99% Of What You’ve Most Likely Learned About Pricing Your Services is Wrong
If you are like a lot of coaches and consultants, you are probably working hard to expand your customer base.
Maybe you’re giving something away for free to try in hopes people to “buy-in.”
Maybe you’re concentrating on SEO or endless blogs to pump up your customer base.
And yet… Nothing seems to work.
See, according to PayScale.com, the median salary for a life coach is around $46,000 per year. Broken up over a 40-hour work week, this equates to about $23 per hour.
Put another way, many coaches, mentors, and consultants simply aren’t charging enough for their services. This leads to higher customer turnover and more hours spent recruiting people who aren’t willing to invest in a valuable coach.
Here’s a little secret… You’ll actually get more clients and skyrocket your income if you charge higher prices. Not only that, your clients will benefit tremendously as well. Allow me to explain.
Maybe You Don’t Feel Like You’re Worth Premium Prices
Let’s first discuss why you may be hesitant to raise your prices. There are two common reasons I hear repeatedly: You don’t feel like you’re worth it or you’re worried that people won’t pay the higher prices.
First, let’s talk about your confidence.
There are many reasons why coaches hesitate to charge a higher fee for their services. One of the main questions that coaches ask themselves is, “are my services really worth a higher price?” They’ve discussed their services with clients only to hear a long pause in the conversation when the issue of pricing comes up.
It is this pause that often causes coaches to hesitate when it comes to raising their rates. Does it mean I’m not worth a higher price tag? Do my clients not see the value?
Before I ever work with a client, I always ask… Have your clients enjoyed positive results from your coaching? Have your clients seen improvements in their personal and professional life? Does your coaching help your clients to make more money or enjoy a happier life?
If so, that pause might mean something else entirely.
It may mean that you haven’t positioned your services as transformational. See, when clients believe that you’re out to give them the best service possible… If they’re confident that hiring you means a drastic improvement in their life… They will happily turn over their credit card.
In order for them to believe this, however, you must first believe it yourself.
I point this out not only because it’s important for you to really, fully understand how instrumental your mindset is to the process of business growth, but also to share the number one barrier to your financial growth.
Here’s the good thing: You can change that.
Raising Prices Will Boost Your Confidence
First and foremost, if you charge premium pricing, your confidence will increase. Why? Because when clients recognize that your services are worth a premium, you’ll feel like you’re being paid what you’re worth. There are few things in life more rewarding than being treated what we feel we are worth. Furthermore, if you charge more, you will be able to provide a higher level of service to your clients because you won’t feel the pressure of having to churn through clients to make a living wage.
When your clients realize the amount of value you’re giving them, and they realize that this is more likely to make a difference in their own life, they are quick to thank you on the other end. With this boost in confidence, your anxieties will melt away.
Enjoy the Benefit of Financial Security
In addition to the stress and life problems of your clients, you need to focus on your own life as well. Higher wages mean a greater sense of financial security. Without having to stress about how you are going to pay next month’s bills, you will be able to focus more on your work. The quality of your services is going to improve, and you will be able to justify the increased cost of your services.
What If Nobody Pays the Premium Prices?
Perhaps the biggest worry when it comes to charging premium prices is that no one will pay the higher fee. Sure, coaches often ask, “what if I start to lose business?” or, “what if my clients do not get the ROI that they deserve?” This is when coaches start to suffer some of the side effects, both emotionally and financially, of under-charging for their services. Only when coaches raise their prices will they realize that this is truly better for the client as well as the coach.
Increase the Clients’ Confidence
In addition to increasing your own confidence in your services, charging premium prices will also increase the client’s confidence in your services. By raising your rates, the client is more likely to trust the advice that you are giving them. One of the most frustrating aspects of being a life coach is the client who doesn’t follow your advice. If clients are paying a premium for your service, they are more likely to follow instructions. This will lead to a higher percentage of your clients attaining their goals.
Increase the Clients’ Participation
It’s a basic fact: When people invest more money into coaching, they are much more apt to commit themselves to achieving the desired result. In other words, your clients will achieve better and more results if they must pay more money upfront. On the other hand, if you underprice your services and clients don’t have that financial stake in the ground, they are much more likely to dismiss what you tell them to do and never see the results. Results = Satisfaction.
Clients Will Market Your Services
When clients spend a premium for your services, they are more likely to tell others about your coaching. This will lead to more people calling you and emailing you, asking for information about your coaching. This, in turn, will increase your own confidence in your services, improving the quality of your coaching. Clients are proud to work with the best in the business.
Go with Premium Pricing, Both for You and the Client
In the end, it is better for both the coach and the client if the coach charges premium prices for their services.
This gives the coach more confidence in the service that they’re providing and gives the client the comfort of knowing they are receiving value for the money that they are paying. When a client is willing to pay that kind of money to solve a major life issue, they would like it solved sooner rather than later. Charging a higher hourly rate allows this to happen.
Do not be nervous about alienating customers with a higher rate. As a trained and experienced coach, your services are worth the price and customers know this. For more information on how premium prices will get happy and willing clients knocking on your door, schedule a breakthrough session with Membership Fix today!