Pricing coaching packages can be a scary task for some. For me, it has never been scary. Because of that, I had a hard time explaining pricing to clients in a way that made them feel confident.
As mentioned in 7 Types of Coaches to Invest In as a Coach, there are no set limits to how much a coach can charge. One could start charging $0 or $100,000 for their first coaching package. Coaches have done it all before.
The problem is that whatever a coach charges, they must be able to communicate that value to sell it. If not, that coach will never have a successful business. On top of that, the coach must also be able to deliver on the promised value. If not, it will hurt the coach’s reputation.
In this blog post, I want to leave you with a better understanding of what a coach needs to consider while pricing. This means that we will look at all aspects of pricing. There will be examples of my own pricing journey. Also, I’ve included the Coaching Package Pricing Calculator. Check that out for a step-by-step guide on how to get it done.
It’s where you will be able to ask me any type of questions related to this subject. Simply by creating a new post in the group.
Offers vs. Lifestyle
How much coaching do you want to fit into your lifestyle? Emphasis on the want.
In today’s modern times, one could coach all day and all night. There’s always someone up somewhere in the world that will need your coaching. As much as that’s exciting, it’s also impractical to be coaching 24/7. Nobody can be a good coach doing so. Rest, relaxation, business, family, friends, self-development, and self-care are important to be a good coach.
Each coach needs to decide for themselves how much time they would like to spend coaching. That’s why it’s important to take one’s current and dream lifestyle into consideration.
What most coaches don’t take into account
There’s a lot that goes into running a coaching business. It’s common for coaches to forget about the details of running a business. They completely forget about the business side of things. After signing a client, the business doesn’t stop. To keep growing, one needs to be able to bring in clients on the regular.
Besides that, it’s also important to take into account the energy that goes into coaching. During a coaching session, the coach is thinking, connecting, and talking. That’s very fulfilling. It will also be exhausting having a bunch of coaching calls on a day without enough breaks between calls.
As someone who is building a semi-nomadic lifestyle, I offer only 2 spots for 1-on-1 coaching. Besides that, I have 5 spots for Voxer Coaching. The rest is masterminds or courses. This is how I can run a successful business while still being able to create my dream lifestyle.
You might also like: Voxer Coaching: The Best Way to Connect with Clients
As a person, I’m all about creation instead of competition. So let’s be clear that this is not about competition. However, we’re doing business here. We need to put our CEO hats on to understand the choices our clients have. Through the understanding of market research, you can understand your differentiator.
Understanding your differentiator
The vision you have for your business is different. Especially for those that feel called to coach. It’s often not easy to see the differentiator. That’s where market research comes into play.
Questions to ask here are:
- What is it that you offer that other coaches don’t include?
- What can you offer that other coaches cannot?
What does a similar coaching package go for these days?
Understanding what is being charged for a similar offer can assist in the pricing. Again, this is not for competition but to gain a better understanding of what goes on in the market. You will see inside the Coaching Package Pricing Calculator, that I always bring it back to intuition. When intuition can also make sense, it makes it easier to price something with confidence.
In 7 Types of Coaches to Invest in as a Coach, I give an estimate of how much coaching costs in general.
While doing this type of research for myself, I noticed a few differentiators. Many big coaches only offer one business coaching course for everyone. With very limited opportunity to ask questions.
As a result, the newbies get lost in the mix. They’re left stuck with a buttload of unanswered questions. On top of that, the training is often too overwhelming to keep up with for the newbies.
With all that in mind, I decided to offer Consistent Clients Mastermind. A mastermind that gives new coaches a ton of access to me. My clients get daily coaching through a private Facebook group. Plus they get weekly access through group video calls. The video lessons are short and simple with each lesson building on top of each other.
One’s experience is important to take into account when pricing. Someone that’s been coaching for a decade can charge more than someone that just started.
Besides coaching experience, it’s also important to take into account life experience. My clients often feel like they don’t have any experience. Until they’re challenged to look further.
One client has realized she had over 10 years of experience teaching theater, which is what she does now. While another client realized that she has degrees that applied to coaching. Including psychology, meditation, and teaching degrees.
Must read for those who feel a lack of experience: How to Build a Profitable Coaching Business Without Much Experience.
When I first started coaching, I felt like I didn’t have any accreditation. Until I noticed that I spent most of my younger years coaching people. I did that as a missionary and youth leader in various organizations.
Supply and demand
It’s possible that the person sitting next to you on a plane paid 3 times more than you have for the same seat. This can also happen the other way around. That’s because the travel industry is a genius when it comes to pricing. They understand supply and demand well.
Hotels, cruises, attractions, and tour companies use that same pricing principle as airlines. In the busy high season, prices go up while in the low season prices come down.
With coaching it’s the same thing. When someone doesn’t have clients, they can keep their prices low to free. As they start booking clients, they can start raising their prices.
Free is not necessarily a shortcut
Let’s be clear that this is not a shortcut to having a strategy in place. I’ve seen coaches offering free coaching long term without any idea on how to sign paying clients. This has a lot to do with one’s worth. If this is you, make sure to download the Coaching Package Pricing Calculator.
I started the pricing for Consistent Clients Mastermind low at $297 for a 6-week intensive. Then based on the needs of those clients, I converted it to a full-year Mastermind.
The Mastermind pricing started at $1,800 and has since increased. Every time I increase the price, I set a goal of how many clients I will enroll at that price before increasing it again.
Charge what you can embody
At the end of the day, it’s all about charging what you can embody. Many people talk about charging your worth. It’s impossible to charge your worth. For starters, each person is worth billions. Secondly, your worth will be way higher than what you’re comfortable charging. Something you’ll definitely realize using the Coaching Package Pricing Calculator.
So it all comes down to charging what you can embody. Which simply means charging what you feel you’re worth. While taking all the points mentioned in this blog post into consideration. This is why it’s important to involve intuition in this process. Also why nobody can tell you what’s right or wrong for you to price.
If a coach charges less than what they feel they’re worth, they’ll feel used. While if a coach charges more than what they feel they’re worth, they will feel like they’re taking advantage of their clients. I go more into this in the when it’s time to raise your prices podcast episode.