I work with many clients who want to take their business to the next level. Part of scaling your business is valuing your work and raising your prices accordingly. Here are the 4 Rules of Pricing that I share with my clients and some top tips on pricing in general:
The 4 Rules of Pricing
- Don’t charge what you’re worth; charge what your services are worth. They are two different things. So often, we equate our pricing with what we think we’re worth. When you price according to what you think you’re worth and someone says, ‘no’, then what happens? You think you’re worth-less, and that’s just madness!
- Know your dreamie clients – be really clear on who your ideal client is. When you know this, everything is so much easier. Your message is more precise. You will be writing specifically for your dreamie client. With that knowledge comes a better understanding of how much to charge.
- Don’t throw in everything – it just devalues what you do. So many coaches undercharge or think throwing in many bonuses is the answer. It isn’t! Too many bonuses can overwhelm your potential client, making them less likely to buy from you.
- Check out the competition – but only use it as a guide. Be YOU. People want to work with you, not a carbon copy of another coach that you think is offering what you should. What if they aren’t even offering what you’re offering?
In addition to this, there are other practicalities that you want to consider:
How Much Do You Want To Earn?
Think about how many hours a day you want to work, how many days per year. Once you know what you want to earn, you can determine how many clients you need to work with to make that money. You will then focus your efforts on the right things.
So to figure out your pricing, start by looking at people who offer similar things. For example, if you want to get a rough guide, then ask yourself how much feels right. If I say to you, I think you should charge £30 an hour you might tell me where to go, in the same way, that if I told another person to charge £150 they might do the same.
You will have a rough idea about what you want to charge for it to be an acceptable exchange of your time for money. Start lower and then think about how you’d feel if you doubled it. Still too much? Okay, what about adding 10% or 20%? Keep playing with the numbers until you reach a price that feels right. Say it aloud to someone as a practice run and notice what feelings come up for you. A bit of fear is fine, by the way, that’s normal. Remember, whatever price you charge, you can always put them up later.
Increasing Your Prices
If you’re about to increase your prices, a good method is to increase incrementally. For example, tell yourself you’ll charge the following three clients xx, and then you can raise it again after you’ve worked with those three.
If you are increasing your prices and still working with clients on the old package, let them know you will increase your prices. Then, allow them to buy into your old price point for a short time.
Remember What It Took To Get You Where You Are
As I say to so many of my clients, please don’t undercharge; you have spent hours and hours getting qualified, and you probably already have a lot of life experience and will have spent a lot of time learning. All that experience must be factored in when considering your price point.
Once you know your introductory pricing, you can start thinking about how to add value for your clients so that you can create some great packages. Of course, you can charge by the hour but remember there’s only one of you.
Create a Business Model That Allows Your Client to Grow
When designing your packages, think about the journey you want to take your client on, where the value of the service/product increases over time. For example, they might purchase a £7 eBook. Next, you offer a group coaching programme for £47 a month. Then, you offer them a long-term 1:1 package at £2,000. Your client can enter at any level, and you can invite them to purchase any of the other levels at some point.
Leverage Your Time
There are other ways you can leverage your time to earn more money from your biz; through passive income, group coaching, membership clubs etc.
Figure out where you can add value to your offerings. For example, instead of just offering 1:1 coaching, what about adding video training, workbooks, and audios to support your client in between sessions? Create once and then share a link. More value for the client = higher perceived value.
One last thing: Raising your prices can feel really scary. However, being a business owner is about pushing through your fears and comfort zones. As you offer your new price point, you might cringe and want to run and hide, but if the potential client is a potential dreamie, they won’t bat an eyelid about it.
If they tell you you can’t afford your services yet, that’s okay. If they really love what you do, they can learn from you in other ways, such as bonus resources you offer, blog posts, newsletters etc., and they can also choose to save up to work with you. It doesn’t mean you’re too expensive!
Happy pricing! Be brave!
Meet Ruby McGuire, Business & Mindset Queen| Master Coach | Mentor |Trainer | Speaker | Author – MCIPD, AMC, NLP Coach & Practitioner, EFT Practitioner, Time Line Therapist and Mind Your Mind Practitioner.