Raising fees- do you verbally inform, or send out a mailing?

[Other Girl]

Hi all
I am in the process of raising my fees. Can you all tell me how you have handled this in the past? The last time (and only time) that I raised my fees I sent out a newsletter with the new fees stated. But now I am wondering if I should just tell people verbally. I am worried that I may have some of my clients try to guilt me into keeping their fees the same (when doing it face to face)
I know,,,what a wimp I am!!

 

[Lust for Lola]

I hung a notice next to their change area. Just raised mine this month...needed too for a year.~M

 

[Semra]

Raising fees- do you verbally inform, or send out a mail

Hi all
I am in the process of raising my fees. Can you all tell me how you have handled this in the past? The last time (and only time) that I raised my fees I sent out a newsletter with the new fees stated. But now I am wondering if I should just tell people verbally. I am worried that I may have some of my clients try to guilt me into keeping their fees the same (when doing it face to face)
I know,,,what a wimp I am!!

I 've only raised fees a few times over the years, but send out a mailing at least 3 months in advance when possible.

I want people to know in advance and have a little time to find a new therapist if it is necessary because my fee is something they no longer are able to afford.

I'll try to get you a copy of it and post it here or PM it to you.

 

[Poppy]

I do the same as Yoidaho. I simply put a sign up in my office. However, Cabwy, don't you do 100% house calls? In that case, you have to do either letters, phone calls or in-person conversations. Since you're concerned you can be bartered to a lower rate, I recommend sending a letter. Don't apologize for the price increase. Keep it a simple notification. In all business, prices go up; it shouldn't be a big deal. If anyone complains, be ready to refer them elsewhere, but don't give discounts. You're worth whatever you charge.

 

[wo1f4me]

I waited forever to raise my rates - such a chicken! I started off by raising it for new clients - kind of got my toes wet and it helped me build my confidence. Then after 2 years (I know - I said I was a chicken :roll: ), I took the plunge and raised it $10 so everybody's on the same price.

The only person I haven't raised them for is a client who just filed bankruptcy. Just couldn't do it.

I opted to tell everyone verbally. I set the date as March 1st, so when I saw clients in Feb. I said "just wanted to let you know that after March 1st my rates will be $75 plus tax". And it's funny, one of my clients that I was most intimidated to tell said "you know, on the drive up I was wondering when you were going to raise your rates". Another client said "good, it's about time!". One client did decrease from 2x per month to 1x per month, but honestly she's a late evening appointment and it's fine.

For clients that I haven't seen to verbally tell them I raised my rates - when they do come in I let them know that my rates have gone up and the next time they come in it will $75 plux tax.

Good luck! For what it's worth I see nothing wrong with telling people in writing. You could even print up some postcards and have them to hand out to people as they leave and mail to the ones you don't see. Or mail them all

 

[vballchicka204]

My letter from 2005 - I haven't raised rates since that time.

Dear clients,

In the seven years since our office moved to our current location in 1998, we have successfully kept our services at the same rates.

Effective November 1st, 2005 we will have new rates:

All massage and therapeutic bodywork
1 hour - $75
1 1/2 hours - $115
2 hours - $160

Please forgive us the inconvenience.

Sincerely,

nnn

 

[Nick M]

Thanks all for your input.... and pueppi--thank you for a copy of your letter, very nice, brief and professional.
Bliss, you are mostly correct, I would say that 70% of my clients are outcalls. 30% are in my home office, so it would be hard to post a notice,,... unless I post it in their homes,,, can you just imagine??? :
I do like the advice to keep it a brief notice,, I thought that I would maybe mention the rising costs of fuel, I swear all I do is fill up my gas tank!! But maybe will leave that out and just state the fee increase.....

 

[bubblegirl]

Thanks all for your input.... and pueppi--thank you for a copy of your letter, very nice, brief and professional.
Bliss, you are mostly correct, I would say that 70% of my clients are outcalls. 30% are in my home office, so it would be hard to post a notice,,... unless I post it in their homes,,, can you just imagine??? :
I do like the advice to keep it a brief notice,, I thought that I would maybe mention the rising costs of fuel, I swear all I do is fill up my gas tank!! But maybe will leave that out and just state the fee increase.....

