personal level with her. Good luck with it all and hope it turns out well in the end.Be well,Jen

 

[WinonaGal]

Wow!  $40/hour?!?!  That is a really, really, really low price for an hour massage.  REALLY!!!  Maybe you should shock everyone and start charging $75/hour while offering specials for people who book once a week to get the $40/hour rate. It is nice of her to be concerned for your welfare and I would both thank her and question her about why she believes you should lower your price.  Has she specifically spoken with people who said $40 is to much?  How did she handle that objection?  How does she handle the objection people make about the lower priced nail work available down the road?I second the others that recommend demonstrating your talents to the front desk staff, write the key points you want covered with people when they call and work directly by handling a few of the calls so she can hear your responses and phrasing.  As for calling around the other salons and it being a "project" for you and the other MT -- I would ask specifically why she believes this is necessary and start working on her objections first.  Afterall, she is going to be incredibly influential in helping get people adjusted to your price.

 

[Pompal 09.]

Mini-rant, want opinions...

Well, the cost of living must be REALLY high in Chicago because the going rate for non-spa massage is $65-80 per hour - going to $110 or so in a spa (and that's for a 50 minute session).Dude, your prices are fine for your market. Besides if her salon has other upscale prices, why would she worry about basement prices for massage? I'd also ask her if she's willing to take the loss of money by reducing your rent.Besides, it's not like you've been there months and months; rather it's only been a few weeks.Give her a massage and tell her to chill.

 

[_/=twihard:)/cc:)=\_]

"Wow!  $40/hour!  That is a really, really, really low price for an hour massage.  REALLY!!!  Maybe you should shock everyone and start charging $75/hour while offering specials for people who book once a week to get the $40/hour rate. "    now theres a marketing idea I had not thought of!!! See, they turn up when you least expect them!! :}

 

[Kami y]

Is your rent a % or a monthly fee? If it is a %, then the salon owner has an interest in the volume/price equation.If not, then she should have no interest in your pricing. If you sit idle by pricing yourself out of the market (a laughable thought at $40 an hour), then she still gets her monthly rent.Nonetheless, I would recommend everyone do a little mystery shopping once a year to see where they stand in the marketplace. Retailers employ armies of such people.How many posts do you see here about people who realize they are undercharging for their services?Illinois just instituted licensing, which means many therapists may find themselves out of work. Fewer therapists means higher pay for those remaining, which means salons and spas will raise rates in order to cover their now-higher costs (only in states like CA where you can get a massage license for 100 hours does regulation reduce the price of services and lower therapist pay). I would bet most sole practitioners have not dreamed of raising their rates after Jan. 1.It  pays to shop around. Your clients do it, you should to.Maybe you should do it just to show her $40 is dead on, and maybe $45 is not unreasonable!

 

[BVB Chrissy]

Mini-rant, want opinions...

Rent is a weekly fee, I'll never go back to a % as I like to be in charge of my income personally.I hadn't thought of retail stores that go around looking at prices, I just had the thought of the price wars gas stations go through, and concluded that I'd NEVER lower prices just because the people down the street are charging $35.I've offered the receptionist a free 30-minute massage (with option to upgrade) to let her feel how much I'm worth. I am comfortable charging $40 right now, and will probably call to see if I'm on the lower end of the spectrum. I really don't think anywhere else is charging less than $40/hr.As far as how she handles the objections, she does say that it's for the quality of work, but I've never heard her say it and if she said it with confidence or not. Perhaps not, if she feels I am charging too much as it is. Maybe I should beat her with a stick? lol, j/k. I'll probably end u pcalling around, just to see if I'm on the lower end of the spectrum, but would never LOWER my prices again. Remember, I did that once last year (when you all told me not to) and it didn't have a positive result. Never again! lol