Hesitant to Raise Prices for Your Services? This Will Help You Take That Step...
You're running your own coaching business and you love it.
What's not to love? You get to help people change their lives, achieve their most important goals, and overcome obstacles on the road to success and happiness.
It's wonderful, fulfilling work but I'd like you to think about this: are you charging the right prices for your services?
If you're uncomfortable with the thought of raising your prices, I'd like you to focus on the fact that you're running a coaching business. Yes, I know that's pretty obvious but I see so many coaches forget that their business needs to generate (at least) enough income to support their lifestyle. I get that you want to help others, but at the end of the day, this is your livelihood.
After working with countless coaches from around the world, I know that there are many reasons why coaches avoid raising their prices.
Some feel they'll lose their customers because no one will be able to afford a higher fee. Some aren't comfortable charging more because they're new or feel that they don't have the experience to ask for higher fees. Others believe that you can't expect to make a lot of money if you're doing “good work” that's focused on helping others (this one's very common).
I'll tell you right away that none of these reasons are good and none of them are even true.
Think of mega-successful entrepreneurs who are wealthy but who also do good work for those who are less fortunate. People like Oprah, Richard Branson, and Bill Gates. Every one of them runs an amazing business but they also have foundations to support education, healthcare, and a variety of other important issues. Do you think any of them got to where they are today by charging minimum fees for their expertise? Of course not!
So, here's the thing...
You need to look at this entire price point issue from a different perspective. You're charging premium prices so your clients can learn from you and then use what they've learned to improve their lives and create lasting, positive transformations.
You've already gone through the right training so you can offer the best possible coaching services to your clients. This means it's definitely okay to charge well for it!
If you're still not convinced that it's time to raise those prices for your coaching services, these 9 reasons should motivate you to take that step.
#1 -You'll help more people
Remember, you ARE running a business, after all. Regardless of why you got into coaching, a business exists to make money. As I mentioned earlier, what holds people back is that we believe it's somehow wrong to charge premium prices when we're doing work for “good.”
We tend to fall back on stereotypes from the non-profit world. We think it's “wrong to seek wealth” or that “money is evil.” The best way to overcome this kind of thinking? Refocus on your mind.
Think about what you can do with the money you earn. Think about how money helps you and allows you to take care of your family and loved ones. Think about how making more money means you'll be able to help more people. For instance, when you make more money you'll grow your business and help more clients...and that's fantastic!
#2 - You'll participate in a fair trade
Have you ever thought about how people acquired things before money was invented?
Money, as we know it today, wasn't around thousands of years ago. People actually “bought” things they needed via an exchange process. For example, a form of food, like cows or chickens were traded for services. It was deemed a fair trade and was commonly accepted.
So if you apply this to your business and look at things from this perspective, you're simply accepting money for a highly valuable service.
It's a fair trade.
#3 - You'll boost self-worth
Know what you're worth and then believe that you're worth it! If you don't believe you're worth the money you charge, then you won't be able to raise your prices by a single dollar.
It's all about having the right mindset and a healthy sense of self-worth. Here's something I want you to remember: your perception of yourself will transfer to your clients. If you don't believe in yourself, others will have a hard time believing in you too.
If this is an obstacle for you, consider hiring your own coach or mentor to help move you past this block. You can also Google “self-worth” or “self-value” exercises to find resources to help develop and strengthen your mindset around money.
#4 - You'll (rightfully) receive what you invested
Have you ever had to deal with people who want your services for free? It happens to the best of us and unfortunately, this is more common than we would like in this age of “information overload.”
So how do you get around this?
You have to understand that every one of your brilliant ideas and breakthrough insights is worth a lot. You've gone through training to do what you do and chances are, you invested a lot of time, effort, and money to do it.
If you're like many of the dedicated coaches I know (and something tells me that you are!) you probably participate in ongoing training to further your expertise. This is an additional investment of time and money.
Here's the thing - your clients didn't go through that training. You did. That's why they need you. When you consider all the training you've gone through to make sure you're prepped for the work you do, there's absolutely no reason why you shouldn't be charging premium prices for your coaching services!
#5 - You'll understand your true value
Many coaches base their fees on the amount of time they spend with each client. This is what most people do and if you do it too...well, I can't say I blame you!
Here's what you need to remember: you're not an employee. At least, not anymore.
You're running your own business, which means you're not on the clock getting paid for your time. Think about it: do you get paid when you spend time putting together a webinar for prospective or current clients? Nope.
You also have to consider that you have to cover all administrative costs, marketing, and any tasks like technology issues that you may need to outsource. It's all part of being a true entrepreneur.
So, when it comes to pricing, switch from time-based thinking to value-based thinking. How much value are you providing your clients? How much are you helping them move past obstacles? Achieve their goals and dreams? If you think in terms of value, I bet you'll instantly see how much your work is really worth.
#6 - You'll attract the right clients
Let's consider the clients you want to work with. Do you want to work with those who are looking for as much as possible from you at a minimal fee?
Or, do you want someone who understands the value of your services, is willing to put in the necessary work that's needed to get the results they want, and who's in it for the long-haul?
The thing is clients who value your services and who are happy to pay what you charge are also the clients who are dedicated to making a difference in their lives and who are serious about hiring a coach.
If you don't charge premium prices, you're going to attract coaching clients who love to shop around for the lowest price. They may even expect freebies. Not only does this devalue your services but it also means that you're going to invest a lot of time and effort on someone who isn't engaged in the coaching process and that's the last thing you want.
#7 - You'll give your best
How many clients can you handle at once? If you're charging minimal fees, your income goals will almost force you to fill your calendar with a ton of clients. This will cause all sorts of problems. You'll feel tired, distracted and unable to give your best.
And that's unfair on you AND on your clients.
Coaching involves a lot of focus and energy. It requires your full attention. When you have to spread that focus to a large group of clients, something's got to give. Taking on too many clients can sabotage your business (not to mention your sanity!)
By filling your schedule with a ton of client sessions, you end up sacrificing the focus and attention your clients deserve.
#8 - You'll grow your business
One-on-one coaching should be at the top of your sales funnel. It's where you're going to spend a significant amount of time and energy. By charging premium prices, you free up some of that time to open up your sales funnel.
You can start creating additional products and services - such as books, information products or newer services - so your time is freed up even more. When you create these types of products, you create it once and then you're done. This means you'll be able to grow your business.
Sure you have to put in the effort to promote and sell but it's nothing compared to the physical interaction that one-on-one coaching requires.
Having multiple products and services in your sales funnel frees up your time, gives your clients more options, and gives you the opportunity to add to your bottom line without extra effort.
#9 - You'll enjoy more ease
When most coaches start their business, they're excited about how much they get to help people. It's challenging as well as rewarding work.
But there's one thing that's often forgotten and that's the fact that running a business starts with making sales.
While you might get 1,000 people to notice your business, you still have to work to convert them into paying clients. Looking at this in terms of numbers, if you get 30 of those people to buy from you, the fees you charge will dramatically change your sales figures. In other words, the higher your prices, the less effort you have to put into converting clients.
Take a moment and review all of these points. Do you see how raising your prices can have a massive positive impact your business and even your reputation as a coach? That's why it's important to start thinking about charging premium prices now.
You'll be able to do your best work, grow your business and help more people. You'll get to do what you do best knowing that you won't have to worry about paying the bills.
Yes, it will be a game-changer...
And yes, you're worth it!