Friday, November 18, 2011

For Every Massage Therapist That Needs A Fundraiser

In the beginning of September, when I started planning this little expansion, I was faced with the tough decision as to how to go about raising money for the construction and new equipment for our two new treatment rooms. The most logical route would be take out a loan or put it on a personal credit card, right? Go into debt. It takes money to make money. That sort of thing.


*Knock, Knock. It's Opportunity. Anyone home??


Rather than using "logic", I decided to go another route. I decided to advertise massage gift card packages and raise the funds needed by hosting our own fundraiser! I estimated that I needed $9,000 for supplies, materials, equipment, decor, etc. Thirty $300 packages would do the trick. But how do you convince a client to give you $300? That is a lot of money! The answer is very simple. Make your offer irresistible!


So the offer was 45% off (almost half off!) a package of six 90 minute appointments [regularly $540] for only $300. That breaks down to $50 per 90 minute appointment. So now we are saying, Get a 90 minute massage for less than the price of a 60 minute massage! That's a pretty good deal! Downright irresistible! But the catch is you must commit to 6 of these amazing deals upfront.


Let's talk a little bit about the benefits for the client:
  • Duh, an extra 30 minutes on their appointment AND they save $10! (times six!)
  • The chance to upgrade where they ordinarily would stick with 60 minute appointments.
  • Saving a lot of money by paying in bulk.
  • Not having to remember their wallet at their next 6 appointments because they are pre-paid.
  • The rush that comes with finding a really good deal.

And then, here are the benefits to the therapist and why I believe every therapist should be considering packages for fundraiser opportunities:
  • We got the money upfront before the services were rendered for a quick increase in cash flow.*
  • Clients gave them away to friends and family members that may or may not have come in to see us on their own.
  • The clients were aware of the purpose of our fundraiser and were more involved in the expansion of our company.
  • Your services lose their price resistance immediately after the initial transaction! It is no longer a decision of "do I want to pay $60 for a massage or suffer for another week until this back pain goes away?" The client knows they have pre-paid appointments whenever they want them and they are far less likely to wait for their next appointment.
  • Clients get used to coming in frequently, they witness the benefit of regular treatments first hand, and that may be a hard habit to break once they use up their package.

Other important things to mention about our package program:
  • It was a limited quantity. Only 30 available because 1) we only needed $9,000 and 2) we could simply not afford to offer this deal forever.
  • The limited quantity often inspired a sense of urgency for our clients which enabled us to reach our goals quicker.
  • Once a client bought a package we gave them a few flyers to tell their friends so they wouldn't miss out on the deal. (more urgency)
* as mentioned above we collected the money up front and that means you have to be very smart about how you use it! Think long term. Plan ahead. Account for independent contractor pay if necessary.


Overall, I am very happy about how our fundraiser turned out. It truly was a win-win situation for everyone. Our clients got a lot more for their money. They were able to come in more frequently and for longer periods of time, then they were prior to this deal. And I believe they equally enjoyed the opportunity to support a local small business. The 30 package purchasers are cemented as a part of this company and when they see new things added they can say, "I helped her get that door!" or "You know, I probably paid for this table warmer!"

As for us, we are now half way through the building phase with our equipment and supplies ordered and on the way.  If you are in a similar situation in your business and could use a quick boost in your cash flow, I would encourage you to consider hosting a fundraiser before taking out loans and going into more debt. It may just be the best advertising you do all year!

    2 comments:

    1. Brilliant idea! Awesome thinking out of the box. We're so conditioned to the idea of doing things on credit that we don't often consider other options. I'm at a different stage - I need to get clients in order to build my new practice so I can get to the point where I'm ready to expand. But this kind of thinking can also be applied to my situation. Thanks for sharing!

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    2. This IS a great idea, I've offered similar deals myself when I needed some capital. (Although not with such a huge discount. I'm stingy.)

      Just like you noted, it's important to be SMART about how you spend the money, it can really stink to have a week where 10 people redeem massages from those packages and you've got no $$ coming in to pay a contractor, etc.

      Good for you!

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