A Guide To Setting Your Fee In Private Practice!
The Hard Truth
Therapists! You can not just take a look around and see what other therapists are charging and base your fee out of thin air.
Basing your fee on other people's poverty consciousness is a method for amateurs.
I used to do it too so I’m not judging but I am giving you the hard truth here and now.
Your fee has nothing to do with what you think you are worth. You are quite literally transforming someone's life. No one can put a price tag on that. However, you are putting a price tag on it because you have a life to live.
It has nothing to do with your experience or how many certifications you have. Stop comparing yourself. You do good work, you know it, own it.
It has nothing to do with how long you’ve been a therapist. Studies actually show that the longer you're in the field the worse you get. Ha, I laughed when I heard that too but yes, we must stay up with the times.
It has nothing to do with giving back. You can do that in other ways when you can actually afford it. You come first.
Drop the woman conditioned response
-To behave a certain way
-To be quiet and not ask for what you want
-To work tirelessly for dirt money
-To not charge too much
-To give freely without the expectation of compensation
Let me tell you a story about a couple fleas then we can dive in.
There was once a flea in a jar experiment where researchers placed fleas in a jar with no lid and they jumped out. They then placed the fleas in a jar with a lid so the fleas jumped and hit the lid over and over but then the researchers removed the lid and guess what happened? The fleas jumped only as high as if the lid was still on.
They were conditioned by an invisible ceiling.
Now, therapists, I am not trying to compare you to a flea lol. BUT, I do want you to think about this question. Are you putting an invisible ceiling on how much you charge. Again, a price that was created out of thin air with no math involved so that you could just hope and pray your dream lifestyle would pan out?
Okay let’s dive in now. I’m done ranting.
Now remember, if you do not take the time to add every single item in for your budget and dream life your fee will not be reflected correctly. Therefore, it won’t be an accurate roadmap to success.
Anytime I do this exercise with therapists they tend to cut their dreams short or forget about the items they spend on monthly. It may help to go back through your bank statements if you don’t already have a personal budget tracking system. If anything, over estimate to leave yourself a cushion.
Step 1: Current Budget
I’ve provided some common business items here but feel free to add on. Remember to add all of your personal budget items too. Groceries, household, pets, necessary travel, prescriptions, subscriptions, holidays/gifts, memberships, & how much you want to put towards savings/pay off debt. Google common budget items, I guarantee you are forgetting something.
| Item | Avg. Monthly Cost |
|---|---|
Total (A): |
Step 2: Your Dream Life
Dare to dream big here. What do you truly want money for? How would it make you feel? Be honest with yourself. Let this be fun!
| Item | Avg. Monthly Cost |
|---|---|
| Total (B): |
Step 3: Your Fee
Now we’re going to pull it all together to figure out what your fee actually needs to be in order for you to pay your bills, to have the freedom lifestyle you deserve, and that will allow you to show up for your clients refreshed and eager to do the work each day.
Total Combined Monthly Budget:
Yearly Income before Taxes:
Yearly Gross Income:
Hrs/Wk:
(how many clients you want to see per week)
Wks/Year:
(with 4 weeks off which is the norm the answer here would be 48 but you might want more off)
Total Billable Hours:
FEE:
I know it isn't always easy actually implementing this fee and thoughts may come up like "people aren't going to pay it" "who am I to charge this" but that is where support and a strong mentor come into play.
I know you were born to be a healer and I know you didn't get into this field to make money but I'm here to tell you that you can do both. You can help in tremendous ways and still make money.
When money is in the hands of good people good things happen. Plus as I always love to say "ain't nobody got time to be a broke ass healer"
XO-Carly Hill
