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Pricing your coaching programs: How much should you charge?

Pricing your coaching programs - How much should you charge

When pricing your programs, you should settle on a number that reflects your aspirations, your value, your clients’ perceptions, and the transformative journey you promise.

In this article, I’ll guide you through the psychology behind these decisions so you’re no longer wondering what to charge. I’ll also recommend proven strategies that affirm your worth and the unparalleled value you provide.

The psychology behind pricing your coaching services

The psychology of pricing your coaching services is full of emotions and biases, each loaded with the perceived value of what you offer. Your decisions about the prices you set aren’t just about selecting a ‘fair’ number; they’re about your clients’ perception of worth, investment, and transformation.

Once you understand that pricing is also an emotional decision, you can set your fee in a way that reflects the true worth of your service. How much stress are you going to potentially alleviate for your client? How much time will you save them? How much will you transform their lives?

Your clients need to believe in your ability to offer them a transformation. They need to feel assured that their investment will lead to the growth they desire.

Money mindset

Your beliefs and attitude towards money will undoubtedly affect your attitude to pricing. These deep-seated views significantly influence how we all value our services and, in turn, how we choose to present ourselves to the world. Fear of overcharging is a common hurdle, but remember that your prices need to reflect the profound impact of your work.

Perceptions of pricing

The value clients place on your services dramatically affects their willingness to invest. If your price is too low, you risk being undervalued; if it’s too high without clear justification, you may deter potential clients. Striking a balance that communicates the worth of your coaching service and positions it as an investment in personal and professional growth is key.

Creating demand through your pricing

It’s possible to create high demand and unique opportunities by employing strategic tactics of scarcity and urgency, such as announcing limited-time offers or limiting the availability of places on your exclusive programs. The exclusivity of your services will encourage potential clients to take action and engage with your coaching.

This isn’t about employing ‘fake scarcity’ (where you say that numbers are limited even when they are not). It’s about making clear to your audience that you only have capacity to serve a certain number of clients (which you do, as you don’t have unlimited time).

This strategy serves another important purpose: it accelerates decision-making and the perceived value of your coaching! By making it clear that access to your programs is a privilege, you will promote the idea that your offer is valuable. It’s also a reminder that the opportunity to work with you is not indefinite.

Pricing strategies for coaching programs

So now you understand the psychological biases behind pricing, let’s get into the different ways you can decide on a final number…

Cost-plus pricing

Cost-plus pricing is a foundational approach that requires you to examine your operational costs and add a reasonable markup. I would suggest a markup of at least 20% on top of your ‘costs’, which gives you a sustainable figure that respects the quality of your work while laying the groundwork for future expansion.

Competitor-based pricing

Competitor-based pricing is a useful tool for understanding the broader coaching landscape. By cautiously observing what others in your field charge, you can gain valuable insights into market expectations. This will help you position your offerings and ensure your pricing is competitive – yet reflective of your unique value.

Value-based pricing

This ultimately brings us to value-based pricing – my top recommendation. This method anchors the price of your services firmly in the transformation you provide and the depth of your expertise. Value-based pricing affirms the value exchange between you, as a coach, and your clients. It is rooted in the belief that the right clients will recognise the worth of what you offer.

Creating your pricing menu

A pricing menu is a clever way to break down the experience of engaging with your services. It offers your clients the autonomy to choose their path within a simple framework that you provide. It reflects the bespoke nature of transformative coaching and illustrates that the journey to personal and professional growth is not a ‘one-size-fits-all’.

You will acknowledge your clients’ unique ambitions by showcasing a well-presented range of options. This transparency empowers the customers you work with and also amplifies the value and adaptability of your coaching, ensuring that every individual embarks on a journey that reflects their challenges.

How to implement value-based pricing

Value-based pricing sets a fair figure that reflects the unique transformation your coaching provides. Your starting point should be to analyse your Unique Value Proposition (UVP) – a breakdown of the benefits and outcomes that make your coaching so powerful.

This clarity will attract ideal clients and act as a magnet for their needs and aspirations. It’s also vital to understand who these clients are, both demographically and psychologically, so you can tailor your pricing to what they value most and are willing to invest in.

Great communication is a powerful tool. Sharing content that shows your insights, leveraging testimonials that speak of the changes in your clients’ experiences, and offering satisfaction guarantees are all positive ways to underscore the value behind your pricing.

I’ve found that this approach builds a foundation of trust and sets the stage for the transformative journeys you and your clients will undoubtedly undertake together. Value-based pricing sets a fee, but it also invites a partnership promising growth and the realisation of their dreams.

Regularly review your prices

Something many coaches forget to do… revisit your pricing regularly. Doing this ensures your fees fully reflect the evolution of your expertise and the correct demand for your services. If your diary is consistently full, it’s a clear signal that the value you provide may exceed the prices you’ve set.

In such cases, adjusting your rates is fair to you and a strategic move to grow your business. Your pricing must align with the impact of your coaching. As you consolidate and expand, your prices should always reflect the growth you provide for your clients.

Should you list your prices on your website?

Choosing to display your coaching fees on your website provides full transparency and clarity, which I wholeheartedly embrace! It demystifies any investment required to engage with your coaching services and sets clear expectations from the outset. It also acts as a filter, helping you avoid potential mismatches by ensuring that those who reach out are aligned with your value proposition and investment level.

Moreover, this transparency significantly streamlines the onboarding process for new clients, allowing both you and them to fully focus on the journey ahead rather than the logistics of payment. It’s a practice that fosters trust and respect and lays a solid foundation for a coaching relationship built on open and mutual understanding.

Start pricing your coaching programs with confidence

The path to pricing your coaching programs is a strategic process that effectively combines your value with your clients’ aspirations and fosters sustainable growth of your coaching practice. Yes, it’s about selecting the ‘right numbers’, but it’s also an exercise in properly recognising and articulating your coaching’s transformative power.

If you want to elevate your coaching’s impact, adopt a value-based pricing strategy that fully encapsulates the worth and transformation you offer. I strongly encourage you to delve into the comprehensive resources and insights provided in The Prosperous Coaching Practice Roadmap.

When you step forward with confidence, you will be ready to refine your approach to pricing with the same insightful intention that characterises your coaching service for others. Together, we can move confidently towards growth and transformation for our clients and our own practices.

Let’s make a difference with one coaching session and one life-changing experience at a time!

 

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