Coming up with a business idea is hard. Determining a price for your programs and services is equally as hard.
As a business owner and CEO, you need to determine a price for your holistic health and wellness services and programs before you can even offer them to prospective clients. And if you can’t offer your programs and services, you can’t make any money!
So setting up a proper price is one of the most crucial first steps in setting up your business.
Over the years, I have had so many different price points for my programs and services that at this point, no price point shocks me.
I’ve received offers for $1 and offers to join my mastermind program for $100,000. Now that one, an offer pitched by a woman, really got me excited. She broke the glass ceiling for me and made me realize that the actual dollar value is irrelevant.
I realized that I can charge whatever I want and people will go with it if they feel that there is value in what I’m offering. That my program will get them what they want even if they can’t afford it at the time.
In this post, I’ll run you through how to accurately price your services and programs and provide you with a pricing framework to make things much easier for you.
Let’s get pricing!
How Does Pricing Make You Feel?
Does any of this sound familiar?
“Oh, I didn’t realize you’d be that expensive.”
“I’d love to work with you but I just can’t afford it right now.”
“I missed the deadline by a day, can I still get the discount?”
“I need to talk to my spouse.”
“I just can’t afford it right now because we need a new family car/our dog has huge vet bills.”
“Do you have a lower priced way to work with you?”
“I guess I’ll just stay in your free Facebook group for now”
Have you had any of those conversations with a prospective client recently?
Did you end up feeling uncomfortable? Did you feel like you were charging too much for your time? Or did you end up offering your help for free because you wanted to be of service and felt badly charging them your rate?
Honestly, many of us in the health and wellness space feel guilty or yucky charging a premium price to work with clients because our work is truly our passion: it comes easy to us and we would ideally like to do it for free if we could. But we also have financial commitments to fulfill.
Charging a premium price makes some of us feel uncomfortable because we don’t have any, or have minimal, client experience. You may not be confident that you can get results for your paying clients and therefore believe that you shouldn’t charge them a high amount to work with you at this stage. Fair enough.
But for some of us, we don’t believe that anyone is willing to pay a premium price for our program because there is a lot of free information out there. So why should anyone pay $500 or $1000 or more to work with us when they can just Google for free instead?
Those are the most common reasons why many of us feel uncomfortable to set any price, let alone a premium one for a program or service.
It’s time to switch your mindset!
It is not your responsibility to decide whether or not clients can afford to work with you. To be clear on this point: it is NOT your responsibility to decide whether or not your client can afford to work with you. And it’s certainly not your responsibility to decide for them before you even invite them into transformation.
People buy things they can’t afford all the time because having that particular thing makes them feel good — it satisfies a surface level desire. How many times have you bought an expensive shoe, gadget or accessory because it makes you feel good? So it’s really none of your business whether or not a client can afford you.
Your job is to make sure they know about you, that they understand that their pain is part of a larger problem; and that you have the answer to getting rid of that pain.
While I completely understand how uncomfortable it might feel to charge a premium price for your signature program, the one thing I want you to know is that money is just energy. Yes. If you’re giving out 10 times the energy than what the client is paying, then you’re going to feel burnt out, broke and annoyed.
You can’t help people if you aren’t making a sustainable living. You can’t grow your business if you can’t pay your bills. You can’t give your clients all you’ve got if you’re out of gas.
So let’s go through some things to think about before you set your prices.
Considerations in Setting Your Pricing
You should ask the following questions to help you price your programs.
What is my program offer?
You need to know what your program consists of before you choose a price because the more involved you are in your program, the higher the value is. So make a list of what’s included and what your time involvement is.
How many live coaching hours are you investing?
Will you have Q & As, live weekly lessons, bonuses, just worksheets or video too? How many live coaching hours are you investing?
What is the transformation my program or service offers?
In other words, how valuable is the outcome to your clients? How badly do they not want to have X pain anymore? How badly do they want to feel better?
If your niche is digestive issues, what does it ultimately mean to your client to be able to break up with the toilet?
To stop worrying that they will have to run to the bathroom at embarrassing moments?
If you are a fertility expert, what does it mean to your client to know that they are doing everything they can to maximize their chances of having a family?
Think about how much time, money and energy you are saving your client by working with them. And finally what would be the cost if they didn’t work with you — time, energy, healthwise?
What am I worth?
Often, we chronically undervalue ourselves because our work feels natural to us: it feels easy for us to teach and coach, so it’s hard to charge for it.
This is why it feels uncomfortable and sales-y for so many of you in the alternative health world to charge what you are worth.
But the harsh reality is that you are running a business that has business expenses, salaries and all of that very grown up professional stuff that comes along with growing a profitable business.
