Setting your Rates
“Money is usually attracted, not pursued.”
~ Jim Rohn
In order to determine where you should set you rates, or to see if the rate you have chosen will work for your practice, you need to know two of the following three numbers:
- Monthly Income Goal / Break Even
- Hours per month (take hours per week times four to get average)
- Hourly rate
For Example, if you know how much you would like to charge, the formula you would use is as follows:
Financial Goal / session fee = hours needed per month
Take your Monthly Income goal and divide it by how much you want to charge to determine how many hours you need to work in a week
Ex. Monthly goal $6000 / $120 = 50 hrs per month
50hrs per month / 4 weeks = 12.5hrs per week
In this case aim to book 14 per week
If you are trying to determine how much you would need to charge but you know how many sessions you would like in an average week, reverse the numbers:
Financial Goal / (Hours per week x 4) = Hourly Rate
Ex: Monthly Goal $6000 / 50hrs per month = $120/hr
Remember: You need to account for your GST and your CPP so always aim to book a few more per week than the formula suggests. This will also buffer you against cancellations eating into your budget.
Action Item: In your journal or in the worksheet, determine what your full-pay rate will be and how many sessions per week you need to meet your budget.