Wondering what to charge for your coaching?
You aren’t alone!
So let’s get you some help.
Today, to help you grow your coaching business, I want to talk about two different (but useful) pricing strategies.
Most coaches pick a price at random, or choose a price based on fears.
(Am I worth this? What if no one will pay higher?)
The common result?
Not being able to support yourself as a coach.
Instead, if you pick a thoughtful pricing strategy – and this is the important bit –
one that works for YOU…
…then you’ll be more likely to both get clients and pay your bills.
So let’s dive in and talk about what to charge for your coaching, and how to earn more money as a coach!
- Pricing Strategy 1: Incentive Based
- Pricing Strategy 2: Luxury Based
Pricing Strategy 1: Incentive-based
Good for any new coach, or a coach launching a newer product or program
–>In an incentive based model you give prospective clients an extra incentive to say yes.
As a new coach you may be thinking: “I need to price low until I get more experience.”
And, I’m not disagreeing with you.
In this model: I’d like you to think about what you would *like* to charge for a private coaching program, or group coaching package.
Take a sip of tea, and let go of whatever voice in your head is shrieking “YOU AREN’T WORTH IT” and just see what pops up.
It should feel high.
That is okay!
It’s normal to be uncomfortable with assigning a value to your coaching.
Lots of gremlins arise around worth and value, telling you to play small.
Ignore them for the moment while we dig into numbers.
Maybe you picked $1500 for a 10 week group program, or £4000 for a 1:1 eight-week private package.
What’s important is that it’s a number that can actually support you in the long term.
So do the math a little bit, how many clients do you need at this price to pay your rent and your chocolate habit?
Okay, in an incentive-based pricing model you have your main price in mind, and you give clients an incentive to say yes.
No surprise, the incentive is *usually* around price. This is a good place to start for newer coaches.
For example: Let’s say you picked $2500 as a price for a 10 session coaching package.
Using this model, you’d offer clients a chance to join your package for a lower price.
Here’s how it works: We start with your dream price, to prevent you from pricing too low.
Then we add a reasonable incentive. Taking 20-30% off of your dream price is usually a good place to start.
So with a $2500 package, using this model you might instead offer someone a chance to join for $2000.
You explain this honestly – you are a new coach, or this is a new program for you – so you are giving people a chance to join at a lower price at first.
They understand they are getting a deal (everyone LOVES a deal), and you start to get comfortable with charging a reasonable rate, while you build experience and confidence.
You also get comfortable sharing your dream price as a part of the sales process, so you slowly get acclimated to charging your worth.
Then, when the time is right, you can raise your rates and consider another incentive to employ, unrelated to price, like more time with you, a bonus training or assessment, or something else. You get the idea!
Pricing Strategy 2: Luxury Based
Good for more experienced coaches, or coaches who are feeling extremely confident in their offer
–> In a luxury based pricing model you purposely price your services on the highest end of the spectrum. This strategy involves you positioning your coaching as the full luxury it is.
Note: Coaching is not covered by insurance, so for most is is indeed a luxury.
So let’s dig into what to charge for your coaching in a luxury-based model!
You have two options in this model:
1) You can offer a high-end version of your main coaching package, that comes with extras like a VIP day with you or better scheduling, or perks like consults with other experts.
2) You can position yourself as the luxury end of coaching, and charge accordingly.
In option one, you are allowing some folks who want more service, or a more personal touch, to have that option. They can choose to upgrade for more. This choice puts the power with your clients, and allows you to charge a higher rate on some services without feeling sleazy.
This option also allows clients to price anchor, which is a simple way of saying it allows clients to compare prices between your two programs so they better understand the value of what you offer. Sort of like comparing the cost of two of Apple’s iPhones and initially thinking: “$1000 seems high!” till you realize that the cheap version is $800.
In option 2, you are positioning yourself as the Rolls-Royce, the Ritz, the Chanel of coaching.
Chanel makes expensive bags.
Are they worth $8000?
The leather used isn’t magically better than all of the other leather on the planet.
But the design is thoughtful.
The experience is plush.
Chanel says it is so … it is.
And some people value really REALLY nice things, thinking that the higher price reflects better service/products/experiences.
So let’s talk coaching.
In this model far fewer people will be able to afford your coaching.
But the flip side is that you will need far fewer clients to pay the bills.
So think about your coaching offer.
How can you make it more luxurious?
Besides just charging more, what else can you offer?
More time with you? A specific experience? Additional assessments or tools?
Something that is done for you? (Resume/Makeover/something else?)
Bottom line: In this pricing model, reimagine your worth.
Offer a higher-end service.
Maybe it’s $10,000 per coaching package.
Maybe it’s $25,000.
Again, you decide!
Let’s wrap up our conversation on what to charge for your services…
Okay: No matter where you are in your business, think about your pricing for a moment.
What model appeals to you and why?
What would be different in your business if you chose one of these models?
Pick one, try it out.
Let me know how it goes!
Here’s how I can help your business more!
Option 1: Give your coaching business a jumpstart and learn how to become irresistible to your coaching clients in the simple 12-day Jumpstart Your Business Bootcamp. Find out more here.
Option 2: Get all of the help you need to build a real coaching business full of happy, paying clients in Build a REAL Business. You’ll get my actual eyes on your business! Find out more here.