How to set effective coaching prices
Christine Hansen
CEO and Founder | Global Executive PhD Candidate in Entrepreneurship
You are finally ready to sell your coaching package. But how should you price it?
You have created your coaching packages and are ready to start selling. But wait! How in the heck should you price it?
There are unlimited pricing strategies a coach can adopt. You decide the one that best suits you and your clients. An upside is that you can switch up your pricing method to see which one is the most profitable to you and beneficial to your clients. It honestly doesn’t matter how you price your coaching package, but that the result for your client and you is the same no matter what.
In this article, we will discuss the different methods of pricing coaching packages, and by the end, you will be well on your way to selling your first package.
Things to consider when you are setting your prices
Setting your coaching package prices doesn’t have to be complicated or cause you to have a nervous breakdown. Of course, it is only natural to wonder if your pricing is too high or even too low. After all, if you price too high, some people may not purchase, and if you price too low, some people may not think your coaching package has value. But if you consider a few details beforehand, the price you come up with should put you at ease rather than invoking impostor syndrome.
You offer a results-oriented package, and clients come to you to help them solve a problem. With this in mind, you are selling results and value, and your pricing should reflect that.
Before we begin, consider a number you would like to charge clients for your professional coaching package.
Who is your ideal client?
It doesn’t matter what type of coach you are. Your ideal client has a problem and comes to you for a solution. However, many people have a problem for which they seek answers, so it is not enough to have a need but also be willing to pay for the result. A college student, for instance, may want to learn to live a healthier lifestyle, but they are not ready nor have the means to pay for it. A professional woman in her mid-40s has the same desire and the funds to pay for your services-this is your ideal client.
What do they want?
Your ideal client has a problem, and you have the solution. Your client wants results and doesn’t want to spend much time looking for them. You know that your coaching package will provide the solution they need saving them the rigamarole of searching elsewhere. So when pricing your coaching packages, keep in mind that resolutions and time saved are what your clients want and are willing to pay.
Reframe it
Consider what happens to your client if they don’t solve their problem. They will continue to be unhappy, anxious, forever searching, and possibly not living up to their potential. What price are they willing to pay to solve their problem? Also, consider that if they don’t purchase from you, they may buy from someone else. So now ask what it would cost you to lose clients.
What other options do they have?
Let’s be honest. Clients have?plenty?of other options. Why shouldn’t their first and only option be you? Market(link to marketing blog) your package so that your clients see the value in the time it will save them to achieve their desired results regardless of the price. Tell them how your coaching package will change their life for the better, and be specific about the results they can expect.
How are you different?
Are you different than the next coach offering services? Maybe not. But the way you market yourself should be. You have your own story and journey to tell, and you want to teach others how you solved the same problem your clients have. Tell them how you can help change their lives because you changed your own. Your unique journey makes you an expert in your field, so be confident that your clients will be willing to pay for your knowledge. Many coaches, even seasoned coaches, undervalue themselves. Don’t undervalue your knowledge or underestimate the results you guarantee.
I do not advise you to compare yourself to competitors. Instead, be confident in what you offer to your clients. Base your coaching package prices on the results you will deliver, making you stand out from the rest.
Your social proof
If you are new to coaching, you probably don’t have much social proof. In this case, you can set a beginning price for your first few clients to collect testimonials, evaluate the results and gain confidence in your ability. For instance, set your price at $1500 for the first ten clients. This is a reasonable price for beginners, and although you may think it is too low, or maybe even too high, I promise after those first ten clients, you will feel more confident to raise your price and see how worth your package is to people in need of your solutions.
How much money do you want to make?
The glorious part of being a coach is that it is your own business, and you ultimately have the freedom to make whatever salary you want. Think of how much money it would take to live comfortably- paying bills, quitting your job, putting away for retirement and savings. Then, calculate what tools you will need for your online business. Will you need to pay for software, outsource copywriters or web designers, or hire a virtual assistant? Overhead must be added to your coaching prices to help pay for your business expenses.
