Are you struggling to figure out exactly how to price your coaching offers that you’re confident in asking for and positions you as an expert (yes, your prices say a lot about you to your potential clients)?
There’s a lot that goes into finding the perfect pricing for your offers to ensure you’re not undercharging or overcharging for your offers.
Today I’m going to help you find the perfect pricing for your coaching offers so you can effectively learn how to price your coaching services.
Here’s how most coaches price their offers:
They come up with a coaching idea, decide how long it’s going to be for (e.g. 6 weeks, 3 months, etc) then randomly price it based on what they’ve seen other coaches charge OR what they think people should pay for their coaching.
Pricing strategy is something that I go deep into with my private coaching clients because of that exact reason. Most of my clients are guessing what their prices should be or doing what another coach has told them (which isn’t based on any strategy at all). Basically, we calculate how much your cost price is per hour based on your desired yearly salary, add a profit margin to that and then price all of your offers accordingly.
Let’s say you want to sell some stickers. You design some stickers, research sticker printing companies, decide which sticker you want printed, set it all up with the sticker company, get them shipped to you, put them on your website, market them on your Instagram and other platforms, package them and ship them when an order is made.
If the sticker company charges you $2 per sticker (including shipping them to you) and you charge $4 per sticker (the customer pays shipping fees), that’s a 50% profit, right?
Think about all the time you spent learning to design, designing, researching, packaging and shipping.
You need to consider all of these factors when you price your coaching offers. Your coaching shouldn’t be priced solely based on the hours of calls your client will have access to.
Here are some things you need to consider when you’re creating your strategic pricing:
All of these need to be factors that contribute to the pricing you set. You should be thinking of your business as one complete unit and how all of the parts work together, not just each piece separately.
That’s a CEO mindset.
So, how do you package and price your coaching services?
Strategy 1: Penetration pricing
In highly competitive markets like coaching, it can be hard for new coaches to get traction in the beginning. With this strategy, you offer a lower price than your competitors. The lower price helps you to penetrate the market and attract customers.
This is something I actually do suggest doing, but only when you’re first starting out and don’t have much experience or clients. With this strategy, you won’t be able to cover all of the things I mentioned above so you’ll need to keep your business costs to a minimum.
You could offer a 3-month coaching package for $1500 (or any amount you want) OR you could offer an 8-week coaching package for $1000. Either way, you’ll be able to start working with people quickly so you can build up your brand and get lots of testimonials.
It’s really REALLY important for you to qualify your new clients and ensure you’re only working with people who are committed to doing the work. Because there’s a low financial commitment, sometimes people might not make the commitment mentally to the coaching because the cost of them not doing the work and not getting the result is low.
I only ever work with people I know are committed to doing the hard stuff and creating change and this is important regardless of where you’re at in business.
You can incrementally increase your prices to get you to the next strategy.
Strategy 2: All-in pricing
This is the term I use to describe your pricing when you’ve had at least 15 clients with results and testimonials and you can start factoring in business costs. You’ll be able to increase your prices to the point where you can calculate your hourly cost and add a profit based on your desired yearly income.
Now, you can’t just throw up a super high price and hope for the best. This isn’t about your ego or trying to look good. Your desired yearly income can also increase over time and you can change your prices accordingly. But once you’re out of penetration pricing and you have a steady flow of clients, you can make the switch and then continue to incrementally increase your desired yearly salary and coaching prices accordingly.
Here are some tips and things to consider:
Now you have a solid strategy for pricing your coaching offers.
The most important, number one thing I tell all of my clients when we talk about pricing is:
Charge what you can confidently ask for and receive.
If there is any doubt in you about your prices you subconsciously will avoid selling.
You have to do the mindset work around getting behind your prices and aligning with them.
And, there are people who will pay at every level!!
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