The Testing Psychologist Podcast 279. Flat Fee vs. Hourly Pricing for Evaluations
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Mar 17, 2022 Delve into the intriguing world of pricing strategies for psychological evaluations. Discover the battle between flat fee and hourly pricing, along with their advantages and disadvantages. Uncover consumer preferences and the importance of choosing the right structure for financial success in practice. Additionally, explore how a measurement-based care platform can enhance efficiency and outcomes in behavioral health. This conversation is a must for practitioners wrestling with the best approach to billing!
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Preference for Flat Rate Pricing
- Consumers and clinicians prefer flat rate pricing for psychological evaluations due to its simplicity and clarity.
- Flat rates reward efficiency since clinicians aren't penalized for completing evaluations more quickly.
Underpricing Risks with Flat Fees
- Most clinicians set their flat fee too low because they underestimate the time spent on evaluations.
- Fear of sticker shock also causes hesitation in setting higher flat fees.
Break Up Flat Fee Payments
- Break up flat fee payments into installments to reduce client intimidation by a large upfront cost.
- Collect a deposit and then subsequent payments for different evaluation phases.