How much are you worth to your clients? Pricing is one of the biggest stumbling blocks for entrepreneurs, especially coaches. It is fairly easy to price if you are selling a physical product. You look at the cost of your materials, your overhead, and your profit, and you are done. Pricing your coaching fees is trickier because while your costs are likely lower, your time is a limited commodity. You need to create a pricing structure that allows you make a decent living.
When I started coaching, I had no idea what to charge. I asked my coach and he gave me a guideline. As I got better at coaching and my clients started seeing true results, I raised my prices. I raise my prices each year and my clients renew because they can afford it. Their businesses have grown because of the work we do together.
How to price our coaching services.
When building a business there are 3 ways to compete.
- Price – this is the “Walmart model” and should never be an approach for a coaching business
- Quality – this is the “Cadillac model” or the “Starbucks model”. A premium is paid because of the experience that is created for the client. This is the model for coaches that are paid what they are worth.
- Convenience – this is the idea behind bottled water or some of the coaching tools you may be using to make your business easier. Convenience can command a premium price.
How much should I charge?
1. Get clear on your value. If you are struggling with this answer these questions about an ideal client that you have worked with.
— What did your client gain from working with you? What change did they experience?
— If your client had not worked with you what would be different for them?
2. If you are in the beginning of your coaching business start with a $500 per month coaching program where they get 2 coaching calls with you a month. You want to sell this with a minimum of 6 or 12 months commitment. If they want to pay in full, they save 1 months payment. So a 6-month program would be 6 months at $500/month or pay in full of $2,500. You should have them sign a contract so they understand they are in for a minimum of 6 or 12 months.
3. As you get more clients you can add in group activities such as group Q&A calls, Facebook groups or Group intensives (trainings). Note, I find that many people make the mistake of starting with groups – it is easier to sell one person at a time for more money rather than trying to sell a group.
4. If you have been coaching for a while and are more confident in your value you could be charging anywhere from $750 to $2,000 per month for your coaching program.
So, now it is your turn. How did you set your prices when you started out? How has your pricing changed over time?