The #1 Mistake Coaches Make That Keeps Them Struggling
If you want to have a profitable business, stop doing this right now!
I spoke to a coach based in the UK recently. He helps people with Irritable Bowel Disease.
When he told me his pricing, I nearly cried.
He charges 100 pounds (about $130) for an hour of coaching. He also has packages, which bring the cost per hour down even more.
No wonder he was floundering.
His fees were keeping him trapped in a cycle that would keep him struggling to get clients… and broke.
Whenever I hear stories like this, it reminds me of something I saw in Paris.
There’s a store in Paris that’s a cross between a luxury department store and an architectural wonder. It’s called Galeries Lafayette. It’s France's most iconic department store.
At Galeries Lafayette you can shop for Chanel lipstick, sip champagne under a jaw-dropping stained-glass dome, and catch a fashion show — all in one afternoon.
So imagine my surprise when I walked into the store one day and saw the mass-market brand, Revlon, right there next to Chanel, Dior, and Yves Saint Laurent!
Not only that...
The prices were double what you'd pay for Revlon products in a Target, Walmart, or any U.S. drug store chain!
Same product… twice the price.
By charging more, Revlon gave their brand a more upscale positioning in France. And the market was fine with it.
What you must know about pricing your coaching program
Your pricing sets the perceived value of your program… and you as a coach.
That’s because the belief that “you get what you pay for” is ingrained in our psyche. So when you charge higher prices, people will think you must be better.
Higher prices are one of the things that position you as an expert.
When you charge premium pricing, here’s what happens…
1. You'll attract higher-quality leads
People who pay more are more committed. Plain and simple. They will be more vested in doing the work, which will help them get results.
The added upside for you is you’ll have better client testimonials.
2. You'll attract more leads
Many coaches make the mistake of thinking they’ll have more clients if they charge less. And they worry that they'll have fewer clients if they raise their prices.
But that’s not what I’ve seen.
Coaches I’ve seen raise their rates from $1,500 to $3,000 converted prospects at the same rate.
And here’s something else to keep in mind…
It takes the same amount of effort to sell a $1,500 program as it does a $3,000 program.
3. You'll earn more without working more
I know, I’m being Captain Obvious here. But it’s worth saying.
If you charge more, you’ll make more money without increasing your client load. That gives you more time to do other things, like be a bigger part of your kids’ lives, care for a loved one, take on a passion project, or whatever your dream life looks like.
And as far as I’m concerned, your work should help you live your dream life.
Is This Why You Don’t Charge More?
Of course, I realize it’s easy for me to sit here and type, “Just double your prices!”
If you're thinking that’s easier said than done, you’re not alone. Most people struggle with pricing. (I used to, too.)
If a coach is having a hard time getting clients to buy their programs now, how on earth will charging more make it easier?
And I have to admit, if your offer sounds like every other coach's offer out there, it will be an uphill battle. That’s why it’s so important to have a unique positioning.
When I work with coaches on developing their unique positioning, they often feel much more confident about charging more.
The reason why is now they can explain to people exactly what makes them different, and better, than other options.
I’ll write more about ways you can create your unique positioning in an upcoming post. In the meantime, this post is a good place to start: The 7 Habits of Highly Effective Health Coaches