Unlocking the Secrets of Coaching Pricing
Pricing your coaching can challenging… Are you charging too much or too little for your coaching programs? Oh, and one more thing… Don’t confuse your services with your self-worth! Let’s dive into the essentials of pricing strategies to help you find the right balance.
1. Understanding the Offer: The Foundation of Pricing
Before you can even think about pricing, you need a clear offer. An offer is simply an exchange of value for money, where you provide a service or product that helps your clients solve problems or grow. As Faisal pointed out, “A lot of coaches don’t make an offer because they’re confused about pricing.” Knowing your offer is key to building a sustainable coaching business. Start by defining what you offer and track how many offers you make. This is a crucial metric for understanding your business’s health.
Application Tip: Create a clear and concise offer and practice presenting it to potential clients. This builds confidence and clarity, ensuring you’re ready to make offers consistently. It can be as simple as weekly coaching for 6 months for a specific price.
2. Set Your Pricing Boundaries
Pricing can feel arbitrary, but it’s crucial to establish your ideal pricing, your floor pricing, and what it’s worth to the client. Daniel emphasized, “You can’t talk about pricing if you don’t have an offer.” Your ideal pricing should reflect the lifestyle you desire, while your floor pricing ensures you cover expenses and maintain profitability. Remember, what matters most is the value perceived by your client.
Application Tip: Write down the lifestyle you aspire to achieve with your coaching business. Determine the income needed and calculate your ideal and floor pricing to support that vision.
3. Value-Based Pricing: Seeing Through the Client’s Eyes
To truly understand pricing, step into your client’s shoes. What value do they perceive in your services? As Daniel explained, “Coaching is about the value exchange, not just the hours spent.” Understanding what your client values helps you set a price that reflects the true worth of your coaching. For them, it’s about balancing what they can afford with the impact your coaching can have.
Application Tip: During discovery calls, delve into what your clients value most. This insight will guide you in setting prices that align with their needs and your value proposition.
Commit to Continuous Improvement and Growth
The key to successful pricing is continuous improvement and growth. Don’t fixate on the numbers; focus on delivering exceptional value and refining your skills. Coaching Mastery Community is a great resource for coaches seeking to develop their business and coaching mastery. Engage with our community to share experiences, gain insights, and refine your pricing strategies.
How do you determine the value of your coaching services? Reply with a comment or question to share your thoughts.
Share this article with fellow coaches and engage with us in the free CMC Coaching community. For a deeper dive into these concepts around pricing, listen to our podcast episode #167.
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Keep Coaching,
Daniel & Faisal
Co-Hosts of The Coaches Journey Podcast