Setting Your Fees: Calculate and Conquer �������������������

KATE DAVIS

MS, RD, CSSD, LDN

SECRETARY

In 2007, I sat in a small conference room with 40 other participants� As a new clinical dietitian fresh out of my internship, I had dreams of starting my own private practice� The conference was about becoming a nutrition entrepreneur and one nugget has always stayed with me� The speaker said that when it comes to income, “plan to make twice the amount you want to bring home�” At the time that advice shocked me� Now, after being in business over 10 years, I have found that to be spot on� Setting, raising and discussing fees make many dietitians squirm� But, if you want to have a business that doesn’t just survive, but actually thrives, feesetting is serious business� Here are four steps to determine what to charge:

STEP 1: DETERMINE WHAT IT COSTS TO BE IN BUSINESS

Determine an annual and monthly figure for what it costs to run your business� These categories might be office furniture and supplies, computer, phone bill, phone and computer applications, food analysis program, electronic medical record, remote consulting platform, finance tracking platform, mileage to drive to speaking engagements, office rent, taxes and insurance� Note that some of these will be fixed costs (you incur them regardless of how much income you take in), while others are variable (the more income you make, these costs will rise also)� One of your goals is to minimize fixed costs in order to maximize profit�

STEP 2: DETERMINE YOUR DESIRED PROFIT

How much money do you want to make after paying your expenses? Add the cost to do business (determined above) to your desired profit to find your total needed annual income�

STEP 3: DETERMINE NUMBER OF BILLABLE HOURS

Consider what your working schedule will be� Consider days off: around one-and-a-half weeks for holidays, two weeks for personal days or sick days and two weeks for vacation� Next, remove non-billable hours from this total� These are hours not worked directly with a client, but that will make you a better professional� This may be time spent at conferences, networking, making phone calls, negotiating contracts, paying bills, reading journals or taking a certification course� The number of weeks or hours remaining are your billable hours per year� Note: if you are not planning to work full-time, adjust further for weekly days off� Once you know your billable hours, divide this number into your total income from step two� This is your hourly fee�

STEP 4: MAKE ADJUSTMENTS AS NEEDED

Once you have completed step three, it’s time to do a check on a few fronts� First, does this fee match market value? If you aren’t sure, call a few dietitians who work in your city, area or state to see what they are charging� Second, does this fee match your experience? Are you a new dietitian or do you have 20 years of experience? Third, does this fee match your expertise? Do you have a specialty certification or other advanced training? Each of these variables affect what you might charge� If you find your hourly fee is higher than market value, look at ways to reduce monthly expenses without negatively impacting your product� However, if your hourly fee is fair, don’t be afraid to charge what you're worth� You earned your experience and expertise, so charge accordingly�

Kate Davis, MS, RD, CSSD, LDN, is the owner of RDKate Sports Nutrition where she helps athletes of all levels from recreational through Olympian� She lives with her husband, three children and dog on a Centennial Farm in Michigan, where she dabbles in vegetable gardening and canning and dreams about keeping farm animals (but doesn't really want any)� She is always up for a good adventure or trying a new activity �