Ep863 | Why You're Scared To Charge $250/Visit (And How To Get Over It)

No Money, No Mission: The Truth About Pricing Your Cash Practice

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 Ask

Help 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.

Lessons & Takeaways

• 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.

Mindset & Motivation

• 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.

Pro Tips for Owners

• 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.

Notable Quotes

“What you charge isn’t just income—it’s how you fund salaries, benefits, space, and leadership.”

“No money, no mission. Your purpose can’t survive long-term on underpricing.”

“Most fear a mass exodus after a price raise. It almost never happens.”

Action Items

• 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.

Programs Mentioned

• 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.

Resources & Links

• PT Biz Website
• Free 5-Day PT Biz Challenge

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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.