I know a healer who charges “between $25 and $1000- whatever you think it’s worth to you.” Seems like an enlightened, trust-the-universe approach, eh? Kinda sweet, kinda generous.
Kinda mean.
Mean? How can a sliding scale payment offer like that be mean?
Money is a funny subject. Funny strange, not funny ha-ha. Rich or poor, struggling or in flow, money can catch all of us in strange ways.
Let me ask you a question: does your business have to do directly with helping people with their money issues?
If Not, Forget the Sliding Scale
Let’s step, for a moment, into the world of your client. What’s happening for them when they come to you for help? Well, they’re stuck in some problem.
Being stuck in a problem means they feel needy. Vulnerable. Maybe a little overwhelmed and exhausted. Needing support.
So they get help from you, and then it’s time to pay (assuming you don’t get payment before the session). And you hit them with the statement: “You decide what you want to pay me.”
Well, that’s a nice end to a beautiful session. You’ve just jabbed the button activating any shame, guilt, or shakiness that they have about money. They may not show it, but there’s a good chance that they’ve been thrown into some real uncertainty.
That decision of what to pay- it’s a burden on them.
We Ended Up Getting Burritos Instead of Crepes
My wife Holly and I were out at a cafe, and then it was time for lunch. We went just a few steps down the street to a creperie we hadn’t yet tried. We walked in and…
There were people sitting around eating and drinking. But, there was no wait staff, no menus, and a mysterious sign that said something about ‘going around the back.’
I don’t know if we were particularly thick or had low blood sugar at the moment, but we couldn’t figure out how the restaurant worked. After 2 minutes, we stopped trying. And left to go get burritos instead.
And haven’t been back to try again since.
Is Your “Freedom” Sliding Scale Chasing Clients Away?
Your client has that wonderful experience with you, and they think they want more. And then, they are faced with the challenging decision of what to pay.
All the while they’re asking themselves: “Do I make another appointment, and have to face that horrible sliding scale again, or not?”
If they loved you, it might tip the scales to scheduling another. If, however, their money issues are particularly up for them, maybe… they just… might… not.
Do you really want to shift the burden of your money issues onto your client? And have to pay the consequences?
Don’t Underestimate This Factor
Think about it in your own life. When you come to a situation that is confusing, challenging, uncertain- how often do you choose to repeat the experience? Not so often, I’m guessing.
I hate to break the news, but in almost every case where I’ve seen someone offering a sliding scale, it’s actually been because the practitioner was avoiding their own issues around money.
If you’re doing this, it’s okay- no shame is necessary. But, it might be costing you clients. I’d suggest you take a look at it. And, is it EVER okay to work with a sliding scale?
Keys to a Healthy Sliding Scale
• Is your sliding scale generosity or avoidance?
If you offer a sliding scale, or, if you let your price slide a lot when people push, just ask your heart- does this feel like a real sense of generosity? Or, can you taste the vague mist of avoidance?
If you feel the mist of avoidance, on to the next key.
• What would happen if you just named a price?
What fears, or thoughts, or worries are you facing in naming your price? Make space for those in your heart. Sit with them. Put aside shame or guilt if there is any- you just have what we’ve all had- uncertainty about money.
Take some time in your heart to ask- what is the larger truth about your price? What would really happen if you just picked a price? Ask to be shown how your clients’ hearts would react to you just picking a price.
Most often, what I’ve seen is that there is an ease that comes in, and a sense of trust and solidity that the client feels when you are able to stand in your price. They can lean into you.
• Once you’re clear, you can negotiate.
If you find that clarity and strength in your heart about your pricing, then, when someone asks, you can negotiate. Someone wants to pay a lower price, check with your heart. If it feels right (not a collapse) see what feels like a good price to counter with.
Personally, whenever someone asks me for a lower price, my heart almost always asks me to stretch them a bit. Usually the price they are offering to pay is attached at least a little bit to fear, and my heart enjoys the sense of aliveness that both I and the client feel when I ask them to stretch into a slightly higher price.
• The two situations where a sliding scale may be worth offering.
If your business is meant to help people process their money issues, then go for it. Your sliding scale can actually be a part of the healing or coaching work you do. If you’re intentional about it, and are clear in your own heart about it, your sliding scale can actually help to create breakthroughs.
