I am always interested in finding out how health business owners arrive at the fees they charge for their consultations and sessions.
It is usually a mix of vague references to what others charge, industry norms, association recommendations and other equally damaging and unfounded methods.
One classic mistake that many health professionals make when setting their fees and negotiating contracts is allowing what marketing experts call “apples to apples comparisons”.
This is where a health business owner fails to correctly identify and strongly promote the differences between choosing them as the clients health provider – compared to the other possible providers or options.
They have failed to differentiate themselves in any way, shape of form – thus allowing the potential client to make their buying decision based fully on price.
This is a massive mistake and must be corrected if you are going to have a truly successful health business.
In one of my private coaching sessions this week I was working with a client on how she can differentiate the service her company currently provide to an aged care facility – from a rival company who is looking to come into the market – at much lower prices.
After some discussion – it became clear that there were some major differentiating factors that make a direct price comparison all but impossible.
Allowing my client to charge much more than the new competitor for the contract.
In this case some of the differentiating factors we identified included speed of response, local medical contacts, consistency of who would be providing the actual service, stronger local community links and solid family connections in the area.
As you can see – sometimes the major differentiating factors have nothing to do with the level of technical skill of the provider.
I encourage all health professionals to do your best to reduce any possible “apples to apples” comparisons between you and your competitors.
Then and only then will you avoid the problems associated with setting low fees and not charging what you are worth as a quality health professional.
I welcome your thoughts on this topic.