Are you interested in learning how to price your coaching package so you’ll get the most value for yourself and your clients?
Is it possible to double the price of your coaching package and still book clients?
I have clients who do these very things.
One of my clients actually booked five additional clients after we worked together, and he did this at his new doubled coaching package rate.
How was he able to do it?
And how did he know what to price his coaching package?
In this post, I’ll share the pricing strategy, and what to consider when you are pricing your coaching package.
If you prefer video content, you can check out my How to Price Your Coaching Program video on YouTube, too.
Here’s an embed on the video, if you prefer to watch it without leaving this blog post:
Should You Choose Pricing Based on The Market?
Many coaches will first look at the market package price of other coaches and then attempt to charge an hourly rate for their coaching packages similar to that of other coaches.
For example, for a 6-week signature coaching program let’s say the “market price” is $500 in coaching fees.
However, with your coaching program, your client’s transformation may mean they’ll walk away with a fully functioning, profitable business with a marketing plan and ready-to-use content.
Your client’s coaching package may have the potential of making your ideal client a lot of money — therefore your coaching business programs and packages could be valued at $10,000 or more.
Pricing your coaching package is not about what everyone else is doing, it’s about what YOU can do for your client.
While there is nothing wrong with seeing how other coaches price their packages or paying attention to how other group coaching programs are priced, it’s a limiting strategy.
1) You don’t know if that price is working for them.
Any business owner can choose a premium price for high-end coaching packages that is simply plucked out of the air and then advertise that price.
But are they making sales? What are their income goals?
Unless you can see behind the scenes of another coach’s business, you have no idea if their coaching session price is actually one that makes sales.
2) You don’t know how their audience differs.
Do you have a high-ticket audience?
Or a low-ticket audience?
Maybe you have a combination of the two?
When I first chose pricing, I was following the advice of coaches who told me to price high-ticket for everything.
But after some trial and error, I realized that I had a low-ticket audience just waiting for the right offer.
Does that mean I don’t sell high-ticket for the right coaching client?
But it does mean that I had to put a process in place for capturing value at every level for my coaching business.
3) You don’t know the strength of their transformation.
Just because another coaching is pricing their coaching rate at $200, or even at $20,000, that doesn’t mean that you should price your coaching rates this way.
If you see everyone else selling a group coaching program for a thousand dollars or selling their courses for $5,000, once again, that doesn’t necessarily mean that you should charge $5,000 for your coaching services.
After working with you, your clients could have a much greater transformation.
Or, your client’s transformation might not be as strong.
That’s why you should ignore how other coaches price their coaching packages.
Should Coaches Use an Hourly Rate for the Coaching Program?
You should definitely avoid what I like to call the hourly trap.
When you charge by the hour for one-on-one coaching sessions you’re almost always going to end up overworked and underpaid.
Experienced coaches realize that you’re never going to be able to truly calculate the value of your hour and total time delivering your services because it’s going to be different for every client.
Every client is going to have a different and personalized result based on the actions that they take with the information you give them.
Since you’re offering coaching calls and you’re not performing a done-for-you service, the value of that period of time you’re providing is affected by the actions your client decides to take.
Think about it this way, let’s say you just want to get paid $125/hr.
Seems like a fair rate right?
But what if you work with a client and you have a huge impact on their life?
What if your life coaching brings them a $10,000 return in their own life and business?
In this situation, as a business coach you’d be grossly underpaid when you consider the value you brought to the client. That’s one reason to base your coaching price on value-based pricing.
Also, the hourly coaching trap limits the amount you can earn because you only have 24 hours in a day.
Leverage your time, and remember that you’re getting paid for your knowledge and talents, not for the hours in the day.
So, how should you price your coaching packages?
I want you to price your signature coaching program based on the transformation that you offer.
The 4 Ways to Price Your Coaching Package
1) Price Your Coaching Package Based on Previous Client’s Transformations
It’s much more powerful to base the price of your coaching package on the transformation it provides.
How do you figure out the value of that transformation?
Pay attention to your client testimonials.
Selling a high-ticket coaching program or pricing you coaching package is easier when your existing programs have testimonials.
Communicate your track record: the ways that you’ve been able to help previous clients, along with the results that they were able to achieve.
It’s easier to communicate the transformation that you offer if you can actually present a testimonial.
If you want your testimonials to be great, you must be sure they include all of the tangible and intangible benefits that your coaching packages delivered to your clients.
Tangible benefits can be quantified and usually are numbers like, number of pounds lost or a percentage increase in your client’s sales.
Intangible benefits cannot be quantified.
But they are usually focused more on things such as an increase in your client’s mental clarity, confidence, or better sleep, for example.
Questions You Should Ask to get Better Client Testimonials
Ask questions that focuses on tangible benefits:
- What were you able to accomplish?
- Do you have any numbers?
- Can you quantify that?
- Were you able to hit that goal that you set at the very beginning?
Also ask questions that focuses on intangible benefits:
- What were things like before we started working together?
- What are the results now that we’ve completed our work together?
- How do you feel?
- What do you feel like you can accomplish now?
To get this social proof, you can ask these questions during one of the final few one-on-one coaching sessions.
But, how would you price your high-end coaching package if you’ve never had clients?
2) Price Your High-End Coaching Package Based on Transformations that Clients Will Receive
If possible, quantify the tangible results clients will receive.
If you don’t yet have clients and you’re just getting started, that’s absolutely fine.
Maybe this is something that you’ve been doing full time in your job, or something that you’ve been helping people with for free on the side.
