How do you decide what to charge for your therapy services?
There is no simple answer, but to make things easy, I’m sharing with you a step by step rate setting calculator that will cut out the guesswork for you, and allow you to start making your business work for you!
I’d like to show you the simple formula you can use to choose rates that work for YOU.
1. The first question to ask yourself is how much you want to make per year.
For our example, we’ll say a nice round number of $100,000.
2. Next, you need to determine your annual expenses.
This will take a bit more thinking, and if you have already been in operation for a while you can reference your past profit and loss statements to get a feel for your typical expenses. In our example, we’ll say we have annual expenses of $20,000.
3. Now you will add your income and expenses together to determine your necessary annual revenue.
So in our example, that’s $100,000 +$20,000 =$120,000.
4. Now you get to ask yourself how many clients you want to work with at full capacity.
Let’s say you want 20 in our example.
5. Now you take your gross revenue and divide it by your #of clients.
So $120,000/20=$6,000 per client per year.
6. Next, you choose how many weeks you want to work per year.
Let’s say I want four weeks for vacation and holidays per year, so we have a total of 48 working weeks.
7. Our last step is to divide your per client income by the number of weeks you want to work.
So… $6,000/48=$125
Based on this calculation, that means $125 is your per session rate.
Of course you can adjust these numbers according to your individual needs, but this exercise will give you a basis for knowing what to charge per session, and will give you confidence in why you set your rates where you do.
If you’d like additional insight into setting rates, you can either download my Rate Setting Bundle, or schedule a 1:1 call and I’ll be happy to help!
Now, go make an impact!
Jaycie