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‘My Best Months Ever, After Raising Rates’ – Without Any Patient Pushback

Steven Alexander | Spark Performance and Physiotherapy | Arizona

Raising rates has become a fundamental principle.  

Every member of this community who has done it has reaped the rewards. Remember Paul’s outlook: Don’t give a champagne service for lemonade prices. 

Value yourself correctly. Don’t undersell your services and professionalism.  

In this interview, Steven Alexander has had no pushback to his increase and has enjoyed his best-ever months.  

Steven, of Spark Performance and Physiotherapy in Meza, AZ, tells us his story and why raising those rates has been one of his smartest calls.

Spark is a hybrid clinic that treats active adults and athletes. The goal is to help active adults and athletes avoid the unnecessary surgeries and keep the community moving. They have been open for just under 3 years “Wow, that went fast,’’ smiled Steven.  

“We are a one provider practice, for now, with one front desk associate, who has been in place for 5 months. Steven aims to hire another PT to continue to grow and make a bigger impact on the community.” 


How long have you been a part of Paul’s World?  

I joined the 4% Club in July of last year after the Mastermind event. I have probably been hanging around his world for the past 2-3 years. I think my journey was Podcast > Accelerator > Cash Club > out of the world > Cash Club > 4% Club. 


Where were you with regards to price?  

In the beginning, I was taking almost anything I could to get patients in, basically peanuts. I learned quickly that I was not going to be able to have a business like that.

I increased my prices to be just above the average in the area. It was good, I started seeing some more revenue.

After being part of Paul’s World, I realized I was undercharging, but I still struggled with raising my prices: I think I raised it a measly $20.

At the beginning of this year, I raised it again. I have not seen any of the current patients fight the price rise and conversion rates have not changed for the cash paying patients. I guess that means it is time to raise it again. 

I think I stayed so long at the previous prices because I was afraid to hear the dreaded “no” response. As with most people in healthcare, I thought I needed to keep the barriers to entry very low.

That means the price had to be low. I wanted to help everyone and I didn’t want to be labelled as “greedy” by having too high of a price. 


Where are you now with your prices?  

I’m just under $100 more than the average in the area of the mill-like factories.

This has led to my best months ever.

Even through the pandemic, my revenue and profits were the best they have ever been! I have been feeling more confident with the prices we currently charge.

That is more confidence in asking for the money, but also more confident with business decisions, such as hiring a new physical therapist.

Making the jump was scary.

I think my driving factor was realizing that I was not running a business. Rather, it was a charity where I was giving away a lot of my time for little monetary return.

In fact, it was costing me a lot in terms of time away from family. I know we had Kevin O’Leary on our last Mastermind, and I have been a fan of Shark Tank for a while.

It was a great eye-opener seeing the different businesses on there and how much they would charge for their goods against the cost of making them.

Why should a service-based business be any different?  

I did not advertise these changes.

For my last rate increase, I just gave my front desk the new price sheet and let her know we will be implementing these new prices. A discussion was had with those getting ready to purchase another round of therapy and we let them buy one more package at that current price.

The biggest surprise was there was absolutely no “fight” with the new prices. 


What impact has the whole experience had on you, your clinic AND your bank account?  

I have learned to value myself and the services the business provides even more. I have noticed that I don’t even flinch when mentioning the new prices and neither does my front desk.

Now it is a “Here it is, take it or leave it” approach. After going through it with my front desk and explaining the why we were increasing our prices, I saw her confidence in telling people the price actually improve with the higher prices.

This has led to the best year in business for me and the business bank account. 


What would you say to anyone who is concerned about raising their prices?  

Just do it.

It may be scary, but it is really worth it.

Go back to your reason why you started your business. One of my reasons was to eventually have more time freedom (and financial freedom) so I could be present at home more and my wife could work her way into a stay-at-home mom.

I realized I was working way too many hours for way too little pay to make the reason why I got into business a reality.   


Is there any part of the process that you would do differently?  

Absolutely. I would have done it sooner!

I just look back over the first few years of business and realize what I left on the table. This has led my company growth to be slow and my kids growing too fast.

I kick myself all of the time because I could have afforded myself more time with my family if I would have actually valued my self-worth as a physical therapist.  


Going forward, what’s your biggest goal for 2021?  

To get another physical therapist to join the team and start decreasing my clinical hours!

I know this business model and treatment style I envision can continue to make a big impact on my community. 


How big of an influence has Paul and the team here been on helping you raise your rates?  

Paul’s crew have been great. I think my biggest influence is the members of the community.

When I see and hear the success with the other members of this community, which also includes their prices, it makes me want to drive my prices up. If they can do it, why can’t I?

Others have paved the path and showed they could be successful, why not me? I love seeing the success of others.

That drives me to be better. 


Any other comments / advice for other members on raising your rates?  

I would say just do it, what is the worst that could happen?

There is so much advice already given above and lessons from it. The “spark” you get from having patients pay your higher rates is unlike anything else.

You finally realize that the years you spent going to school was really worth it because you have found someone who values what you do.

The amount of confidence with that is indescribable. Being able to tell someone that these are our prices, pay it or I can help you find lesser care elsewhere is elating.

It has changed all aspects of my life.