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Charging for Services
Fee for service means you are charging individuals the true cost of the service. This includes a margin to build a reserve for future growth and unanticipated expenses. Charging full price to persons who are able to pay allows you to expand your ability to provide services to those with limited financial resources.
How do you determine your full service rate? In the previous section, you used a simple formula to determine your unit cost – how much it costs you each time you provide your service. Once you know the true unit cost of each service you provide, you must add a “margin” in order to do more than simply break even. You’ve already determined your Unit Cost. Next, use the following formula to determine your fee-for-service rate.
Fee-For-Service Rate = Unit Cost + Margin
