Reduced Fees, Sliding Scales, And Lessons Learned – Part 1
This is the 1st post in the series
Reduced Fees, Sliding Scales, and Lessons Learned
When I first went into private practice, I tripped over several issues when offering my services for a reduced fee. Before you begin advertising that you reduce your fees for clients, there’s a few things you may want to take into consideration to avoid the same mistakes that I made. Here’s the first one . . . .
Are You Meeting Your Own Financial Needs?
Generosity is certainly admirable . . . if you can afford it. Airlines tell you to put your oxygen mask on before you try to help someone else with 
theirs. And, you cannot afford to give your services away if you cannot afford the rent and electricity for your home and your office.
There are other ways to do good in this world and hopefully you are doing them. But make sure that you are financially sound before you go trying to meet your clients’ financial needs.
And, if you are out there already doing good in this world without or in addition to reducing your fees, why don’t you take a moment to let us know about your good works!
10 comments so far
Hi Tamara, this is so true! The temptation is to think ‘I’ll offer lower fees to get clients’, but it is extremely difficult to increase fees later on. Best to decide what you need to survive (in a week or month), how many hours you need to bill, and how much per hour. I started a bit high at first, but have adjusted my fee schedule and I am very comfortable with where I ended up. If necessary, I am also prepared to ‘add value’ to my fee by including small extra services/resources.
Dianne
Hi, Dianne! It’s good to hear from you again. Unlike you, I started way too low in setting my fees. It took me about a year to find the courage and the wisdom to set appropriate fees.
Dianne, adding extra value and perks to your services is so smart! I hope to do a post on just that later in the year. I’m wondering . . . what are some of the “extras” that you provide for your hourly fee?
[...] This is the 2nd post in the series Reduced Fees, Sliding Scales, and Lessons Learned. The series actually begins here. [...]
Hi Tamara, I offer a free 30 minute consultation, and try to provide something that the caller can take away and use immediately – a parenting tip or information about a community resourse. I usually follow this up with a quick email or letter outlining our discussion, my suggestions and recommendations. I also ask if people want to receive information about upcoming workshops and events.
In subsequent sessions, I may provide supplementary written information either during the session, or as a mail out. I may offer a discount for one of my workshops or extend the session for a few extra minutes. It is all about being flexible, building relationships, and adding something the client will value, instead of lowering fees.
Looking forward to hearing what other are doing in their practice.
Dianne
Nice job, Dianne! You offer LOTS of freebies and add-ons. I’m sure that makes working with you memorable long after your work together is done! I particularly like that you leave them with something tangible. I tell other therapists that we sell chunks of time that reflect our training and our experiences.
If that’s what you sell, too . . . chunks of time rather than something tangible, then sending your clients home with something that they can actually put there hands on (physically) like a handout or a letter or a chotsky that relates to the work you are doing . . . makes a big difference in your client feeling like s/he got her money’s worth.
It’s not logical but it’s true. None of us like to pay for “nothing” and when we purchase other folks’ time, we are often tempted to diminish the value of it. Having a little piece of (great quality) paper or gizmo as a reminder of what we really got makes us feel better.
found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later
What a great resource!
Thanks so much! Hope you’ll join us often and help contribute to our conversation! Although we are psychotherapist-focused, we do have chiropractors, nurses, dentists, massage therapists, and even CPA’s that join us from time to time. Your perspective as a nurse is welcome to join the conversation!
What do you think about having small beverages (like bottled vitamin water) handy, in a glass door mini-fridge, avail to clients as a “freebie”? Does this violate any norms of doing therapy? or perhaps hot tea in the winter? Not for the therapist to drink – only the clients.
[...] Jason: Well, I’ve sent out my business cards and brochures to treatment facilities and I’m showing up at networking events every month. I’ve been meeting therapists and community providers. I’m reading books on marketing and how to get clients. I’ve joined the Board of a local non-profit and I’m offering my services at a reduced rate. [...]