How to Set Your Business Rates

How to Set Your Business Rates

There are a couple of things that I recommend to get the most out of your private pay clients and I don’t mean just squeezing the most, but to have it be fair for you and fair for them. Now you’re going to have private pay people no matter what. Even if you’re an insurance-based practice there are going to be people that voluntarily choose not to build insurance. It’s important for you to know how to set your rates and how to make that fair.

  • If you take insurance, your private pay rates have to be more than the highest insurance pays you
  • Make sure you look at the local market, i.e.: on Psychology Today
  • Charge 30% above the average rate

Raising Rates

Throughout the year, how do you raise your rates for new people?

  • When you’re 60-70% full, raise your rates
  • Have an intake that’s more expensive and then sessions that are a bit less than that
  • Take a big jump in raising your rate
  • Around October, send email to clients letting them know what their current rate is and what new people are paying. Mention that their rates are going to increase come January 1. This is how you realign your rates.
  • When you’ve maxed out your amount, you can bring in clinicians beneath you that charge slightly less than you.
  • Remember to submit a professional disclosure statement if that’s what your state requires (consider hiring an employment attorney)

If you want more resources like this we have over 30 resources over here!

Joseph R. Sanok, MA, LLP, LPC, NCC

joe-sanok-private-practice-consultant-headshot-smaller-versionJoe Sanok is an ambitious results expert. He is a private practice business consultant and counselor that helps small businesses and counselors in private practice to increase revenue and have more fun! He helps owners with website design, vision, growth, and using their time to create income through being a private practice consultant. Joe was frustrated with his lack of business and marketing skills when he left graduate school. He loved helping people through counseling but felt that often people couldn’t find him. Over the past few years, he has grown his skills, income, and ability to lead others, while still maintaining an active private practice in Traverse City, MI. To link to Joe’s Google+

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