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Negotiating
Simple Chair Massage Agreements
By
David Palmer
(This
article was first published in Massage Therapy Journal, Winter 2000)
Chair
Massage practitioners, because they can work almost anywhere,
often must negotiate with the person who owns or manages the desired
location for permission to work in that space. Most often this
will be a simple venue such as a hair salon, fitness center, health
food supermarket, bookstore, or car wash. An agreement could also
be negotiated for a one-time event, such as working on spectators
at a charity race or for a special product promotion. Less frequently,
practitioners might even be requiring something more elaborate
for an ongoing arrangement at an airport, convention hall, or
in the workplace.
This
article addresses the most common questions about negotiating
simple, fair agreements with specific venues.
After
scouting around, you have found a location or an event that seems
ideal for Chair Massage and you have talked with the business
owner, or manager, who seems receptive to the idea of Chair Massage
services. The next step is to settle on agreeable terms for your
services on their premises or at their event.
The
most important part of any negotiation is to know all of your
possible options ahead of time so that you can speak to each one
with clarity and intelligence. The second most important requirement
is to determine what expectations the other person has as to what
comprises a fair and reasonable arrangement. The owner of the
business probably has her ideas and expects that you have yours.
The end result of any negotiation should be to have all parties
satisfied that an equitable agreement has been reached. Let's
start by examining some of typical arrangements you might agree
upon.
Financial
Arrangements
No-cash
method
The
no-cash method is the idea arrangement. Many practitioners automatically
presume that they will have to pay something for the use of a
location. A value does need to occur but it doesn't have to be
cash. Whole Foods, a large chain of health food supermarkets,
for years has provided space for Chair Massage in their stores
without requiring any compensation. Look carefully at your particular
situation and see if you can honestly make a case for not being
charged money for your presence. Perhaps you will occupy space
that was previously not used, or little used. Your presence might
not require the company to invest in any time or money if you
book all of your own appointments and handle your own advertising.
Plus, your presence could be a benefit by increasing the number
of people coming into the facility who might buy other goods or
services.
Another
option to cash is bartering for space. A widely used no-cash arrangement
is where the practitioner agrees to do a specific number of massages
on the staff of the facility in exchange for the space.
Simple
percentage method
The
most common arrangement between bodyworkers and facilities is
one in which the practitioner agrees to pay a certain portion
of the massage receipts. This method favors the practitioner if
volume is low because overhead is directly tied to each unit sold.
However, if the volume is high then the facility might make more
money than is fair or reasonable for what it provides. Say you
are charging $40 for an hour table massage and you give 40%, or
$16, of that to the facility. When you first start out and are
only doing 3 massages a week that seems more than fair. But how
about as business picks up and you are doing 30 massages a week?
Now you are paying the facility $480 a week which, depending on
the location, may or may not be fair.
Simple
rental method
In
a rental arrangement a practitioner leases the space at a fixed
price. Here the advantage is the reverse of the percentage method.
If volume is low, the practitioner suffers because rent must be
paid whether or not there are any customers. If the volume is
high then the practitioner will do well with this type of arrangement.
After a certain amount of massages every week, all of the receipts
go to the practitioner.
Combined
method
If a no-cash agreement cannot be negotiated, the next best deal
is a combination of the percentage and rental arrangements. The
idea is to pay a fixed percentage of your receipts up to a specified
ceiling each month. Beyond that amount you will pay nothing to
the facility. An alternative version is to pay a percentage for
a fixed period of time, say for the first 60 days, to give your
services a fair chance to get off the ground, and then, if business
is going well, to convert to a monthly rental. Exactly what the
percentage, fixed ceiling, rental rate, or time limits should
be is what you will have to negotiate.
Determining
a fair and reasonable financial agreement takes contemplation.
Here are nine questions to ask yourself which will help you in
your negotiations.
- How
much do you need to make from this work situation?
