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:
- What are my services worth?
- What do I deserve?
- What do I want to earn?
- 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:
- maintenance of license;
- professional memberships;
- continuing education;
- supervision and consultation fees;
- liability insurance;
- health insurance;
- practice interruption insurance;
- legal fees;
- investments (retirement and savings);
- taxes;
- student loans (and other debts);
- office rent & utilities;
- office internet;
- business phone & communications;
- website development & maintenance;
- advertising;
- office supplies & printing costs;
- electronic health record fees (and other software or apps);
- renewal of certifications;
- administrative assistance;
- billing support;
- technical support;
- equipment;
- furniture & office maintenance;
- 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.
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