Issue link: https://www.massageandbodyworkdigital.com/i/97768
"Set a fair and competitive rate that works for you and your clients (and allows you to eat when you want to)." Kristin Coverly So, where was I? Oh, right—I think one of the most impressive things that Apple has done over the past few years has been price management. Apple controls the price of its products like no other consumer product company. It has creatively kept its prices its own: there are limited distribution outlets, and those outlets are restricted in their ability to mark down the products. At the same time, Apple has improved the quality and capacity of its products while maintaining price. My first iPod in 2002 cost more than the iPhone 4S I own today (I know, part of that is efficiency for sure). For a very long time, every song on the iTunes Store was 99 cents. Its simplistic approach to pricing has made the experience of buying its products easier (and that, my friends, is all you need to know about business—make it easy for someone to give you money. You're welcome. Drive safely.). So if I were to write an advice column for massage and bodywork professionals about business (hey, wait a minute), I would start with the suggestion, "Price your service to maximize volume, and don't worry if you're lower than others." KC: Interesting theory, but what about those of us who are crazy enough to actually want to pay rent or buy food with our massage income? The increased number of sessions resulting from the reduced rate would need to make up for the decrease in hourly income. If a therapist charges $10 less per hour-long 28 massage & bodywork january/february 2013 session and sees 10 clients a week, that's a potential loss of $100 per week. Will the reduced rate be so enticing that it brings in the right number of new or repeat clients needed to make up for the loss and make her more profitable than if she hadn't reduced her rate? Maybe a therapist would be happier doing two fewer sessions per week and making the same profit margin. What's that old slogan, "Work smarter, not harder?" Seems to fit pretty darn well here. Another consideration we need to factor in is the psychology of the consumer, our potential client, the really important person who makes or breaks our practice. Ever see something in the bargain bin at the drugstore and think, "I wonder what's wrong with it?" Do you want to be seen as the bargain bin of massage in your community? If so, slash your rates. In the mind of the consumer, significantly lower rates than the average for the area tend to be viewed as suspicious and are equated with poor quality. If you do want to work with clients in lower income brackets who have less disposable income, offer them a special discount on your regular competitive rate—don't just lower your regular rate.