It can seem daunting, maybe even overwhelming.
Figuring out where to begin with pricing can keep you stuck, struggling, and broke. If you let it.
You see, everything in life and business is a choice.
And, at this very moment, you’re either making a choice to be stuck or a choice to begin.
Since you’re here reading this, I’m guessing you’re an action taker (my favorite kind of client) and are ready to figure out how to best price your services.
Pricing Your Services
Start by writing down what your ideal client gets as a result of their work with you.
Do they gain confidence? Finally lose those last 10 pounds? Attract more clients into their business? Bring in more income? Save time? Land a dream job? Strengthen an important relationship? Avoid frustration and wasted energy?
If you get stuck after you write down one or two things, challenge yourself to go deeper. Stop at no less than 10 potential outcomes or benefits that a client achieves as a result of working with you.
What’s the dollar value of that transformation? I know, it’s hard to put an exact dollar amount on it but give it your best guess.
On your paper, write: “Value of Transformation: $…….”
Now I want you to look at something else.
What expertise are you bringing to the table? For example, how much did your MBA cost? How many years of corporate experience do you have in that area? What skill sets did you use in a previous job (follow through, tenacity, problem solving, listening, technical thinking) that apply to the work you are doing with your clients, even if indirectly?
What experiences do you have that allow you say, “Yep. Been there, done that and I can help you move through the tough part with grace and ease”?
For example, I’d list my MBA in Marketing, my $10,000’s invested in working with some of the big name marketing guru’s, the value of the blood, sweat and tears that I went through as I built my multiple six figure coaching business. I’d also include the value of the experience that I’ve gained through helping my clients do the same..
Please write down, “Value of Expertise and Training: $….”
Now consider how long it would take someone to try to figure it out all on their own. What would it cost them in terms of time and money to go the DIY route?
(Now, this is a writing intensive post, I know. It’s worth it so please hang tight.)
Grab another piece of paper and list all of your business expenses.
Consider your computer, website, your assistant, your coach, your bookkeeper, your email management software, filing your taxes, your PO Box, your health insurance, your monthly contribution to retirement, your pay (you are paying yourself at least a little bit, right?), the continuing education events and networking groups that you value being a part of.
Write this down next, “Average Monthly Business Costs: $….”
(Hint: If you aren’t paying yourself even a small salary, then now is your time to start. Even if it’s just $500, let’s get on it. For this exercise, include the amount of monthly income you’d like to see flow through your business so you can contribute to your household in a meaningful way.)
Write this number down, too: “Ideal amount of $$ to flow through my business each month, excluding expenses: $….”
Your business is the vehicle through which you can make an impact, serve clients, and create the life you love. (That’s a writer-downer. Put that on your sheet, too.)
Based on what we’ve covered so far, what is the number that you are shooting for this year in your business? $100,000? Or, as it was for me last year, $219,000?
Put this down next: “Amount of Income that I Invite to Flow Through my Business in 2017: $….”
How many clients would you like to serve this year?
I won’t go into detail here, but put a realistic number that also allows you to breathe, to market, to create content, and just BE. I didn’t ask how many clients do you NEED to serve. I asked how many you WANT to serve. How many hours of time will that require of you? (Including client prep, actual call time, email, everything.)
Look at your dream come true number for income and impact in 2017. Divide that number by the amount of clients you’d like to serve.
Now write down that number, “Minimum Investment Level for Clients to Work With Me in 2017: $…..”
I have one more thing for you to consider and it’s really important.
Your clients aren’t giving you money.
Money is a form of energy.
When clients decide to work with you, they are investing in themselves and their results through you.
Newsflash: It’s not about you, after all (sorry ego).
And it never was. (Gasp!)
The problem I see most often is that coaches choose a number, randomly, or one that feels comfortable to them when they start out. It’s based on nothing outside of their fear of not finding enough clients that will say “YES.”
That’s OK for one or two clients.
When you make a decision in your life or business from where you are, rather than where you’re going, you get the big booby prize of staying right where you are.
Based on the number of coaches not being able to make ends meet and being forced to give up on their calling of serving clients, creating an impact that matters and living a life of abundance, it’s time that the conversation about “what to charge” shifts in a new direction. That’s what I’m aiming to do.
You’ll notice that I didn’t ask you to look at what your clients are saying or what other coaches are doing.
Because that doesn’t matter.
People always find the money for what they value and when you’re clear on who you serve and how you can help them, everything starts to make a sense. It’s not an ideal client problem or sales problem as much as it is a mindset or marketing problem (and that’s all up to you).
Ya never know when your comment may be just the idea or inspiration that someone else needs, so please share your ah-ha’s below. Pricing is a moving target and at first you’ll feel unsure, but as you stay in consistent action, you’ll gain clarity. You’ll see how your clients benefit as you model what it means to be a leader in your life and to see your own worth.