Renting vs. employment vs. outcalls

[Real Deal CowGirl]

When it rains, it pours.

I've been doing outcalls (only a few a month) and seeing a few *select* clients in my house, so I'm still in the early seforum.xxxes of getting my business going. Recently I had an influx of 6 new clients all from one person I gave a free 10-minute chair massage to at a local health food store (a promotional method I'd decided not to use any more, for why see: http://www.massageplanet.com/forum/viewtopic.php?t=12610&highlight=chair+massage; but this particular venue seems to have yielded me an unusual number of rewards so I'm considering doing more). I saw all 6 clients at the same house last Sunday, and the first woman gave me a HUGE tip for her 60-minute massage. Three of the people have already rescheduled for tomorrow, less than a week later. Though the outcall business is still building slowly, I'm noticing the more *I* do to get myself "out there" the more positive responses I get, naturally.

After quitting my last job, I've been mulling over whether to just keep pursuing outcalls, to get another job, and/or to rent space somewhere.

I've been looking at spaces for 2+ months and not finding anything good within my very cheap starting price of $200/month. I'm willing to pay more if the situation is right, but that was where I started. Over the last 6 months I've been casually talking with my family doctor about possibly renting space in his group practice's new offices. Last week he contacted me saying the offices were almost ready, so yesterday I had a walk-through. They move in in two weeks. The space available for me is 11x11 (a tiny bit smaller than I'd like, but certainly workable), I'd have use of the waiting room/lobby, kitchen, bathroom, storage space, ample parking, and my office would be in the quietest corner (next to other offices that will be empty for a while, they're hoping an orthopedist will move in, but aren't sure yet). They're asking $600 rent, utilities and all facility cleaning/maintenance services included (but I pay phone/internet, if I decide I want them). The rent is higher than I'd like, but I realize it's probably par for the course around here.

Only snag: there's another therapist interested as well. I technically have first dibs, but the docs may end up renting to BOTH of us (separate rooms). I've left three messages for the other therapist, suggesting we discuss the possibility of sharing the space. She specializes in "medical massage" (I wasn't impressed by the US Medical Massage Association at: http://www.usmedicalmassage.org/ ... just fill out the form and pay your fee, no test or required qualifications, but that's a topic for another thread; the other therapist does have 10 years experience and lots of training which probably qualifies her anyway). The realm of "medical" massage interests me as well, by the way. Anyway, the other therapist called me back once (left a pleasant message), but the next day she apparently asked the doc for terms and told him she'd be willing to pay the full $600 rather than sharing space. I don't blame her, but darn it! So she has 10 years of experience compared to my 2, but she also charges $95/hour. I'd charge $75/hour at the docs. If we're both there, we'd both have literature in the lobby. I have some ideas on *possibly* introducing myself to the doctors' patients, but that's only if I can talk the docs into it. I still think I should talk with the other therapist even if we're not sharing space, 'cause I'd want to be on good terms with her and try to work to boost both of our practices amicably. I will call her again soon. I did tell the doc that I'd naturally rather be the only therapist there. The docs would expect a 6 month commitment to start. Also, the offices are close enough that I could consider clientele built there as "local," which would help my outcall practice as well. (And of course, I'd get to keep the clients should I move.)

I have two weeks to decide, so I figure I'll also look at what else is available for $600 in my nearest town (bigger and slightly closer than where the docs offices are, but also a poorer area ... the docs are in a small town, but much wealthier area).

In addition to all that, recently a good friend suggested I investigate her high-end Wellness Center. They are hiring, I interviewed this week, and basically I will get the job after I go back next week and give a few 15-minute sample massages to a couple of the people there.

