Image by Nattanan Kanchanaprat from Pixabay
During a Rich Litvin Intensive, in 2020, I was having a conversation with a coach from L.A. around how she priced her services. She explained that her services ranged from a $ 500K year-long contract with a client, to a price she tailored specially for another client, who she loves dearly, for $75 per hour. That was a big insight for me, and I fell in love with this idea of a mega sliding scale.
Over the last year, I have had many conversations with coaches around pricing, and experimented a fair deal myself.
In this article, I would like to share insights and reflections, on how to practice Conscious Pricing for your products and services, in particular if you have a coaching practice.
If you are just beginning your coaching practice, here is some helpful advice by Christina Berkeley:
If you would like some guidance to create your coaching menu, check out this article by Rich Litvin.
If you want to dive deeper, let’s go.
Enter Conscious Pricing
The first key to Conscious Pricing is to have a clear idea of the value you deliver through your service (it works for products, too, but for the sake of this article I will focus on services).
Once your idea is clear on the value you deliver (see my article on Value and Talent), you need to understand how your client perceives this value. Sometimes, as a coach we miss how valuable the services we are offering to the client. For instance, a lot of clients reflect to me that my presence opens a space for magic to happen. As a coach, showing up gets 80% of the job done.
Here are questions you can use to check-in with your client as to what kind of value they want to create:
How would this coaching program support you?
What kind of goals would you like to work on?
How important is that goal for you on a scale from 1-10?
What is an Impossible Dream, that you have? (Read Michael Neill’s Creating the Impossible.)
What is one problem that you have, that is solved, would change everything in your life and your business?
If you have a clear sense of the coaching packages you are offering, and the client finds that they are out of reach financially, you can ask them directly:
What is a challenge you would like to work on, that would be worth investing [price of your package] to solve over the course of six months?
Conscious Pricing is about determining the value of a service, and setting a price for it.
The value doesn’t have to be 100% reflected in the price nor does the price have to be a 100% reflection of the value.
In marketing, there is a helpful tool called the Price-Quality Matrix:
The perception of your service will be affected by where you position your services in this matrix (fore more on this, read this article).
As a coach, you get to be creative in your pricing, based on your clients, especially if you have a small number of clients and you can tailor your offers to their specific needs.
On increasing the created value of your deal:
One way to increase the value of a coaching contract is for the coach to offer the client things that don’t cost the coach much, for example:
- extra coaching for them, their team, their clients, or a friend of theirs
- communicating about what they do on your social networks, or inviting them to be on the coach’s podcast
- connecting them with people who can help them or be potential partners on a project
- ask them what would make that better for them !
To increase the value of the partnership (I like to reason in terms of partnership), you can ask the client for things that don’t cost them much, but offer great value to you. Indeed, your clients don’t have to pay you only in cash, there are many other ways they can pay you:
- with referrals
- testimonials for your website
- exchange of services
- in experience (especially if you are transitioning)
- in services they offer (for instance, I asked a client I worked with to plant trees in exchange for coaching as he leads a tree planting organization)
One of the key ideas of Conscious Pricing is to increase the value created for the coach, the client, and all stakeholders (add the Planet, and the People to the mix). The intention is to maintain the profitability (which is part of the economic sustainability) over time, but most of all to focus on the long-term sustainability of the relationship. Transform your clients into Partners.
Which clients do you still want to be serving 10 years from now?
What kind of offers would you create if you wanted to keep them aligned with this intention?
What kind of offers could you create for your clients that make you feel good about them?
What kind of value are you ready to deliver to your clients, offering the maximum level of service?
What is the lower limit of pricing you are willing to serve a specific client at?
What is the upper limit?
What is one insight that you are taking away from this article?
What is one action you can take?