Or, if you don’t mind spending additional unpaid time processing with someone over the price, and supporting them if triggering emotions come up from the sliding scale, then you, too, can use a sliding scale effectively. As with the example above, it can be a part of the work you do with them. But get clear: is this really the work you want to do with your clients?
In either case, make sure you don’t set the low end of the sliding scale lower than your heart can bear.
As you can see, the sliding scale can be hiding a whole host of issues, and can be scaring off your clients. Get clear on your price, and you can remove a burden from your clients, which will make it easier for them to return again and again.
21 Responses
As a small business start up coach and consultant, the question of ‘what to charge’ comes up all the time. As my clients work through this question, I frequently remind them that “it’s not about the money, it’s about your relationship to self.”
Hi Susan,
It’s so true- I feel happy knowing you are helping to spread that message. It’s so hard to keep one’s eye on the ball: relationship and connection, and trusting that the provision will arrive from that relationship- especially when someone is in start-up mode and the financial stresses are tough.
What do you think about sliding scales?
I started my business almost by accident, charging the going rate for a temp worker (which is what I would have been doing other wise). My fees crept up, but didn’t keep up with going rates. To compensate for low self-esteem I only increased my rates with new clients, a sort of sliding scale.
Finally, I gave myself a good talking to at the beginning of this year: “I’m a professional web designer and I charge $65 an hour.” I repeated it while I went about my daily routine until I was totally comfortable with it. I now have no problem asking for what my services, and my years of experience, are monitarily worth. I still have a few “charity” cases where I give them a discount, or use a sliding scale, but I go into the projects with eyes open and a good feeling in my heart.
Another perk to charging a higher rate, and not using a sliding scale, is getting a better quality of customer. You are more likely to get ones understand that quality work costs more, who respect what you can do for them and leave you alone to get the job done, rather than nit-picking and nickle and diming you.
I’m not saying that all clients with less money are of lesser quality; in fact I’ve had a number of clients who didn’t have much money to start with, and I gave them as much as they could afford, and they have been long and loyal customers. I also have a few client that are pro bono or trades. However, I’ve also had a number of experiences where the client didn’t have the budget but expected more and I ended up giving/paying too much.
After the last one of these clients I said, “This project came to me to teach me a lesson (or more),” which was:
Trust your instincts; feel the chemistry, or lack there of, between you and the potential client. Are they going to be easy and fun to work with or a source of aggrivation?
Trust your ability; you are a professional in your field with years of experience.
Value your time and be realistic about how much of it you need to best serve the client.
So in the end, it goes back to the core of what you promote, that you have to trust your heart in what clients to take on, in addition to accepting the fact that not every client is right for you and you should feel no remorse if there isn’t a match, regardless of how much money is involved.
Hi Majorie,
Good for you! I so know that place… and I’m inspired by how you have faced issues of your own appreciation and gotten clarity in your heart. That’s really exciting.
I’ve noticed the same phenomenon: higher prices usually mean a higher quality of client. This is not always true- I’ve had excellent clients at lower prices. And, it also doesn’t mean that people with more money are better people- that’s so manifestly untrue, it almost doesn’t bear mentioning.
However, there is a dynamic that happens when the price goes up that in general people realize the level of commitment involved, as represented by the price, and they seem to show up more. At least that’s my guess- and that’s how it operates for me when I hire people.
Why do you think it’s true, when people who have access to less money are great quality people also?
Well, I can’t argue with that, can I? 😉 Trusting my heart has always, ALWAYS, worked for me.
I was interested in the e-zine below after our conversations on this topic.
You might be interested in the following link http://www.lentilasanything.com
They started as a single restaurant some 7 years ago in Melbourne, Australia. There are now 4, they have won awards and they have no set price for their food. People eat there and pay what they feel appropriate.
Interestingly, they are hard to get in to ….
Another thought to drop into the mix…..
That’s a great case study, Anthony- thanks for bringing that up. I have seen instances where this works- I’ve also known of companies that present an invoice to their clients, and give their clients the power to unilaterally change the bill if they feel it wasn’t worth it.
I think the key is, always, internal: if the owners are super-clear about what they are doing and why, and it’s not about dumping their financial issues onto their clients and customers, then almost anything can work.
