Proven Tips to Set Coaching Rates
The Coaches
Rhonda Boyle and Anne Herbster are the authors of The Coach Business Guide, The Path to Launch and Grow Your Coaching Practice. After working with hundreds of coaches and understanding their struggles in operating their coaching practices, Rhonda and Anne teamed up to create a clear path for coaches to follow in order to launch and grow a successful coaching business.This enables coaches to do more of what they do best - COACH!
Setting your coaching rates can feel like a daunting task! Getting it right is critical to a thriving coaching practice and to sustain you financially. Here are some proven strategies to help you set your rates with confidence:
Know your Value
One of the biggest challenges for new coaches is underselling themselves. Remember, your time, expertise and the transformational journey you offer your clients are valuable. Reflect on the unique value you bring to the market place and price your services accordingly.
Start by defining the results you provide. What is the value of that for your clients? Align your rates with the value of that transformation.
Knowing your value is a first step to setting your coaching rates.
Know your Competition
It’s always a smart move to look at what other coaches in your niche are charging. But don’t just copy their rates—take note of the experience, niche, and service packages offered. Use this as a benchmark while still maintaining the uniqueness of your offerings. This market research is important to setting your prices correctly. Coaching services in Detroit, for example, will be priced differently than coaching services in Dallas because of socio-economic differences.
If your services are primarily offered online, you may notice less of a price variance. Regardless, knowing what your competition is charging is a critical piece of information to use in setting your own prices.
Offer Tiered Packages
Not every client will be able to afford your premium services, but that doesn’t mean you have to leave money on the table. Create tiered packages that offer different levels of value. This way, you can appeal to a wider range of clients while ensuring you’re compensated for the value you provide at each level. Start with a basic package, mid-level, and premium option to cater to various client needs and budgets.
Mind your Money Mind
Your money mindset – the way you think about money – is likely the most critical component to setting your coaching rates properly the first time. Often, coaches undervalue themselves and price their work much lower than what’s possible. They also “spiritualize” money because they just want to help people. They may find themselves feeling guilty for charging, making conversations about money awkward and difficult.
Understanding your personal money mindset is really important. The truth is, you will only charge what you feel you are worth. Exploring your relationship with money will help. Many coaches need coaching around setting their coaching rates precisely because of how they think and feel about money.
Your money mindset is a critical piece to setting your coaching rates.
Revisit as you Grow
Continuously revisit your pricing as your business grows. Don’t be afraid to adjust your rates as your experience and demand increase! If you find yourself constantly “sold out,” then it might be time for an increase!
Check out The Coach Business Guide: The Path to Launch and Grow your Coaching Practice, Chapter 14 – Pricing for more information and help.