When Should You Raise Your Therapy Rates? [episode 20]
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I’ve got an important question for you…
When’s the last time you gave yourself a raise? Like...actually raised your therapy rates because you’re really freaking good at what you do??
Most companies give annual raises based on performance. Those that don’t give performance-based raises, usually give employees at least two to three percent each year for the cost of living (hopefully even more this year with inflation).
So in case you’re wondering…YES, you need to give yourself a raise in private practice, too!
As therapists, we often forget about the cost of living increases, and we cut ourselves short. January is right around the corner, so it’s the perfect time to re-evaluate and raise your rates!
In today’s episode, I’m answering the question ‘when should you raise your therapy rates’. I want to share some different scenarios with you, because I know this won’t look the same for everyone.
First of all, it’s important to set yourself up well BEFORE you begin seeing clients. My advice is to choose a rate that feels a littttle scary. When you set your rate higher from the very beginning, you won’t feel the need to raise it as often. You also won’t have an overwhelming workload with a ton of clients, because you won’t NEED as many clients!
Trust me though - I’ve been here before, and I know it’s not easy to do. I felt sooo guilty when I *knew* I needed to raise my rates, but I kept putting it off!
I chose to raise my rate to $250/session, and it was clearly listed on my website (make sure you do this)! I started gaining clients from Instagram who were totally fine paying me that from the beginning.
When you’re ready to raise your rates, make sure you include language in your informed consent about this. You can state that there will be an annual rate increase at a specific time each year (3-10 percent is a great range). This may not seem like a lot, but it can dramatically increase your income over time!
While you may be generally happy with your rates, I bet you still want to give yourself a raise regularly (at least..I hope you do)! You can follow a similar process to the first scenario we discussed.
When you let your clients know that this will only happen once a year, you more than likely won’t get any pushback. Your clients value you and your work, and after all, it’s normal to expect price increases. Just make sure to send them an updated consent form (I love using Jane), and stick to that process moving forward!
I’ve got one more specific scenario that can help you with raising your rates, but…you’ll have to tune into the episode to hear the details on what that entails!
I really, REALLY want you to know how much you deserve a raise.
You work very hard, and I know that you’re a therapist who cares about your clients. In order to be the best for them though, you must prioritize yourself. You deserve a business that will not only give you job satisfaction, but financial security and freedom, too!
I hope this episode inspires you to raise your therapy rates in 2025. I would love to hear how you plan to do it, and please know, I’m ALWAYS cheering you on!!
In this episode, When Should You Raise Your Therapy Rates?, I cover:
Why you need to set yourself up for success BEFORE seeing clients
Giving yourself an annual raise, even when you’re happy with your current rates
What to do when you ‘undersold’ yourself, but need your business to be sustainable
Resources & Links:
⭐️ This episode is sponsored by Alma, the financially rewarding way to go in-network
⭐️ This episode is sponsored by Jane - use code: KELLY2MONTH for a 2 month grace period
Related Episode:
More about the Business of Therapy podcast:
Are you a passionate therapist that’s burnt out and ready to transition to private pay? You’re asking yourself questions like “how do I build a business?”, “how can I effectively use Instagram to market myself” and “how can I scale a private practice?”
Welcome to the Business of Therapy podcast where we’ll answer those questions and more! Here you’ll find honest conversations about the good and the bad of being a therapist, tactical advice and best practices for marketing yourself on Instagram, and solidarity and community to find your own version of success as a therapist.
Join your host, Kelly McKenna, and her guests as they dive deeper into topics such as navigating burn out, mastering your mindset and boundaries, and tactics and strategies for marketing on Instagram, and more!
Kelly is a licensed therapist and business coach who grew her private practice on Instagram and has helped thousands of other therapists market themselves on social media, and effectively start and scale their private practice.
These episodes will leave you feeling empowered and equipped to take action towards your dream of a successful private practice.
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