As you plan and launch your coaching business, you’re bound to have questions.
I know an AWESOME place where you can go to get answers: The Coaching Lifestyle Facebook Group.
I want to share with you an example of the depth of support you can receive—at no cost—when you join our community.
I’m going to paraphrase a conversation that occurred in the group when someone recently asked for advice on how to charge for a six-week course.
Here we go:
The first step in deciding on pricing for any program is to get absolutely clear on the results someone will experience if they go through the course and play full-out.
What are the promises of this course?
Patricia’s course, Starting Over After Divorce, is designed to provide the following transformation:
During Starting Over After Divorce, Patricia guides participants in getting their lives back on track after a divorce. Her program walks them through the grieving process, challenging their fears, effective communication, problem solving, working out a business relationship with their ex, and co-parenting effectively.
The next step in determining pricing is to identify what the course must entail, or how it must be structured, in order to support someone getting the promised results.
Starting Over After Divorce, includes:
Six weekly, two-hour coaching sessions.
Two monthly support group sessions, two-hours each, after the initial six-course.
Invitations to a monthly live event.
Pricing a program, course, etc., is a three-part process. It’s one part, “What do I want to make?” and one part, “Reverse engineer,” and one part, “Psychology.”
First, start by asking yourself how much you’d like to charge for the program, keeping in mind the transformation you’re promising (I’ve seen successful six-week courses at all price points: $197, $497, $997, and $1997).
When you consider each price point, which one lights you up? Which one makes you squeal? Which one makes you a bit nervous?
Notice how you respond to each of the price points you explore.
Next—and this is the most important consideration—look at the results your clients will walk away with. People invest in results (not coaching or masterminds or consultations or group programs).
When you can convey the value of the results, people are more likely to invest.
It’s important to ensure that the value of the results is in alignment with the investment level of the program. In Patricia’s program, for example, she promises participants will “get their lives back on track after divorce.”
How much is that worth to someone?
A lot, right?! $1,000, $5,000 … some people might even say it’s priceless.
So if people perceive that the promise carries a huge value, and the product is priced at $97, then there is a disconnect. This is especially true when the participant is getting direct access to you—the more access, the higher the value.
Keep this in mind as you structure your program to actually deliver the results—and the value—people are anticipating when they pay the investment level you’re asking for.
Next, add in some psychology.
The more access a participant has to you, the more they’re willing to invest. Consider whether your clients will get access to you between those weekly and twice monthly sessions. This factors into the price point.
Two important notes about the psychology of selling:
First, pricing an item just below an even number—for example, pricing at $49 instead of $50 or $99 instead of $100—dramatically improves conversion rates because buyers perceive a greater value.
Second, studies show that there are specific breakpoints when it comes to pricing.
In other words, someone is as likely to pay $900 for a program as she is to pay $700. However, that same person may not be willing to break through that $997 price point.
You may be feeling like $997 is too high, and you may feel more comfortable charging $750. The psychology of selling factors in, here, and tells us that a buyer willing to pay $750 is just as willing to pay $997.
Set your price at $997 and add $247 to your bottom line for each sale.
From what Patricia told me, I’d consider pricing Starting Over After Divorce at $497 or $997 with installment options.
Now, consider which of those price points creates the sensation of vomiting.
Pick that one!
As entrepreneurs, we always undervalue ourselves, our impact, and our services.
But when you can stretch into that price point—the one that makes you want to vomit—your prospects will sense the value of what you’re bringing to the table.
Just as importantly, you’re able to rise to the occasion and bring the absolute best version of YOU and your services to the table. This, of course, only helps your clients get bigger, better results—faster.
Weigh everything I’ve just talked about and select the price point you feel called to select.
And keep this in mind: everything we do in our business is research.
You’ll choose a price, put it out there, see how folks respond, and see how you feel … and you’ll make tweaks and adjustments as necessary for the next round. Give yourself permission and time to research!
Finally, ask yourself what you need to set up behind the scenes to create great engagement and a strong onboarding experience, and to offer exquisite client support to help your clients get the best results in the shortest amount of time possible. Make sure your back end is organized to support you in delivering what you promise.
And … that’s it—a real-life example of the kind of support you can expect to receive when you join The Coaching Lifestyle Facebook Group.
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