As a life coach, pricing your services can be a tricky balancing act. You want to be affordable for your ideal clients, but you also want to make sure you’re not undervaluing yourself. Finding the sweet spot can take some trial and error, but by considering the following pricing models, you can get started on the right path.
Cost Plus Pricing
The cost-plus pricing model is straightforward. You take your business expenses and add what you want to earn, then divide it by the number of clients you plan to serve. This pricing model ensures you’re covering your expenses and making a profit. However, it doesn’t take into account the value you’re providing to your clients.
The market-driven pricing model involves researching what other life coaches are charging for similar services and then pricing yourself a little higher or lower depending on how you want to be perceived. This approach can work well, but it can also lead to undervaluing your services if you’re comparing yourself to coaches who are charging less than they’re worth.
The value-driven pricing model takes into account the potential positive outcomes your clients can achieve through your coaching services. You multiply this perceived value by the likelihood of achieving those outcomes. This model can help you determine a higher price point that accurately reflects the value you provide.
The demand-driven pricing model involves starting with a lower price point to drive initial traction and then increasing the price as demand for your services increases. As demand tapers off, so do the price increases. This approach can be effective for newer coaches who are building their client base.
Finding Your Sweet Spot
The truth is, pricing your life coaching services requires considering all of these factors. To find your sweet spot, choose your primary pricing model from the options above, and then apply the others to it. Start by doing market research. Look at what other coaches are charging for similar services and what your ideal clients are willing to pay. Then, consider the value you provide and what you need to cover your expenses and make a profit.
Pricing your life coaching services can be challenging, but it’s an essential part of running a successful coaching business. By considering these pricing models and doing market research, you can find the sweet spot that works for you and your ideal clients.