On Money

People have an innate understanding of what value a certain service or item has… based primarily on their relationship with money. They seem to know what a certain service should cost, based upon the promise of benefit that comes with that service. And they won’t pay more for a service if asked just because they have a lot of money either.

You may never see a rich man overpaying for much of anything, just because they can… due to the fact that the possible reason they are rich in the first place is based on their relationship and value of a dollar.

When they understand the benefit of a certain service. They will process the value of the benefit and attach a price to it in their mind. Then when the fee is being presented to them and based on their understanding of the value of that benefit to them, coupled with if they like and trust the person making the offer, they will accept or reject it, and often very quickly.

This is why some people may complain of the cost of a service, even when it is not that expensive… because they perceive the value of what they received, and it didn’t meet what they perceived the service would be; meaning what they paid for didn’t match in their mind what they received.

An example of that is the jilted woman offering her husband’s Porsche, in the newspaper for $2,000, just to piss him off after he left her for the new and improved version of her! Very few people will even answer that ad because the price is so far off the perceived value, and they question the integrity of the offer.

An example I discovered while developing my practice. I often heard people talking about services they received from other’s, or the spouse of a patient who didn’t attend the report and recommendations for the care, and it would sound like this.

What did the doc do today? “Oh about 375 dollars-worth” What”? “But what did he say or do for you? “He did nothing; just ran a bunch of tests, talked a lot and told me to come back tomorrow… I don’t know if I am going to”.

So, what happened? Was it the fee being too high, no! It was the lack of value the service had for the patient. If a doc runs a bunch of tests, EMG, X-Ray, etc. And the patient is asked to pay $375 for the perceivably worthless service, since it offers no real value to the patient paying it, they will question the transaction.

The patient will evaluate the worth of the service based upon the perceived value they do or do not receive. So, in this case she paid $375 dollars and felt no benefit for the expense and left feeling ripped off. It wasn’t the fee, it was what the fee represented and how it was presented. Which in health care is a problem for most, and is why I believe there is so much anger surrounding patient finances, and insurance, and are so often mis-understood.

So, in this case the fee of $375… it represented an amount that had a no actual value for the patent. They may think, $375 For What, I still feel like crap! Then they compare the money spent to the value lost… That is a week of groceries, gas for the car for two months, a car payment, or that new dress they had been wanting.

The fee process in health care is a tricky slippery slope we climb. We need tests to learn what services they need to rehabilitee their health, yet the costs of the tests without an action to improve their health seems like a rip off to the patient.

This a possible argument for insurance to be utilized in practice. Use insurance for those non-patient benefitting procedures, and use those tests to support the reasons why you are recommending the care you end up recommending.

Or you can add the costs of the diagnostics into the premium care program and have a ow cost of entry to care. No matter the solution you chose, it is very important to follow the laws of reciprocation and exchange to operate the business side of your practice, and you will circumvent many mis agreements and potential hard feelings when you operate in financial integrity and are in good financial exchange.

This may explain why you have maybe spent 200 dollars for a dinner and didn’t even blink, because the experience and quality of the food was excellent. At the same time, you may have spent 12 dollars for a poor-quality meal with bad service and complained about the cost…

Because there is an abundance of money, money is usually never the challenge. However, when someone perceives what the benefit of paying for a product or service should be. If they don’t feel they received that value they may feel cheated, or unhappy. Which is a condition call being out of exchange.

This will explain why someone may be fine with spending fifty dollars for a great steak and another is complaining after spending only 5 dollars for a fast food burger. The high cost of the expensive steak came with the benefit of the experience of the fine food accompanied by white glove service. While the cheaper food had basically no value in the experience, the food was obviously of very poor quality… and it wasn’t worth what they paid. Even though it was 90% less, than the fifty-dollar steak.

Therefore, if you are told of the dollar value for a product or service, you are very aware if what you expect to receive matches what you put out for the exchange. So, when a potential client sees a lower price, they will lower their expectation level and usually lower their engagement level as well.

When you apply a higher price to a premium transformational service, which truly improves a person’s life, your claims of transformation will be more believable at that higher price than if you were to recommend a cheaper, less engaging, and ultimately insufficient service to bandage their true needs.

This is why when someone may tell stories or give testimonials of how people had an amazing transformation and now have a higher quality of life; having helped them see life clearer, reversing heart disease and diabetes; repairing herniated discs without invasive surgery, restoring nerve function in the body; they are ecstatic based on the amazing transformation they received, and a smart person will easily see the overall benefit of restoring their physical health.

So, the opposite may be true for those thinking. It is impossible to close a new patient to a premium level of service at over five times the amount you presently feel is your patient value for care. Yet, when you ask for more, it puts the conversation into a much more serious mode. When you mention you can truly transform their health at a five-thousand-dollar fee, over the course of a year, compared to others who are recommending twelve visits for pain relief.

Charging more money puts you into a position of authority, compared to charging a low fee, just like everyone else, causing you to look like everyone else; who then perceive your health care as more of providing therapy rather than a life transforming health care service.

So, the decision is yours. Practice a commodity low cost service in which clients seek you for being the cheapest or lowest price as their final decision to choose you as their doctor. Or you put yourself in the ranks of an authority. Who is one of the best and whose charges are consistent with being an authority… a professional who will transform your health and give you your life back… at fee that is very fair compared to the benefits the client receives.

Now, the choice clearly is; devalue your services, join the ranks of a commodity and suffer the financial and professional consequences. Or… become the million dollar authority in practice who isn’t cheap… but is considered the best!

Cheers,

Dr Bruce