How do you raise fees!

Raising fees in your therapy practice can feel daunting, but it's a necessary part of running a sustainable business, especially as your experience grows or your expenses increase. Here’s a step-by-step guide on how to raise your fees while maintaining transparency and trust with your clients.

1. Assess Your Current Situation

Before raising your fees, take a close look at your finances. Ask yourself:

- Are your current fees covering your expenses?

- Have your expenses increased (e.g., rent, insurance, professional development)?

- Are you offering more value due to additional certifications, training, or years of experience?

- Are your fees in line with the market rates for your area or expertise?

If the answer to any of these questions is “yes,” it’s time to consider a fee adjustment.

2. Calculate Your New Rate

Decide on a new fee structure that feels fair to both you and your clients. It’s important that your fees reflect:

- The value of your services

- The cost of doing business (rent, insurance, licensing)

- Your future goals (e.g., saving for retirement, building wealth)

Avoid undervaluing your services out of fear. Remember, you’re offering a professional service that has real value.

3. Plan Your Timeline

You’ll need to decide when to implement the fee increase and how much notice to give your clients. A common practice is giving clients 30 to 60 days' notice, which gives them time to prepare for the change or have conversations about it if needed.

4. Communicate with Transparency

How you communicate the fee increase is key. Clients will appreciate honesty and transparency about the reasons behind the change. A short email or in-session announcement might look like:

Sample Script for Communicating a Fee Increase:

"Dear [Client’s Name],

I hope you’re doing well. I wanted to take a moment to inform you that, effective [date], my session fees will increase to [$new rate] per session. This adjustment is necessary to continue providing the highest quality of care and to keep up with the rising costs of running my practice. 

I understand that financial changes can be difficult, and I am happy to discuss options or answer any questions you may have during our next session. I truly appreciate the opportunity to work with you and look forward to continuing our work together.

Warm regards,  

[Your Name]"

The goal is to keep it clear, respectful, and to the point, without over-explaining or apologizing too much.

5. Anticipate Client Reactions

Most clients will understand that fee increases are a natural part of any business. However, you may have clients who struggle with the change. Be prepared to:

- Offer options like sliding scale rates or referrals if they can’t afford the new rate.

- Explore how their insurance coverage might help.

- Normalize the conversation around fees, reinforcing that this is part of the professional relationship.

6. Practice Self-Confidence

Raising fees can bring up feelings of guilt or worry, but it’s important to remember that you are running a business. You provide a valuable service, and your fees should reflect that. Own your worth, and stay grounded in the fact that fee adjustments are necessary for the sustainability of your practice and your own well-being.

7. Honor Existing Agreements

If you have long-term clients or clients on a sliding scale, you can either:

- Gradually increase their fees over time, or

- Keep their fees the same for a limited period but apply the new rates to new clients immediately.

This shows flexibility and respect for your established client relationships.

Conclusion

Raising your fees is about valuing your work and ensuring the long-term health of your practice. By being clear, respectful, and confident, you can navigate this process smoothly and continue providing high-quality care to your clients.