The P.T. Entrepreneur Podcast Ep863 | Why You're Scared To Charge $250/Visit (And How To Get Over It)
In this episode, Doc Danny Matta shares what he's seeing across dozens of clinics: most cash PT owners are undercharging—especially in high cost-of-living markets. He breaks down a four-clinic pricing test, why price ≠ local median income, and clear targets for sustainable margins so you can hire, retain talent, and keep your mission alive.
Quick AskHelp us reach our mission of adding $1B in cash-based services to physical therapy: share this episode with a clinician friend or post it to your Instagram stories and tag @dannymattaPT so he can reshare!
Episode Summary- Pricing drives scale: Bigger, healthier clinics almost always charge more and keep volume steady enough to grow.
- Four-clinic test: Comparing average visit rates vs. local median household income showed no clean correlation—the lowest-income market had the highest price point.
- Fear tax: Owners fear backlash when raising prices; in reality, drop-off is rare and usually limited to poor-fit patients.
- Market targets: Most markets need $190–$200+/visit average. High-cost markets (NYC, SF, LA, Boston, Chicago, etc.) should target $250+/visit.
- Mid-sized-city edge: Lower overhead + above-average pricing = clinics running 40%+ net margins.
- No money, no mission: Healthy pricing funds salaries, benefits, space, culture, leadership development—everything that sustains impact.
- Price for your costs, not your fears: Match rates to COL, rent, salaries, and benefits—or growth stalls.
- Volume x Price = Revenue: Find your sweet spot; small price lifts often don't dent demand.
- Benchmark with peers: Mastermind conversations expose underpricing fast.
- Raise with intent: Reinvest into team, space, and patient experience.
- Permission to charge: Premium outcomes and experience justify premium pricing.
- Mission requires margin: You can't build great jobs or serve at scale without profit.
- Courage compound: Every successful price raise builds confidence for the next.
- Set targets by market: Standard markets: $190–$200+ AVV. High-COL markets: $250+ AVV.
- Audit contribution margin: Know your per-visit profit after labor, room, and overhead.
- Use pricing tiers: Eval premium, follow-up standard, package/plan discounts tied to outcomes (not minutes).
- Communicate simply: "To reach your goal, most people need X visits over Y months. The investment is Z." Then pause.
- Grandfather gracefully: Honor legacy rates for a window; apply new pricing for new plans.
- Calculate your actual AVV (average visit value) over the last 90 days.
- Compare against your market target ($190–$200+ or $250+ in high-COL areas).
- Plan a 10–20% price adjustment with clear rollout (date, scripts, FAQs).
- Reinvest the lift into team comp/benefits and patient experience.
- Benchmark with two peers this week—confirm you're not the outlier undercharging.
- PT Biz Part-Time to Full-Time 5-Day Challenge (Free): Get crystal clear on your numbers, pick your path, and build a one-page plan.
About the Host: Doc Danny Matta — physical therapist, entrepreneur, and founder of PT Biz and Athlete's Potential. He's helped over 1,000 clinicians start, grow, and scale successful cash-based practices across the U.S.