If you are a Business or Life Coach you need to know the value of what you are offering. Having a positive money mindset is instrumental in charging what you are worth however, there are several other factors that need to be taken into consideration when determining pricing strategies for Business and Life Coaches.
Pricing for services and products is calculated from a variety of factors. Each factor needs to be taken into consideration before you set your prices in your business. Consider some of the following:
Know your competition
Understand your ideal client
What is your desired profit
Supply and demand
There is a lot to be said about a business or life coach with a lot of experience. In many cases, with more experience comes more refined skills, services, and/or products. Word of mouth recommendations/reviews are the most powerful marketing tool available for your coaching business. Experience coupled with a proven portfolio increases your worth.
Customers are looking for a proven track record of the results they are looking for. When you provide proof that you can provide the desired results customers are willing to pay a higher dollar amount because they believe you can get them exactly what they want.
When you are first starting out your business or life coaching you might consider offering a discount or even offering your services or product for free until you have built a strong and influential portfolio. Everyone has to start somewhere so remember not to compare your beginning to someone else’s middle.
There are different geographical areas with a higher income than others. This is the truth. However, there are affluential clients in nearly every area that are looking for business and/or life coaches. Take the time to research the average medium income in your area. When you understand your geographical area you will start to identify what your ideal client is willing to spend.
You can have the most amazing product or service and know that you offer something of high value, but if you don’t have customers willing to pay that amount you will fall short of your financial goals.
KNOW YOUR COMPETITION
Do some research and figure out what your competition is charging. That doesn’t mean you have to charge more or less then what they are charging, but it’s always important to know what others are charging so you can be competitive.
Take the time to really research your competition. Is your competition offering coaching packages? What are other coaches charging, what are they offering, what is their experience level, etc. If your competition has more experience or a stronger more well-known brand set prices that will compete with your competition, but understand you are going to have to execute a strong market plan to compete with an already established brand.
When you are just starting out don’t price yourself too low both this method could have an adverse effect on your business. If your prices are too low potential clients might conclude that what you are offering doesn’t offer a supreme value because the price is low. Depending on your ideal client and what you are offering to be mindful that if your prices are low what type of clients you might be attracting.
UNDERSTAND YOUR IDEAL CLIENT
When you take the time to understand everything there is to know about your ideal client you learn what they value. You will know how to speak their language, know how to help them, and also know how to sell to them. It should be a goal of yours to find the ideal clients that value what you are offering and are willing to pay what your service or product is worth.
Once you have a clear vision of your ideal client you will understand what they will and won’t pay for. If your ideal client values a good service or product, even if you are just starting out, by pricing yourself too low your ideal client could overlook you because they assume you aren’t offering great value because your prices are too low. If your ideal client is someone who is always looking for a great deal and has a low budget by setting your prices too high you could have the same response.
Spend the time to really understand all the characteristics and habits of your ideal clients. By truly understanding your ideal client you will have a clearer vision of how to determine your pricing.
WHAT IS YOUR DESIRED PROFIT
Knowing what your desired profit is basic math. How much do you want to make? How much do you want to work?
First, set a financial goal. Let’s say that the financial goal is $100,000 a year. You want to take 2 weeks of vacation and that would mean that you would work 50 weeks out of the year. Then divide $100,000 by 50 and that equals $2000. That would mean you would need to make $2000 a week. If you are service-based that could mean 2 clients a week charging $500 per client or if you sell a product that is $100 that might mean 20 products a week.
Financial goal – $100,000
Weeks of vacation – 52 weeks minus 2 weeks of vacation = 50 weeks of work
$100,000/50 weeks = $2000 per week to reach a goal
Once you have established your financial goal you will understand what needs to be done to reach that goal.
SUPPLY AND DEMAND
Whether you are offering a service or a product within the time you will understand the demand for what you are offering. This is established by creating a strong brand that your clients or customers talk about it you will start to become more and more in demand. Or it could be a product or service in a market that is harder to find. Either way when you start to create a demand you have the opportunity to raise your prices.
When people want something they are willing to pay more for that product or service. If what you are offering is in high demand or you find yourself working more than you want that is a sign that it is time to raise your prices. If you are in this position and hesitate to raise your prices you may need to do some thought work and work on your money mindset.
You are worth a lot and are also very worthy of making the kind of money that you deserve. However, the pricing for your product and/or service hinges on several factors. Create pricing strategies for Business and Life Coaches is essential if you want to compete in the market. Before you set your prices, take the time, and do your due diligence, research your market, understand your ideal client, and work on your money mindset.