Sessions - Pay as you go or all at one time

[CastlemanConsulting]

I have been toying with the idea of switching from single pay as you go sessions to a package deal where you pay for the entire package up front. Let me give you an example of weight loss:

Example
How I do it now:

Pay as you go for $50 a session for a min. of 3 sessions for a total of $150. This works out because people don't have to spend a lot upfront and can "test" me.

Problem is a lot of people come for the first session, schedule and reschedule the next sessions causing me to block out their time and lose out on potential income.

What I am thinking of doing is this:

Pay upfront for the entire program. Say $250 for 7 sessions. I would take payment by credit card or post dated checks. If they come to one or two sessions and then don't come again I am not out any lost money. Of course I would refund if requested a portion of the money.

I would still offer the pay as you go option but it would be higher - say $75 a session instead of $50.

I am hoping that by doing this it would cut down on my number of no shows and help people stick with the program.

What are your thoughts?

Tim

[TaffyE]

I charge on a session basis,
I explaing that changes can happen very quickly or take a little time, and tell them to ring for another appointment when they are ready. That way there are no "lost appointments".
If they haven't got back to me after say a week, I'll ring as a follow-up "to see how you are travelling"

A friend has a free 1 hour assessment and charges half up front, then the other half at the end of the first of his estimated number of sessions - refunding if the client needs less than the (genuine) estimate. I'm not sure of his fee.

[Don]

Hi, Tim.

As you point out, you're losing potential income as a result of your system. Something is wrong.

It could be that you are doing such a good job that people don't need to come back. If that's the case, you're not charging enough.

It could be that they didn't understand what to expect and you didn't meet their expectations. You may need to change your pre-induction interview/talk.

It could be that they didn't achieve their goals and had to determine whether to come back and spend more money, or chalk up what they spent as a loss. Again, if they didn't put out much to begin with, it's not too much of a loss to forget the first payment. Again, you need to raise your rates.

Also, raising your rates will make people want to achieve their goals, bringing more potential success. Clients will also give you more prestige, giving your suggestions more value to them.

So my suggestions are:
1) Adjust your talk to make expectations more realistic and
2) Raise your rates.

I realize you are worried that if you raise your rates some people won't come for multiple sessions. Well, they're not coming for multiple sessions now, so what difference does that make?

As one of my teachers said, "You don't need more clients, you need successful clients." That will bring you more clients.

My guess is that 2/3 of the people who say that can't afford it spend all sorts of money on movies, clubbing, cable TV, new clothes, etc. They think they want to change, but really don't want to do so. They're not going to succeed in changing because they don't really want to change. Not having them--and their failures--will improve your success rate.

But what about that 1/3 that really wants to change but can't afford it? You can work out sliding scales for people who can prove that they don't have the money (such as showing you their food stamps). Perhaps you can even take a certain number of cases for free. However, I would respectfully suggest that before you accept them, you should give them an assignment. For example, if someone wants to quit smoking, have them write down the time they smoked every cigarette for a week, what they were doing at the time, and what they were thinking at the time. If they do not do this for every smoke, tell them to come back when they really want to quit and keep the record for a week.

[CastlemanConsulting]

Don:

Thanks for the great info and giving me something to think about. It is my thought that people have price points they are willing to pay and $50 seems like one of them. I am the lowest charging hypnotist in the area but I will need to think some more before rasing my rates. Thanks again for the info.

[Don]

IMO, rates need to be dependent upon the going rate of the area, especially when people are starting out or relatively new. However, if you're "the lowest charging hypnotist in the area," I would seriously consider increasing your rates. I promise you, if people really want your help, they will find a way to get the money. And as a side benefit your success rate will go up.

[Jack]

I think it may have been said but fees are about the market and about what you expect.

If you are in a locality where 25 is the norm then above 25 has to have an extra something and below 25 could be suspicious and attract day-trippers.

If you want to flog away day after day with many clients, well, that's great for experience. Once you have the experience you may raise your fees, take fewer clients and still earn more. The fewer clients you take will tell others about how much care you take, how you never rush them and hopefully how effective your treatment is. Result? More clients. Raise your fees until you have the same number of clients you had before. Result? More money. And so on.

You have to expect to be good to be good and you have to expect that you will earn a good living from your profession. If not, then you are a charity worker. Nothing wrong with that, but it really is your choice. If you make pots of money, think how much pro-bono work you may do when you are financially secure.

There is something immensely satisfying in charging big fees to wealthy clients and doing free work for those with no funds. There's a little of Robin Hood in most of us.

Jack

[tgaster]

If they don't pay, they will punish you. There has to be something in it for them. There has to be a reason. There is a saying my mentor taught me. You don't need more clients you need results. If you have the results the clients will be beating down your door.

Some people like to tell you they have been to the best and couldnt be helped. So they create a very significant problem. I want to know if the person is commited before I will work with them. I do not work with everyone. Everyone I work with gets the results. Must be commited.