Do these 5 Things to Improve How You Price Your Coaching | By Ruby McGuire October 4, 2019 Reading Time: 3 min 55 sec Share39Tweet6SharePin348 SharesLet's talk pricing! That taboo topic that nobody likes talking about. Isn't it weird how we can talk about so many things, but money? Ooh, no! That triggers so many awkward thoughts, beliefs and emotions. The thing is, if you're running your own business, you're going to have to get comfortable talking about money. Because if you don't, you'll just have a hobby. You're in business. You're in business. You're in business! It's important you know this, as being in business, means you charge for your services! Full. Stop. What are your own concerns around pricing? Are you worried about people being able to afford you? Maybe you're worried if you put your prices up you'll lose clients, or worse, that people will judge you and think, "Who do you think you are?". It's all good... It's good for everyone to have a price that works for you, and your prices in place. It keeps things simple. It's good for your clients - to commit to coaching by paying a reasonable price. Think of how much more you value something when you've paid for it. And it's good for you. You can turn your passion into a profitable business. And I'm not talking about being unscrupulous, but charging your clients for the transformation that coaching can bring. Here are 5 Helpful Tips around Pricing: 1. Change your limiting stories! It's more than likely that you find it easy to spot your client's limiting beliefs. Now it's time to spot your own! You know the drill, but just in case you need reminding: Ask yourself what your own beliefs are when it comes to pricing your services. In what areas, specifically, are you worried about your pricing? What's underneath that worry? And what's underneath that? Do these beliefs support and empower you? Take a moment to recognise the impact these limiting beliefs are having on your business. Decide whether you want to hold onto them or whether you want to install a new empowering belief instead. Gather evidence for your new beliefs. Action: Do some work around your own limiting beliefs about pricing. You could also get the help of a coaching buddy - sometimes we just can't see what's blocking us. As one of my coaching friends says, "Even Tony Robbins probably doesn't get breakthroughs on his own!" 2. Never charge what you're worth! Instead charge what your services are worth. This is different to what you're worth - please don't mix up the two. And I don't say this lightly. When you place a number on what you think you're worth guess what happens when people don't pay it - you feel worth-less! So, when you charge what you think you're worth then when someone says they can't afford coaching, you will equate that to you not being worth it. That's just rubbish! You will always get people challenging your rates, and that's ok. That's their stuff. And if people are questioning what you charge then they may not be right for you, they're not your dreamie clients. I want you to think more in terms of what the work you do is worth, because your worth can't be priced! You're fabulous, remember? There are lots of other coaches out there that your non-dreamie clients can work with more cheaply. Plus, when you price yourself too cheaply, people may wonder what the catch is. Remember there is such a thing as perceived value... I can remember years ago I was selling some of my hand-made cards and they just wouldn't sell at my then £1.50 price mark. A friend of mine took them from me to sell, doubled the price and I couldn't keep up with the demand. So what was happening there? It's perceived value. Sometimes we like to feel we are buying something with a slightly higher price tag because it equals quality. The cheapest isn't always the best option. So, are you selling at a discounted rate because you're scared of putting your price up? I know you want to feed yourself, pay your bills etc. but avoiding the discomfort of putting your prices up - and offering your services at bargain basement prices is not the answer! Action: Remember to charge what your services are worth, not what you're worth! 3. Know your dreamie clients I mean, REALLY know your dreamie clients. What makes them tick? Consider their problems and issues: What keeps them up at night? Goals: What do they want? What is going on in their heads? How can you create an emotional connection with them? Knowing the price point to choose comes down to who your dreamie clients are. It's crazy charging a £500 an hour if your dreamie clients just can't afford that. You won't get very far and will get defeated very quickly. But if you were a coach for 'big business' leaders, then that price point might fit! And remember to create services and packages that your dreamie clients need! A great way to get to know what to create for your dreamie clients need, is to ask them. Have conversations with them to find out what they are struggling with and work out how you can help. Then, build in tiers where people can move up to the next stage of working with you, that way you'll always have more that you can offer. As clients move up the different levels, there will be more added value and/or more access to you. Action: Get to know your dreamie clients deeply! 