There are persuasive pluses to the job opportunity: setting my own days/hours, determining my own rates (their existing Monday-only therapist charges $95 for 60 minutes), getting to partake of most of their *substantial* wellness services for free (incl. biologic dental services, but I'd pay the cost of lab work and crowns, etc.), they pursue regular marketing efforts including email newsletters and cross-recommending services when appropriate, they aren't high-pressure nor do they require product sales, have an influx of 200 new patients monthly and a database of 7000 active patients, have a built-in way for me to meet those patients and I would get paid to introduce myself through sample massages (for example on their dental patients prior to drilling), they provide sheets and a linen service and would let me decorate my massage room. But alas, there are a few significant minuses as well: mainly the long commute, lack of immediate clients to start with, and their 50% cut is higher than I'd like. Also, between the job and my outcall service, I'd be building clientele in two distinct locations, which is not really ideal.

Overall it's a very good opportunity ... *IF* I lived 15 minutes away. Unfortunately, I'm in the country and the commute would be a minimum of 1 hour each way in light traffic.

I stayed up all night a couple nights back figuring my earnings vs. costs on a spreadsheet, assuming 10 hours a week at each of the three scenarios: doing outcalls, being the Wellness Center's employee, and renting space @ $600/month. Though each scenario used different hourly rates, I valued my time at $60/hour (what I currently charge for both massage and my web/print design services) and figured my commute TIME into the mix, along with (where appropriate) gas, laundry costs, sheet costs, rent costs, marketing and equipment costs.

To my surprise the Wellness Center turned out to be the WORST option, yielding me only $206/week. That 50% cut and the commute really undermines the overall picture. If I could talk them into only taking 30%, I'd net $398 ... but getting them to agree to a substantial perceneforum.xxxe change is unlikely (I'll try). My outcalls would yield $345/week (or jump to $435 if I raise my rate to $75/hour). And even with the rent, the doc's offices would yield $444/week! Of course, I'm assuming I'd have 10 hours of clients a week, which I won't at first.

Maybe I can find something in my nearest town that's nicer for the same rental price. Will stop by a realtor's shortly. Renting elsewhere will likely require a year's commitment.

What would you do if you were in my shoes? Is there anything obvious I'm not considering? Should I do all three and narrow down later, when I see which takes off more? Should I take the job just one day a week, in part to benefit from the wellness services? While the wellness services would be nice, I don't really NEED them (and I already pay my own heath insurance). In all cases I still plan to do outcalls.

Thanks for reading all this!

 

[marief2rnurse]

I read it all, too, as well as the thread from Chair/Corporate that brought me to it. I cannot add to the excellent points that Pete has already mentioned, but would like to emphasize one thing.

If you massage as well as you articulate yourself, you are under-valuing your service.

If the current MT is charging $95 then the clients are accustomed to paying that amount and there is NO reason for you to charge less when you are providing the same service.

Don't assume that because you have less experience that you provide an inferior massage. I've received massage from students that (imo) was far superior to a massage from a MT who has been working for 20 years.

 

[Teddy Hart & Jack Evans]

Thanks for your thoughtful replies! And ugh, I've written another tome. I think I need to get back to journaling, I'm realizing that I do some useful thinking through the written word...

NC_kneader wrote:

If you massage as well as you articulate yourself, you are under-valuing your service.

Thanks, maybe I *am* undervaluing my time. I do get great feedback from my clients on my sense of touch and the affect my massages have on them.

When I did my spreadsheet calculations I figured my rate based on where the job was: $60/hour plus $1/minute driving time for my local out-calls ... probably lower than I need to be; $75/hour at my doctor's office (my guestimate, more on that below); and $95/hour at the high-end wellness center. So my calculations were based on the rate estimate for the location, not on my "flat" fee of $60 hour. I only used the $60/hour rate to figure/value my commute time for each of the locations. At current gas prices, the commute to the wellness center would cost me $12 in gas daily + 2 hours minimum commute round-trip; the doc's office $4 daily + 1 hour r-t; my outcalls pay my travel time per minute, but not my gas. (Methinks I need to raise my outcall price to $75/hour, grandfathering in my current clients. Okay, I just went and did that on my web site.) If I rent in my local town, it's $2.50 in gas + 40 minutes commute r-t.

