Are you a spa owner or other wellness professional? Does the thought of raising your revenue sound great but, the idea of raising your rates seem daunting? Today, we’re talking about how to raise your rates. Pricing yourself correctly is an art, but it is an art that you can hone!
What You Need to Know Before Raising Your Rates
You need to know your area inside and out. Even the franchises have to research the location before deciding to open a franchise spa. You have to know your target market. And you need to know what your competitors are charging. This is NOT to overcharge or undercharge for your services. Knowing your competitors rates is for your knowledge and benefit.
Take This Into Account
Are you just starting out? When considering raising your rates and looking at your competitors consider the following questions. Think about questions such as, “What is your specialty?” How much have you invested into education? Remember that we have neuromuscular massage therapists that charge over $20 more per hour than our other therapists. They have earned it and it just makes sense. So, take a look at what level of service you are offering your clients and take it from there.
Finding the Right Price
I will outline the process for you step by step. These are tried and true questions to help you arrive at the right place to raise your rates.
#1 How much do you want to make? (That is, money in your pocket) Write that down.
#2 Look at the numbers
How much does it cost me to do the treatments, the laundry and the massages? How much is my massage oil, hot towels, electricity? Remember to include marketing costs.
#3 Break the cost down by services.
Like what you see?
#4 Forget about taxes? ( That’s easy to do )
What is left? Is it your starting number or more? If it is, congratulations you are at the right prices for now. If not, it’s time to tweak your numbers.
Don’t Get Overwhelmed
If numbers stress you out, it may be time for you to reach out to someone like my girl Amber Dugger. Amber’s resources will be a game changer in your business. Especially when it comes time to raise your rates.
How to Raise Your Rates
Two words, FLASH SALE. Internally let your client know that your prices are rising by this much on the first of the month. You can offer them gift cards or Prepaids as we like to call them. You will be shocked at the results. Cash will be flowing, my Spapreneurs! (You’re welcome) This is also a great opportunity to move a lot of clients from once in a while to paid membership enthusiasts.
“Remember, It Still Comes Down to Service” – Lynn Graves
No matter the price, the most important factor is how the client feels before, during and after their sessions. If you treat your client right, they will return time after time. So never let fear stop you from raising your rates!
Raise your rates if:
1 | Your Busy
If you are staying booked out weeks in advance.. Raise your rates.
2 | Your Clients Tell You
Are your clients mentioning that you need to charge more? Listen to them!
3| You’ve made Investments
Have you invested in more education or better equipment this year for your clients’ benefit?