I didn't expect to even consider raising my rates for awhile, yet, but I also do outcalls, and the gas prices are killing me! I'm "listening in", here.

 

[ck01]

Sharon, I just raised my outcall rates $5.00 because of gas prices. Fortunately I'm new enough in this that I don't have any regular outcall clients, so I just posted the new rates on my web site and changed it on my literature. It's certainly fair to raise rates when the cost of providing the service increases.

I just love it when fellow MTs see my literature and say "OMG you charge $105 for an outcall?! That's really high!" Thing is, I'm just not willing to do them for any less than that. LOL.

Emily

 

[~MuSiC~]

My main mistake was that I have been giving some of my clients a discounted amount. See above post where I admit I am a wimp.... :roll:
I want to get everyone on the same page and have put it off long enough. Plus I am also swamped, in truth I wouldn't mind a few of my clients backing off to a bi weekly schedule. My issue is that some of my clinets are only paying $85.00 for their hour massage. My full fee has been $100 for 3 years... now I would like to raise my rates across the board to $105 or $110 for the hour massage (these are the out call fees) so now I have to figure out a nice way to verbalize this,,, explaining that the discounted amount was far below my normal rate. I just know they are going to pass out when I jump them from 85 to 105.... any suggestions??
I have no doubt that the ones already paying the "regular fees" will accept the 5 or 10 dollar hike,,, but the discounted ones,,,, eesch! Just can't figure out a nice standard notice to put into the mail that won't cause a big stir.
I have been on vacation for 9 days and I have 2 days left-- while on the plane I kept trying to form this fee increase notice and am really stumped.
So, I have kept a couple of my 2008 resolutions already: work less days a week, condense my hours and take some much needed time off to relax and regenerate. (that part was the best!) Now if I can get this fee schedule under contrio I will be feeling pretty darn content.

 

[Pompal 09.]

Maybe you can mention something like "many of my clients are on different pay scales and in order to simplify things and get current with today's (industry) pricing, I am instituting a new rate, as follows..."

I'm terrible at wording, but I think mentioning that people are paying different prices may alert the low payers that they've been getting a deal for toooooo long. ?? Even the high payers may feel that way!

And as you said, if some of them drop off, you won't be too sad.

I agree that I won't do outcall except for a premium price. It's just too much work. I commend you cabwy and hope you're getting enough massage yourself!

ETA: grammar :?

 

[Stan]

Thank you, Shiva,, I like that. I actually will not send the same note to the higher paying clients. If I was one of them I think I would be a little resentful...but I definitely like your wording and letting them know that they have had a nice discount for too darn long.
It isn't as hard as it sounds,,, doing outcalls. All of my clients have their own massage tables and that helps a lot. I think this is why I feel so guilty raising their fees. But if they want, they are welcome to try and find someone else who does my level of bodywork for that lower fee.

And yes! I get massages frequently!! I was way overdue for a vacation, in fact I had a 90 minute session to start my time off right,, I have 2 more days off and am ready to address this fee schedule issue, I then plan to clean out all of my clothes closets and get rid of everything that doesn't fit or is worn. I will be a new woman!! :

 

[kelsie g]

let me know what you send, if you could. I'm in the SAME situation. In fact, I could have posted that.

My additional wrinkle in the fabric is that I am going to be moving to a town with more working class than the affluent area I have been in and may have to lower my prices. And it will be a hike for my regulars. Some have said they will drive it, others have asked for me to come up for a house call. Not sure what to do.

 

[mugwaffin]

leSome have said they will drive it, others have asked for me to come up for a house call. Not sure what to do.

Maybe schedule one or two days a week where you only provide on-site visits.

Possibly even something like every first Monday or every third Friday of the month. Something that gives the old clientele the option of letting you still come to them, but on standard dates now.

You could even print up a post card with all of the dates for the entire year that you would be avaliable for house calls.

Jan 13, Feb 21, Mar 20, etc etc etc. --- I didn't look these up on a calendar, so I don't know what days they fall on.