For clarification of the discussion/situation (sorry if my previous description was confusing), there are TWO other therapists I've referred to who charge $95/hour. One only works on Mondays at the wellness center (I'd match her rate). The other is my possible competitor who may also rent space at my doctor's (the medical massage therapist). I was considering charging $75/hour at the docs, but in comparison to what the medical therapist asks maybe I should match her as well, if we're in the same offices. However, there is no set expectation in the patients there as I/we'd be the first to offer massage there, and I just think $95/hour for fairly rural Virginia, doctor's office or not, is a bit high.

To put local rates in perspective, $60 is average for where I am in the Shenandoah Valley for a sole proprietor. The closer you get to DC, the higher rates tend to go. Just 45 minutes east of here folks start charging $75/hour, and once you're near/inside the DC beltway they go up from there (I've heard of a DC therapist who charges upwards of $250/hour in his private practice). Spas are usually more in each location, which indicates that there are clients out there willing to pay for a "whole" experience.

The medical massage therapist charging $95/hour is for her current practice apparently in Vienna, which is much closer to DC. I assume she'll ask the same if she moves her practice to my doctor's office, but I can't be sure. It's true that I'll be providing similar services, but she's got a lot of CEUs in various areas, most recently the medical massage realm, and I have yet to take any (will be doing that soon as I settle on a good class relatively nearby). I don't think my massage is necessarily inferior, perhaps I just lack some confidence in comparison to someone with 8 more years of experience and more training. My background working in art galleries (years back) taught me that price is somewhat arbitrary, and it's really more about getting the buyer to infer value and have confidence in your work.

Pete asked about my specialty area; well, up 'til now it's been offering outcalls mostly at folks' homes targeting people who have health issues (I am actually interested in a more medical realm too) ... but really anyone who wants to be massaged at home, whether it's for stress-reduction or specific physical problems. I realize it's important to differentiate myself from my immediate competitors, but in the case of possibly having another therapist in my doctor's offices I guess I need help doing that. What kinds of things do people say to differentiate themselves? Up 'til now my differentiation has been simply by offering outcalls, but that will have to change (somewhat) in renting a space.

I'm also not sure about the rate comparison. I too could charge $95, but then the difference has to be clearly defined. "Medical Massage" sounds good in a doctor's office. Does "relaxation massage" as well? Darn it, I really don't want to move away from the "medical" realm simply to be different. Perhaps I could hang my hat squarely on the "therapeutic" eforum.xxx, defining that however I like (addressing health issues, providing stress relief, or ?). I'll look for a thread on differentiation once I'm back at an internet connection and have sent this.

Pete, you're right that none of my options offer a full schedule to start with. However, the only place I'd have to pay a perceneforum.xxxe is at the wellness center. There I'd make roughly $45/hour, while at the doctor's I'd ask at least $75/hour. At the wellness center, their cut (assuming 10 hours/week) would be about $1900/month. Compare that with only $600/month rent at the docs. For those 10 hours and adding in my commute time/expense and other factors, at the wellness center I'd only take home $208/week, vs. at the doc's I'd take home $444/week. So that 50% cut at the wellness center along with the commute really does add up.

You're also right about the wellness center keeping all the clients if I leave (per the agreement), while I can retain clients at any of my other options.

Now that I've looked, I do have other rental options too. I could rent a space in the nearest town for $450+utils and get two ample rooms for two therapists plus a BIG room out front for a waiting room/office. It'd be great if I could find someone good to share with, bringing rent, etc. down to an average of $300/person. But the location isn't fabulous (not on a main drag) and marketing would be completely on my shoulders. But how much does location matter? I could also rent one of two places on and just off Main Street for about $700/mo + utils, but given that I don't want to just sit there waiting for walk-ins (not much foot traffic really), and that massage is largely word-of-mouth reference, I don't know that paying extra for a Main Street location is really worth it. (Yes, I'm well aware of "location, location, location" being paramount for retail.) As far as sharing space, I've contacted several therapists I know locally and am waiting for callbacks. I did talk with one of my teachers and he's interested in using space if I rent locally and either subletting from me (less likely) or paying me on a per-usage basis (more likely). I don't have a subletting option at the doctor's office.

