5 Mistakes Therapists Make in Setting Rates
I see it a lot. I get it, I’ve done them too. But you can learn from my mistakes. Here are the top 5 mistakes I see therapists making in setting their rates.
Making it the “going” rate. Type your zip code in psychology today and you can get a decent idea of what the going rate is in a community. Now, that’s not to say that this isn’t important info. It is. What I’m saying is that it is only one data point. The people on psychology today aren’t paying your bills to stay in practice, you need to know your cost to practice as well. (Check on this resource if you don’t know that number)
Not charging higher just because you are an associate license. I’m gonna ruffle feathers on this one. Yeah I said it. And I’ll say it again. Do not charge less only because you are an associate license. Lots of well experienced humans have an associate license. They may be coming from a different state and couldn’t transfer an old license, they may have a different professional license which brings significant wisdom to their counseling practice, they may have a higher cost to work. My point is, licensure level is like I said in point #1, it is one data point. Only you know how much it costs you to practice.
Making your rate based on what your clients can afford. I believe that we are ethically bound to give back to communities who are disadvantaged for a multitude of reasons and none of which are their fault. What I don’t believe is that you are required to give back by having a low rate for therapy sessions. Decide how you want to give back. Do you want to join Open Path? Do you want to volunteer with Give An Hour? Do you want to provide low cost supervision groups to therapists who serve a community you are from? There are plenty of ways to give that don’t have to be in your rate. Also, if you want to charge a low rate for clients-that’s entirely your business too.
Not having a structured set up for sliding scale or equity rates. A lot of therapists offer sliding scale or equity rates without knowing the numbers behind the decision. As I said in #3, how you charge is your business, but know your numbers. How many sliding scale or equity rates to full pay do you need to pay your bills? How many sliding scale or equity rates can you have at one time. How do you hand sliding scale over time (ie do they stay with you for years, do they stay at the same rate for years)? How often do you evaluate sliding scale or equity rates? Know your numbers.
Not reevaluating their rate. As many people experienced over the last couple years, the cost of inflation affects service industries disproportionately (not a reference, just anecdotal). We need to reevaluate the cost to practice routinely to ensure we are keeping up with inflation. Don’t forget to include cost of new skills, education, certificates, and licensure renewals, etc.
Be sure to check out the resource in #1 to figure out your rate. If you still want feedback and support feel free to a mastermind group or schedule a strategy session with me.
