Should you raise your rates?
The fear is losing clients; the math usually disagrees. Model a rate increase net of the clients you'd expect to lose, and see the attrition you could absorb and still break even.
Most owners don't raise rates because they fear losing clients. The math usually disagrees. At a 8% increase you could lose up to 7% of your clients and still come out even; anything less is gain. See the effect on every clinician's economics in the full Snapshot.
Decided to raise? Here’s the doing-it part.
The math above is rarely what stops an owner. The client letter is. A few norms that make it easier, then a starting draft you can make your own:
- Give at least 30 days’ notice (60 is kinder, and some states or panel contracts expect it, so check yours).
- Pick a natural boundary. January 1 and September 1 are the classic fee-change dates; mid-month raises read as improvised.
- Don’t over-explain. One sentence of reason is plenty; a paragraph of justification invites negotiation. The letter does the work.
Dear [client name], I'm writing to let you know that beginning [date: at least 30 days out], my session fee will change from $[current] to $[new]. This is the first adjustment since [year of last raise], and it allows me to keep this work sustainable and to continue showing up fully for our sessions. If the new fee creates a real difficulty, please talk to me. I'd rather have that conversation than have it be a reason our work ends, and we can discuss options including a transition period. Our session schedule stays exactly as it is. Thank you, as ever, for the trust you put in this work. Warmly, [your name]
A starting point, not a script. Adjust it to sound like you. For panel/insurance fee schedules the rules differ (your contracts control); when in doubt, a quick check with your biller or attorney beats guessing.
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