You don’t necessarily have to have results or testimonials to show.
In order to quantify the tangible results of your coaching package, think about the costs if your prospective clients don’t get their problem solved.
For example, if you know that you can help someone lose 30 pounds, and losing their 30 pounds is going to significantly improve their health, think about their cost benefits.
What are their costs of not losing their 30 pounds?
- What is their health going to be like?
- What other problems could that cause?
- What would be their additional costs in terms of medical care?
- Is that going to cause them time off of work?
- Will they lose money if they don’t receive the transformation you give them?
Start thinking about those tangibles that you can quantify.
Then you can say, “As a result of working with me, you’ll have the energy to travel, save less on hospital and insurance bills, and spend less time off work so you can maximize your earnings potential.
If you can’t quantify the tangible results, quantify the intangible results.
For intangible results, speak with former clients or people that have the problem you solve and ask them the following questions:
- What would it feel like if you were able to get this problem solved?
- How would it affect your life?
- What other areas of your life will be affected?
There’s an entire process of questions that you can go through in order to really get clear on the transformation you provide.
I talk about this a lot more in my Package & Profit training.
It’s an on-demand course that includes a four-part video series, a workbook, and sales scripts.
In the training I walk you through the mind of a high ticket buyer, and talk you through even more ways of pricing and selling your coaching package.
It will walk you through getting really clear on the transformation so you can create your high ticket offering.
I definitely recommend you check that out if you’re still having a little bit of trouble packaging what you offer.
3) Pricing Strategy: Price Your Coaching Package Based on its Value
The final thing to look at when you’re pricing your coaching program is to establish its value.
Money doesn’t exist in a vacuum.
If I say a camera, for example, is worth $400, someone might look at me and say, “Nope. I know that I can get cameras at the store for $5. So, that’s not a $400 camera.”
Or if you tell somebody, “hey, this is a $20,000 camera”, they may say, “ah, well I know I can get cameras at the store for $5,000. So that’s not a $20,000 camera.”
That’s what I mean when I say money doesn’t exist in a vacuum.
There’s always a comparison.
When you share the price for your coaching package and say “it’s going to cost you $10,000 to work with me for eight weeks,” that potential client starts to compare that pricing with other things.
The only thing they really have to compare that with is anything else they know that costs $10,000.
They might start thinking, “well, I could get a used car for $10,000,” or “that’s two semesters at college.”
Or, they’ll compare it to whatever other amounts they have to compare it with.
That’s what they’re going to do.
You don’t want them to determine your pricing for you by using their own comparisons.
You want to establish the value for them.
You do this by comparing it to the tangible and intangible results you determined in the previous section.
Let’s put it together in an example.
You can tell someone:
“As a result of working with me, you’ll be to lose 30 pounds or more.
What would that do for you and your life?
I’ll tell you.
You’ll able to run more, stay up late with your kids, and stop worrying about how tired you are all the time.
This is going to allow you to do so much more in your life.
Not only that, but you’ll save on your medical bills and you potentially won’t have to pay $30,000 for a gastrointestinal surgery down the line.
Also, your insurance costs may go down, saving you double the amount you’re going to pay for my coaching package.”
Include the tangible results you quantified as well.
And now, when you say that your coaching package only costs $10,000, they may think, “wow, I’m going to save $20,000 in medical bills, insurance and all these other things.”
They may also say, “plus, I’m going to be able to run around with my kids and do all the other things I’ve been missing out on.”
In their minds, the price of a $10,000 coaching package would then seem small in comparison to $20,000.
These are arbitrary numbers that I chose to demonstrate that money doesn’t exist in a vacuum.
This means when you’re explaining the value of your program, you’ve got to base it on your expected transformation while setting up price point comparisons your clients can relate to.
4) Price Your Coaching Package by Building its Value In Advance
Last, one of the best ways to explain the value of what you’re offering is to create a webinar, also known as a selling presentation.
I love webinars because of their ability to establish value.
I’ve got an entire process to create and market a webinar that’ll clearly help you establish the value of your coaching package.
This process is exactly what I helped my client Kelly with, when he first started working with me.
He was charging a certain amount and I knew he needed to raise the rates for his coaching package.
I looked at him and I said, “Kelly, do you realize the value of the results your clients are receiving and the transformation that you’re offering? You need to double your rates.”
He immediately doubled the rates for his sales program, and then booked five more clients at that doubled rate.
He instantly gave himself a raise by being really clear on what he offered and the transformation that his clients would get.
He didn’t just double his rates and then offer that rates to clients, he brought them through a webinar first.
The webinar helped to establish his value.
That way when he got on the phone with those potential clients, it was much easier for potential clients to say yes, even at his coaching package’s new doubled rates.
I stand by the power of webinars to help you establish your value and to deliver the details of the transformation your provide.
If you’d like more help creating a webinar, so you can sell more of your high ticket coaching, one on one coaching packages, or courses, then I’d love for you to join me in my free training.
It’s called How to Create a 4-Step Client-Gaining System.
During this training, I’m going to share with you exactly how to creating a webinar builds the value of your coaching offer, so your sales calls are that much easier.
During the training, I’ll share with you exactly how we’re booking coaching clients using a webinar, as well as how we’re getting inexpensive webinar registrations so that you can have a much higher return on your ad spend investment, if you chose to use ads.
In order to watch that training, all you have to do is visit youvegotclients.com/anti-webinar.
I look forward to seeing you on the training.