I already have enough equipment for my own practice: 2 tables and a massage chair (yay Craigslist!), 15 sets of sheets, oils and creams, a portable stereo, etc. I can easily furnish a waiting room if I need to.

The real plus the doctors office offers is exposure to their patients and me keeping my full rate. They haven't promised any marketing other than having my literature in their waiting room. My doc is willing to entertain other efforts on my part to meet their patients, but I haven't made a concrete proposal yet. I'm sure I would get some references from the docs, at least.

At this point I'm leaning away from the wellness center and towards keeping my outcall business and renting space somewhere. That may change if I can talk the wellness center into giving me a 70% cut, which I'll try to do when I go back for part 2 of my interview tomorrow, but without it I think I'll have to give up that option.

Thanks for all of your clarifying questions!

 

[cank Uncotly]

I had my second interview (giving 10 minute massages) at the wellness center yesterday and learned two things:
* The won't budge on the 50% cut
* Since last week they've decided to lower the rates for their Monday therapist to $80/hour and would like me to do the same if I came on board

They offered me the job and I went away really torn (I *SO* like the place) but these two factors have solidified that the job isn't the best for me.

On the way home, I decided to drive around the town where my doctor's family practice is located to see if any other massage therapists had a sign out. I discovered a "wellness center" there too, in a house, sporting a chiropractor, acupuncturist and massage therapist (not an organized business per se, just grouped practices in the same house). Went in hoping to speak with the therapist there (she was in session) and ended up talking to the chiro for about 20 minutes.

He was VERY open and forthcoming about my prospects there and said there are a good number of therapists in the area and they are all busy. He didn't think one or two more at my doc's offices would hurt at all (even though we'd technically be competition), and pointed out that three new housing communities have already been approved for the area, so the population will be increasing. He also confirmed the folks in the surrounding areas are generally more affluent. $70-75/hour is the general going rate in town. Thought my rent would be a little high, but okay with everything included. Said my docs already recommend massage (including to his therapist) and there's a lot of cross-recommendations going on among the local medical/therapist community in general, as folks offer different specialties/modalities.

Bottom line is he seemed to think I'll do fine, so I'm taking it as the final "sign" I've been waiting for to really help me decide. I'm going over to my docs to drop off the pre-agreement today and to set the actual rental process in motion. Yay!

 

[wesley g]

Wow! Good for you taking the initiative to do some homework! Glad you made a decision you feel comfortable with. Keep us posted as you get all the final details ironed out and be sure to get EVERYTHING in writing!

Angela

 

[Lara]

Okay, y'all, I really need your best wishes and positive energy in my corner.

I just spoke with my family doc to say I want to rent his space, and he very gently told me that the other therapist interested was in talking with him earlier this week and her "medical massage" designation is weighing in her favor. He asked if I'd be terribly heartbroken if he selected her instead of me (I said yes!).

She is apparently VERY concerned about having a second therapist in the practice. I told him about my conversation with the chiro down the street (in some detail) and that I didn't think it would be a problem, that there's apparently plenty of work to go around. I also mentioned to the doc that some years back when I was taking a class on marketing strategy, the reading I did pointed out that having two of the same type of business available lends credibility to both ... a kind of strength in numbers thing.

The doc said he thought the other therapist and I are the same kind of people, would both fit in well and would probably get along with each other. The fact that I'm okay with another therapist being there weighs a little in my favor, but her medical massage designation makes her a slightly better fit for the practice overall. He said it wasn't a done deal yet, but he'd led her to believe she'd be the first pick (though he'd earlier told me I had first dibs 'cause I inquired first ... but I can't blame him for keeping the "big picture" of the practice in mind).

