Are You Charging Enough for Your Private Practice?

Therapists often worry whether their fees are unaffordable, particularly when the cost of living is increasing and enquiries seem to be quieter.  

However, my latest guest on the podcast, Claire Ratcliffe, turned this question around and asked:

Can you afford your private practice?

Claire and I unpacked what this means for therapists in our conversation.  You can listen to our interview in full here:

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What costs should your counselling fees cover?

Many therapists decide on their fees by setting their rates at what others in the local area are charging.  However, this could lead to a lower income than expected because costs have not been taken into account.

This then puts pressure on the counsellor to work with more clients, leading to the possibility of burnout.

Your Session Fee Isn’t Your Income

Your session fees have to cover a number of expenses, including:

• Room hire
• Digital resources
• Supervision
• CPD
• Insurance
• Professional Body Membership
• Advertising
• Tax
• Annual leave
• Sickness
• Cancellations
• Pension
• Quieter periods

Some of these costs – such as supervision – are obvious.  But it’s easy to forget that your fees also need to pay for the times when you’re not seeing clients.  If you’re employed, you receive annual leave, sickness pay and a pension contribution as a matter of course. In private practice you have to provide these things for yourself.

It’s vital to make an allowance for the cost of doing business when you’re setting your fees.  

How Do You Work Out What to Charge for Counselling?

When you’re thinking about what fee to set, there are several important factors to take into account and use in your calculations. These include:

1. The income that your practice needs to generate.  
2. The number of clients you can sustainably see.  
3. Your expenses
4. How much time you will take away from client work (including holidays and sickness leave)

If you’re not sure what all of this means for your own fee, I’ve got a simple fee calculator to help you. Access it here.

What If You Can’t Attract Enough Clients Who Will Pay Your Counselling Fee?

It’s not only about working out how much to charge – it’s also about attracting enough clients to pay your fee.

Many counsellors I know supplement their private practice fees by working with other suppliers such as EAPs or insurance companies.  This can be a helpful way to bring in more clients but it often means you are working for less than the fee you’ve set as a sustainable contribution to your practice.

This is why I think marketing is so important. It is connected to fee setting and having a private practice that supports you long term.  The more you’re able to attract your own clients, the more choice you have over your fees and the type of private practice you want to build.

In the interview, Claire described how she has been able to build a client base through social media, directories and her website.  She believes in letting people know who you are, how you work and what you have to offer so that the right people find you.

Why Do Therapists Find it Difficult to Charge Enough?

Working out what you need to charge doesn’t necessarily mean you’ll feel comfortable charging it.

We can bring our own experiences and beliefs about money into private practice.  You may worry that clients won’t be able to afford you – particularly if you’ve experienced financial hardship yourself.  I’ve written more about this in Fees for Private Practice: What is Affordable?

Private practice therapists can also feel guilty charging for work that helps people.  If you’d like to explore this further, I’ve written about it in Pricing and Fee Setting for Private Practice.

Do Higher Counselling Fees Make Therapy Less Accessible?

Another question that therapists have is how they can accommodate clients who simply cannot afford their fee.  This can make it even harder to feel comfortable charging more.

However, having a therapy practice that provides a good living means that a therapist is more likely to be able to afford to be generous.

They will be able to afford to offer concessionary places without feeling under financial pressure.  They will have time and space to volunteer, should they wish – or to seek funding for offering low cost therapy.  Alternatively, they can use some of their earnings to make financial contributions elsewhere.

It is possible to charge a higher fee and still make a generous contribution to those who are less well off than clients who can pay.

Should Therapists “Charge What They’re Worth”?

No fee can represent your worth.

Claire argued that a £500 fee versus a £50 fee doesn’t make a therapist more worthy than another.

Your fee is a business decision based on what you need to provide for your health, your wellbeing and your financial security.

Your worth isn’t something you calculate.  Your fee is.

How Can You Make Your Private Practice Financially Sustainable?

When you set your fee, remember, you’re not simply charging for the hour you spend with your client.  Your fee needs to cover your cost of doing business together with extra to sustain you.

That includes the time you spend on marketing and admin, together with costs such as insurance and supervision. Importantly, it also includes time where you are not working but are resting.  This means you’ll be able to provide a service for clients where you’re well, energised and present. 

If you charge enough for your private practice you’ll be able to take holidays.  Have time off sick.  Pay for therapy or additional supervision.  Manage quieter periods without panicking – and eventually retire.

Charging enough isn’t just about earning more.  It’s about not overloading yourself with so many clients that the work becomes unsustainable.  It’s about creating a practice where you can continue doing what you love over the long term.  

Try my free Fee Calculator to help you work out what a sustainable fee looks like for you. 

Frequently Asked Questions

How do I know if I’m charging enough for counselling?

When calculating your counselling fee, don’t just compare it to what other therapists are charging.  Ask yourself if it covers all your expenses including: non-client time, holidays, sickness, quieter periods and pension contributions.  And importantly, does it provide you with a sustainable income?

Should I reduce my fees if enquiries are quiet?

Quieter times are not necessarily due to your fees being too high.  They could be due to other factors such as the time of year or clients finding new ways to search for therapists.  By reducing your fees at this time, you risk making your practice less sustainable without it meaning you’ll attract more clients.

How many clients do I need to see in private practice?

For the long term health of your practice, consider how many clients you can comfortably accommodate in the time you have available.  Remember that running a practice also includes time for activities such as admin, supervision, CPD and marketing.  

Take these factors into consideration before deciding how many clients you can sustainably see and then set your fees based on that number.

Should My Counselling Fee Include Holidays and Sick Leave?

Yes.  Unlike someone who is employed, you’re responsible for funding the time when you need rest.  When calculating your fees, allow for the amount of holiday and sick leave you realistically expect to need during the year.

My free Fee Calculator takes this into account by asking how many weeks of the year you plan to work, together with how many clients you can realistically accommodate in a week, and helps you calculate what you need to charge as a result.

What If I Put My Fees Up and Can’t Find Enough Clients?

It’s understandable to worry that if you put your fees up you’ll receive fewer client enquiries.  However, if you’re struggling to attract enough clients, your fee is not necessarily the problem.

Attracting clients means having a clear idea of who you’re trying to reach and making sure your marketing is seen by people who can afford therapy.  It involves communicating to them in a way that they know you understand their problems and can help them.  It means making yourself visible enough that they can find you.

While EAPs and insurance companies can provide you with clients, you’ll often be paid a lower fee meaning you’ll have to work with more people.  This may be unhelpful for the long term sustainability of your practice and your own capacity.