Setting the right pricing for your cash physical therapy practice can be a make-or-break decision for your success. Pricing too low can lead to burnout, while pricing too high can scare away potential patients. So, how do you determine what you should charge? In this post, we’ll dive into common pitfalls cash-based therapists face when pricing their services, how to overcome imposter syndrome, and the best strategies to ensure you’re charging what you’re worth.
Common Pricing Pitfalls Cash PTs Face
When it comes to pricing, many new cash physical therapists fall into a trap of assuming what the market will bear. They often base their rates on what they think people in their area will pay or what they would pay themselves. This leads to pricing based on feelings rather than facts, which is a huge mistake.
Mistake #1: Pricing Based on Assumptions The number one mistake is trying to guess what the market will accept based on personal assumptions. Many therapists mistakenly think that their rates should reflect what others are charging or what they feel comfortable paying themselves. But what you’re actually doing is projecting your own price sensitivities onto your potential patients, which can lead to undervaluing your services.
The reality is that your patients might have a different financial situation than you and might be willing to invest in a solution that helps them solve a long-term problem. By assuming what they are or aren’t willing to pay, you’re not giving yourself the opportunity to grow your business to its full potential.
Mistake #2: Blindly Copying Other Businesses Many therapists look at competitors’ rates and assume that because their rates are similar, they must be on the right track. However, you need to ask yourself: Does the business you’re modeling have the lifestyle and financial freedom that you want? If not, copying them could keep you stuck in a cycle of low income and long hours.
Mistake #3: Not Aligning Rates with Your Lifestyle Goals Pricing your services without considering your desired lifestyle is a major pitfall. Your business is there to serve you, and it needs to generate enough revenue to cover your personal and business expenses while giving you the time and financial freedom you’re seeking.
The No-Brainer Method for Setting Your Rates
Instead of guessing what people will pay or looking at what others charge, there’s a more strategic way to determine your rates. The key is to base your pricing on the financial goals you’ve set for yourself, the number of patients you want to see, and how many hours you want to work each month.
Step 1: Know What You Want The first step in setting your rates is determining how much money you want to make. Whether your goal is $5,000 or $50,000 per month, your pricing should align with the financial success you want to achieve.
Step 2: Factor in Time and Capacity Next, consider how many patients you want to see per week and how many hours you’re willing to spend treating patients. For example, if you want to see 25 patients a week and you want to make $20,000 per month, your pricing should reflect the time and revenue needed to meet that goal.
Step 3: Use a Calculator To make this process easy, we recommend using a Cash Practice Pricing and Acquisition Calculator. This tool can help you input your monthly revenue goal, the number of patients you want to see, and your treatment hours to calculate exactly what your rates need to be. This eliminates guesswork and sets you on a path to sustainable business growth.
Overcoming Imposter Syndrome Around Pricing
As a cash-based physical therapist, it’s normal to feel uncomfortable when you start charging higher rates, especially if you’ve never charged premium prices before. Imposter syndrome can make you feel like you’re asking for too much, but it’s important to remember that people value quality. If you want to provide a premium experience that drives long-term results, you need to price accordingly.
The 50/50 Reasons Why Exercise: One exercise that can help shift your mindset is the “50/50 Reasons Why” exercise. This involves writing down 50 reasons why your services are worth the price you’re asking. By the time you’ve written 50 reasons, you’ll see just how much value you’re providing to your patients. This makes it easier to justify your rates and overcome the internal resistance.
The Power of Charging Premium Rates
Charging higher rates isn’t just about making more money—it’s about positioning yourself as the expert in your field. Premium pricing communicates that you offer specialized, high-value services that lead to better results. When you charge more, you attract patients who are ready to invest in their health and are committed to getting results.
Why Charging $200+ is Beneficial:
- You attract the right patients: Premium pricing attracts motivated patients who are committed to their long-term health, which leads to better outcomes.
- Less price resistance: Higher rates reduce objections and make it easier to close sales. When patients pay more, they expect more and are more likely to follow through with their treatment plan.
- Improved patient relationships: Charging higher rates often results in more committed patients who trust your expertise and are willing to invest in long-term solutions.
Packages vs. Per Visit Pricing: What’s Best for Your Practice?
One of the most common debates among cash PTs is whether to sell packages or charge per visit. There are pros and cons to both models, and the best choice depends on your business model and goals.
Packages:
- Offer greater flexibility for both patients and businesses.
- Encourage patient commitment and improve outcomes.
- Provide immediate cash flow that can be reinvested in marketing or building your team.
Per Visit:
- More accessible for patients who can’t afford a package.
- May attract patients with less long-term commitment.
- Typically results in a lower average number of visits per plan of care.
While packages tend to offer better results and greater financial flexibility, a hybrid approach works best for many practices. Offering a package as the default recommendation, but giving patients the option to pay per visit, can help meet the needs of various patients.
Conclusion: Set Your Rates for Success
Setting the right pricing for your cash physical therapy practice requires a balance of logic, strategy, and confidence. By aligning your pricing with your financial goals, the type of patients you want to attract, and the lifestyle you want to lead, you can confidently charge what you’re worth and build a sustainable, profitable practice.
Remember, pricing is not about guessing what others will pay—it’s about valuing your time, expertise, and the transformation you provide. Don’t be afraid to charge what you’re worth, and watch your business grow.
Watch and Listen to the Full Video
For a deeper dive into a cash physical therapists’ journeys, make sure to listen to the full video. Click here to listen to the video: Set Your Worth: A Cash Physical Therapist’s Guide to Mastering Pricing Strategies
About Author:
Although the company eventually failed, it provided Jordan with invaluable learning experiences. He became passionate about designing world-class patient experiences and building efficient marketing & sales funnels for cash physical therapists. Utilizing this expertise, Jordan became the CMO of a well-known physical therapy media company, and consulted for and built marketing funnels for some of the top physical therapy business coaches.
Eventually growing tired of the typical agency and consulting grind, Jordan, alongside Max Zirbel, founded Clinical Marketer. They infused it with the hands-on support and mentorship that they benefited from in their initial venture. The company was a success from the start, aiding clinics in scaling to 6 and 7 figures in revenue. During its first launch, Jordan and his team met Dr. Ben Bagge, whom they later partnered with after helping him grow his business from $200K/year to over $1M/year in three years.