Let's talk about something most therapists dread: money. Not because we're in it for the cash, but because we want to create meaningful work while also taking care of ourselves.
Understanding Your Value
Your expertise is more than just an hourly rate—it's a lifeline for people navigating their most challenging moments. Here's how to honor that value:
Pricing Foundations
- Know Your Worth
- Your location matters
- Your specialized training counts
- Your unique approach is valuable
- Real-World Pricing Strategy Sustainable pricing isn't about feeling guilty. It's about creating a practice that allows you to:
- Show up fully for your clients
- Maintain your own mental health
- Continue growing as a professional
How to set your price: A few key steps that are frequently missed
Establishing Your Base Rate
A strategic approach to setting your base rate:
- Determine your desired annual income
- Calculate the number of client hours you plan to work (don't forget to factor in a few holiday weeks and sick time!)
- Factor in non-billable administrative time
- Add overhead expenses
- Divide total financial needs by estimated billable hours
Example Calculation:
- Desired Annual Income: $75,000
- Overhead Costs: $25,000*
- Total Needed: $100,000 (annual income + overhead costs)
- Estimated Billable Hours: 20 hours/week × 48 weeks = 960 hours
- Base Hourly Rate: $104 per session (total needed/billable hours)
*Overhead Costs: here's how to calculate your true operational expenses, add up:
- Office rent or virtual platform subscriptions
- Liability insurance
- Continuing education
- Marketing and administrative costs
- Taxes and retirement savings
The Compassionate Sliding Scale
If you would like to offer a sliding scale, think of it as a bridge, not a barrier. With a sliding scale you can help mental health support accessible but you don't want lower pay to contribute to your own burn out.
Sliding Scale Framework:
- Dedicate 20-30% of your slots to reduced rates
- Create clear, transparent income brackets
- Make the process simple and dignified
Sample Pricing Structure:
- Full Rate: $120 (Your standard professional rate)
- Low Income: $60
- Middle Income: $80
- Emerging Professional: $100
Practical Money Management
This isn't about being a business machine. It's about creating a sustainable practice that allows you to do the work you love:
- Use secure, respected payment platforms
- Develop clear policies and communicate them repeatedly
- Regularly check in with yourself and your practice
Growing With Intention
Your pricing isn't set in stone. It's a living, breathing part of your practice:
- Review annually
- Listen to your community
- Stay connected to your "why"
The Heart of the Matter
You became a therapist to make a difference. Your pricing is just one way you support that mission—for your clients and for yourself.
You've got this. ❤️
