One of the biggest questions a new coach needs to answer is: How much should I charge for my services?
The problem with charging low prices is that:
- You get clients who aren’t really doing the work that’s needed (aka not having the impact you were dreaming of)
- Your business feels like another 9-5 job: a lot of work, paid too little
- You can’t meet your income goals
But why is it so important to have the right price?
The problem is 2-folds:
- When you start your business: You work your butt off, spend all your time in your business, and I’ve seen lots of coaches not booking any clients in their first year of business. During that time, they get their business into debt and charging lower prices will simply kill their dream before their bank account gets out of the red.
- When you booked couples of clients and 6 months later realize you can never meet your income goal because there isn’t enough hours in a day for you to do it all (simple maths will prove that point in just a moment)
The road is a dead-end called BURNOUT.
When new coaches and consultants start their business though, there isn’t a lot of information available about pricing and business financials.
Worse, there’s actually a lots of myths that keep new coaches stuck such as:
- It’s easier to sell a low price product than a premium price product
- You can help more people if your prices are more affordable
- You need testimonials and social proofs to charge higher prices
- And the crappiest advice: Charge what you’re worth
So new coaches & consultants go for what others in their coaching program or their market are doing. It often ends up into giving free coaching sessions in exchange for testimonials, and at best charging $900 for a 3-month package.
But here is the maths: If you work with 9 clients per week and your package is $900 for 3 months, that means at the end of the year, after all expenses and taxes are paid, your business will have paid you $16,200. Can you survive on $16,200 per year? Probably not.
So, what do you need to do instead to charge high-ticket prices?
1. KNOW YOUR NUMBERS
The right price is the price that will allow you to make enough profit in your business to enable you to pay your personal bills and your business bills. Period.
So what you need to do to figure out that ideal price is to reverse-engineer the numbers:
How much do you need to live comfortably (personally) per month and how much does your business need to run every month will tell you how much you need to make per month.
Then figure out how many hours a week can you coach clients (this is even more critical if you’re still in your 9-5) and how long is the duration of your package to calculate how much your package needs to be.
2. SHIFT YOUR MINDSET
After calculating what minimum price they should charge, most of my clients have strong resistance to increase their prices: A little voice is telling them something like “your program isn’t worth that much”, “no one will pay you that much money!”, etc…
That’s called a Mindset block. When you have one, it means that your subconscious will sabotage all your efforts to be paid at that new price because it doesn’t believe it’s safe (that’s often linked to very deep-rooted beliefs systems installed since childhood). If you feel like you have a mindset block and you need to debunk it : check out this easy-to-implement guidebook about the “9 MUST-HAVE MINDSET SHIFTS TO START CHARGING HIGHER PRICES”