A Guide for Setting Fees & The Question(s) of Worth

A critical task in every business involves setting fees.

Yet many entrepreneurs (especially helping professionals) are ill prepared for this task. My practice model is centered around a “private pay” practice, with only a few insurance-based services.

When supervisees and colleagues bring up the topic of rates, the typical concerns are:

  • “Is my rate too high?”
  • “Is my rate too low?” or
  • “I have no idea how to set my fee.”

I believe this is because the topic of “worth” is inherent in the intellectual and emotional task of setting fees. The questions asked or implied include:

  1. What are my services worth?
  2. What do I deserve?
  3. What do I want to earn?
  4. Are people willing to pay this fee?

Often leaving out the most essential question:

5.  What does it cost to provide these services?

There are numerous expenses to consider. Below is a partial listing for mental health professionals in private practice:

  1. maintenance of license;
  2. professional memberships;
  3. continuing education;
  4. supervision and consultation fees;
  5. liability insurance;
  6. health insurance;
  7. practice interruption insurance;
  8. legal fees;
  9. investments (retirement and savings);
  10. taxes;
  11. student loans (and other debts);
  12. office rent & utilities;
  13. office internet;
  14. business phone & communications;
  15. website development & maintenance;
  16. advertising;
  17. office supplies & printing costs;
  18. electronic health record fees (and other software or apps);
  19. renewal of certifications;
  20. administrative assistance;
  21. billing support;
  22. technical support;
  23. equipment;
  24. furniture & office maintenance;
  25. business travel and dining … to name a few.

Do not gauge your fee by your perception of your worth; instead consider your real cost of doing business. Which also includes paying yourself a wage that supports your life now and in the future.

Your true worth cannot be measured by your fee for service!

Copyright © 2015 Ruby Blow. All rights reserved.


Do you need consultation for your practice development? Contact me to learn more about individual and group consultation and coaching. You can also follow me on Facebook, Linkedin and Twitter.