 

[Lady Blue]

I want to get everyone on the same page and have put it off long enough. Plus I am also swamped, in truth I wouldn't mind a few of my clients backing off to a bi weekly schedule.

First of all-- cabwy, feel free to unswamp yourself by sending some of your clients North to Massachusetts! lol But that actually leads me to another idea-perhaps there is a LMT that is just starting out that you could check out and, once you find the right one-any clients that balk at your prices, you could rec the "new therapist" probably get yourself some really good karma there!

Spock--I agree-I have a mobile business, I live in a fairly rural area, recently I let my clients (about 8 of them) know that I will be coming to their town to do outcalls 2 days a week. They adjusted their schedules very happily and now when I make the drive there (it's only 15 miles)I have 2 or more appts in a row.

Good ideas and discussion everyone! I thank you all, I get a lot of great energy from this board

 

[Colby]

Hey "pada", I wish I could send some up to you!! lol
And I most certainly agree with you about referring them to another therapist....I have someone who most certainly will appreciate the referrals if it comes to that. These are really great people and somebody nice deserves to get them into their scheduling book. Ironically a few that I have approached with this have already stated to me that they wouldn't travel to them for under $100.00. I am really watching one of the students that is well on her way to becoming a great MT,, since she is fresh out of school she would probably accept the $85.00 fee.
I like pueppi's idea to clump them all on certain designated days. I do the reverse with my clients who come to me. I try to put them all on the same days. I love those days, I stay in my home and they all come to me,,,,a nice treat.
I really need to have my head examined to see why this is such a hard thing for me to address. But it is always reassuring to me to find people on here in the same predicament.
Spock, I will let you know what I decide to write and how they react. I have to finalize this by tomorrow, my goal was to have it written up and in the mail before my break is over.....

 

[ZombieCakes]

Okay,, in case anyone is interested in my official letter to inform clients of my fee increase, here it is. Much of the thanks goes to pueppi, Blisss, and spock for their input. Blisss, you really have a talent for putting things into the perfect wording. Thank you to all of you for your help-- the letters are printed and waiting for the mailman.
************************************************************
Dear *name of client*,

When I started my own business, I chose to give a discounted rate to a few select clients. And as you know, you are one of those special people!

Although I have enjoyed offering this discount over the past few years, the time has now come to have the same fee schedule for all clients. Partly, this decision is due to rising fuel costs and the time it takes to drive to and from each outcall. However, I have also become increasingly uncomfortable with some clients paying full price while others don’t.

I hope you understand. Please know that I enjoy working with you and hope to continue to do so.

As of June 1, 2008, I will be raising my rates for my discounted clients to the standard fee I have charged since January of 2005:

$100.00 - 1 hour
$140.00 - 1 and 1/2 hour


Professionally yours,


my name……..
Therapeutic Massage, LLC

 

[unwritten]

This thread is all kinds of awesome. Thanks to everyone including the original poster who had input and helped with suggestions and revisions. It helped me too.

 

[stimpy]

Although I have enjoyed offering this discount over the past few years, the time has now come to have the same fee schedule for all clients. Partly, this decision is due to rising fuel costs and the time it takes to drive to and from each outcall. However, I have also become increasingly uncomfortable with some clients paying full price while others don’t.

Great letter, though I have one concern. I don't think we should "justify" our rate increases. I think this just opens the door for clients to argue and try to get exceptions to those increases. I would remove the portion that I bolded above...

You are right, Pete. But I guess in this instance I wanted them to appreciate the fact that they have enjoyed a substantial discount for several years. I won't try to explain myself for justification in the future.
Thank you for your input.

 

[???? ?o ???????]

Okay, here is an update for any of you thinking of raising your fees! So far the letters have been well received, in fact everyone that I have seen this week have already started paying the new fee instead of waiting until the official date given.
No one has tried to "wheedle" me down in price and all have given very nice compliments as to how I am worth it and I even got a lecture on how I need to "value myself more" ( lol,, okay then I will raise my fees a little higher!) They all liked the letter,, no worries about not addressing it verbally.
Hope this helps any of you pondering this yourselves..