What is a sliding scale pricing model?
A sliding scale is a pricing model that adjusts a service price based on a person's financial situation or income level. The purpose is to increase accessibility to services for those who have fewer financial means. Providers may set lower rates based on income levels or may use an honor policy and have client’s self assess the fee for service that most aligns to their situation. Sliding scale therapy is built on the philosophy that everyone should have access to therapy if they need it regardless of their financial situation.
Sliding Scale Relies on Honesty.
For a sliding scale to work it relies on truthfulness and honest self-reflection. I do not have set sliding scale rates based on income and ask clients to self assess their need and request discounts accordingly. I do not ask for income verification or rationale for the pricing you request. I trust clients to be honest in assessing their financial situations and requesting reasonable pricing on services. When assessing your financial situation, and proposing a reduced rate on my services, I ask that you consider both your needs, the needs of others and my need as a provider. I, like my clients, experience my own financial restraints and deserve to be paid a fair price for my work. I recognize my privilege and offer my services at sliding scales, but I am also deserving of being paid fairly for my work. Additionally, you deserve access to therapy while also meeting your basic needs and quality of life. And others deserve access to sliding scale services as well-if you take a reduced rate knowing you can afford more, this impacts others abilities to seek reduced fee services that they truly need.
Sacrifice vs. Hardship
A helpful concept in assessing your financial situation, and price for service is considering the difference between sacrifice and hardship.
If paying regular price for my service would be difficult, but not impossible or harmful, it likely could be considered as a sacrifice. You might have to cut back on other “fun,” spending in your life (such as going out to dinner, buying coffee, or clothes), but it will not impair your abilities to meet your basic needs and fundamental enjoyment of life.
If, however, paying full price for my services would lead to a harmful impact on your life, such as not being able to meet your basic needs (like food, rent or childcare) then this would qualify as hardship. Persons experiencing hardship are the primary targets for sliding scale pricing. Without sliding scale pricing, they would be unable to access the service.
Sliding Scale Price points
Supported.
A supported price is a dollar amount that is reduced from the market value of the service or offering. This dollar amount results in a net loss on the practitioner, who is willingly sacrificing their income potential to ensure a client has access to their service who otherwise would not be able to. Price reductions fluctuate based on financial hardship.
Market value.
A market value price is a dollar amount that is on-par with current market values. This service results in an expected income earning potential for the practitioner.
Charitable.
A charitable price point is a price above market value. A client opting to pay a charitable amount is opting to pay more than what is reasonably expected to support making services accessible to those who face financial insecurity. Income earned by the practitioner, from charitable prices, offsets the loss that results from offering supported pricing.
Questions to ask yourself when assessing your financial situation?
· Are you able to consistently meet your/your family's basic needs?
· When you want something, are you usually able to make the purchase, without it impeding your ability to meet your basic needs?
· Are you able to afford higher priced items, over less expensive options (E.g., Able to buy new clothes vs. having to rely on second hand purchases due to cost).
· Do you have job security or benefits?
· Do you have savings, emergency funds, investments, or disposable income?
· Can you afford to take time off work, unpaid, for vacation, illness, or mental health days.
· Do you have support systems that can support you in case of emergency or hardship (E.g., family, spouse, adult children, church etc.).
· Do you rely on food stamps or other social services to meet your basic needs?
· If you paid full price for therapy, would it threaten your ability to meet your basic needs?
· How often are you able to purchase non-essential items (E.g., Starbucks, new heels, weekend trips, home décor, makeup).
· Do you work part time, by choice?
· Are you unemployed due to disability or other factors outside your control?
· Do you experience marginalization, discrimination, or systemic oppression?
· Do you have dependents that require your support such as special needs children/siblings/parents.
Determining what price to ask for?
If after assessing your financial situation, you determine you are in need of sliding scale services, consult the following chart to decide what price reduction you'd like to request. The chart below is the recommended 2024 Therapy pricing guide from the BC Association of Clinical Counselors. This scale demonstrates what market value pricing is (and is what my regular price is based on). If you are in significant need (hardship) you may consider asking for below the market value rate. If you are not in a place of hardship but feel hard pressed at the regular rate, consider requesting services at the lower end of the market value scale. If you are not hard pressed financially, or have extensive disposable income, please pay the minimum market value rate and consider a charitable payment option.
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