Raising Service Prices Without Hurting Business

When it comes to taboo subjects in the beauty and wellness industry—raising service prices is usually at the top of the list. Eight year industry veteran and Booksy Ambassador Raymorn “Ray” Edden said that’s especially true for massage therapy providers. 

Ray is the proud owner of Relax Miami, a Central Florida based mobile massage business. He typically travels to clients to provide relaxing, therapeutic services. And despite the long list of health benefits that wellness providers like Ray offer to their clients, many massage therapists struggle with raising their prices, because they’re “in fear” of losing loyal clients. 

To help change the tired narrative of too many talented professionals earning less than they deserve, Ray believes that wellness experts across the country should spend a little bit of time learning the facts about raising service prices. Instead of charging the same amount year after year, he believes it’s important to gradually raise wellness service prices but with purpose. 

Spend the next few minutes soaking in this valuable information, since Ray has a host of tips for raising service prices. Find out how industry pros, massage therapists in particular, should proceed with asking clients to pay more. Read all of this while learning from this successful entrepreneur who wants to share his secrets of success to change the industry for the better. 

Know Your Value

It’s no secret that the cost of gas, cars, food, college tuition, and housing have consistently risen over the past few years, due to inflation and other economic factors. Despite the fact that the prices of goods and services are consistently on the rise, many massage therapists fail to raise service prices to keep up with inflation. And that’s something that needs to change, Ray said.

There’s no doubt that a masseuse could lose clients by raising service prices, especially during COVID-19. But it’s also true that massage therapy helps with pain management, injury rehabilitation, migraine control, and overall wellness. Because of those factors, it’s important for professionals in this industry to know their worth, said Ray. And that's especially true for service providers who help make sure that people can get out of bed every morning.

According to the American Massage Therapy Association, about 21% of Americans received a massage in 2020 with the average massage consumer getting 3.5 massages that year However, the Bureau of Labor Statistics reports that the mean annual wage for massage therapists was $49,260, which was below the annual median wage of $58,260.

“When I made the decision to raise my prices, the thing that really pushed me was that I felt the need to invest in my brand. Once I finished doing the research—I recalculated my expenses, acknowledged that the quality of my services had risen, and analyzed the amount of time that I’ve dedicated to my trade—then I slowly went up,” Ray said. 

Understand Supply and Demand

Research on the economic principles of supply and demand can be very dense, as quite a bit has been written on the subject. But simply put, if less of a product or service than the public wants is being produced, then the law of supply and demand states that more money can be charged for that product or service. 

“A lot of massage therapists—they don't do it out of fear. They don't raise their prices out of fear that they will lose their clients. The truth is that you will lose clients if you raise your prices. But you'll also gain better clients. And by better, I mean you’ll gain more of the clients that actually appreciate you,” said Ray. “Because if your price is too low, people will devalue your services.” 

Ray moved on to discuss the first time he first raised his prices by 25%, which happened in 2020. Before he raised his prices, he was receiving $20 in tips on average. But after he raised his prices, Ray started receiving better tips. More specifically, his tips were in the range of $20 - $40 with an average of about $30.

Once he realized his services were in high demand, Ray raised his prices a second time but higher. “I initially took my price up by 25%. Then I went up another 20%, because of all the demand. And still I wasn’t even able to fulfill all of my requests. So, if you’re in high demand, consider raising your prices, since you’re offering a valuable product,” Ray said.

Consider Every Business Expense 

It’s important to calculate increases in business expenses before feeling confident enough to begin raising service prices, Ray said. But wellness providers should also consider less obvious factors. In particular, he mentioned the amount of physical labor that goes into setting up a workstation. Also consider time spent commuting and your level of experience.

“For everybody who wants solid reasons for a price increase, start by thinking about the amount of time that you’ve been doing this. For instance, I’ve been doing this for eight or nine years. And I had to look at the amount of expertise that I was offering to my clients. I wanted to make sure my prices were also a reflection of my skill level,” Ray said. 

Ray added that just the price of gas alone should be a good enough reason for a mobile massage therapist to consider raising service prices. But for other providers, consider the cost of your continuing education courses. Anyone who earns additional certifications should definitely feel more motivated to raise prices. And the impact of COVID-19 should also have an impact on prices, Ray said. 

Booksy providers having trouble with calculating all of their fixed, tangible expenses, should remember to check out the Stats & Reports. Start by taking advantage of the Dashboard inside the Stat & Reports feature, which provides detailed information for every Booksy provider, in regards to the following categories: Revenue, Appointments, and Clients.

Continue to Deliver Value 

For every massage therapist considering raising service prices, it’s important to remember to continue delivering value. And that's especially true as you ask clients to pay more, said Ray. When he raised his prices, Ray also had a solid network of social media influencers, who were promoting his brand and advertising it as part of a luxurious vacation experience. 

Specifically, he attracted the attention of Amara Lanegra and The Real Kyle Sister, who opened the door to a host of different high end clientele, since their Instagram accounts have a combined total of over 8 million followers. Today, he is able to charge between 50% to 70% more than the average massage therapist working inside of a wellness center, he said. 

His list of clientele steadily grows based on both referrals and his growing social media presence. Instagram was an important tool that he learned to master. And it allowed him to keep adding value to his business. Another way that Ray is able to continue delivering value is through his top notch customer service skills. In particular, he implements those skills when clients have questions, concerns, push backs, or comments in response to a price increase.

“I’m really good at customer service. So, I make sure that I can counter any push back to a price increase with a reason to make a client still want more of my services. I believe in the power of massage therapy. There’s nothing that a person couldn’t say to me where I wouldn’t come back with a very thoughtful response. That's a great way to keep clients happy, irregardless of a price increase,” said Ray.