Do you struggle to come up with pricing for your services? Especially when you are starting at your spa or massage practice, pricing can be a struggle. You may be concerned that if you charge too much, you won’t attract clients, or they will go away if they can find a more competitive offering. You even may be feeling some guilt because you know some of your clients are struggling with their finances right now.
If you’ve been in business for some time, maybe you haven’t raised your rates in a long time – or ever – because you are concerned about how clients will respond. So you continue at the same rates for massage or skin treatments but actually feel some resentment.
When it comes to charging and feeling good about it, start by conducting a competitive analysis to see what other spa or massage therapists are charging in your area. At a minimum, get pricing from at least four or five of your competitors to create an average price and then go from there. If you think your expertise merits a higher premium, you may want to charge a slightly higher rate. However, you also may want to set slightly lower rates to expand your opportunity to a prospective client who might otherwise not consider your services.
Other Pricing Considerations
Whatever pricing you determine, make sure that it covers your fixed and variable costs to assure you get the profits you seek. Your fixed costs are always there, regardless of how much or little you earn. They include salaries, rent, utilities, and so forth factor into fixed costs. Products you use, marketing, and even credit card fees are considered variable costs since they tend to rise as you grow your client base. Project out over a year to determine what these costs will be.
Once you determine your pricing, be confident in talking to prospects about them. In “Seven Common Reasons We Can’t Talk About Fees and How to Overcome Them,” Karyn Greenstreet offers several suggestions. She recommends that before discussing prices with a prospect, make sure the individual needs your services. You’ll feel more comfortable discussing your fees if you know the prospect really wants what you have to offer, she advises.
- Put your fees on your website and other marketing materials, so prospects know what you charge even before they contact your spa or massage practice.
- Be confident when you discuss your fees – don’t downplay them or make excuses or ramble on. Look at the prospect directly and say what your fees are. Don’t say anything more.
- Seek training if you find you are uncomfortable discussing prices. Find a business coach who can work with you.
- Refer someone to another practitioner if they really can’t afford your fees.
Always remember that when it comes to pricing for your fees, clients value you when you value yourself. Running an exemplary spa or massage practice, showing your clients you care about their well-being, and providing a place that they want to return time and time is what counts. You’ll create loyal clients who will gladly pay what you deserve.