Coaches that make six figures or more a year know that pricing your packages correctly is key to achieving the revenue you desire. Whether you’re just starting out or have some experience, charging the right price can take your business from struggling to thriving in under 90 days.
Here are 3 Tips on how to price coaching packages:
1. Connect your pricing to your clients’ transformation
The first step is to look at the outcomes and the transformation you provide. What’s it worth to your client?
For example, let’s say you’re a sleep therapist and you help CEOs get more sleep. They will in turn be more productive, more successful and get paid very well. The same therapist could focus on helping single moms with anxiety get better sleep. The transformation is similar but the second group will not have an easy way to measure the monetary value of what you do.
Keep this in mind. When looking at your client base and the transformation you bring, you might find out that you can easily charge more by selling to those clients whose transformation brings them the highest financial benefit. So in a nutshell, focus on where your transformation brings more valuable.
2. Work back your coaching prices based on desired revenue
Another important aspect of pricing your coaching is looking at the desired revenue. After all, providing coaching services is your lifeblood and you need to earn an income that mirrors your desired lifestyle so you can continue with your passion for serving as a great coach!
Ask yourself: How much do I want to earn in a year?
Break down the revenue into quarters and then break the quarterly revenue into packages and sessions. How many will you need to sell in order to reach your monetary goal?
Is it possible for you to deliver that many in one quarter? If the answer to this question is ‘no’, then you need to go back to point 1 above and re-assess your target audience. You’re going to need an audience that pays you higher prices. Now we don’t recommend just putting your prices up, it will need to be gradual forexisting clients and just use new pricing for new clients until everyone is on your higher prices.
3. How many packages should I offer?
A lot of new coaches think that the more options they can offer, the more likely they are to close the sale. Nothing could be further from the truth. The 3-tier option might work for products, but when it comes to coaching the fewer options the more your packages will sell.
Now this doesn’t mean that you only have one package up your sleeve (ideally you should have 2 or 3) it means that you only offer 1 package to each person, the one that you know from your experience, is the best option for them. Make the decision an easy one for them as people are faced with enough tough decisions they need to make on a daily basis!
This will allow you to match the right price-point and outcomes to a client and make them more likely to work with you.
The next step is to make sure you fine-tune your sales script to meet your newly up-levelled coaching prices.