The #1 Pricing Mistake Most New Coaches Make in Their Business {and How to Avoid It}!

Here’s¬†ONE quick tip¬†to implement for pricing your products and services and¬†getting more sales in your business as a NEW Coach…

If you have a product or a service {i.e., a coaching program, an ebook, a print book, a teleclass, etc.} you can use this tip in your new coaching business.

I recently did a call with a new client, and we talked pricing.

We were going over her business service numbers {aka, “Pricing“}, and I knew that some of the information I shared with her I could pass on to help other Coaches {like you!}.

This tip is based on your monthly expenses:

We all know what it’s like to have¬†fixed and variable expenses¬†for our household from month-to-month.

Whether you are¬†adding or replacing an income, these expenses {aka, ‘your personal budget’} can give you¬†insight on where to start with pricing your products and services.

Your budget reveals the minimum amount you must bring in each month from your coaching business to cover the your monthly expenses.

This is a GREAT place to start with your pricing your coaching products and services.

HERE’S A HINT:

To start implementing this pricing tip: first,¬†write down¬†all¬†of your expenses¬†– there are¬†37¬†‘common’ household expenses for the average American household –¬†Message me¬†if you need help with these {I have a list}!

Now, I know for some people, talking about budgeting, expenses, income, and writing down what you have going out is an uncomfortable or scary topic.

But, this needs to be addressed if you want to make money {and enjoy it} in your new business.

During the coaching call with my client, we started out with her monthly expenses {which she originally thought was this super low amount each month, before she wrote it all out and I helped her see that there was NO WAY that was all she needed to live comfortably month-to-month and enjoy where she was financially in her life!}.

The more she and I talked, we ended up QUADRUPLING her expense amount from what she initially THOUGHT it was, because in her budget she FORGOT things like: have fun, go shopping, entertainment {like going to a movie}, buy some new shoes, get a new dress or outfit [you know, things we often FORGET to factor in our monthly spending routine].

So, those types of things came up during our call. She started out with a really low total, we multiplied that by four, and we used that grand total amount as her starting point for pricing her coaching products and services, and so can you.

The topic of pricing can be¬†very¬†complex. But, I’ve helped make it easier for you, using this¬†simple, step-by-step¬†tactic.

Your personal expenses {and factoring in a little fun!} is a great place to start with deciding your prices for your coaching products and services.

Knowing your non-negotiable, minimum monthly income¬†amount gives you clearer idea and a better understanding for¬†how to put a price on what you do¬†{and how to ‘price to profit’} as a new Coach.

So,¬†if you’ve been feeling¬†clueless¬†on what to charge¬†for what you do, start with the amount you need going out each month to maintain your lifestyle [you know, for things like your lights, gas, rent or mortgage, car payment, insurance ‚Äď those things that it takes to LIVE and support you living a comfortable life].

They may be fixed expenses {the same amount going out every month} or they may be variable expenses {and vary, change, or are flexible from month-to-month}.

Use this total as a starting point, and¬†multiply¬†that amount¬†[because you’ll¬†alwaysneed more money to go out each month than you actually plan for – especially as a new Coach!].

Unexpected expenses can sneak up on you [in the form of office/meeting space, trainings, books, workshops, and events], but you will be a happy Coach knowing that you’ve included all of this in your budget and in your pricing in your NEW coaching business!

Finally, divide your final expense/budget total with how many clients you can reasonably serve and/or how many products or programs you can reasonably sell from month-to-month to get your price point per sale needed in your business each month.

This is just one of four potential starting points for pricing your products and services in your coaching business. I look forward to sharing more.

Need help with this? Email aj@thebossof.me. I’m here to serve.

Advertisements

Share your thoughts!

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s