Should You Lower Your Rates?

I recently met a young woman who is starting up her practice and struggling. She asked if I thought she should lower the price of her massage to attract clients.

My advice? No.

It's so tempting. Entice them in with lower rates; become sort of the "Black Friday" massage therapist. I think you should avoid it, though, and here's my thinking:

• You don't want to become the "cheap" massage therapist. You attract more clients who will only stay with you as long as you're the cheap option. Too many will value the $ signs more than the actual benefit. It also severely hampers you -- logistically and emotionally -- when it's time to raise your rates.

• Unless your rates are significantly higher than the going rate for your area, then prices aren't keeping clients away. Other MTs can attract them at full price; you can too (eventually).

• It's also depressing to feel that the only way people want to experience your work is if it's cheap. You know you're worth more, why don't they?

• How low can you go? If you drop your prices 5% and you don't get new clients, will you drop it 10%, 15%, 20%? How low will you go?

• Focusing on prices keeps you from focusing on more productive efforts, like marketing.

Speaking of which, there are some ways to lower your rates and make it productive:

• Lower your rates for a specific population that you want to attract. For example, how about reducing the cost of massage as a pregnant woman moves through her pregnancy? 100% in 1st trimester, 90% in second trimester, and 80% in the 3rd trimester. Or offer a discount for anyone who lives in a certain zip code.

• Offer add-ons rather than discounts. For example, get a 90-minute massage for the price of a one-hour massage.

• Offer discounts for getting more massage. For example, after every 3rd massage they get a 1/2 price massage.

• Consider making special offers and discounts time-restricted. For example, offer a 13% discount for the first 6 weeks of 2013. Get a 90-minute massage for the price of a 60-minute massage for the last 6 weeks of the year. Give a 50% discount to returning veterans for one year after they get back. Think especially about the times when your schedule is historically thin.

If you're going to use price to attract clients, do it strategically and and in a way that boosts key elements of your business.