Saturday, March 28, 2015

Pricing Is Critical – But Not For The Reasons You Might Think

Now it's time to talk about that part of landing your dream coaching client that a lot of people don't like talking about - charging what you're worth. There's no right or wrong way to do this. It's going to be different for everyone. But there are some things to take into consideration when deciding what to charge
It's not just about profit - yes, you need to charge what you're worth so you build a successful, profitable business. But pricing has to do with so much more than profit.
Take into consideration your target market - you have to think about your market and what they can afford too. For example, if your market is a new business owner within the first year of business, more than likely they're not going to be able to afford $200 an hour. On the other hand, if your market is making $50,000 to $75,000 a year and want to move their business to the next level - six figures a year - then you probably shouldn't be charging them $100 an hour because that's too low for that market. It's all about balance and figuring out what the sweet spot is for them.

Costs of running your business - another thing to take into consideration when charging what you're worth is the cost of running your business. Think about your monthly expenses and break it down so you get a ballpark figure out what you're hourly fee needs to be in order to meet those expenses and have enough left over to pay your team, yourself, and put some money back into your business and savings. Don't forget to include taxes in your calculations.

These are just a few things you need to think about when pricing your services. Charging what you're worth can really be summed up with this: it's based on the value you bring to your clients. Special skills, your unique selling proposition and more are all things that can be monetized when it comes to your coaching fee. Kendall Summerhawk says it best when it comes to this: Value is perceived by your clients. Pricing is perceived by you. Your dream coaching client wants to know that they can easily justify spending this amount of money with you because of the value they will be getting in return. Your job is to help show them this.

And lastly, in order to charge what you're worth you have to be able to share that price without batting an eyelash. In other words, you have to have confidence that you're worth what you're charging.

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