Wednesday 24 April 2013

Pricing Strategy




There are various ways of deciding how to price your treatments. One (not very accurate) way is to look at what other people are charging and either undercut them or add a small premium.

A far better way to ensure you sta...y in business and prosper is to work out:

1/ what salary are you hoping to earn in the first year? (This needs to be based on a survival budget, not what you currently earn £………………………

2/ how many weeks will you work per year, allowing for holidays, sickness and bank holidays? …………………………..weeks

3/ how many hours of massage will you do per week? ……………..hours

4/ what are your costs?

Setting up costs
couch
CD’s
CD player
covers
towels
answer phone
decoration
brochure and headed paper and business cards
Other

Operating costs

Weekly £ Monthly £ yearly £

oil rent professional
laundry electricity membership
couch roll telephone insurance
wipes Marketing Accountant
other car

Totals:

Multiply weekly costs by the number of weeks you are working £
Multiply monthly costs by the number of months you are working £
Add these with the yearly costs £
Add the setting up costs £
Add this sum and the salary you hope to achieve in your first year £
Divide the sum by the number of weeks you plan to work £…../ ….. £
Divide this sum by the number of hours of massage you plan
to give £……./……. £


This is the minimum you need to charge
 
Gill tree
Managing Director

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