4. Don't give away your goldfish! If someone doesn't choose to buy from you don't fall into the trap of giving everything away to them. This is SUCH an easy trap to fall into. We think, ooh I'll add this and this and that! But then all you do is overwhelm them - and make them wonder if you're the right person to work with. Consider you are in, let's say John Lewis, (a high quality UK department store). What would you think if someone came up to you as you were looking at a gorgeous outdoor table and chair set and they said, "If you buy it now I'll throw in an extra chair, an umbrella, some cushions, some candles, a barbeque" etc. You might grab it with both hands for sure. But equally you would be telling others how desperate they were to sell you that table and chairs. You'd probably be walking away thinking, "Well I was seriously considering buying it anyway". Or worse, "What's the catch, what's wrong with it?" There is nothing worse than desperation. Really, nothing. People can smell it a mile off. So, don't lower yourself by throwing everything away. You're fabulous at what you do. And if you're in training or the early days of your coaching business, you will be once you start building your coaching skills. Trust that you're a professional! By all means add in a bonus, but not things like a yacht, a trip to the Bahamas and 50 free hours of coaching with you! You don't need to throw in your hubby, kids or goldfish to entice them to work with you. Just one or two simple bonuses - that way you won't be starting the relationship off on the wrong foot. Action: Write down 2 different bonuses you could offer for people wanting to work with you. They don't have to be high cost, they just need to be high perceived value. For example, it could be a super useful worksheet, an audio, some kind of digital content. 5. Check out the competition but don't compare bananas to socks... Obviously it makes business sense to check out the competition. We all need to be aware of what others are charging. What doesn't make sense is comparing yourself 100% to the competition. It's like comparing bananas to socks - they are two different things! They are not you. And while they may do similar things, they don't do them in the way that you do. You bring your own unique take on it, your different life and work experiences, your training might be different. There are always several factors at play in your pricing strategy. Then, once you've gathered the information from your research you can choose what your price point is. But use other's pricing as a guide only. Why? Other people's pricing might be too high or too low! They might not be overly confident in their own abilities so they're undercharging, or they might be over confident about the transformation they offer and are overcharging. And they may not be a direct match for you to compare against. What if they don't have the same dreamie clients? What if they have less experience? There are lots of "What ifs?"! Action: Do some market research to get a sense of what others are offering. But remember to use the information wisely - just as a guide. Wrap-up You took a risk to set up your business, now you need to take a risk that you are good enough. You can do this. Don't apologise in any way for what you're putting out there. Being afraid is a good thing; it pushes you beyond your comfort zone and improves your confidence in the process. Choose to be confident that your product is fab, not cheap. We can be great at underplaying ourselves. We assume that everyone knows what we know, and that's often not the case. So, when considering your pricing strategy and/or packages you will need to figure out how everything fits in with what you're offering. Remember to factor in the time it took to create your package(s). People are buying your time - and expertise. And importantly, be YOU. Honestly this truly will set you apart. People want to work with you. So, we've gone through 5 areas to consider around your pricing: Change your limiting stories. Never charge what you're worth! Really know your dreamie clients! Don't throw in everything - your hubbie, your kids and your goldfish... Check out the competition but don't compare bananas to socks! Remember you're running a business, this isn't just a little hobby. And if it is a hobby, that's OK - maybe that's the right thing for you! But if it IS more than a hobby to you, then you need to be making a profit. Your business shouldn't be costing you more money than you're making. Which resonates most with you? Share with us in the comments below - I'd love to hear from you. Contributing Author: Ruby McGuire is a Business Mastery & Mindset Queen. She loves helping her clients step up and become leaders (Queens) of their businesses by developing their leadership skills, ditching self-doubt and creating a success mindset. She currently runs Queen of Business Mastermind groups. You can also find Ruby at her pretty online home, here on Facebook or satisfying her obsession of pinning on Pinterest! Finally, check out her Visibility Quiz, where you can find out just how visible you and your business really are! You May Also Like: Are You Focusing on the Right Things? also by Ruby McGuire How to Decide What to Charge for Your Coaching Program - 5 Steps PLUS Specific Examples to Help! How I Got 12 New Clients by Creating a Coaching Program and Why It Was a Turning Point for My Practice! Categories: Business Development, Guest Author, Running a Coaching Practice 9 Comments Raymond Newkirk October 6, 2019 You advice here is right on target. I appreciate its presentation. Objective pricing but personal. Reply Emma-Louise October 7, 2019 Hi Raymond, so glad you found Ruby's article helpful 🙂 Warmly, Emma-Louise Reply Ruby McGuire October 8, 2019 I’m so pleased you found it useful Raymond. Thanks for taking the time to comment 🙂 Reply Julie DeAngelis October 7, 2019 What resonated with me is to charge what your services are worth, not what you are worth. Reply Emma-Louise October 7, 2019 Hi Julie, I liked that too! Warmly, Emma-Louise Reply Ruby McGuire October 8, 2019 It’s so true Julie. I much prefer thinking of it this way 🙂 Thanks for commenting 🙂 Reply EVERETT TAYLOR October 7, 2019 Ruby: Your website was just forwarded to me by an experienced coach that I just met this weekend. I'm a well-seasoned HR/OD executive and former consultant transitioning into a sole healthcare and non-profit executive coaching practice. At this first glance and on Linda Seiden's strong referral, I definitely would like to subscribe. Ev Taylor Reply Emma-Louise October 7, 2019 Hi Everett, I'll make sure Ruby knows you've left a comment 🙂 Warmly, Emma-Louise Reply Ruby McGuire October 8, 2019 Hi Ev, my background is in HR. I’m so pleased you found us 🙂 Thanks for your kind words 🙂 Reply Leave a Reply Cancel Reply Your email address will not be published.CommentName* Email* Website Save my name, email, and website in this browser for the next time I comment.