Pricing To Fill Your Practice

By Margaret Gill

Would you agree, especially for newer therapists, that there is no better way to build your practice than by actually treating clients?
I believe that until you have a full practice, you should not turn someone away due to money. This thought really hit home recently when an inexperienced therapist I know said that his clients 'could not afford his massages.' He only has 3 clients!

In my opinion, this is telling him something. Review your rates, get clients and reap the rewards!

Now before you all go out and decimate your fees and never raise them again, I want you to be clear that sometimes you just have to experiment and see what the market will tolerate while you are building your practice - it's not always about lowering your fees, it is about finding out which fees will fill your practice. Once your practice is full, then you can start moving your prices upwards.

My Full Practice Building System recommends a three tier pricing strategy, with the lowest rate made available only if necessary. Each price point has a corresponding level of service. If you are not familiar with this concept, here is a quick and simple example of a massage business that works with sports people:

PREMIUM PACKAGE - $150 for a 60 minute remedial massage & 20 minute head and foot relaxation massage. Complimentary herbal tea at completion of the massage & complimentary aromatherapy product to take home on the first session

STANDARD PACKAGE $90 for a standard 60 minute remedial massage with complimentary herbal liniment to take home on the first session

BASIC PACKAGE - $60 / 30 minutes
Before all you massage therapists howl 'no one will pay $150 for a massage', let me tell you I have seen people queuing to count out $150 to see a massage therapist who had this concept down completely. What is more, no one coming out of that room could adequately describe what just happened in the room apart from saying it was 'amazing'.

In the Full Practice Building System we go into great detail about the best way to determine and present your specific fee structure and how to overcome price objections, however the simplified version is to only offer your lowest price option if:

1. You want the client and believe they will be of value to your practice.

2. You feel the client would benefit from your treatments and is in pain and discomfort and you have spare space in your diary.

3. You know they cannot afford to hire you at a higher rate.

Ultimately, the focus of this article is to challenge you to TREAT MORE PEOPLE, even at a lower rate, until your therapy practice is 80-100% full.
Then raise your rates!

Assuming you are treating full-time but don't have a full practice, is it better to have 30 clients at $70 or 10 clients at $100?  I believe the former. Of course it takes up more of your time, but that is something most new, full-time therapists have!

Offering an introductory rate or special rate with a definite time to finish is a good way to fill a practice and be able to raise your prices quickly within a few months.

The benefits of treating more people are many!  Here are just a few:

1. The more you treat, the faster your skills will improve. As you become a better therapist your belief in yourself will grow dramatically through your experience and the results your clients are achieving. Nothing is more critical to your success than confidence in yourself and your work. Everything comes back to your belief!

2. Clients paying a lower rate (a fee they can reasonably afford and that isn't a major drain on their monthly budget) can work with you longer.

3. You will generate more referrals. People typically buy therapy sessions when they experience you or when they are referred by someone who has experienced you. Put simply, the more clients you have, the more referrals you will generate and the less marketing you need to do! (Don't you love the sound of that?!?)

While the fee is NOT always an issue (and in some target markets, such as the corporate and executive arenas, you NEED to charge more in order to be taken seriously).

I once heard a corporate coach describe her pricing policy as 'the largest number she could say without spluttering!' I had another very highly paid coach tell me that one morning he just woke up and decided he was worth $600 an hour and started getting that rate. What you charge has a lot to do with how much self confidence you have and your ability to describe the benefits of what you do to a prospective client.

However for most people in start out mode the bottom line is that there are more individuals willing and able to invest $70 per session for a massage than there are individuals who are willing and able to afford $150+ per session. So work out what a full practice looks like for you and start filling that practice.

For therapists who have been in the business for a while, now is a grand time to take a look at your prices. Do some research and see what others are providing for a similar service and make sure your prices are on the same level. Take a look at how you 'feel' about your prices. Do you resent how little people are paying you or do you feel it is right for your targeted market?

When raising your prices a trick that works really well is to do up a list of the new prices and stick it beside your computer screen or in a place where you see it all the time. Just read it through every day and say the prices out loud until they feel right on the inside, then release the new prices into your practice.

Also know that you can have different prices for different clients, different seasons and different times of the day. What is important is that your prices 'feel' right for you, allow you to have a profitable practice and attract the right number of clients to make your practice a success.

-oOo-

Margaret Gill is a business coach who has a proven system that helps natural therapists grow their business, be more profitable and have a balanced life. Her dream is to work with natural therapists all around the world to achieve strong, healthy and abundant practices in all ways. www.abundant-private-practices.com

margaret@margaretgill.com

www.Abundant-Private-Practices.com

This article orginally appeared on Samantha Richardson's fabulous Empowering Women Website

© 2008 Margaret Gill