Discounts vs. Packages in Your Cash Practice

Discounts vs. Packages in Your Cash Practice

For those of you that are thinking of offering discounted service- Wait! Don’t do discounts, instead, start offering packages and raise your rates!

Why is discounting not preferred?

What is not preferred is to devalue what we provide our patients. It is not appropriate to discount and provide something that is cheaper, like devaluing your product or service so we get more people in the door. As Physical Therapists, we are providing a service not a widget, because we are providing a service, we can’t buy a thousand widgets at a lower price, and we can’t buy a thousand of ourselves. We are trading time for money. So, when you trade time for money, you got to charge what you’re worth. The best way to charge what you are worth is by offering a package instead of a discount.

Watch the video here: Discounts vs Packages in Your Cash Practice

Packages are the way to go!

Think of the package you offer as a bundle, and when you bundle great stuff together, you create this really valuable thing (maybe include some swag, or a massage) and then people get to take something home with them, and they get tangible extra value. Remember, offering packages for your products and services should be based on a price where you believe that you are worth. Make sure you are paying charging your value.

Another benefit of doing a package is that you have people pay one time.  The patient comes to see you for 8 visits, and during those visits they do not have to pull out their credit card again unless they’re paying for a massage or a roller, etc.

The Superbill!

Basically if you sell a package be sure of two things:

#1 The package price should be the price you value and want to sell your services at, not lower.

#2 When you ring people up for a package, charge them for $1000 of “physical therapy” and give them the “receipt”. At each visit give your patient a “superbill” for that day’s treatment with all the codes and a “provider discount”line item that reflects the $10 discount. So, what your patient submits to their insurance shows the total “charges” as $100, with a total amount paid of $90. That way both the insurance company and your patient can see what was discounted from your normal rate.

does that make sense?

Remember, the bottom line is, don’t devalue yourself. We, Physical Therapists, have a long way to go to charge the same as Dentists and Lawyers yet we have the same level of education as them, so that’s where we need to be. Raise your hourly rate and offer a package.

It’s as simple as that.

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