What Do You Charge?

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As you develop your business and build your client base, one of the important questions that you are going to ask yourself is what the right price for your services would be.  There is a lot that must be considered in order to avoid charging too much, or too little!  A lot can go into this equation, including testing, industry standards and what feels right for the amount of work that goes into your service delivery,  and what you feel your services are worth.

 When it comes to industry standards, much of what you will find in the coaching industry are basically “made up” figures. Top coaches may be bringing in as much as $100K per year. While this may seem lofty, it doesn’t hurt to aim high. I have put a great deal of planning into developing a fee schedule that will help my clients be as successful as possible, make my services attainable for people at varying levels of their industry, and also help me to grow my business and be successful.

Consider the fact that consulting represents the fastest projected growth rate of all the industries in the United States studied by the government’s Office of Occupational Statistics and Employment Projections. The strong growth of consulting jobs is expected to continue as businesses seek advice on planning, logistics and implementing new technologies, according to the government’s projections.

Pricing is also a formula that depends on your sales skills, or your sales team if you aren’t doing all the sales yourself.  Confidence in your results is also a factor.   The projected ongoing success in business coaching and consulting reflects the resilience of an industry that is expected to grow by 83 percent over a decade, according to figures from the U.S. Bureau of Labor Statistics. That federal agency projects a gain of more than 800,000 jobs in the consulting industry over the 2008-2018 decade.

Having invested in services yourself is a factor too. If you’ve been resisting investing in high level programs, keep in mind that it’s a universal law that we can’t attract what we resist, meaning that if we are resistant to shelling out cash, we’ll can’t attract clients who value investing in themselves.

Personally, I’ve undercharged, and also charged fees that are more in line with the value and return on investment my clients get. A friend of mine makes tens of thousands of dollars monthly on services that are under $1000 and she provides tremendous value to her clients.

My friend and I often discuss the controversy in the industry for what is know as selling”high ticket” versus “low ticket” products and services.  This year I’ve decided to revampmy pricing and packages for coaching.  I’m adding more low ticket programs and trainings in a way that leverages my time, but still provides the client results I’m known for.

Many business experts recommend raising your prices consistently until you hit a ceiling. This raises the bar for the types of clients you work with, which only works if you’re comfortable leaving behind the market who can’t afford you.  I like the middle of the road market, and I am comfortable with my corporate rates, as well as my solopreneur services and pricing.

Having been at both sides of the spectrum, the bottom line is that I love to help people to build their businesses, and while I raise my prices consistently,  it’s more incremental than large leapfrogs.   Working with me privately or hiring my team will remain medium ticket in 2014, while my trainings and group programs will remain attainable to those who want to invest in themselves at the higher levels sometime in the near future.

 What are your thoughts on pricing? Do you think you need to raise your prices consistently to grow your business and uplevel your clientele? Or you do feel more comfortable being attainable to the market that requires more affordable services? (For help on how to raise your prices and attractive more lucrative clients, check out: www.MonetizeYourMarketing.com)

Please leave me a comment below, I”d love to hear your thoughts. 

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Comments

  1. Thanks for the comment Michelle. Your pricing should take into account your business goals as well, for example how much revenue do you need to create, divided by the number of hours you want to spend with clients. I feel that “affordable” is a relative term, and the more people pay, the more value they will receive from your services.

    I think helping clients regain health so they can feel better and potentially live longer is a very valuable service. But if you believe it should be “affordable”, you will attract clients who feel the same way.

  2. Pricing your services is definitely a challenge for me. I thought I was middle of the road but I’m still finding objections to that. I’ve also been told to triple my prices but as some of my clientele will be cancer patients I feel I should make my services affordable for most.

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