Welcome therapists and group practice owners! I’m Nicole McCance, a psychologist turned business coach for therapists. I scaled my group practice to 55 therapists and multiple 7-figures in three years with toddler twins at home, and one decision that moved the needle every single year was raising our rates. If this topic makes your stomach flip, you’re in the right place.
P.S. Not a huge fan of reading blogs? (I’m more of a podcast girl myself) You can listen to my podcast episode all about this topic by clicking here or by watching my YouTube video below!
Raising Therapy Rates Is About Value, Not Price
Most therapists worry that a higher number on the invoice will scare people away. I totally get this! Scaling your practice can feel unpredictable at times, and having a steady flow of clients is at the core of that.
But therapy isn’t a commodity, it’s a life transformation. Outcomes like better sleep, lower anxiety, healthier relationships, and real self-worth are high value.
Here’s a quick reframe for your brain:
- People pay for what they value. For example: Teens are out there skipping lunches so they can buy iPhones. Your clients invest in feeling like themselves again.
- Perceived value matters. On Psychology Today, the lowest-fee profile often reads as lowest value. Higher pricing and even a waitlist can increase demand because it signals quality.
- Higher rates tend to improve motivation and retention. When people invest, they show up, cancel less, and do the work. This also results in better outcomes for the client!
If you lead your consult call from value – what changes in their life, how therapy works, why now – you’ll hear more “yes’s” at sustainable rates.
And if you’re worried about accessibility, there are ways to keep therapy approachable without undercharging. I didn’t use a sliding scale, but I always offered a reduced intern rate. My rate was premium, and interns had a more affordable option.
This way, everyone wins! Clients had choices, interns filled faster, and the clinic stayed healthy.
Hot Tip: Send me a DM saying “CONSULT” on Instagram and I’ll send you my free consult call script to effortlessly turn calls into clients!
When to Raise Your Therapy Rates (And By How Much)
Let me break this down so it’s easy and cyclical!
Your annual rhythm:
- Raise rates January 1.
- Give 6–8 weeks’ notice. Send your email November 1 so clients have time to plan!
How much to raise:
- Standard bump: 5–10 dollars per session.
- If it’s been a while, a larger adjustment is okay. I once went from $250 to $275! My fully licensed therapists went from $150 to $175 the same season.
Solo vs. Group Practice
- Solo practice: raise your own rate annually, same timing.
- Group practice: raise everyone’s rate at the same time. Please don’t grandfather. Multiple fee schedules create accounting headaches and erode margins.
- Keep your director/CEO rate significantly higher than your team. I was roughly $100 dollars above my fully licensed therapists. It reflects your leadership time and naturally funnels clients to your team!
Hot Tip: Put a recurring reminder in your calendar for October 1! Draft the email and schedule notices for November 1.
The Logistics of Raising Your Therapy Rates
Now, let’s go a little bit deeper into the logistics of implementing a rate increase. Your confidence sells this, so practice out loud until it sounds natural (even if you feel a little silly).
Consult call script (simple and confident):
“Sessions are $175. Most clients begin weekly for four to six weeks and then we reassess together. We’ll focus on sleep, anxiety, and those Sunday scaries you mentioned so you can feel steady again. Does that cadence feel good to you?”
Say the number, pause, and breathe. If you wobble, they will too. Mirror neurons are real – your calm sells calm!
Client email template (6–8 weeks’ notice):
Subject: Upcoming fee update on January 1
Hi [Client Name],
I’m writing to share that as of January 1, session fees will be [new rate]. This small annual adjustment helps me maintain excellent care, invest in training, and protect availability. If you have any questions about this change or want to review your schedule, reply here and we’ll make a plan that works for you.
With care,
[Your Name]
Post a small notice at the front desk and update your website and intake forms. Keep it simple and matter-of-fact.
Team and systems checklist:
- Update fees in your EHR and payment processor
- Refresh superbill templates and canned email responses
- Notify referral partners if needed
- Inform your team, including your virtual admin, so follow-ups quote the new rate
- Remove your own availability from online booking if you’re shifting demand to your team
Hot Tip: Record quick Loom videos showing your admin how to adjust fees, update canned responses, and handle “What if I can’t afford it?” conversations with empathy and options (like the intern rate).
Using The Numbers to Lead With Confidence
Numbers help to reduce fear, so let me give you a small example.
- You see 15 clients per week
- You raise your rate by 10 dollars
- Monthly increase: 15 × 4 × 10 = $600 dollars
That’s an extra $600 that can fund training, part-time admin coverage, improved benefits, or yes… a family weekend away (you deserve it)! If two clients leave, many practices still net more revenue with less strain, and the clients who stay are usually more engaged.
Pay structure that scales:
- Pay 60% to fully licensed therapists
- Pay 50% to pre-licensed or qualifying clinicians
When rates go up, their pay rises too because the pie got bigger! This helps you attract and retain great clinicians. Remember, that remaining 40% isn’t pure profit, it funds your rent, software, admin, marketing, and leadership. Healthy margins keep your doors open for the long term.
Hot Tip: Click here to listen to my podcast episode all about why you should keep at least 40% of the session fee!
If you’re still feeling uncomfortable about raising your therapy rates, ask yourself the question: Am I acting from scarcity or abundance? Remember that you are providing a service that changes lives. Stand behind that. Visualize the conversation going smoothly. Practice the line until your body believes it.
Sustainably Scaling Your Group Practice
Raising your rates is not just about higher revenue (although that’s great too). At the end of the day, it’s about signaling value, protecting your energy, and building a practice that runs beautifully year after year.
You deserve to be paid well for excellent care, and your clients deserve a clinic that’s resourced enough to serve them for the long haul.
Want even more tips on growing your practice? Follow me on Instagram and listen to my podcast for all the best support for growing your therapy practice and attracting more clients!
Your business bestie,
Nicole
