If there’s one question we get asked ALL the time about running the business side of a functional nutrition practice, it’s this: “How do you set your rates?”
Ah, the million dollar question! (Sorry, couldn’t resist.)
It’s a question close to our hearts. One of the dirty little secrets inside the nutrition world is that there are an incredible number of practitioners who drastically undercharge for their time and invaluable expertise. We’re intent on changing that and supporting skilled practitioners to charge such that they can serve their clients while also making a great living. Yes, it’s possible!
While having the freedom to set your own rates is a wonderful thing, it can feel daunting, especially if you’re just starting out. Let’s face it, it’s a lot easier when rates are established for you – like charging recommended retail for supplements – than it is to decide how much you’re going to charge your clients for your time. This process can trigger all sorts of insecurities and issues of self-worth.
Rate-setting is one of those things in business that can be really challenging, or you can make it really easy.
The hard, but traditional way to set rates is to:
- Research what other professionals are charging in your area
- Compare your experience/qualifications with theirs
- Figure out what your rate should be based on how you “stack up” against the competition
I don’t know about you, but this sounds like a recipe for a game of comparisons (never a good thing) and a whole lot of work.
There’s an alternate method that’s much easier and, frankly, more effective: it’s called the Happy Price. We can’t take any credit for this model – we learned it years ago from Michael Ellsberg and have been using and teaching it ever since.
Here’s how it works:
Pick a low rate for a one-hour session. Let’s say $25/hr.
Side note: we’re not fans of charging hourly – we recommend working in packages – but that’s a topic for another day and you’ll still want to know your base hourly rate in order to map out your package.
Back to the exercise. If you were to charge your client $25 for a one-hour session with you, would you feel happy or sad?
My guess is you’d feel sad.
So let’s make that $50 for a one-hour session. Would that make you feel happy or sad?
Still sad, I’ll bet.
How about $75? $100? $125? $200?
Keep going and ask yourself at each new price point, “Would charging this rate make me feel happy or sad?”
Before you determine if you feel happy or sad at each level, it’s important to consider ALL the work that’s involved in that hour-long session. The prep beforehand, the follow-up notes, the quick (and sometimes not-so-quick) in-between-session emails answering your client’s questions. We all know that hour extends FAR beyond the hour you’re with the client.
With all that in mind, do you feel happy or sad charging that rate for a session?
At some point, your response will move away from downright sad, to something a little more “meh..” Neutral. We’re not there yet, but we’re getting closer.
Let’s say at $125 you feel that ‘meh’ feeling. It’s not sad per se, but you’re not exactly jumping out of your skin with joy at charging this much.
Go up to $150. How do you feel now? A little happier?
What about $175? Happier?
Keep going! Now how do you feel about $200?
At some point, you’re going to find that you’ve surpassed your happiness threshold and instead of feeling really good about the amount, you feel a little overwhelmed or squeamish about charging that much. You’ve officially gone too far.
Perfect! Now, come back to the previous level where you felt happy at that rate. There you have it, your happy price!
(For those of you familiar with the HCl challenge, it’s a lot like finding your correct HCl dosing!)
Your happy price is based on YOU, not some externality or a practitioner down the street. It’s not about what you “should” or “shouldn’t” be charging, it’s based on your experience and level of expertise. It’s what feels right and authentic for you right now. And you know what? Clients can sniff that out. When your pricing is in alignment like this, clients resonate with it and rarely challenge it.
You might find once you start using this model that your focus shifts away from what others are doing to what you could be doing to improve your client’s experience and the value they receive from you. The more you focus on exceeding their expectations and giving them an exceptional experience, the faster this happy price will naturally rise, and the better you and your clients will feel about the increase.
And so: are you charging your happy price?
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FAQ
These frequently asked questions expand on the key concepts in this article and provide additional guidance for practitioners developing a pricing strategy that feels both sustainable and aligned.
What is a “Happy Price” for a functional nutrition practitioner?
A Happy Price is the fee that feels authentic, sustainable, and appropriate for your current level of expertise. Rather than comparing yourself to other practitioners, it is determined by identifying the highest rate that feels comfortable and aligned. The goal is to establish pricing that supports both your clients and your practice.
Why do many functional nutrition practitioners undercharge for their services?
Many practitioners undercharge because setting rates can trigger insecurities, self-doubt, and questions about self-worth. Pricing your own services often feels more challenging than selling products with established retail pricing. Recognizing these emotional factors can help you make more intentional pricing decisions.
Should you base your pricing on what other practitioners charge?
Not necessarily. The Happy Price approach encourages practitioners to determine pricing based on their own experience, expertise, and comfort level rather than comparing themselves with competitors. This shifts the focus from external comparisons to creating value for clients.
How do you determine your Happy Price?
You determine your Happy Price by gradually increasing a hypothetical session fee until you identify the highest amount that still feels comfortable.
The process is simple:
- Start with a low hourly rate.
- Ask yourself whether charging that amount feels happy or sad.
- Continue increasing the price.
- Stop when the price begins to feel uncomfortable.
- Select the previous amount where you still felt genuinely happy charging it.
Why should practitioners consider work outside the client session when setting rates?
Your fee should reflect more than the time spent face-to-face with the client. Preparation, documentation, follow-up notes, and between-session communication all contribute to the total time invested. Considering the full scope of your work helps establish pricing that better reflects the value you provide.
Should functional nutrition practitioners charge hourly or use packages?
The article recommends working in packages rather than charging strictly by the hour. However, establishing a base hourly rate is still useful because it provides a foundation for building package pricing.
What does it mean if a price feels uncomfortable to charge?
Feeling uncomfortable at a higher price may indicate you’ve moved beyond your current Happy Price. According to this approach, the ideal fee is the highest amount that still feels authentic and comfortable before pricing begins to feel overwhelming or excessive.
How can aligned pricing affect client perception?
When your pricing feels authentic to you, clients are more likely to accept it without resistance. Pricing that aligns with your confidence and experience can communicate consistency and professionalism.
Will your Happy Price change over time?
Yes. As you gain experience and continually improve the value and client experience you provide, your Happy Price can naturally increase. Pricing is not viewed as fixed but as something that evolves alongside your professional growth.
How can practitioners increase their Happy Price over time?
The article suggests focusing on delivering exceptional value rather than monitoring competitors. As you improve your clients’ experience and consistently exceed expectations, your confidence in charging higher fees may grow naturally.
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ABOUT THE AUTHOR
Margaret Floyd Barry, FNTP MRHP is owner and Executive Director of the Institute of Restorative Health. She’s a functional nutritionist, author, speaker, educator, and real food advocate. Through years of experience working with the most complex client cases, including reversing her own autoimmune condition, Margaret uses a powerful system for restoring health by addressing the root cause of illness.
Today, Margaret teaches fellow practitioners the same proven system she uses to get her clients life-changing results through the Institute of Restorative Health – a two-year comprehensive functional nutrition certification program for qualified health professionals. Margaret also runs Restorative Corporate Wellness, a team of Restorative Health Practitioners facilitating health transformations with corporate clients. She is the author of Eat Naked and its follow-up cookbook The Naked Foods Cookbook. She’s also the host of the Clinician’s Corner podcast, where she interviews some of the world’s top experts in the fields of functional health and nutrition.