Now figure out how many clients a month you’d like to work with that still leaves you quality time for yourself, your family, vacations, time off, etc. The first number divided by the number of clients should be a good starting point for your coaching prices.
Is this the same number you thought of at the beginning of this section? Does the number now seem unreasonable, or do you feel comfortable with it? Is it a number you would be willing to pay for the outcome you know your clients will receive?
If the number still makes you uneasy, don’t worry. There are ways to set your pricing so that it works for all types of clients and doesn’t make you shudder just thinking about it.
So now, let’s look at different ways to package your offer.
A fee per hour
It is worth mentioning this method even though I do not recommend it. I bring it up because many beginner coaches feel this is a fair way to price their packages. Perhaps they think this way because they don’t feel they have enough experience or don’t have the confidence to realize their value.
On the contrary, charging by the hour can actually be harmful to your confidence and devalue your package. When a client pays by the hour, your coaching package becomes more about time constraints rather than achieving actual results. It is not likely that a client will reach the solution they need in an hour, and who wants to be reminded about their hourly invoice? How much can you possibly convey in an hour? Are you genuinely showing your knowledge and expertise when charging by the hour?
If you are still contemplating charging by the hour, don’t be surprised if you end up doing more work. You have to prepare for the hour, send invoices, and create contracts…the admin work will eventually become more work than you are getting paid for. You will also need to take on far more clients to hit your yearly income.
A monthly fee or retainer
Another method I don’t typically advise because the compounded time does not portray the value of your coaching accurately. Offering comprehensive solutions to solve a problem and providing feedback and assessments is difficult to achieve in a month. You also open the door to always needing to be available for your clients. If you think a monthly retainer is the way for you, I advise you to set boundaries and communication times.
However, it has a benefit of note. This method may be ideal for a client who has not yet decided if coaching is something they want to invest their time or money in. This package could be an introduction to your more extensive packages.
A package of 3/6/12 months
This package is by far the most successful for you and your clients. You become a one-stop shop with all the information and solutions your client is looking for. You can offer your package at different durations of time, providing a comprehensive system to achieve the same results. Offering monthly package options lets your client choose how long they spend on the coaching. There will inevitably be individuals who want to complete your package quickly and those who want to spend more time with you. No matter the number of months spent on your package, this offer affirms that you appreciate your client and are willing to coach them until they achieve results.
Group coaching package
Group coaching is another option, though it is a little tricky to pull off. The goal for this package is to wait for a certain amount of people to sign up and launch your coaching package at one time. There are pros and cons to this type of package. One of the pros is that your clients can work in collaboration and accountability. I have not had much success with group packages. While some clients may prefer to work in groups, the work that goes into a group package from the coach’s perspective doesn’t always pay off.
Offer different packages for different needs
Not all of your clients will come to you with the same level of need. Some clients may be in the depths of their woes, desperately searching for a solution, while others may just be teetering on the fence with their problem, looking for a bit of motivation.
Offering different tiers of packages is a great way to appeal to more clients while allowing them to choose what best fits their purposes.
It also gives them the choice of what they deem reasonable to spend on finding a solution to their problem. Simultaneously it allows you to feel confident about pricing your services.
Here are ways to set up your tiers.
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Smallest tier
This is your least expensive package. You can deliver it as a monthly package or even as a webinar. (link to webinar post) This package includes the same value as your other packages but at a more fundamental level and a shorter time frame. For instance:
This tier may entice a client who isn’t fully committed or wants to get to know you better as a coach before making a more significant investment. Once this tier is purchased, offer a limited-time discounted price to upgrade.
Main offer?
This package is your bread and butter, the one you want to sell the most. This three- or six-month package provides all the material your clients need to succeed. Your main offer should include:
Your primary offer should consist of all the features necessary for your client to resolve their problem without purchasing extra courses or one-on-one access unless they want to.
