Have you ever felt lost when pricing your coaching services?
You're not alone. This is one of the most common questions I receive from the participants who join our Coaching Certification Program.
Pricing is a pivotal aspect that plays a fundamental role in the success of your coaching business.
With a 9% increase in the average global coaching fee since 2019 according to ICF survey, the coaching industry is booming. But how do you navigate these tends and price your coaching services accurately?
Multiple factors come into play in this context, such as recognizing your value, understanding the market dynamics, and client budget considerations.
As Warren Buffet once said, 'Price is what you pay; value is what you get.'
Here’s a guide to help you price your coaching services and overcome this feeling of guilt.
1. Value Recognition: Recognizing Your Worth
Recognize Your Worth: Knowing the value you bring to your clients is foundational. Your expertise, experience, and the transformational impact of your coaching should form the core pillars of your pricing model.
Outcome-Oriented: Tailor your pricing to be reflective of the outcomes and transformations that clients can achieve through your coaching. This approach helps in justifying the pricing by focusing on the value delivered.
2. Market Research: Understanding the Competitive Landscape
Competitor Pricing: A thorough analysis of what competitors are charging, considering their services and experience, is essential to position your pricing effectively.
Client Budget: Understanding your target audience and their budget constraints is crucial. Tailor your prices according to the affordability of your potential clients, ensuring that it aligns with the market's willingness to pay.
3. Unique Value Proposition: What Sets You Apart?
Expertise and Experience: Your unique experiences, expertise, and coaching approach enable you to charge a premium.
Specialization: Specialising in a niche or specific coaching area often allows commanding higher prices due to the specialized value offered.
4. Cost Plus Pricing: Covering Your Expenses
Direct Costs: Factor in all the direct costs such as materials, venues, and other associated expenses.
Overheads: Consider overheads like marketing, utilities, and rent to ensure that your pricing covers all operational costs.
5. Value-Based Pricing: Aligning Price with Transformation
Results: Your pricing should be in alignment with the transformative results and value your coaching brings to clients.
Transformational Impact: If your coaching facilitates significant personal or professional transformation, it justifies a higher pricing structure.
6. Psychological Considerations: Mindset and Confidence
Mindset Shift: Cultivate a mindset that focuses on selling value and transformation rather than merely selling hours.
Confidence: Build confidence in your offerings and their impact, facilitating a sense of justification and ease in your pricing strategy.
7. Pricing Models: Flexibility and Options
Hourly Rate: An option is to charge clients based on the actual hours spent in coaching sessions.
Package Pricing: Consider offering packages encompassing multiple sessions or specific program modules.
Membership/Subscription Models: Membership models allow clients to access your services continuously for a recurring fee, fostering long-term client relationships.
Hourly Rate: $100 - $300
Package Pricing: $500 - $2,000
Membership: $200 - $500 per month
Hourly Rate: $400 - $1000
Package Pricing: $3,000 - $20,000
Membership: $2,000 - $5,000 per month
8. Strategic Offerings : Promotions and Accessibility
Introductory Offers: Special prices for new clients can be a good strategy to attract an initial client base.
Bulk Discounts: Discounts on bulk purchases or long-term commitments can be offered, but ensure it doesn’t devalue your services.
Payment Plans: To make your services more accessible, consider offering flexible payment plans. However I would always suggest upfront payments for packages to increase my client's accountability and commitment.
9. Global Trends and Examples
The 2023 ICF Global Coaching Study Executive Summary provides valuable insights:
In 2022, the global average fee per one-hour coaching session was $244, a 9% increase compared to 2019.
Fees vary globally, with Western Europe averaging $277 and Latin America and the Caribbean at $114 per hour.
Adapt your pricing models to align with the value delivered, market realities, and the evolving landscape of your coaching practice, ensuring sustainability and success.
Join our courses to define your coaching business model, boost your brand and business.
Now that you have the right pricing strategy, it is time to get your first coaching clients. Download our guide now!