We’ve all been there, especially when you are just starting out… you can talk about squats or digestion all day long, but when asked how much you charge you get all fidgety and are at a loss for words.
The money thing can trip a lot of us up at first – but defining and “owning” your prices is critical to your business, and to your bottom line.
And since What do I charge for my program? is probably the most commonly-asked question we get in our Facebook Groups I thought it was time to address it head on here.
It Doesn’t Matter As Much As You Think It Does
My first piece of advice when I get asked about pricing is this – what is the number you feel comfortable saying out loud? What can you say confidently without the fidgeting or “ummms” and “aahhhhs” that come from discomfort.
Especially when first starting out, my advice is always to just start somewhere. As you run your program more times and work with more clients your self-confidence will grow and your prices will naturally increase as you learn your value and just how powerful the transformation you are offering truly is.
So seriously, just pick a number and take action. Don’t let pricing (or any other decision for that matter) get in the way of you getting your program out into the world and helping people.
But Lori What About…
If the above answer is too simple for you and you are someone that likes to analyze and go deeper, than this section is for you…
Ask Yourself These Questions
- Who is your audience and what do they WANT?
- What is the Unique Value Proposition (UVP) you’re offering your audience? i.e. What do they expect to get from your services? What transformation will they go through when they work with you, or go through your program?
- How will you package your services? For example, by the month, 3 or 6 month packages? One-on-one sessions or a group program? Bundle multiple service types like lifestyle coaching + nutritional consulting + fitness training?*
*Notice selling one-off consults or training sessions aren’t listed in #3? Here are my reasons why you should steer clear from the one-on-one consultation service model.
What Can I Charge Clients in My First Year of Business?
I’m sure you remember being in school not so long ago – it was kind of like living in a bubble. You’re surrounded by people who think, believe and live like you do. So, you assume that everyone outside the bubble wants the information you have and will pay you to get it.
I mean, who doesn’t want to dramatically overhaul their life in 6 weeks or less, right?!
I would actually spend time creating personalized mini-protocols to anyone and everyone who asked. But then how was I supposed to ask for money without crying and apologizing for it?! How was I going to charge people when I didn’t even feel like I knew what I was doing?
Because of my own lack of confidence and inexperience in actually helping clients during my first year as a Holistic Nutritionist, I didn’t feel like I could charge hundreds of dollars for my services…yet.
And That’s Partly Because I Didn’t Ask Myself Those 3 Important Questions First!
(Here’s more about that from my first year in practice.)
Sure there are plenty of health & wellness pro’s charging big bucks for their coaching programs, but you’ve got to be able to own those kind of prices.
And, as a newer health pro, you may not be convinced that you’re worth it (I sure wasn’t!) or that people will even pay that amount… yet.
Plus, if you’re not convinced you can own a certain price point, your potential clients may sense that, and likely won’t sign up with you anyway. This goes more into the psychology of pricing.
It’s ok to be a “go-giver” and go above and beyond, but it’s not ok to privately coach people who simply don’t want to pay you.
So, that begs the question —
What is Your Ideal Client Willing to Pay?
There are a few strategies for setting your prices based on what you know about your ideal client. (because you already did that research on your ideal client, right??)
Speaking of research, did you know that studies have shown that services (or programs) that have a higher price tag carry a higher perceived value?
The studies indicated that when you charge a (slightly) higher amount, people seem to have more confidence in you, may take working with you more seriously, and you’ll likely attract more ideal clients who are ready to take action. Not only that but they are more likely to be invested in the program and actually get results!
You can watch this whole case study here: https://youtu.be/vKL4U3256bw
On the other hand, you’re probably thinking that having a higher price point might exclude part of your target market. True!
But, it will also likely bring in the right type of clients you’re after — the ones that truly see your value, and are more likely to stick around. Again with those awesome action takers!
That said, this is where finding that “Goldilocks zone” of what your ideal clients are willing to pay and what you’re comfortable saying out loud is essential.
I’m all for the gradual approach of raising your rates because it allows you to charge more as you gain more experience and confidence.
However, as you do this, you may start to feel a bit of push-back because some of your potential and existing clients will be more “price sensitive” than others.
It’s good to look at your services like an energy exchange of sorts. When you offer your private coaching or group program – you’re giving your time, energy and knowledge in exchange for your clients’ financial investment.
