Setting Your Fees

You might be surprised to hear that it is very common for both brand NEW and VETERAN practice owners to struggle with setting appropriate fees for their practice.

Questions such as…

How do I set fees when I’m new to the market?

How do I set fees that will attract clients?

How do I set fees that others (peers and referrers) won’t judge me on?

… are common during the fee setting decision-making process.

When I studied in South Africa (many years ago now) I was taught something interesting during my 2nd year of Masters that I will never forget. I attended a lecture (on ethics!) where we as the Masters Cohort was told that it is our duty and ethical obligation to charge the recommended rate of our registration body.

The argument was that we had an ethical obligation to uphold the value of the profession and what we do by NOT undercharging and hence cheapening the perceived value of the profession.

Now you might be thinking….

‘Well that was South Africa, Gerda – this is Australia and things are different here.’

However, I beg to differ.

Competing on price is inevitably a race to the bottom….

A race to the bottom of your potential revenue, personal income, your ability to adequately pay your team, your own mental health and of course your ability to provide a quality service.

The biggest risk of undercharging for a solo practice owner is of course burnout, as you might need to see 8 bulk-bill clients per day in order to make the income you could make on 5 clients per day when not bulk-billing… And when you burn out, NOBODY wins.

The biggest risk of undercharging for a group practice owner is yes, not enough income to cover all wages, fees and bills, but an even greater risk is an unforeseen - but inevitable - decrease in the quality of service provision, because guess what…?

It costs money to deliver a consistently high quality service when you are running a group private practice.

Instead of competing on fees, you want to compete on the quality of your services and the contribution you are making to your clients’ lives, that is, the transformation that you are helping them to achieve – and when you do THAT your reputation will spread like wild fire.

My recommendation is to never be the cheapest.

Of course, you also can’t afford to price yourself out of the market.

Australia is a competitive marketplace and you have to play by the rules of the game and consider things such as client demographic, location, niche, etc.

I recently share with my Private Practice Success Academy the Fees I recommend you charge for entire organisational structure, including:

* Provisionals Psychs,

* New Grads,

* Level 1 Clinicians,

* Level 2 Clinicians,

* Senior Clinicians,

* Clinical Supervisors and

* Principal Psychologists in private practice.

I also shared the rates of pay (for employees) I suggest these levels each should have to ensure you pay your team well, whilst still running each role at a profit.

If you need this or similar types of resources and input that will allow you to build and grow a sustainable and profitable private practice, then I want to invite you to consider joining the PPS Academy.

Your first step will be to complete this short form wherein I ask you a few quick questions that will allow me to ascertain whether The Academy is right fit for you and vice versa.

So head on over now and let’s see how we can work together.

Here is the link to the short form: https://bit.ly/PPSVIPApplication

Here’s to helping you build a private practice you can’t stop smiling about!

Gerda

ABOUT THE AUTHOR

After starting her PhD on the topic of?"Psychologists as Practice Owners: Current Challenges, Coping & Success Predictors", Gerda was appalled at the lack of support for Allied Health Professionals going into Private Practice and decided to do something about it.?This was the start of?Private Practice Success Australia.

?E:?[email protected]?| W:?gerdamuller.com.au

WINNER: National Allied Health Private Practice Excellence Award

WINNER:?Queensland MENTAL HEALTH Achievement Award for Best Small Business?

WINNER:?Logan Business Distinction Award