How much would you pay (or me charge) for this?

[cheaperthanchips]

I'm offering a reduced rate for a service I offer. My clients are professionals who are usually well paid. However, I want to offer a very reduced rate for a limited number as part of 'paying back' (for clients who may be temporarily short of funds.)

If the usual rate was £95, what do you think of the reduced rate:

£10
£15
£20

They'd need 4 bookings as it's a course.
I don't want to do it free as they need to have some skin in the game, even as a nominal fee.

Personally I'd do recommend a friend get 50% off your next booking when they book - increase your customer base in case you drop customers

Of course it matters what the service is.

Blatantly isn't a bad thing! I also provide services for a living, and all I have to sell is my time. I know first hand that competing on cost is a race to bottom...

A friend of mine also provides services (completely differently field) and at one point, offered loads of discounts for new customers. She had loads of first appointments at the reduced rate, but none of them ever came back.

I think this thread has become a bit confusing because the OP didn't originally explain what sort of services they were offering.

I do think counselling is 'special' in that it's a service provided to people at what can often be a vulnerable time. And a lot of people who need it, can't afford it or access it.

Would I begrudge someone arbitrarily paying less than me for a luxury service like a haircut? Yes. Would I begrudge someone paying less than for counselling because they were on income-based benefits? Hell, no. The type of service does matter.

I also think a lack of transparency in fees is a barrier to seeking counselling.

I have seen counselling services advertised before where the rates are based on income, with reduced capacity available for those who can't pay full whack. I do think that's OK.

Create a bursary that they can apply for if they meet certain criteria. That way it doesn’t devalue your business or make you look desperate.

Loads of places to this. My kid’s jiu jitsu club does this. Their fees are very expensive as it’s a prestigious club, but on the fee page they have a bit that says “If you are low income and would find these fees difficult we offer reduced and free places. Please get in touch so we can get your kids a place.”

They don’t actually state the reduced fees or number of free places. I don’t often see services actually publishing the reduced fee. I think most people who can afford it and see that sentence would ignore it, but if they actually see the normal price listed and then cheaper fees actually shown just below it, there would be more complaints about the difference and more people feeling they’re paying too much.

No, it doesn’t. Professional services are offered with discounts for low income just like kid’s clubs and even tickets for events! It doesn’t matter what it is.

More good ideas right there, DrZaraCarmichael
Much better IME to give something completely for free and keep that "separation" from the core business than to muddy the waters with discounts which can be massively open to abuse

accountancy?
consultancy?
Botox?

daft to have discounts for those on low incomes

This is my own voluntary work based around my business

It's not voluntary if people are paying you for it.

I'd consider 50% a good reduction on a temporary basis, and think it's really nice of you to try to help people out.

You're going to have to explain to your accountant/tax man though why you're selling your services so cheaply - there might be a knock on effect to your clients if they are getting something usually quite expensive for gratis.

fundamental misunderstanding of the word “voluntary” OP

I would offer a course of your treatments for £325 or £350 instead of £380, but I’d want all the money upfront.

Or another way might be to say you are offering your services on x day for y charity which is close to your heart, and want to offer to your customers to pay what they can afford for any bookings on x day and you will donate all ££ raised to y charity.

I was receiving a similar service and the provider offered me half price so I’d be able to continue. I thought that was very generous.

No, it’s not. And a huge number of services offer it. It’s a business decision. And it works.

I haven't read all replies but as a teenager I was offered extremely reduced psychotherapy following sexual assault. The waiting list for victim support was huge, I was massively struggling and after 1 session at full price where I asked if I could attend monthly as its all I could afford the lady asked me what I could afford to pay (1/4 of her usual rate if weekly) and we agreed on that rate going forward. She actively prevented my suicide through her actions and I will forever be grateful. Ignore those who say if its worth paying for charge it, it absolutely is worth paying for but for some its totally out of reach. I'd suggest a line on your website reduced fees for low incomes can be discussed or something along those lines. Xx

@cheaperthanchips it seems too cheap to me.

I think it's causing confusion because you're working directly with the clients in both cases. Psychology around money is complicated.