So, when nailing down your prices, it’s important to consider what that kind of exchange is worth to them – and to you.
Getting feedback from a couple of colleagues, who are in similar businesses – who can give you honest feedback on your offerings, and can share their thoughts with you on what they think your ideal client would pay. This is why being a community of like-minded health experts can be so valuable!
Getting in the Goldilocks Price Zone
As I mentioned, your specific pricing will be based on what stage of business you’re at (i.e. just starting out, or ready to take it to the next level?), who your ideal client is, what level of service you’re offering (what’s included in your programs) and what exactly will they get out of it.
Once you’ve asked those critical questions of yourself and your services, and really examined those things, then it’s time to position yourself in the Goldilocks zone!
Some pricing examples for different service & program types, as well as different industries:
Another thing to consider is your income goals – determine those and work backward.
Let’s get our nerd hats on and do some math in this first example:
Example pricing #1: The “one and done” model = single consult with 1-2 follow-ups
(I want to reiterate that this is not my suggestion for you to implement in your business, and certainly not what I would base a business model on – but let’s use it as an example to prove this point!)
Yearly Revenue Goal: $100,000 (not net profit because of things like website fees, banking fees, accounting fees, advertising, cell phone, internet, insurance, licenses, etc.)
Initial Consult: $250
Client Value: $345
→ If you sold nothing else and just saw clients, you would need about 290 clients per year to make $100,000 revenue. Umm, no thanks.
Example pricing #2 – Nutrition & Health Coaching Programs
Let’s look at a Health Coaching program example with the following in mind:
- Coaches just starting out can generally charge in the $60 – $90 per session range.
- Experienced coaches can charge more in the $100 – $200 per session range and then even more as you build a reputation and your time becomes more in demand.
Also, the more specialized you are (“niched”), the more you can reasonably charge because you’re providing a more targeted solution.
For example, a 6-week weight loss program for new moms VS a 6-week weight loss program for new moms who have postpartum depression & anxiety.
Using that information as a guide, a new Health Coach or Nutritionist might set their prices as follows for their programs:
12-Week One-on-One Coaching Program = up to $997
6-Week One-on-One Coaching Program = up to $597
7-Day Challenge, e.g. Group Cleanse or Clean Eating = up to $97*
Like I said, as you gain experience, and certainly more confidence, you can gradually and very comfortably raise your prices.
This means that a more experienced coach may set their prices between 20 to 75 percent more:
12-Week One-on-One Coaching Program = up to $1697
6-Week One-on-One Coaching Program = up to $897
7-Day Challenge, e.g. Group Cleanse or Clean Eating = up to $147*
*NOTE: 7-Day Challenges are also popular as free lead magnets to build an email list. If this is the case, a Health Coach may adjust their program pricing structure accordingly as this would change the structure and “flow” of their sales funnel.
I talk a lot more about sales funnels HERE.
A general rule of thumb we like to go by for group coaching, especially when it is online – is that it should be about one-half of your one-on-one program because people are not receiving individualized attention, and less of your time is required.
Fun pricing fact: prices ending in ‘9’ are perceived as a good deal and have been dubbed the “charm price”, especially when used as a sale price and compared directly to an original price, e.g. 6-week Detox Program flash sale! Regularly $139 – now only $79!!
Also, numbers ending in ‘7’ are perceived as lucky and may seem “less threatening”. The psychology of pricing really is interesting! You’ll notice that most of the prices we use for our Done for You Programs all end in 7.
Final Thoughts on Setting Prices for Your Health & Wellness Services:
If you’re hearing “I can’t afford it” more often than not, it may not be that your prices are too high, it may be that you’re not clearly communicating the value of your program.
Maybe you’re even feeling like you will never be able to make a quality, consistent living doing this because you’re getting too many No’s during your sales consults.
That’s when you dig your heels in deeper, and even more aggressively and passionately believe in your own ability to help your clients transform their lives. Spend time working on your sales copy and the content you put out regularly. Focus less on the contents of your program (pdfs, video training, etc.) and much more on the transformation and results your potential clients will get when working with you.
You see clients aren’t really investing in your amazing 7-day challenges or your incredible 6-week programs; they are investing in YOU.
Let’s keep the conversation going – comment below and let me know what you are currently charging for your programs and services and how that’s evolved since you first started out.