First, determine what your personal income requirement is every
month. Second, identify the portion of that amount you plan
to generate from this part of your work life. For example, if
you are working at this facility only one day a week, perhaps
you expect to generate only 20% of your total income.
- What
are your expenses at this facility going to be each month?
Specifically, who is paying for advertising, booking appointments,
taking messages, linens and laundry, professional liability
insurance, and maintenance? The more costs you absorb the greater
your overhead. (Also note that if the facility pays for most
of your expenses, you may be jeopardizing your status as an
independent contractor.)
- How
much are you going to charge?
The more you charge the quicker you will recoup your expenses.
- What
is the greatest number of massages you can give in one day and
one month?
This will give you a sense of what the high end of your income
will be.
- Are
you going to be giving free massages to the staff of the facility?
- How
much do other practitioners in your area earn in similar situations?
- What
arrangements does the facility have with other people who work
for them?
For example, in a hair salon, how does the manager pay the stylists,
manicurists, or estheticians? In a shopping mall what is the
standard arrangement for a concession?
- How
much profit do you expect to be making beyond paying your expenses?
Do not forget that you have to include in your budget federal,
state, and local income taxes, social security taxes, time off
for vacations and holidays, medical insurance, and savings.
- Are
you expecting this situation to lead to table massage referrals
that will also add to your total income?
Negotiation
Process
After
you have thought through the possible financial arrangements and
are clear about the income you require from this work, the next
step is to find out what the facility manager/owner has decided
that she needs to earn. Listen very carefully to asses whether
the manager/owner is looking to make money indirectly, by the
additional business you will attract, or directly, through a portion
of your receipts? Be careful negotiating with someone who you
feel does not have any reciprocal desire to make a fair deal.
If you feel like you are being taken advantage of, walk away sooner,
rather than later.
A
good way to get a handle on what is fair is to keep a two-column
list on a sheet of paper throughout your negotiations. In one
column keep track of what you are contributing and in the second
column what the other party is contributing. Do not neglect to
include the intangible elements such as environmental factors
(no smoking, incandescent lights, lots of plants, etc.) and how
this one situation fits in with your longer-term goals. If you
are looking for your first job in the massage field, your needs
will undoubtedly be different than if you have logged more than
2,000 massages.
When
you are talking with the manager, or owner, remember that how
you communicate is as important as what you communicate. To that
end:
- Be
clear. Since you should know ahead of time what is acceptable
to you and what isn't, let the other person know where you stand
and draw out the same kind of clarity from her.
- Be
flexible. The art of negotiation is to find the arena of mutual
benefit. Remember the old adage, "Be careful of what you pray
for, you might get it." We only think we know what we want.
Let the other person offer us some alternative scenarios and
then be honestly willing to consider them.
After
you have worked out a proposed agreement, suggest that all parties
sleep on it for a day or two. If the relationship is such a good
match it will survive a short recess. If the agreement isn't such
a great idea your reservations will probably surface more clearly
in the shower the next morning. At that point you can either go
back and renegotiate or scrap the agreement. Never allow yourself
to be rushed into an agreement.
If
you choose to have the agreement set to paper you might also want
to have your respective attorneys look it over. Lawyers are very
good at picking out potential problems in a written agreement.
Use their advice to clarify and strengthen the relationship you
are building. However, in small business negotiation it is generally
expensive and not necessary to have the attorneys at your side.
The presence of a lawyer at the beginning can be often seen as
adversarial and you want your relationship to be founded on mutual
trust.
Finally,
remember that just because you start a negotiation doesn't mean
you have to finish it. Too often people feel that the initial
enthusiasm they have generated for working together means that
they should conclude an agreement no matter what. But an idea,
no matter how exciting, is only an idea. A good business relationship
rests on an agreement that both parties feel is totally satisfactory.
Never be afraid of walking away from a negotiation. Take the attitude
at the start that, even if this particular negotiation doesn't
result in an agreement, you will have learned a lot from the process.
Being a good negotiator requires lots of experience. Don't be
afraid to practice as much as you can.
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