When I was a health coach I distinctly remember the feeling of wanting to raise my coaching prices but also hesitating because I didn’t know if my future clients would be willing to pay the higher fees to work with me.
Of course, I now know that fearing the increase was just my limiting beliefs kicking in keeping me stuck in a comfortable place that I already had confirmation worked.
It was during that confused time that I realized I needed a formula that would give me consistent pay raises as my coaching experience improved. When I created this formula it empowered me to follow the process which led to consistent raises as my coaching skills improved.
Think of it like getting an annual review at your job. You get your review and then you get your raise. The formula I came up with is based on that concept but allows you to control your own financial destiny.
When it comes to pricing your one-on-one coaching package I often find that coaches struggle with knowing where to start when they first come out of school and then when they should raise their prices once they get some experience under their belt.
WHAT YOU CHARGE WILL NOT BE THE SAME AS OTHER COACHES
I can’t give you a set starting price to charge because experience, geographical location and where the paid clients are coming from all play into the equation.
As an example, let’s say we have a coach, her name is Jane, and she specializes in helping moms get back their pre-baby body with diet and exercise. She’s a brand-new coach. She’s helped a few of her friends, as well as herself, get back their pre-baby body with great success but hasn’t really ever charged for her services. In this case she might start by charging $497 for a 90-day one-on-one program.
Now let’s say that another coach named Amanda specializing in the same niche isn’t brand new, instead she’s been at it for 12 months, has helped 15 clients, with the majority of them having great success. She has lots of case studies and glowing testimonials. Her program is streamlined and she is getting consistent referrals from past clients. In this case she has a higher perceived value as a coach because she has experience, social proof, and word of mouth all working in her favor. Amanda is charging $1,197 for a 90-day one-on-one program.
Neither of these coaches wants to price herself out of the market and while they are both in very different places in their business they can still continue to raise their prices, which I highly recommend.
2-STEP FORMULA FOR RAISING YOUR COACHING PRICES
Knowing when and how to raise your coaching prices can be tricky, but here’s a super simple ‘when-to-raise-your-prices’ formula!
This is a 2 step formula.
Step #1: Raise your prices after every set of 3 clients. In other words, it’s time to raise your prices when you enroll client #4, #7, #10, and so on into your one-on-one program.
Step #2: My recommendation is to raise your prices 10-15% after every 3 clients.
For example: Our brand new coach Jane could raise her prices by $50-75 dollars for the next set of 3 clients.
On the other hand, Amanda could raise her prices by $120 – 180 for the next set of 3 clients.
This can continue until you believe you have hit a cap, (which I’m not sure is really a thing for a long time because with each set of 3 clients your experience will grow significantly hence you become more valuable to your future clients).
HOW OFTEN SHOULD YOU RAISE YOUR PRICES?
In episode 226 of The Wellness Business Podcast we are bringing back one of our most popular episodes: How Often Should You Raise Your 1-on-1 Coaching Prices.
Back when Kathleen and I were health coaches we developed a systematic approach to increasing prices that worked like a charm and we want to share it with you.
Having a successful business doesn’t always mean you have the lowest priced program and services. Actually, the opposite is often true depending on the clientele you’re trying to enroll in your programs.
That’s why having a simple formula to fall back on takes all the guesswork out of how often and how much to increase your prices over time.
In this episode you will discover:
- How to evaluate your starting price point based on your past coaching experience with your ideal clients
- How to figure out program pricing if you’re a new health coach and haven’t had any clients yet
- How to establish a starting price point for your coaching services that guarantees you are getting paid what you are worth
- How to systematically raise your prices without pricing yourself out of the market
If you’ve ever wondered how often you should raise your coaching prices and how much is the right amount, you’ll want to tune into this episode.
Links/Resources mentioned on the show:
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