Thanks for bringing in the variety of how that can look here.
hi mark,
i wanted to comment on your the sliding scale article
because i am intimately living/working with it on a
daily basis. i will be the first one to admit i have
money issues to overcome; i.e. student loans to pay
off. how am i ever going to buy a house in portland???
but i firmly believe that the sliding scale can and
does work with the right intention. i agree with many
of the things you said, but wanted to share another
option.
the acupuncture practice that i co-founded is based
on the sliding scale of $15 – $35 per session. we
currently treat 80-90 people per week (in business for
8 months) which i would like to double that in the
coming year. the average time that i spend with each
patient is about 10-15 minutes each. i do simple but
effective treatments. many people pay the low end but
many pay the higher end with the average being $20.
the system shifts the focus from me doing all the work
to them being responsible for their own healing. i am
just the facilitator.
the working class acupuncture that we have modeled our
practice after sees about 300+ people per week and
gross income is about $6000 per week. i have met only
one acupuncturist in this city who comes anywhere
close to that and i think that person is the
exception. many acupuncturists, even after several
years of practice, cobble an income together with
multiple jobs. many of them give up after a few years
because they get burned out with the system. so many
acupuncturists graduate from schools heavy loaded in
debt and then don’t end of practicing because the
current model doesn’t work. this is where the art of
the sliding scale can comes in…with intention.
anyway, it got me going and just wanted to share
another point of view with you. finding a way to make
healthcare affordable is really important to me.
peace,
joseph goldfedder
brooklyn community acupuncture
1212 se powell
portland, or 97202
Hi Joesph,
I’m really glad you brought up the example of Working Class Acupuncture. Their office is just a few minutes from where we live, and I have their pamphlet, which is more of a manifesto, than anything else.
I totally agree- they have a working model. And I think it proves the point again. They have a very particular, and clear, idea about money, and their sliding scale is well thought-through. They aren’t dumping their money issues onto their clients, and it works.
So, I really appreciate seeing this.
However, I would argue with you about saying that the ‘current model doesn’t work.’ I think the main problem isn’t the business model- the main problem is that while you spend several years and tens of thousands of dollars learning acupuncture, no one really teaches those practitioners how to be in business.
The business classes in most of those schools are inadequate, to say the least, to prepare them for the reality of what it takes. And, by the time someone graduates and needs to start paying student loans, it’s almost too late to start learning about being in business.
I know many acupuncturists who have gone from struggling to doing fairly well, or really well- but they are either in a successful clinic who hired them, or they have put time, energy, and money investing into getting business support and understanding it.
One friend of mine went from barely making rent, to having two thriving offices in about a year and a half- but he was willing to invest into business training, and following through.
This is off-topic, but I couldn’t resist, because this is one of my pet peeves about holistic practitioner training schools- coaching schools, massage schools, etc, etc. They don’t give anywhere near enough business training to make sure their graduates can actually connect with the people they are trying to help.
Returning to the original point- I’m very appreciative you brought this model up, because it does work, and for the original clinic, the people involved have a very clear intention about the money, and so it’s clean.
Hi Mark,
I am I total agreement with you that the one business class that was offered to me in my last semester of acupuncture college was totally inadequate. I started to think about starting my practice a year before I graduated
Hi Mark,
I’m enjoying receiving your ezine, and read this recent one with interest, in part because, while I don’t currently use a ‘sliding scale’ in my coaching business, I did in the early days of establishing myself. I was quite satisfied as were my clients, and have suggested this as one way for new coaches starting out to consider, especially if they have questions like:
Hi Mark,
I’m enjoying receiving your ezine, and read this recent one with interest, in part because, while I don’t currently use a ‘sliding scale’ in my coaching business, I did in the early days of establishing myself. I was quite satisfied as were my clients, and have suggested this as one way for new coaches starting out to consider, especially if they have questions like:
Joseph- thanks for the details on all of that. I believe that there are many different ways the health care system and economic system doesn’t work very well, and I’ve seen it from a number of different perspectives, so I agree with you.
I’m just careful about placing blame for what’s not working. I have seen a lot of people struggle starting their practices, but it’s not always the economic system or the way acupuncture is presented that’s 100% at fault. If acunpuncturists, and other practitioners, put in 20% of the effort into learning how to be business that they put into their education, many of them would not be struggling nearly as badly, or at all.
And that would free them up to be generous and be able to volunteer, donate, or otherwise make their services available to those with less disposable income.
