Most Home Care owners set their rates based on what competitors are charging.
That’s a dangerous way to run a business.
Your rates should be built around:
• Your caregiver pay model
• Overtime exposure
• Travel time costs
• Admin overhead
• Desired profit margin
• Market positioning
If you don’t know your true cost per billable hour, you’re guessing.
And in Home Care… guessing usually leads to:
→ Growing revenue but shrinking margins
→ Constant cash flow pressure
→ Caregiver turnover
→ Owners working harder without actually making more money
Strong agencies don’t just “pick a rate.”
They build rates intentionally around operational reality and financial targets.
Because the goal isn’t just to stay busy.
The goal is to build a business that can scale profitably without burning out the owner.
Build the system, so you don’t have to BE the system.
How To Set Your Rates
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The Peter Principle
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