Setting the Right Price for Your Coaching Program
Almost all the coaches that I’ve come across have asked this question; how much should I charge for my program?
This is not surprising at all. Unlike products that offer a tangible and easily measurable value, services are not easily measurable. The interest of coaches, and even other service businesses around pricing is high – and understandably so.
When I started out my business, pricing was one part of it that took me a while to get right.
You must be itching to know how to know what price is right for your program.
I will get there. But first, let me deal with a few things…
In the coaching business, there are two distinct pricing patterns.
The first is to charge hourly or by session: Almost every new coach on the block starts out charging this way. Well, as much as it is okay to start like this, you won’t go very far using this pricing pattern. You need to be highly notable and reputable in coaching to survive with this pattern.
The second is to create a coaching program: This is a better path to take if you want to grow a sustainable and consistent coaching business.
Let me explain this using a client in need of a voice coach. They see an Ad on Facebook that says: Vocal Training for a Starter @ $80/hour.
They see another Ad that says: Vocal Training Series for Starters – Be ready for your next audition in just one month @ $600.
The coaches in these Ads offer one hour sessions every week. However, the second offer sounds more appealing, though it is more expensive if you break it down.
If you are helping people solve a major life or business problem, in order to get them results, you shouldn’t charge an hourly rate. Look at the outcome you them get and charge a one-time price for it.
The Pricing philosophy
You must be feeling edgy hearing the word “philosophy”. I’m not about to bore you with that jargon.
This simply deals with your mindset towards pricing. What are the factors you consider before giving a monetary value to your service?
In my experience, I have discovered that businesses fix the price of their services based on three things.
- Cost: Coaches with this kind of mindset consider how much it took them to put the program together. They refer to their accounting data, with the mindset of anticipating certain returns on the invested cost. Coaches who follow this philosophy do not find it difficult setting their price because they have enough cost data to work with. However, it doesn’t always stand the test of value. They are more profit-minded than value-driven.
- Competition: Coaches who fall into this category believe that price is an important factor in customer buying decision. Probably, they offer similar coaching services as their close competition. So, they believe if they put their price in the neighborhood of the competition’s price, clients won’t see them as being too pricey or less pricey. This has its pitfall because the essential aspect of a coaching program is left out, which is value.
- Value: This takes account of the perceived customer satisfaction before a price is fixed for a service. Here, the coach doesn’t bother themselves with how to fix their price to match or beat the competition. They are more concerned about creating more value with their services and raising the client’s willingness to pay at the fixed price. So, what informs their pricing decision is the value their clients get from the purchase of their services.
So, how do you set the price of your coaching service?
Remember my analogy with the vocal coaching program? Right.
You can fix a high price if you package your coaching services into a program that gets a certain positive outcome for your clients. It is important for you to know that clients do not pay for your programs, they pay for results.
Keep the above statement in mind as I show you how you can set the right price for your coaching program.
1. Ascertain the Income-Level of Your Ideal Client
This is where a client avatar plays a vital role. You need to ask yourself; how much can my target client afford for the program? What is the income bracket of my ideal client?
Look at these two scenarios:
In the first Scenario, your target client is a business owner with a great income. You should know that they are premium clients. They are more comfortable paying for a highly priced coaching program. They consider the impact of the investments they make on themselves and their business, more than what it cost them. As a matter of fact, they fling services that are priced too low out of the window. They usually have this nagging feeling that the higher the price, the better the results they can get from the program.
The second scenario is a situation where your target client is a high school teacher, with an entry-level income. They aren’t keen on paying so high for a coaching program, except they feel their lives depend on it. They’ll rather go for a low-priced program. As a matter of fact, if your program offers the option for group coaching at a moderate individual price, they’ll most likely enroll.
It means that the price you must set for your program should be hinged on the perceived value, and knowledge of the income level of your ideal client.
2. Leverage Your Experience and Track Record.
Apart from the value of a coaching program, the value of the coach plays a role in pricing.
You do not need to be a celebrity or an authority in your market; all you need is your ability to create life-changing outcomes for your clients and a portfolio of satisfied clients.
Remember, your experience and track record has to be proven. So you need social proof to support your authority and hence, justify the price of your coaching program.
You can do this in the following ways:
- Case Studies: This is your chance to tell your ideal client how your program has solved problems for your clients. According to a Demand Generation Strategies Report, 73% of B2B buyers rely on case studies to make purchasing decisions. You can share instances and stories where your program has helped people get results and achieve their goals. Make sure the people you are writing about are people your ideal client can identify with. Tell them all they need to hear. Narrate every step that was taken from the point of contact to the point of achievement of the desired outcome. Ensure you do not leave out any detail that would be of interest to your ideal client. Don’t forget that the intent is to make them see the value in the amount they are paying for the coaching program
- Testimonials: People believe it more when other people talk about the value of your program than when you talk about it. A Yahoo Small Business study has it that 90% of customers use testimonials as basis for making buying decisions. Case studies, when properly done, deliver results. But it’s nothing compared to what testimonials can do. Encourage your client to share their success stories on your webinar.
All of these can be incorporated into your webinar. The more you show people your experience and track records, the more they are willing to pay at the price you have set for your program.
3. Be Confident in Stating Your Price
When you set a price for your coaching program, talk about it with confidence.
A lot of coaches get fidgety at the point of closing a client, when the issue of price comes up. The fact that someone heard your price and turned you down is not an indication that your price isn’t right. It could just be that they aren’t your ideal client.
At Clients Oasis, we are always for closing high-ticket clients and at high prices. To do this, we have mastered the art of confidently relating our price to our clients. When we talk with them, they can feel our confidence level.
Your confidence in the worth of your offering is contagious. If you are confident, it also ignites your client’s confidence that your program delivers the intended result. If you aren’t confident, your ideal client can sense that from a thousand miles away. This does not tell well on you as a coach as you will be losing potential clients.
Ready to name your price?
If there’s one thing you should take away in all I have said so for, it is that your pricing should be based on value. If your program helps your clients solve a particular life challenge, they can pay any amount for it.
Focus on the result you get your clients, and not just on the profit you want to make. If you are confident about the value your program delivers, then you should also incorporate this when telling your clients the price of your program. Your confidence will go a long way to inspire confidence in the client too. It makes it easier for them to pay any amount you have set for your coaching program.
We have a team dedicated to help you figure out how much to charge for your program. We do this because we believe that if you help people solve a major life or business challenge, you should be well paid for it and in turn meet your financial goals faster. If this sounds like you, schedule a breakthrough call with someone on our team TODAY for free.
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