5 Easy Ways to Price Your Coaching Services

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If you follow me, you know I’m a huge believer in visioning the life you want and creating a coaching business to fit that lifestyle. It is possible to create coaching programs from your heart and charge what you need to charge to keep your business running. In this post, I’m going to cover how you can figure out what you need to make so you can price your coaching services accordingly.

The easiest way I price for coaching services is by going through a little check-in process. In this process I do two things. First I make sure I’m covering my basic expenses. And then second, I create programs and offers that I know I’ll love to share.

Let’s address expenses first. As a business owner, it’s important to make sure you are covering your expenses and also making a profit. I’ve included a step-by-step guide below to help you properly price your coaching services.

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First list your basic expenses

This list should include your business expenses as well as your basic living expenses. Here’s an example of a list of expenses for the month:

$1500 rent
$300 utilities
$250 car
$100 car insurance
$125 phone/internet
$120 cable
$350 food
$300 clothing and household
$250 medical savings account
$200 savings and investments
$200 travel or travel account
$500 my own coach
$150 entertainment
$200 advertising for coaching business
$150 office expenses for coaching business
$1000 possible taxes

Then add up your expenses to see what you need to make

By adding up your expenses, you will get a clear picture of what you need to make per month. In the example above, the expenses add up to $5695 per month. Notice the expenses above include things like insurance, a medical savings account, and savings. I’ve even included possible taxes in this list. It’s a good idea to set aside taxes or talk to a CPA about making prepayments for taxes so you don’t get surprised at tax time.

What you would like to make as a profit?

Generally, business owners like to see at least a 20% profit. Making a profit ensures the livelihood of your business. When you make this additional profit it gives you the opportunity to either save for future expenses or reinvest in your business.

Here’s an example of how to figure out your profit margin. Let’s say you want to make a 20% profit on your coaching services.

Then you would simply use this calculation:

Cost / (1 minus the profit margin you are looking for, 20% would be .2, 30% would be .3, 40% would be .4, 50% would be .5)

For example, let’s say your costs are the total expenses above (usually you just use the total cost to make the product, but we’re going to use all of your expenses in this example) $5695.

If you are wanting to make a 20% profit margin, then simply take the cost of $5695 and divide it by (1 minus .2 which is .8)

$5695 / .8 = $7118.75

There you have it! To make a 20% profit on your services, try to make around $7118.75 in total for your coaching services.

Now it’s time to price your coaching services

By doing the calculation above, you get to figure out not only how much you need to survive, but also how much you should make to walk away with a profit. Once you know the total, you can create services and products to help you meet your goals.

Perhaps you can offer a combination of one-on-one coaching sessions as well as a group program throughout the month. You could do 10 sessions a week at $150 which will get you to $6000 a month. And then you could have 4 people in a group program and charge them $250 for the month each which will get you another $1000. This nets you around $7000 a month (pretty close to your target).

Related: You can learn more about pricing, creating offers and picking your ideal niche for your online coaching business in our Be Passionate and Prosper Business Course. Head over to check out the course details.

Here are 5 easy ways to price your coaching services:

Knowing what rate to charge for coaching can feel confusing at times. Many new coaches are scared to charge for their services. Coaches who have been around for awhile often know they should be charging more, but they don’t know how to raise their rates.

You can take the guess work out of knowing what price to charge by asking yourself what you would like to offer. Here are some of my best tips when it comes to pricing for your coaching services.

1. Create programs you are excited to offer

Whenever I know it’s time for me to create a new coaching program or offer, the way I price is by asking what I feel compelled to offer or share that month (or for a period of time). This helps me with staying motivated because I’m always checking in with what I want to offer from my heart and then I charge accordingly.

2. Get specific about the offer

Just as if you were a business with a product list, and you needed to describe each product in detail, ask yourself what the new coaching program or offer looks like and describe it. How long will it run, how many people (one-on-one or groups), what price, what will it help with? If you have questions about this, you may want to head over to this post about how much to charge in your life coaching business. It includes a video and tips.

3. Layer in a few options when you price your coaching services

You will want to have a few types of programs and offers at various price points. Describe your offers with the questions above and list these options on a “Services” page on your website. I suggest charging an hourly fee if you are just starting out and want practice with one-on-one coaching. For your various offers, you might offer one-off sessions for one hour at $100, four-session packages for $375, and an 8-week course with weekly check-ins for $750. As you gain more experience and understand your ideal client, you can create products and services to better serve their needs. The key is to know exactly what you offer and for what price so when someone asks you, you can easily tell them. Make sure the services are clearly spelled out and easy to find on your website.

4. Feature or focus on one program at a time

Believe it or not, people need to hear about your coaching program or offer at least 7 times before they will sign up. This means you need to focus on one offer or product and share the details over a period of time to warm them up to the idea. You might start to feel like a broken record after talking about it so much, but to your client, this is all new info. AND you can take this as an opportunity to dive a little deeper into the details of your coaching offer. You can talk about what problem it will solve. Discuss some of the challenges people face. Go live and answer questions. Give your audience background info and even give them a free tool to try out. Try to cover all angles of the topic over the course of a few weeks.

5. Show your coaching clients some love

Once you have established a relationship with a client for a period of time, you may want to think about their journey and what they need next. Much of your success will depend on whether someone sees results from working with you over time. Are you keeping them in mind when you create helpful content and programs? You show your regulars love by understanding their struggles and creating products that will help them. Finally, encourage your regulars to sign up for your newsletter and send them freebies as well as discounted offers.

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How to be happy with how you price your coaching services

If you are wanting to be happy in your coaching business, it’s important to pick what YOU want to do as a service, not what other people are doing as coaches. Make sure to tune in to your own unique set of gifts and access your own expertise to help your audience.

Know what work lights you up. If you have trouble figuring that out, ask yourself what type of work motivates you to get up out of bed everyday? What do you know you want to help others achieve? This also applies to pricing your coaching service. Aligning your service to the price point that feels right to you can help you feel more excited about your work.

Kelijo

July 3, 2019 at 6:46 PM

I like that you touch on pricing to cover living expenses… I feel like a lot of folks price based on “hours worked” which doesn’t work outside the office when trying to make your own business.

Mandy Gatlin

Author

July 3, 2019 at 10:25 PM

Yep! It’s so important to acknowledge your living expenses as part of the equation. It helps you get really clear on what you want and need to make as a business owner! Thanks for visiting!