Ever taken the time and really thought about what you are really earning from your therapy work? Yes I know you will be charging your customers a price per hour but have you really taken a look at all the hidden costs that are there when you are running a business? Nothing in life is free and neither is Hypnotherapy Marketing. No matter how hard you try there are will always be costs associated with your business that need to be taken into account when you decide what you are going to charge your customers.
When you are advertising for clients you really need to think about how much money they are making for you and your business. Most therapists do not do this and instead charge a fixed price per hour which means a weight loss client is worth the same as a fear or phobia client. The reality is that a client with a simple fear or phobia can often be helped in one or two sessions whilst a weight loss client may need support over 5, 8 or even ten sessions. Now try and tell me that each of those clients is worth the same to you. Of course they are not. Someone who is going to fill your diary for eight to ten sessions is worth far more than a person who comes to see you once or twice. Therefore specifically advertising for the clients who make you more money is just common business sense.
But what about your other costs for your hypnotherapy marketing as well as your fixed costs have you ever stopped to calculate exactly what each client will earn you in real terms? When you really get down to the accounting nitty gritty you are going to be in for a very big shock especially if you have decided to charge very little per hour. This is because you will have a considerable amount of costs to cover in many cases that you have not factored in to you price per hour.
Hypnotherapy Business Accounting
So lets look at some of the charges that you will need to consider if you are seeing a client. Firstly unless you are working from home you will need a room to practice in and these of course can be expensive. You may be paying a monthly fee for a room or alternatively you may be charged by the hour. Either way room charges are going to cost approximately 10 to 20% of your client fees. Next think about how you are going to get to this room. In many cases it will not be within walking distance which means that you need to drive there or arrive on public transport which of course costs you money. If you are driving and the location does not have free parking expect to pay for that as well. Oh and don’t forget about tax. In the UK it is a general rule of thumb to set aside 30% of your earnings against tax and that is before you move into the higher income tax bracket!
Now lets think about all the other costs that go into running your business. Of course you need to advertise to get clients in the door (that is unless you have an all referrals practice). This means flyers, business cards, online advertising, newspaper ads, posters, and so on. Then think about the cost of calling these clients. I can spend a considerable time on the phone to each of my clients which means hefty telephone bills. I pay for insurance and professional membership fees. Stationary costs will also bump up my bills. Now think about the cost of building and running your website, that is unlikely to be free either. When you think of it there are many little costs that all add up. I suggest that you resolve to add up your previous years business costs and then work out how much that cost you per week. Then divide that number by the number of clients you see per week and you will have a good idea of how much these costs are per client.
To help you work out your real cost per client I have created a simple client profitability calculator so you can begin to understand how much you are really earning per hour. Simply click on the link and it will take you to a quick and dirty calculator where you can work out exactly what you are going to really earn from each of your clients. Be prepared for a shock when you see the real numbers.
I know that when I teach my marketing clients this exercise they immediately decide to up their fees and when you see the numbers you will understand why. I remember training one therapist who was only going to charge £40 per hour for his services in a very affluent area of London. He need to rent a room in the area and drive to the location and get parking. When you run the numbers through the calculator he would have been lucky to earn £10 to £15 pounds for seeing each client!
Factor in The Cost of Time
I have not added time into my calculator but that is important to add into the equation as well. When you travel to a location it takes time to get there and to come back. My Central London practice takes me nearly an hour to get to and another hour to get back. Remember you are not getting paid for those dead hours so the cost of time needs to be added to your price. As I am in Harley Street I can get away with a high price per hour but in other areas you are not going to be so lucky. If you have to travel long distances to see your clients really work out whether it is really worth the effort.
So if you are reading this and are serious about building a great business and taking your hypnotherapy marketing to the next level sit down and calculate all your costs. You will thank me in the end. What you charge per hour and the profitability per client is an essential piece of information that you need for your business. Once you have that number you can stop burying your head in the sand and really start to work smarter to earn the income you deserve. Need extra help with your marketing and hypnotherapy business plan? Then why not look at some of my marketing and mentoring packages designed to help you grow a booming business.