Friday, 25 May 2018

You should routinely increase your fees

When I started my practice in 1995 I was charging $20 per session. Later I increased it to $250 per hour, and then $1000 per hour. In most jurisdictions health professionals charge what they believe they are worth, not because of a specific technique they do, a modality they have or the location. People charge based on the value they provide.

My hourly fee was $1000 because I felt I was worth that much and I had patients fly from Portugal and elsewhere to visit me.

I know this is not for everyone. It requires special marketing and promotion skills to make it happen. However I believe all health professionals must routinely increase their fees, at the least by 3% a year to surpass inflation.

Otherwise the $100 one charges per hour in 2018 will be worth about $98 in 2019 and therefore your real rate will be lower next year if you do not match the inflation.

If you have a fully booked practice you should increase your rate by 10% to 20% a year at the minimum. This is the easiest way to increase your income. Your expenses remain the same and the extra income is profit.

I recommend you invest the extra income in Exchange Traded Fund. Do not invest it in managed mutual funds however as up to 70% of the interest you receive will be taken by the management fees and taxes.

And as always do not forget to give 10% of your income to charity.


1 comment:

  1. As a Chiropractor in the US I routinely checked the fees of other local DC's and charged 25% more per visit because I was more thorough in my diagnosis as well as taking more time in patient instruction.