Can you look for a charity where they'd pay you the reduced fee or you'd work pro bono and then the end user gets the service free or heavily discounted? This would also take the admin away from you needing to assess who deserves a discount, and you can include it on your fee page like: 'If you need the service by it can't afford it, I also work with Charity pro bono - check out their website to see if you're eligible for discounted sessions with me and other qualified practitioners'. That way you get to give back, look good, and still emphasise the worth of your work.

I think I understand what you're trying to do OP. My workplace offers some 'funded' places for people who are on very low incomes. We do ask them to pay a small fee as we've found that when we charge nothing it's seen as 'free' and some people ask for a place but rarely attend which means they don't get the full benefit and our team waste time waiting for them etc. We don't advertise the lower rates for 'funded' places but on application we let them know and we make it clear that the charge is payable whether they come to the session or not. We use an online application form for 'funded' places and ask people to outline their financial position, what they could afford to pay and why they would like the place. The arrangement is treated as though the price for the sessions is the same for everyone but for some people that cost is paid for from a small 'pot' of money set aside for that purpose.

We find this also keeps things clear for those who pay the full amount. The amount we ask participants to contribute can vary but the aim is for it to be enough to make them not want to 'waste' that money by not attending, but not so much that they can't afford even that.

That's not really what it's about - obviously any of these are reduced fees. But if I have understood your model right, I think the people who are prepared to pay £95 x 4 but find themselves temporarily reduced to only being able to afford even £20 x 4 is an extremely niche group. Most people either are never in a position to pay £ 95 x 4, or if they are, they can afford it now for something that's important to them.

if the market you're trying to target is those who are willing, but temporarily unable, to pay £95 x 4, then I think £50 x 4 is enough of a discount. If instead you are trying to help people who normally wouldn't dream of spending £95 x 4 (but could well be just as in need, and probably more so, of your services ) then £20 x 4 would reach more people. Who knows, some of them may decide you're worth the £95 after all, and if they don't get a discounted "in" they'll never find that out.

I don't think there is any need to go below £20 or £25 a session. Counselling is £50ph+. But there is something a bit convoluted about trying to give back to the fairly small proportion of people who are affluent enough to be prepared to pay for a pretty high price product, but can't right now. Think of a gym model. A business offers a discounted/free month or 2's membership to get people to sign up. They target the people who can afford to pay £40pm after that. That is a promotion, a business decision. In contrast, a charity who decides to offer free gym passes to the needy won't be targeting those people at all, but people who will never be able to afford a gym membership. Either model makes sense by itself but one organisation trying to do somewhere between the 2 just doesn't fit. There's hardly any crossover between the 2 markets.

I don't really understand the "paying back" comment - paying back what? - but I'm aware that reduced-price therapy is often offered to people on a lower income. Having said that, £10 seems disproportionately cheap compared with £95. I'd offer a discount of 50% at most.

I'm afraid this all seems a bit bonkers with an air of getting some weird kick out of being philanthropic, so that in itself would put me off wanting you to be my therapist.

When I read your first post, i immediately thought some sort of counselling. I personally think your idea is very lovely and generous.

If you can afford to offer reduced rates for clients who could otherwise not afford to access your services then do it. There are so many people who need mental health support who cannot access anything on the NHS and can’t afford to go private, I wish more therapist would do this.

I would be careful how you word your pricing around this on your website but other than that, please do this.

Could you implement a 'pay what you can' system and provide suggested amounts, and people can pay what they can afford, i.e., '£25; £35, £55' etc

Buy 3 get the 4th session free?
Then it’s about £70 a session but sounds better.

I was looking at counselling recently and they just state that a fee scale can be discussed based on personal circumstances. Then talk to people who reach out and then say I would love your service but can’t afford it and then discuss privately

This really

We have a competitor who isn't as busy as we are. At short notice he discounts to 50% and he still doesn't fill his gaps. To me it indicates that you think that £95 is overpriced for the service you are offering.

However if you are offering the service to those you think are unfortunate out of the kindness of your heart, perhaps the fact that they need to "win" the service by explaining the nature of their misfortune in a lengthy phone call might put them off.

Whatever, I think it's all a bit odd. The phrase "giving back" also grates slightly. What have you "taken" in order to "give it back"?

There are lots of things I can't afford. I just don't do them unfortunately. Granted it's a bit different with therapy.