VIP offer
This package is the premium offer. This year-long offer will give access to all of the sources from your main offer with additional one-on-one time, more follow-ups and on-going assessments, and access to e-books and supplemental materials that will aid in your clients' success. You may even work out a private session or Q&A with another coach or a chance to collaborate and network with other successful clients.
High-ticket coaching packages
You may be wondering, how can I possibly price a high-end coaching package, and who would ever buy it? Believe me. You’d be surprised.
The best way to market your high-end coaching package is to present it as value-based. Your client will solve their problem quicker than if they were to do it independently. You offer facetime, accountability, motivation, feedback, and most importantly, results.
You will have clients willing to pay for a $6000 coaching package that is six or twelve months rather than $600 for an hour-long coaching session. The higher ticket price promises more value to the client.
Goal-focused coaching package
Keep your client’s problem top of mind when creating your coaching package. You have the solution to resolve your client’s problem and have created the path to get there. You are not selling a coaching package; you are selling the solution. Clients are not buying your coaching package; they are buying solutions.
Rely on your own experience. You most likely have dealt with the same problem; otherwise, why would you be selling a solution to it? Pull from your own life and how you came to resolve your issue. Recall past clients and what they like about your coaching and the perceived value.
But what if you are new to the game?
You may feel pretentious when you first start coaching and setting your prices. Here is my advice to overcome this imposter syndrome.
Never undervalue yourself
You know your package offers a solution that your clients need to solve their problems. You may not have coaching experience, but you have life experience and made it far enough to call yourself a coach.
Always be learning
What do you need to do or know to feel comfortable charging what you want to charge? Learn from other coaches, learn from your clients, and read up on current industry standards and methods. Stay on top of your game, and you will always be the expert in your field, justifying your prices.
Start with small offers to gain experience
If you feel guilty charging your maximum at the beginning of your coaching career, offer small services first to gain momentum and experience. Doing this can also help you tailor your packages to become confident selling at your highest price.
Ask for testimonials
When you are beginning, it is so important to ask for testimonials. They help support the validity of your packages, automatically giving you authority and the social standing you rightly deserve.
So, set a reasonable fee for your first few clients to get the experience under your belt. After ten clients, raise those prices to a number that may feel uncomfortable, but you know you deserve.
Which brings us to….
When and how to raise your prices
Whatever you need to do to up your game and feel deserving of a raise, do it! Maybe that is selling a certain amount of coaching packages. Maybe it is continuing education courses. Perhaps it is adding additional resources to your packages.
Once you have the experience, confidence, and testimonials to prove your authority as a coach, raising your prices should become routine.
When you decide to raise your prices, you can offer your current fee for a limited time and then warn your potential clients that the price will go up after a specific date. Then raise those prices!
To post prices or not to post prices…
Now that you know how you want to price your coaching packages, we must ask, do we put the prices on our website? After all, you may want to change the prices occasionally.
There are different schools of thought on this question. I like to take the approach of using your pricing to benefit you.
I like to be transparent with my clients, starting with making my coaching package pricing available. It saves time for both you and the potential client. If someone looks at your prices and knows right away they are not willing to make that investment, then you have both saved time from the get-go. If that person is willing to pay the prices, you can use their inquiry into your services as a consultation call to see if you are a fit.
If you choose not to post your prices, you may spend time justifying your costs rather than speaking with a qualified lead willing to pay the fees.
Posting your prices doesn’t have to be necessarily readily available, however. You can entice your clients to leave their emails to see your coaching prices. This way, you get a potential lead to enter your email funnel, and the client receives something in return. If they are willing to leave their email to see the prices, they are one step closer to becoming a qualified lead.
Whew!
Now you are ready to price your coaching packages and start selling. It may seem daunting, but I want you to remember the biggest takeaway is?don’t undervalue yourself.?You have come too far to cheat yourself out of the money you deserve to make. Remember, your clients are coming to you because you have the solutions they are willing to pay for. And you know you can deliver!
If you have any questions or comments, please?get in touch with me ?or let me know how your evergreen webinar funnel works for you!
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