If you’re a health coach, and you’re putting together your signature package and program, sooner or later you’re going to have to make a decision about how much to charge for your program. And if that stresses you out…you’re not alone. And don’t worry, because in this article I’m going to give you a 4-step process for deciding on the perfect price for your services, and how much to charge as a health coach.
Step #1: Aim for Premium Pricing
There are two key ways health coaches can go wrong with setting their prices: charging too much, or charging too little.
And let me assure you: hardly anyone charges too much. So there’s a very good chance that the number you’ve got in your head right now? It’s not enough.
Perceived value is the value that people — potential clients — will have of your services.
And one of the things that go into people’s perceived value calculations (the mental calculations they do when considering your offer) is the actual price.
If a price is low, some people will assume it’s because your services aren’t very good. That they aren’t going to get much out of working with you. A low price in itself can affect a person’s perceived value of your program.
It may seem backwards and bizarre, but it’s just human psychology.
As a result of the phenomenon of “perceived value”, there is a very real danger to charging too little, and you’ll need to guard against that.
The Danger of Charging Too Little
Charging too little means you’re going to have to work harder to meet your revenue goals. Which may mean taking on too many clients — more clients than you can properly serve, and dedicate time to. Which means burnout.
And charging too little also means that the people who do sign on with you … well, they may not be your ideal or dream client.
They may not truly value your program. Perhaps they just grabbed it because it was the least expensive thing they could find, even if they’re not a great fit for your program. As a result, if they were bargain shopping, they won’t be as invested, they won’t have as much skin in the game … and their results won’t be as rewarding.
Which is frustrating for you, for them … and won’t get you great testimonials or reviews.
In contrast, there are very real benefits to pushing your prices within the upper ranges for your niche.
The beauty of charging premium prices is that you’ll attract a certain type of client, people who really align with your program, your brand, your services, and you. They’ll be more motivated, more involved, and determined to get their money’s worth!
Which means: better results for everyone.
So in general, and if it makes sense for your business, charging premium prices is a much better way to go.
>>>Download your free workbook: Pricing Your Coaching Programs <<<
Step #2: What will the market bear?
All that said about premium pricing, you can’t just pick a number out of the air. It has to come from somewhere. You’ve got to have a context, a ballpark, a range.
So that means: research. Take a look at what’s going on in the market. What are your colleagues or competitors, however you want to think of it–what are they charging? There will be a range, once you start researching this. And what you want to do is aim for the upper end of that range. Now I say aim, because realistically, you may not start there.
What you will probably want to do is stair-step your way there. Start with prices you feel comfortable with, then gradually raise your prices. Even quickly raise your prices. Every time you sign a few new clients, incrementally raise your rates until you reach your target.
Take a look at what your competitors (or colleagues) are charging. What are the “going rates” for the service you’re offering? This will form your starting point. It gets you in the right ballpark, and then you can adjust up or down from there.
To figure this out, try asking! Ask your fellow coaches, check out their sales pages, see what people in your niche are charging for comparable programs.
Step #3: What result are you offering?
Now that you have a general ballpark range of the going rates within the health coaching industry, you can adjust up or down based on a number of factors. The first is the value of the outcome of your coaching program.
If the outcome your program provides for clients, the transformation they will experience, is highly desirable, you’ll be able to command higher rates.
How does this translate in practice? And what does “highly desirable” mean?
Essentially, if your outcome is something that will help people make more money, start a new business, or make a huge, difficult shift in their lives (like saving their marriage, or managing an uncomfortable health issue)…you can charge more.
Also, if your niche is tightly focused, if your solution is highly targeted and you are offering a specialized service, you can probably charge more for this kind of program.
Step #4: How much authority do you have?
The next question to ask yourself is: do you have testimonials, case studies, success studies, and customer reviews? Do you have media mentions? Do you have evidence of results that gives evidence that your system works? That’s what authority is all about — being able to demonstrate actual results.
It doesn’t mean you can’t charge premium rates if you don’t have a lot of authority or social proof yet, but it makes it easier to charge the higher end if you do have a healthy amount of social proof backing you up.
People will be more willing to pay for something they have confidence in, that they believe will get them the results they deeply want — and demonstrating authority will help them feel more confident in your ability to deliver.
So again, some of the ways you might demonstrate authority & social proof:
- success stories
- numbers (clients served, etc)
- media mentions & appearances
- guest blogs, podcasts, interviews
To really hammer these points home, I also made a video on this topic, so if you’re interested, go ahead and watch it below:
In a nutshell, here are the steps to coming up with the perfect price for your coaching program:
- In general, aim for premium pricing, and charge what you’re worth.
- Learn what the market will bear.
- Take into account the value of the result or outcome you’re offering.
- And also take into account the amount of authority or social proof you have…and if possible, increase that!
Now, these are just big-picture ideas. What you need to do next is actually sit down and figure out the details. Put pen to paper and choose an amount, and actual price for your program.
To help with that, be sure to download my free workbook on pricing your coaching services by clicking the thumbnail below: