I always tell my audiences that their fees say things about them. Many people hope their rate says they are a “good deal”. But is this what you want it to say? Is it making you look second-rate?
Remember that pricing is about perceived value. We all assume that an expensive bottle of wine is better than a cheaper bottle. Of course this may not be true (I have my favorite Trader Joes bottle!), but price does convey a message to us.
I thought about this when a friend recently told me about her quest to find a good therapist.
My friend decided she wanted to do some therapy on a particular issue, and set about finding a good therapist. She was committed to doing the work, and really wanted a good therapist who specialized in a particular area.
After talking with about four therapists over a week, she grew frustrated finding the right one. Rate-wise, she discovered that they charged in the $105 to $145 range. She heard about a potential therapist from her doctor, and called her. This therapist seemed like a great counselor, and my friend began to wonder if this was the woman. She actually had experience with my friend’s issue!
When my friend asked, “What are your rates?” The therapist paused for a while, and then said “$80 an hour. And of course I have a sliding scale,” She offered hurriedly. My friend thanked her and hung up. She didn’t call the therapist back.
When I asked her why, she said it seemed like the therapist must be brand new, or wasn’t confident in her skills, or had few clients and was trying to attract new ones. None of this appealed to my friend, who really wanted help.
I was frustrated because my friend did need help. Personally, I wish she had hired this therpist. And I can’t help but think that the therapist’s own money issues got in her way. (My guess is that she is working herself to death for very little money or having a hard time attracting clients.)
The real question is– what about you? What do your rates say? Remember, not everyone should be able to afford you. If everyone can afford you, you’re not charging enough money. You do want to attract the right type of clients. (And clients who are very fee sensitive can be very difficult to work with. It takes a lot to make them happy.)
So what do your fees tell people? Do they convey confidence?
I wish all therapist would read this article, this happen so often in this field. I graduated last year and I can tell you that 98 percent of my class had this issue, and what is worse is that our own bad relationship with money get on the way of being an excellent therapist.
Thank you for sharing!
This is a great article for bodyworkers to read as well. I had this conversation with a colleague of mine; she feels it’s “inappropriate” to charge over a certain dollar amount for the work that we both do. I pointed out to her that in ten years, most practitioners’ rates haven’t even gone up, yet the cost of living has skyrocketed. Why do corporate employees receive raises while we keep ourselves stuck working our knuckles to the bone just so we can scrape by and barely pay the mortgage?
I am a professional home organizer, and when I first began working one-on-one with clients, I charged well below the lowest fee for pro organizers nationwide. My thinking was that I was new in this business and needed to build a client base. BAD MOVE! I have since learned–and your book and blog are helping me, Mikelanne!–that the caliber of clients I wish to work with would NOT pay such a low fee for an organizer!
So I bumped up my fee (still low, but I’m learning), and I am attracting easier-to-work-with clients who pay on time. THANK YOU FOR WHAT YOU’RE DOING FOR WOMEN!