I am an absolute shopaholic. I spend a lot of time patronizing literally every type of business under the sun. As an avid consumer, I believe that I have advice that I can give businesses that can help them become more successful and serve there customers better. Even though I am the only one working on this blog, much of what I write comes from endless conversations with friends and family members who have experienced frustrations when patronizing businesses, big and small. My name is Alice Stark and I hope you enjoy the journey that we will be going on together!
One of the big decisions that you'll need to make when starting a therapy private practice is how much you'll charge per session. It's a good idea to determine what other therapists who serve the area are charging for 30- and 60-minute sessions, as these rates can vary from area to area. You might feel that setting your prices lower than your competitors would be a good way to get clients, and there may indeed be some people who automatically seek you out because of your rates. However, undercutting can be detrimental, too, and potentially not do your business any favors. Here's why you shouldn't necessarily price yourself lower.
It May Suggest That You Aren't Good
Having the cheapest rates for therapy in the area isn't necessarily a positive thing for your business. It may suggest to some people that you simply aren't as good as your competitors. If you were to get multiple quotes for a home renovation from different contractors, you probably wouldn't hire the contractor whose quote was significantly lower than the others. You'd likely believe that he or she simply won't do as good of a job. Some people may understandably have this mindset when choosing a therapist, too.
A Few Dollars Won't Make A Difference To Some People
Many people have health insurance plans that cover their therapy sessions, so whether you charge $85 an hour or $95 an hour, it doesn't make a difference to someone whose insurance company is reimbursing him or her for the expense. People who have health insurance will barely look at the price when they're seeking out a new therapist, but will instead evaluate prospective options based on several different criteria. For example, they may be attracted by your website, your area of specialty, referrals from others, and even your location — all before they think about your price.
It May Lower Your Confidence
As a new therapist, you want to feel confident in your ability. While you haven't helped many clients yet, you should feel confidence because you've recently received a formal education in therapy, so different approaches and concepts are fresh in your mind. Having low rates, however, may negatively affect your confidence. You may feel that you simply aren't good as those who are also working in the area, and this can be a detrimental feeling. When you set your prices at the same rate as your competitors, you may feel more confident.
Share10 April 2019