No contracts have been signed, so I asked if he'd hold off while I try to get in touch with her and see if I can convince her there's enough business around. I'm sending her an email shortly and will hope for a phone call.

But really, I'm now finding myself at the disadvaneforum.xxxe and I may be losing this opportunity. It all now seems to depend on my ability to convince her to change her mind and allow my "competition."

Please send your wishes for success on this my way ... thanks!

 

[Pompal 09.]

Done!

 

[Paul P]

Oh no - what a rollar coaster. I will be praying that hte Lord will lead you in the right direction.

Blessings,
Angela

 

[Terminator]

An update is in order.

After my conversation with my doc I emailed the other therapist offering her an amicable olive branch, attempting to allay her fears (ran it by my pragmatic mom first to make sure the tone was as intended). I told her what the chiro said about the local atmosphere for massage therapists and how he encouraged me/us to rent, that there should be plenty of business. I gave her the chiro's phone number so she could get his opinions first-hand (after checking with him first) and said, "I would be happy working with you to make sure we BOTH succeed in the new offices." I even offered to take a 6-month lease, so if at that point she or the doctors decided it wasn't working out they could choose not to renew mine, and I'd accept the decision. (I BCC'd the doc on the email.)

To add insult to injury, she responded with arrogance. First she asserted her expertise and then stated, "Basic business principles preclude a dual practice from the same location," but that's essentially what she would be joining, the grouped practice of several doctors, proving there can be strength in numbers as I'd learned in a marketing strategy class I had a few years back. Then in her very next paragraph she contradicted herself, saying if she grows her practice she'd "keep my name on file" and "consider the levels of training and experience of all applicants." I found that condescending as I was clearly not inquiring about employment with her. Apparently she would not be bothered by someone under her that she could regulate and direct (and probably take a cut from). Thus I found her first statement -- that multiple therapists is a bad business model -- to be disingenuous.

Her letter left me feeling that she was somehow insecure and threatened by me, despite her 14 (not 10) years of practice and medical massage certification. I don't know why, but there it was.

I communicated with the doc again, leaving the decision up to him. After several days he got back to me, saying he and another of the docs had picked the other therapist and, "I wish you well with your practice of massage therapy. I can't comment personally on your massage skills, but you have great 'people skills' which should open up future opportunities."

But there's a bright side! The VERY NEXT DAY after I sent the therapist that email, one of my massage teachers got back in touch with me and said he was finally ready to find a space to rent together. I met him at the most promising location I'd previously looked at in our nearest town and he loved the space! Two ample massage rooms, an even larger waiting room out front, no steps, plenty of parking, even though it's not on the main drag there were still many cars coming by as we sat in the parking lot talking, the total rent is only $450 + elec, and the owner was willing to accept a 6-month lease to start. Better yet, there are two more rooms off the space that we may expand into. If we can find the right people with other specialties (acupuncture, chiropractic, life coaching, etc.), we may someday end up calling ourselves a "wellness center" of sorts. But that's a maybe for down the road, first we have to make the next six months work.

I signed the lease on Friday and we move in July 1st!

 

[Amanda B]

Congratulations, what a beautiful turn of events! I think you handled all of that with grace and integrity, and life gave you something even better. Very happy for you!

 

[Dark]

So glad to hear that everything worked out for you - proof that when one door closes, another opens & it sounds like your current situation is the best option that came to you out of the three. Congrats & good luck on your space!

 

[Horse Lover]

I am so happy it is all working out to your advaneforum.xxxe. You will be much better off. It sounds like the other gal would have had a real difficult time working with someone so thank goodness even if she came across arrogant she was honest and you saw in advance what it might be like if by some chance you would have ended up together.

 

[THE]

Oh fantastic! It all worked out great....you would have been miserable working with that other lady - it's obvious from her tone and response to your inquiry.

I'm glad you will be in a location you really like! It will be fun to build it up too!