Learning Pricing Strategy Management for your Therapy Business.
How much to charge for therapy can be a dilemma for many therapists.
Apparently some therapists charge up to a couple of hundred dollars for their expertise, when others charge much less.
Developing an effective and operational pricing strategy is paramount to all business’s but alas not easy. It entails lots of market research and some potential risks. Deciding on an acceptable and optimum price takes time and analysing your target audience thoroughly.
In this social and financial climate solicitors, lawyers, consultants and accountants are being forced to offer clients fixed prices, mainly due to the fact that allegedly hourly rates do not offer clients the certainty that they require.
One of the most difficult, yet important, issues you must decide as a therapist in private practice is how much to charge for your services. While there is no one single right way to determine your pricing strategy, fortunately there are some guidelines that will help you with your decision.
Here are some tips that you need to consider;
How visible is your practice? (Are you on the first page of google?)
How are you positioning your practice in the market?
Is pricing going to be a key part of that positioning?
Particularly useful when the majority of your clients derive from a visible online presence. You may wish to evolve your practice and enter the cyber-sphere and offer email therapy, skype phone therapy and even video therapy via web cam.
If you choose a price that’s too low, this can actually have a reverse effect and may actually hurt your image. The pricing has to be consistent with the positioning and the demographics of your catchment area. People really do hold strongly to the idea that you get what you pay for.
How will your pricing affect demand?
You’re going to have to do some basic market research to find this out, even if it’s informal. Get 10 people to answer a simple questionnaire, asking them;
“Would you buy this service at X price? Y price? Z price?”
Chart a basic curve that says that at X price, X’ percentage will buy, at Y price, Y’ will buy, and at Z price Z’ will buy.
The cost of therapy depends on variable issues;
Some of which are;
How often you see the client;
How long therapy will last;
Also, you must take into account late arrivals and cancelled sessions, you may wish to consider offering block bookings – 6 sessions for the price of 5.
Some therapies are covered by insurances. Most insurance plans cover therapy treatments. However, plans vary and it is always best to call the insurance plan administrator to verify and confirm payment methods.
Let us know if this information was helpful to you?
If you are interested in any of this information and would like to know more, then contact; gg@everytherapist.com
Bye for now
Dawn Pugh Psychotherapist.
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