Setting Fees for New Services

resources Jan 31, 2022

The next step after completing one of our Thai Massage and/or ashiatsu courses and all recommended hours of practice after class is to add this new service to your menu. In order to do this you must determine what to charge. 

The Upgrade Model

At first you might consider charging more for a session that involves your newly acquired skills. I call this the spa upgrade model. In this model the service cost goes up incrementally when more pressure is added or different oils and tools are used. 

Pros : This a la carte type of menu works well for clients who want to treat themselves by customizing their experience. Customers in the spa environment are generally accustomed to add on charges for essential oils, hot stones or deep tissue. A higher price point also identifies the session as a specialty treatment that requires the therapist to complete additional training and practice. 

Cons : When a higher price point is set for a service then that service may be perceived as having a higher value than the other services on the menu whether it’s the appropriate service for the client or not. Also, a higher price may deter clients from trying a new service that may truly benefit them.

Charging for Time

This model places more emphasis on the practitioner and the results of the session than on the modality of massage. One flat fee is set for the amount of time you spend with a client no matter what techniques you use. 

Pros : You can collaborate with the client to decide what type of session will work best for them that day. You aren’t locked in to doing just one thing for the entire session. It simplifies your menu of services, too! 

Cons :  Unless you raise the overall cost for your session then you may not be recouping enough for the extra expense of training and any special products or equipment that you’ve invested in. 

The Myth of Charging What You’re Worth

I often notice massage therapists offering one hour sessions for ridiculously low prices. While this tactic may get clients in the door I wonder, does it pay the bills? I also wonder if the therapist is considering their own value as a person as separate from the service they provide. I regularly see excellent massage therapists almost giving away their service then wondering why they can’t make a decent living doing the work they love and helping people. The myth of “charging what you’re worth” is a trap for mixing up self esteem with professional identity. Consider using the following base formula instead.

The Base Formula

Monthly overhead expense + target monthly income goal / # of sessions per month

Ok, so I present the above formula not as a cure all, end all answer to the question of what to charge but as a method for demonstrating value.  Let’s break it down…

Monthly Overhead Expense

Include rent or loan payments on your office space, utilities, internet, phone,  supplies, contractor fees and really any expense that you pay for your business on a monthly basis. You may also choose to include the investment you've made in the training and required equipment. One way to do this is to determine the cost of the training over the course of the year then divide that number by 12 to get your monthly expense.

Target Monthly Income Goal

How much do you need to make to cover personal expenses such as home, car, groceries etc? How much do you want to make to put aside in savings for retirement or for your next vacation?

How Many Sessions Will You Do?

I find it helpful to first set up the business hours that you are willing to work. Then factor in 15-30 minutes between sessions and a comfortable lunch break. Let’s say you determine that you’ll give 15 one hour massages a week at a rate of $85 an hour. That’s 60 sessions a month and a gross profit of $5,100. Is that number the same as the sum of your monthly expenses and income goal that you calculated above? If you come up with a lower number then consider raising your rates and/or offering some 90 minute sessions.

Additional Influencing Factors

Now that you have a better idea of what you are going to charge you can factor in other things such as the cost your target market can support and your competitors prices. Remember that you can always set your prices a bit higher and run limited special offers to be more inclusive of the varied income present within your client base. I have one colleague that offers “Pay What You Can Wednesday” once a month and another that sells a limited number of packages in the Spring and Fall.

Protect Your Income with a Clear Cancellation Policy

The cancellation policy is a contract between client and practitioner that sets professional boundaries and ensures that you get compensated for your time. The purpose is to have clients recognize that this time has been reserved specifically for them and that someone is waiting to serve them. Therapists tell me that they are hesitant to enforce their cancellation policy because they are afraid that clients won’t come back. If the cancellation policy is unclear (or was never disclosed in the first place) then enforcement could come off as unfair. Present the cancellation policy upfront and be sure to remind regular clients every now and then. I update my existing client intake and consent at least once a year and I send out email reminders. The cancellation policy should state the amount of notice you require and how much you will charge if that amount of notice is not given. Remember that you’ll need a credit card on file for this so be sure to collect that information at booking.

Conclusion

There are all kinds of creative ways to maintain a healthy, monetary exchange with your clients without devaluing your service. I hope this post inspires you to continue creating results-oriented experiences for your clients while making sure your own needs are met. 

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