Lesson 8: Pricing your offer
Before we dig into this lesson, i want you to take a moment to breathe.
Inhale deep and exhale.
We have gone through alot over the past few lessons. A LOT! And you may be feeling either a little overwhelmed or extremely excited about seeing your offer begin to take shape. However you’re feeling right now, i just wanted to remind you that you’re doing a great job! I also wanted to remind you that you are in this space for a reason. Meaning yes, you wanted to learn and create your offer but im sure you also didn’t want to go at this alone! So if you have a question, ANY QUESTION, make sure you are taking advantage of the community! Or make sure you’re signing up for a live coaching session or showing up to our office hours calls!
The resources you need are available to you in this space, so make sure you’re taking full advantage of every one of them!
Ok, in this lesson, the goal is to get crystal clear on the price of your offer!
This tends to be the area of building your offer where most people begin to struggle or feel hesitant. Mostly because unfortunately, talking about numbers isnt always welcomed and because charging your worth and being confident in what you’re charging requires a mindset shift.
Now in this course we’re creating your signature offer. The program that will fund the majority of your business. This is your big offer that you will be known for and that will likely be your main revenue stream. So with that being said, we’re not creating a $97 service. We’re creating a high-level offer that will provide your clients with a value packed experience and that will pay your bills.
Dont freak out on me yet! I promise it’s going to be ok! But i want you to be paid your worth and i want you to do more than just break even.
Ok so lets get started by first, figuring out how much money you actually need to make! You can’t put a price on your offer or even set income goals, if you dont even know where you stand financially.
So lets dig into your numbers. First, i want you to go through all of your business expenses. You can write them down or create a spreadsheet. But write down any recurring charges and people you may be paying.
Next, I want you to do the same for all of your personal expenses. Utilities, rent/mortgage, car payments, credit card payments, all of it. and an amount that you want to put in savings each month. I also want you to think about how much you need for fun money as well. This is money that you want to put aside for vacations or unplanned trips to Target.
Once you have your numbers, add up your personal expenses with your business expenses. That number is the MINIMUM that you need to make each month.
Alrite, now i want you to think about how many clients you can handle at one time. Consider your personal non-negotiables, consider your work schedule and also consider your home schedule as well. If you have 6 kids, a 9-5 and you dont want to work on weekends, then it may not be possible for you to juggle 8 clients a month.
So get really clear on how many clients per month that you realistically can take on. Once you have that number, divide how much you need to make each month with how many clients you are able to take on.
Lets say you need to make $6000 per month and you’re only able to take on 4 clients. 6000 divided by 4 would be 1500 which means you should be charging at least $1500 per client in order to hot your income goal.
So lets say your offer lasts more than just one month. Lets say you have a 4 month coaching program and you’re only able to take on 5 clients during those four months. So if you need to make $3000 per month then thats $12,000. 12000 divided by those 5 clients you’re able to work with would mean that you need to charge $2400 per client.
Remember, we’re not creating and selling a super low ticket offer here.
With that being said. Not everyone will have $2000 or even $1000 that they can just swipe their card for. So if you’re worried that your audience may hesitate with your price, then you can always offer a payment plan option. Whether you split the payment in half or they pay it over the course of your program. This helps your client and also creates more predictability in your finances. Of course there may be some issues here where clients may not pay, I suggest auto payments by the way, or their payment may fail. So make sure you have a clear terms and conditions page and a contract that clearly states what will happen if a payment is missed or if a scheduled payment fails.
What I want you to do next is to research your industry. I want you to find 3 to 5 other people or companies who are doing similar work as you and I want you to take note of their pricing if they have it visible. I dont want you to copy them or compare yourself to them, I simply want you to see what they are charging. This is important because you need to be able to see where your offer and where your price stands in the market. If you’re charging $1000 for something that a lot of other people are charging $4000 for then you may need to consider increasing your rates. Or if the average coach in your industry charges $2500 and you’re charging $10000, you may be over pricing yourself. Doing this research will help you to find a good sweet spot for where you should at least start with your pricing.
With that being said, I’m sure you’ve heard before to also price based on your value. If you’re going to charge big rates, then that means the value needs to match. If not, it could possibly come across as if you’re taking advantage of your audience. When we talk about value, we’re talking about what can you include that will help your audience to reach their desired outcome. First, of course is your offer promise. If you promise to have a website delivered within two weeks then that’s of course what they should receive. But what other assets can you provide that will add more value to your offer. Think about maybe a one on one session with you if you’re hosting a group program, think any done for you templates you can create or a bonus workshop or maybe even offering some type of community that they could be a part of for accountability. These types of things add value and warrant a bigger price.
Again, charging higher prices may require a mindset shift for you to become comfortable. If you are feeling hesitant, then try writing out all of the things that you could do or make happen with this increase in income. I fully believe that when we focus on the good that we can do with money, it helps take away a lot of the uneasiness that comes with it.
Your action step for this lesson is to decide on a price for your offer!