The Key to Pricing Your ServicesSep 25, 2023
A common question that comes up in conversations with service providers is, “what should I set my rates at?”
As a foundational piece of your business, this question makes sense, but the choices that happen as an answer can make or break the viability of a business venture.
Here’s why: We are limited by our beliefs.
Unfortunately for our profession, our services have continually been devalued by both the medical world and the consumer. Nobody questions what a surgeon charges because surgeons know they are solving big and often complex problems… yet for whatever reason, the PT field continues to struggle and lag behind, often hiding behind altruism, in reality, just an unwillingness to sell (sorry if that feels harsh, it’s the truth).
A quick story:
The other day, I was in conversation with someone who asked what we have our clients price their services at… my response was, “We work to get them to a minimum of $200/visit”
To which they replied… “well, I could never see myself charging that much”
THAT'S A PROBLEM.
If you believe you’re worth $100 per hour, you’ll cap at $100 per hour.
If you believe you’re worth $200 per hour, you’ll cap at $200 per hour.
See the trend? It's a belief.
Now, let’s reframe…
If you believe the problems you solve don’t equate to an hourly rate, then you expand yourself into realms most average PT’s could never understand, but you’re here because you’re not average.
Here are the biggest problems PT’s face when establishing their prices:
- They are basing their prices off someone else in the market - who knows if that person is in a good spot or struggling.
- They base their prices off what their CURRENT (insurance-based clients) could afford/value/pay - this is a BAD strategy.
- They base their prices on their comfort level.
The good news is that you have 100% control over changing these things.
You can base your prices on your market value. You can change your ideal client. You can push past your comfort levels.
So as you look to start your venture, remember… this ISN’T going to be comfortable because that’s where the 99% in the industry are staying - and to reiterate, there’s nothing wrong with that if that’s where you want to be, this isn’t for everyone - but if you want it to be for you, something will have to adjust.
Are you ready for that?
Interested in learning how to apply this to your clients?