Steps to Pricing a Coaching Program or Service - Part 1

One of the most common questions I get asked is how do I price my coaching package or service? Which can be a limitless answer!

If you take the coaching industry, there are some coaches that charge as little as $50/session whilst other coaches charge $50k for a day to work with them.

Pricing can also be a very personal thing as well with people holding strong values around wanting to make their work more accessible to those that need it, whilst others choose to be more exclusive and higher ticket.

But I will say in my experience it takes just as much energy to sell a $5,000 over a $500 product when you get the foundations right.

In my estate agency days we sold houses from $200k to a million dollars.

Which do you think was easier to sell?

Most of the time it was the higher ticket houses - WHY? The buyers were more specific...

• They made decisions faster
• They knew what they wanted
• They were less detached to the money
• They followed through on the transaction
• AND didn’t get as cold feet as much as the first time buyer!

BUT the conversation was different and buyers more scarce - which took a different marketing strategy to attract them in.

So let’s look at some things to consider when pricing your programs.

STEP 1: PRICING FOUNDATIONS

These are some of the core foundations that you should take into account when looking at pricing your program:

Experience and Results: This is the foundation of your business based around your own expertise and track record in achieving results for clients.

Why does someone hire a coach or service based entrepreneur?? Normally to solve a problem for them, get them there quickly and save them both time and money.

Take me for example I’ve created my first millionaire six months ago, I’ve also helped other clients get to six figures and do their first $10k/month.? Do you think it’s fair for me to charge $5k, $10k or even $20k for my services??When I can help you create a system and process to create that income over and over again.

I can easily justify those price points and gain a ROI for my high ticket clients.

So your pricing needs to take into account how much the end result is worth to your client - eg.? to find a new relationship, to take control of their finances, to create a brand that gets them noticed.?

How much is that outcome worth to your client?

Positioning in the Marketplace: This is about how you are being perceived in the market as a high-end service or a more accessible option, which influences your pricing.

Let’s take? Gucci vs. Fast Fashion...

In the world of fashion, Gucci stands as a symbol of luxury, elegance, and exclusivity. Renowned for its opulent designs, impeccable craftsmanship, and a legacy steeped in prestige, Gucci embodies a lifestyle that exudes sophistication.

The Gucci Experience

Imagine stepping into a Gucci boutique—a sanctuary of luxury where every detail, from the exquisite designs to the personalised service, speaks volumes about exclusivity. The ambiance whispers tales of heritage, style, and timeless allure. The signature products, crafted with the finest materials and meticulous attention to detail, epitomise luxury at its core.

Gucci's positioning in the marketplace revolves around more than just products; it's about offering an experience—an exclusive lifestyle that only a select few can indulge in. This positioning allows Gucci to set premium prices for its creations, attracting a clientele seeking not just products, but a prestigious lifestyle statement.

Contrasting with Fast Fashion

In contrast, let's explore the world of fast fashion—brands that focus on affordability, trends, and accessibility. These brands, while not bearing the same price tags as Gucci, cater to a wider audience. Their positioning revolves around making fashion accessible to the masses, offering trendy designs at more affordable prices.

These fast fashion brands may lack the exclusivity and craftsmanship associated with luxury labels like Gucci. However, their appeal lies in providing the latest trends at prices that align with a broader customer base. They leverage their positioning to offer accessible fashion, enabling more individuals to engage with current styles without the premium price point.

The shopping experience isn’t the same either - Primark compared to a Gucci store!

Gucci's focus on exclusivity and luxury allows them to set higher prices, while fast fashion brands, aiming for affordability and trendiness, maintain lower price points to cater to a larger audience.

Their approaches to positioning and pricing cater to distinct market segments seeking different experiences and values.

I highly encourage you to become more exclusive so that you are more in demand.?

Become the heart surgeon rather than the general overworked doctor!

You also need to take into account your customers and their affordability - eg. single mums don’t necessarily have the same budget as a CEO - who are you targeting?

Time Investment: Think about how much time you are going to dedicate to client interaction and program delivery which will also affect pricing.? The more of your time involved, the more pricier the program should be as your time and experience is the most valuable asset you have.

STEP 2: VALUE IN THE PROBLEM YOU ARE SOLVING

When creating a high ticket or online coaching program/service, it is normally to solve a core problem for your client.

So when pricing your program you also want to look at it from the clients perspective around the price of solving that problem.

Consider things like:

• Is there an offset/direct cost to the problem you solve - eg. I can help you create more income and get your ROI in under 12 weeks.? So I’m paid for and you can then go on and earn money every bit being profit on your investment with me.? I show you a process and systems to continue to grow.? So there is a direct return associated with my service.
• Are you saving your clients time, money, stress and so on?
• If my client wanted to hire you out solving this problem as a 1:1 service, how much would?it cost them to do so?
• ?What does it cost my client to NOT solve this problem - in money, in time, and in frustration??
• What happens to your clients' future if they continue to NOT deal with the problem you solve - does it get worse, what happens next in their future!
• How much money does my customer SAVE by solving this problem with my program?
• Is your program in one of the most profitable Niches that people will pay for - health, wealth, relationships, certifications which often allow for higher pricing.
• Is it a burning boat type problem you solve - or just a nice to have!

So these are some of the considerations to take into account when setting your pricing for your program as well.

Next week we will dive into the additional 3 steps to pricing like market research, your offer and what other things to consider when setting your final prices.

If you are wanting to launch a new program and struggling with pricing. Reach out and connect with me on LinkedIn and let's chat!