Is Your Price Repelling Clients?
One of the biggest questions that gets asked by therapists is: “What should I charge?”
One of the biggest OBJECTIONS I hear from therapists ALL the time: “I couldn’t possibly charge THAT much in MY area.”
I’m Elicia, I’m a Massage Therapist and business coach and I have a massive, burning passion to teach therapists how to run a successful massage business and help even more people.
Have you ever been to Woollies, Aldi or Coles and done your shopping? Have you ever noticed one of the checkout ladies apologise for the price of your groceries and also for the inconvenience of having to come shopping, again and then getting all awkward next week when she sees you doing your shopping again?
Of course not! You go shopping because you need it.
Let me paint you a bit of a picture:
For the last 13 years I have been running OG Massage. Ocean Grove has a population of about 13,000. There are 35 other Massage Therapists and 3 other allied Health Clinics within a 10 KM radius … and at our peak we had 9 staff and were seeing over 100 clients a week AND we are the most expensive Massage Clinic in Ocean Grove.
The answer is that we are very clear on what we do and who we do it for, and we market that incredibly well. We also have great professional networks in the area and combine treatments with a wide range of therapists.
The thing I hear from therapists all over the country is “I couldn’t possibly charge more than I am now” – usually they are sitting at the $1-per-min end of the spectrum and charging $60 for 60 mins.
The problem with this model is that you are undervaluing the incredibly powerful effects of massage and you are undervaluing yourself.
Let’s break it down:
Most therapists have invested 1-2 years of their lives to study massage. It usually costs $10 – $20K for a Diploma in Massage. How many massages are you going to have to do if you charge so little to start to see your course as investment? 333 before you even break even – that’s how many!
That means you must see 25 clients a week at $60 each for 12 weeks straight, before you start to see any positive return on your investment. And let’s face it – not many people come away from their qualification and start seeing 25 clients a week straight up. In fact most therapists burn out or quit within the first 3 years and many never make back that investment at all.
The curious thing is that whatever we object to, our clients will as well. If we object on price, they will object on price, if we don’t feel comfortable with rebookings, they won’t feel comfortable either. If we don’t like our work environment or the music or … you get the picture.
When we learn to value our time, our skills and our education, then our clients will to.
How do you structure your prices? The 5 Ways To Work It Out
You need to use logic not emotion when it comes to this – be ruthless – if you’re struggling, ask someone who’s not emotionally involved and who has a very analytical brain
1. How many clients do you want to see per week?
2. What do you want to pay yourself?
3. How much will you need to set aside for tax and GST and Super?
4. What are your other expenses for the week/month/year?
5. What do you need to put aside for holidays?
Add those figures together divide it by how many massages you want to do – that it what you should charge.
If you charge any less, you will not be running a profitable and successful business.
If you would like some help working through these issues, then Download our FREE