11 Reasons to Raise your Rates This Year
If you clicked on this blog, then chances are you’re probably thinking about raising your rates this year– but also experiencing hesitation, wondering how you can even start the process.
Money is such a difficult topic to discuss as therapists and helpers. Money is interlaced with privilege, identity, old stories, messages from peers, and childhood experiences.
It’s normal and often needed for therapists in private practice to raise their rates. However, the reasons why therapists choose to raise their rates can vary as much as their unique specialties.
The reason(s) you choose to raise your rates is no one’s business but your own.
The reason(s) you choose to raise your rates is no one’s business but your own.
Even so, it’s still important that you know why you’re doing it.
Without knowing why you’re increasing your rates, you can spiral into indecision, fear, imposter syndrome, and shame.
Once you anchor into how your rate increase is linked to your values, long-term goals, or real and immediate financial needs, you will feel more grounded in your next steps.
From there, you can skillfully decide the right amount to increase, communicate it confidently to your clients, and set up a process for it to be a yearly policy.
Here are the Top Reasons I’ve seen that therapists choose to raise their rates.
1. Enhanced Services or Offerings
When you are adding enhancement to your existing services, it may be practical to adjust your rates accordingly, too.
2. Practice Sustainability and Growth
All businesses need to make a profit to thrive and weather hard times. (Profit = money you earn beyond expense and your paycheck). You may choose to adjust your rates to account for profit goals or a cushion for slower months.
3. Therapist Demand and Caseload Capacity
If you have a full caseload, limited availability, and a waitlist, a rate increase may feel like a viable next step for your business.
4. Matching Market Rates
If you haven’t raised your rates in a while, you may be below market rate for your skill set and license. You may choose to set your prices to be competitive for your area, as long as that doesn’t impact your financial sustainability.
5. Meeting Long-Term Financial Goals
Whether you want to increase your retirement savings, pay off debt, or own a home, you may choose to increase your rates to help facilitate those goals.
6. Changes in Family/Household Situation
Having or fostering a child, caring for an aging relative or injured spouse, or death of a loved one can all require a shift in your true financial needs.
7. Inflation and Cost of Living Increases
You naturally have to spend more money as time passes. You may choose to raise your rates to help continue to afford your rising bills.
8. Work/Life Balance
If you wish to work fewer hours, for whatever reason, a rate adjustment can allow you to sustain your income while decreasing your work hours and improving your quality of life.
9. Professional Development
If you return to school or start a new training program, you may need to adjust your rates to help offset that cost.
10. Increased Expertise/Experience
You may wish to increase your rates as you gain time, experience, and specialized skills in the field.
11. Supporting Other Business Ventures
You may need to adjust your rates to help support you as you launch other ventures outside of your business.
If the idea of raising your rates fills you with dread, overwhelm, or maybe a bit of excitement, the PractiSage Collective may be the supportive space you need to start the process.
We are an innovative community of therapists and mental health practitioners who are creating businesses we love, without compromising our authenticity, values, or personal lives.
Within the community, you’ll access resources and Guest Expert trainings that give you the confidence to raise your rates, market your practice, and run your dream practice. There’s also a plan for members who need flexible rental therapy office space to book only when you need it.
When you join, you can count on a community that helps you stay aligned with your financial and personal goals this year – and beyond.
Aside from offering options for your office space, and a supportive community we also have a virtual mailbox service for your private practice.