Why you DON'T want to raise your prices

You're calculating your financial return for this year and made the stark realisation that your operational expenses are almost 1:1 with your revenue - with just a bit to spare. 

Sadly, this means that you're barely making profit after paying yourself (if you're even paying yourself enough). 

From here, there's only three possible outcomes. You can continue as you are, hope that you can sell through more volume (if you're not already at capacity), everything stays the same and business stays consistent, or you eventually start to bleed. Unfortunately, it's likely that the second and third option will eventually happen.

Although there are many ways to fix it, a non-negotiable for every solo practitioner / clinic owner is the inevitability of raising prices. Even if you were just to raise your consult prices by $10 to cover the last 2-3 years inflation, you'd create a better revenue buffer that you can re-invest into your staff, your business, or heck, just pay yourself a little bit more. 

The question is - if it's so simple... why don't more clinicians do it? 

Why don't ALL business owners do it?

Because anytime a price rise is about to occur...

This is what goes through most of their minds.

-I don't want to be salesy
-I don't want to come across greedy
-I don't want to be unethical
-I never got into this for the money

.... or something along those lines. 

Across 50+ clinicians that I've consulted with...

 The reason most clinicians will never raise their prices is because of this one simple thing.

They don't want to be perceived negatively. 

That's about it. As much as most clinicians like to think their decision making is for the best of the patient - most of the time, it's really just an excuse to avoid the fear of being perceived as 'greedy, unethical or money hungry.'

If the numbers are clear that your business is not healthy (eg. there's no profit), and you aren't paying yourself enough, and you aren't compensating your staff fairly and you aren't providing a great service for your patients...

It's pretty clear a price rise needs to happen.

The ego-shattering moment occurs when they realise this:

You are in total control of your price increase. If you want to make sure your clinic is still accessible to lower socioeconomic groups, then the price rise should be reflective of yearly inflation (resulting in $5-10) fee increases. 

That is an option you can take to keep your services accessible AND improve the financial health of your business. Even then, I will still get resistance to this idea...

The most common complaint being 'but $5-10' can still be a lot for some people. 

Although I acknowledge this to be true, it just doesn't appear to be the majority. Most people are okay with spending an extra $5-10 if they truly want to work with you, especially if the rise is justified. 

The inconvenient realisation for clinicians is that the predicament they are in with their business can be largely attributed to their own attempts at image preservation. 

Because many businesses have successfully raised prices (greater than the $5-10 mark), retained most of their patients and delivered a much better service because of it. You could do the same, as long as you have some sort of strategy in place. 

You see, a price rise isn't just 'moving it up' and opening doors the next day. A price rise requires articulate messaging, clear intent and respect for your existing customer base. If you want to learn how to this - you can check out my free webinar 'How to Raise your Prices WITHOUT Losing your Patients'.

Here's the thing when it comes to price rises...

I get it.

I used to charge $45/week for online coaching as a dual qualified Exercise Sports Science and Physiotherapy graduate with 7 years PT experience. 

Then, once I made the Australian team for Weightlifting, I started charging $79/week. 

Each jump was scary, but now I'm in a place where a price rise reflects the value I provide - not the 'number.' 

I just had to get over myself first. And I know this sounds harsh, but seriously - get over yourself. 

Get over the part of you that believes a rise in price is somehow evil and/or unethical. Because if you do believe that, then you also by default believe that those who raise their prices are evil/unethical. 

And that is nothing but a status game you play with yourself and other people who believe the same thing. You are not a hero. If your business is bleeding, your staff are burnt out, and you are underpaid, you are most definitely not a hero. You are simply a martyr for an ideal that punishes those who want to create immense value for society for immense financial reward (within reasonable limits, of course).

Because sadly, if your business isn't healthy; eventually you'll have to let go of great staff (or they'll leave themselves), you get burnt out, and ultimately, it is the patient that no longer has access to great care. You leave the rehab game, by sticking to your status games.

Remember, what matters is the intent behind your price rise. As long as you are clear that this is the best move for all parties, yourself, staff and patient - then all that's left is getting over yourself.

People will say what they say - this is a fact of life. Do what is best for your team, your family, yourself and most importantly, the patient.

Yours kindly,
Phil