That means that you need to understand what it costs for you to provide a program or service to clients. Calculate your direct and indirect costs of providing the program/service. Those costs include labor, marketing, training and any overheads. You can then decide to what extent those costs should reflect in your pricing.
You can use either of these two basic pricing models: cost-plus pricing and value-based pricing.
Cost-plus pricing involves adding a mark-up to your break-even expenses. While value-based pricing involves looking at the value of your program/service to clients. (That value-based price is simply a reflection of what a client is willing to pay. So it depends on whether you are offering a higher quality program or if you are seen as the market leader in your niche.)
So think about it. Make a list of all your business related expenses and think about how much money you want to take per month or per year.
Look at those numbers. Charging $27 for a 21-day detox feels a bit crazy to you now doesn’t it?
Remember that each health coaching business is different and you need to first identify your niche and the time required to dedicate to each client before you can assign appropriate value.
What are my competitors charging?
Conduct some research to find out what your competitors are charging. This will help you gauge where you should be at and what prospective clients are willing to pay for similar services and programs.
Other questions you need to ask and answer:
- How will I package my services? For example, by the month, 3 or 6 month packages? One-on-one sessions or a group program? Will it be a bundle of multiple service types like lifestyle coaching + nutritional consulting + fitness training?
- What can I charge clients in my first year of business?
- What is my ideal client willing to pay?
Now it’s tough to give you pricing suggestions because they really are subjective. However, here is a basic framework:
There are four main price points: low, medium, high and premium.
Low would be under $500. Medium would be between $500 and $1000. High would be between $1000 and $1500 and premium would be above $1500. These are price points for a 12 week program.
When it comes to pricing, you can offer a paid in full option or a monthly payment plan to give people a bit more leeway when it comes to saying “yes.”
What I will say, is that the actual price you charge is rarely the reason someone says “yes” or “no.” They use the price as a way to gauge the value of the transformation.
And if you’re getting price objections at any level of pricing, even at the $27 mark, then it’s likely you’re not communicating the value, the benefit and the transformation the client will receive well enough. You need to effectively communicate the program’s value to justify your fee to the prospective client.
So before you go and freak out and lower your prices, work on the offer and how you communicate it.
How To Pick A Price Point
I’m going to give you a formula, but before I do that, here are some more things to think about.
When picking a price, think about the kind of clientele you want to attract. Truth be told, your pricing reflects the level of commitment and determination a client is going to make. What do I mean by that?
When a client makes a significant financial investment, it means that the client is super serious about getting results.
The more skin in a person has in the game, the more committed the person is.
Yes, having a higher price might exclude part of the market, but it may generate the right type of clients you are looking for: the ones that appreciate your value and are more likely to stick around.
It takes just as much time, energy and effort to put together and sell a $27 program than it does to sell a $997 program. You might not realize that but it’s true.
So if your goal is to make $5K a month you’d need to sell 185 $27 detoxes or 5 clients at $997. Which would you rather?
The last thing to think about is to pick a fee that you can say out loud without a change in your voice or energy, If you don’t, your client is going to feel the energy shift.
They are going to feel your hesitancy and uncertainty, which will make them equally uncertain and hesitant.
Additionally, clients are less likely to pay certain prices if they sense that it came out of the blue and has no justification.
You can always increase your fees as you gain experience and confidence but remember, if you charge too little even if you’re just starting out, your client won’t believe in or be as committed to doing the work.
You should actually review your pricing every six months so that you can keep track of market changes and reflect those changes in your pricing. A bi-annual pricing review will keep you from suddenly increasing your prices after years of offering the same price, which may be off-putting to some of your clients.
Experiment to find the perfect point where you’re onboarding clients at a good rate and you feel the investment level is good in relation to the time and energy you put into your programs.
Ok, so now let’s work through the pricing formula.
Your Pricing Formula
Pick a revenue amount you want to make on a monthly basis in your business.
So let’s take the $5,000 per month example and work backwards.
Pick a program/service fee you feel good about. Now take the monthly revenue amount and divide it by the fee you want to charge. That will give you the number of clients per month you need to work with in order to hit your monthly revenue goal.
How does it feel to charge $997 with the goal to work with 5 clients per month?
How does it feel to charge $497 and work with 10 clients per month?
Because remember, you need to be able to confidently ask for the sale without a shift in your energy.
Build Up Confidence to Price Accurately
Here’s the truth — your pricing is going to shift over the years, perhaps even months. That’s because with experience, you will build confidence in charging what your time is worth.
As you settle into your role as CEO and business owner, and as you start to work with clients, you’ll want to keep refining your pricing.
Do you agree? How has your pricing changed as you’ve grown your business? Share your experience with me in the comments below or join my FREE Facebook Group – Take Your Health Practice Online where we have more than 11 000 Health and Wellness Professionals are having discussions just like these every single day.