Thanks again for bringing all of this up.
Hi Dr. Brad 🙂
Thanks for bring that approach to my attention. It seems very similar to my Your Right Price exercise- thus proving again that what works is already available all around us, and that we need often look no further than our own hearts for the true answers. I’m glad you’re doing what you’re doing!
I do have one caution about the ‘value’ conversation. I think it can be such a painful place for people to land, that I try to steer folks away from thinking about ‘value’ completely- because in my experience, it’s never about value.
Did you see Why valuing yourself more can shut down your business?
As an acupuncturist considering a future practice, I think fee issues boil down to each practitioner’s perception, physical constitution, stress tolerance, need for free time, etc.
Being easy going in nature,I love to take my time and talk to people, and might become discontent treating the extra volume of patients necessary to pay overhead and myself what I would consider a fair salary under a sliding scale system. I would fear the possibilities of future stress making my work less enjoyable along with the possibilities of burnout.
I plan on establishing a set price and offering 50% off to new patients for the first two weeks or month. Many people, especially pain and musculoskeletal, need Tx. 2 or 3x/wk. for the first few weeks. 50% off during this period allows patients to experience acupuncture as the standard of practice is and was originally performed in China. Treatments will be more effective, affordable, and patient’s, seeing the value of acupuncture, will be more prone to return to pay an established price.
I also think that diversification in investments as well as one’s own occupation could make one’s life a bit brighter and less stressfull. For instance, treating 30 patients per day, M-F., at $60 per 1 hr. visit equals 5 hrs. per day and with acupuncture, herbs, and neutraceuticals, that comes out to near $90,000/yr. You’re running solo with no employee responsibilties or headaches. Use the other 4 to 6 hrs. remaining in a normal workday to venture into an online business endeavor such as marketing, consulting, selling information or whatever you wish to do with your computer. One could work an online business between patients and never having to leave office or home. You could leave both jobs from the same location, having spent nothing for gas, no traffic to contend with, and be home for the evening news with your family or loved ones. Sorry, for persons here who are not computer literate but I think most are.
Some people are just mentally and physically geared to treat volumes of patients per week, but for others, examine your own heart first. Do I possess the extra drive, focus, and intention it will take to do the extra processing and treatments required in higher volume practice…and can you do that happily? Will the added stress impair one’s focus and intention and rob patients of the treatments they deserve.
Again, it’s a personal choice, but never sacrifice your patient’s due or your own happiness.
IMHO,
Mike Eidson
Hi Mike,
Sounds like a great plan there. One thing that you wrote, however, raised a red flag for me:
“For instance, treating 30 patients per day, M-F., at $60 per 1 hr. visit equals 5 hrs. per day and with acupuncture, herbs, and neutraceuticals, that comes out to near $90,000/yr. You
I totally agree with you, Mark. In fact, this week I encountered a service that really appealed to me, but then when it came to the price, they said it was by donation only – with a suggestion of somewhere between $10 and a few hundred dollars. I would hate to pay $10 and feel like I would offend them and seem like Scrooge, but I also wouldn’t want to pay ‘too much’ and hurt myself financially. If they’d just said $50 or $75 or $100 I could have said a clear “Yes, it’s worth that much to me” or “No, it’s not that high a priority in my budget”. So, I’m just not going to bother with it. Sad, really.
@Trisha-
That IS sad… I folks get to read your reaction and let it sink in- I’m not just blowing wind, but people really do have these reactions to sliding scales…
There is some solid information on this blog. I am in love with your blog so far. I’ve added you to my boomarks and will give you a mentioning over at my blog. I did have an issue with how fast the website loaded. Might be something to fix.
This is a little bit sick… have you ever been poor? Most poor ppl offer way more than they can afford because of the shame associated with not being able to pay their own way. Do you know that delivery ppl often make better tips in less affluent neighbourhoods? You don’t need to ‘stretch’ anyone. That is plain greedy. Sliding scale isn’t perfec, but some of the things you are suggesting and advocating are shameful. A lot of what is being discussed here is from the perspective of ppl who have enough. It’s unfortunate if sliding scale makes you a bit uncomfortable, but the ppl it really benefits are the ones who couldn’t otherwise dream of these extra services. This article is written by someone who is really disconnected from real people of different means, and their experiences. I’m ashamed I read this garbage.