Why do you need to raise your rates? When should you raise your rates? And how exactly do you raise your rates?
In this podcast episode, Joe Sanok speaks about why you need to raise your rates every single year, and how to do it, following from the Practice of the Practice YouTube series.
In This Podcast
In this podcast episode, Joe Sanok speaks about how exactly to set your rates and why you need to grow your rates consistently.
Why should you raise your rates?
No matter what kind of business you have, every single year, you need to be raising your rates. Joe discusses seven reasons why you should be raising your rates:
- 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 rates?
Joe shares some valuable tips on when to raise your rates:
- What is your rate to begin with? Go on Psycology Today and look at other therapists in your area to see what they are charging. Go 20% higher than the average.
- When you’re 60% full, that’s when you want to start raising your rates.
- When you have a waitlist.
- When you have a full-time job that you want to leave.
- When 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 outcome?
- 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 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 the 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.
- Holly Chantal on Setting Yourself Apart | PoP 396
- Practice of the Practice YouTube channel
- Psycology Today
- Podcast Launch School
Meet Joe Sanok
Joe Sanok helps counselors to create thriving practices that are the envy of other counselors. He has helped counselors to grow their businesses by 50-500% and is proud of all the private practice owners that are growing their income, influence, and impact on the world. Click here to explore consulting with Joe.
Thanks For Listening!
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