Want to raise your private practice rate, but not sure how? Perhaps you need a little guidance. Because no matter what kind of business you have, every single year, you need to be raising your business rates.
Why you need to raise your business rates
Whether you are a private pay counselor, a coach, a consultant, or a massage therapist there are several reasons you need to raise your rates every single year and during the year.
- You are getting more experience
- Your costs go up
- It sets you up as an expert
- You can spend more on clients
- It frees up more time
- It’s much easier to add on other people
- You get to keep seeing people and not have a waitlist
When should you raise your private practice rates?
- What is your rate to begin with? Go on Psychology Today & look at other therapists in your area to see what they are charging. Go 20% higher than the average.
- If you’re 60% full, that’s when you want to start raising your rates.
- When you have a waitlist.
- With a full-time job that you want to leave.
- If you’re feeling burned out.
- When you’re adding new clinicians to your practice.
The psychology of raising your rates
- Make big jumps, not incremental changes. Look at your own psychology.
- When you’re an expert, you have expert rates. Make sure your rates reflect your expertise.
- Think of your rate with regards to your outcomes. Look at the outcomes and not the hourly. What is the value of the outcomes?
- By having higher rates, you’re stipulating that your service is of value and is something that matters and transforms lives.
- Make sure it is worth it. Do extra things to make people feel special.
- You want to have people that refer other people.
How to raise your private practice rates
- Raise your rates throughout the year for new people, from when you’re 60% full.
- Tell your virtual assistant right away. Make sure you have a list of everywhere your rate is mentioned, so that your VA can update all of these.
- If there is a time of year you want to see fewer clients, and you are willing to say no to people anyway, that’s the perfect time to raise rates for new people. You can always change it back.
- It’s unfair to raise the rates of current clients throughout the year. In October, communicate new rates to current clients.
Joseph R. Sanok, MA, LLP, LPC, NCC
Joe Sanok is keynote and TEDx speaker, business consultant, and podcaster. Joe has the #1 podcast for counselors, The Practice of the Practice Podcast. He is also a writer for PsychCentral, has been featured on the Huffington Post, Forbes, GOOD Magazine, Reader’s Digest, Entrepreneur on Fire, and Yahoo News. He is the author of five books and has been named the Therapist Resource top podcast, consultant, and blogger.