In a private VIP mentor session last week, I was working with a client on their current fees and planning their regular fee increase.
In our discussion I asked him how he originally decided what his consultation fees would be when he first opened his practice and this is what he said:
“I just rang around the other clinics in the area and set my fees at around the average of what everyone else was charging“.
So what my client was essentially saying, is he set his fees somewhere in the middle of the competition, with some clinics being more expensive and some being less expensive.
From my over 25 years in health business ownership and mentoring, I can tell you with absolute certainty – this is the WRONG way to set your fees.
In previous emails and posts I have spoken about the power of developing a strong niche, or creating a proprietary program, which only you have – as a way to make price comparison impossible.
However, from a marketing perspective. there is absolutely no marketing advantage in having your consultation fees in the middle of the fee spectrum.
You need to either be the least expensive (not recommended in health care) or the most expensive.
Many health providers worry about positioning themselves as the most expensive provider, especially if there is a guy up the road who has 40 years experience and a great reputation, however you need to overcome your self doubt and understand the psychology of how people buy.
The majority of people believe price is a fair and correct determinant of how good a product or service actually is, and it is no different in health care.
By positioning your practice as the top of the fee ladder, you automatically claim the spot as the BEST provider in your area.
You must be more expensive because you are the best – right?
Of course you need to deliver great service and have a great product, but you are already doing that now, so why not be rewarded financially for your great work.
So check your fees against your competitors and do your best to make sure you are the highest priced provider in your area, because there is no marketing advantage being in the middle.
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If you need help in your health business, want to know how to correctly set and raise your fees, or just want to know how to build a great health business that does not rely 100% on you.
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