As the year winds down, private practice dietitians face a challenging yet crucial decision:
- Do we need to put on our own oxygen mask first?
- How much stress and financial strain can we tolerate heading into another year?
- Has 2024 been a year of pure survival mode for your business?
Before you close the doors for the holidays—whether you’re planning a restful retreat or an adventurous getaway—take a moment to check in on your business finances.
The Reality Check We Dread
Let’s face it: financial reviews aren’t the most glamorous part of being a private practice dietitian. Examining your numbers can feel like a harsh reality slap, the kind we’d prefer to delay indefinitely. But now is the perfect time to assess your service fees and align any necessary changes with the new year.
Why? Because starting fresh on January 1st makes fee adjustments more natural. Clients are already in the mindset of change, and a “new year, new fees” approach significantly reduces the likelihood of pushback.
The Stark Financial Reality of Private Practice
Recent survey results paint a sobering picture of private practice dietetics:
- 58% of private practice dietitians generate less than $100,000 in gross revenue annually.
- 78% generate less than $150,000 in gross revenue.
And gross revenue isn’t take-home pay. From that amount, you must deduct all business expenses, including rent, contract fees, insurances, and more. Alarmingly, over 50% of dietitians report spending 40-50% of their total earnings on rent or contract fees alone.
The earning potential for private practice dietitians is often lower than that of a hospital-employed dietitian, which raises concerns about the long-term sustainability of our profession. To ensure the viability of private practice—and the future of dietetics as a career—we must take steps to address these financial challenges.
Choosing Your Stress
Increasing fees is never a pleasant experience. The fear of difficult conversations with long-term clients and the guilt over their financial pinch can weigh heavily. But here’s the thing: as a business owner, you get to choose your stress.
Consider this:
- Do you want to face the ongoing stress of financial strain, risking burnout or potential closure as you hold your fees steady?
- Or do you opt for the short-term stress of raising your rates, knowing it could provide the relief your business needs to thrive in 2025?
In a recent survey, 37.3% of private practice dietitians reported feeling unwell due to work-related stress. Financial survival shouldn’t add to that burden. A small fee increase can make a significant difference in easing your stress and securing your business’s future.
The Power of a Small Change
Let’s break it down with a real-life example.
If a dietitian sees an average of 16 clients per week and increases their hourly rate by just $20—from $160 to $180—that adds an additional $14,080 annually (after accounting for weeks off). While some of that extra income will cover rising business expenses, a portion will go directly toward your personal income, supporting your household and lifting a weight off your shoulders.
Clients may feel the pinch, but in my experience, they adapt. Each time I’ve had to increase fees, the number of questions or concerns from clients has been surprisingly minimal.
How to Communicate Your Fee Increase
Transparency is key. Giving clients a four-week notice is a thoughtful way to ease the transition. Here’s how you can announce the change:
- Send an email or SMS to current clients.
- Display a sign in your consulting room.
- Notify administrative staff or receptionists who collect fees on your behalf.
- Update your website and start quoting new fees for new clients immediately.
These small but proactive steps will make the process smoother for everyone involved.
Building a Sustainable Private Practice
Running a private practice means forward-planning for your finances—not just for 2025 but year after year. To remain sustainable and support your personal financial goals, your business needs to grow alongside you.
When I first started as a new graduate dietitian, I charged $80 for a 1-hour home visit. It felt like a fortune compared to my retail job during university. Fast forward 17 years, and that same service now costs $340. Why? Rising costs—fuel, insurance, rent, admin support—and my own need for a livable income to support my family.
Without fee increases, I couldn’t have sustained my business or career.
It’s Time to Put on Your Oxygen Mask
Increasing your pricing isn’t just about covering costs; it’s about ensuring the longevity of your business. You can’t serve your clients effectively if you’re financially struggling or burning out.
2024 has been a tough year for many of us, but you’re not alone. Reach out for support if you need help navigating these decisions. Whether through mentorship, coaching, or simply connecting with peers, make sure you’re putting your own oxygen mask on first.
Elevate Dietetics Is Here to Help
At Elevate Dietetics, I specialise in supporting private practice dietitians with business coaching tailored to your unique needs. To see if we’re the right fit, I’m offering a complimentary 20-minute compatibility Zoom call this December.
Spots are limited, so don’t wait—book your session today and take the first step toward a stronger, more sustainable practice in 2025.
