HOW TO PRICE YOUR PROGRAMS

how to price your programs

Have you been struggling with how to price your programs?

Are you worried about charging too much and losing potential clients?

Are you worried that you’re losing money because you’re not charging enough?

It’s tricky, because you want to find the sweet spot where people are willing to invest in your offerings AND you’re making good money.

After 10 years in business, pricing lots of different offerings, I’ve made some mistakes and learned a lot along the way.

Today I’m going to share my thoughts and strategies around pricing.

How to price your health coaching programs so they sell out every time! Plus, a bonus pricing chart for health coaches.

The Psychology of Pricing

First, I want to talk about the psychology of pricing.

While it’s easy to think that the lower the price, the more people will buy, that’s not necessarily the case.

Whether we realize it or not, research has shown that services or products that have a higher price also have a higher perceived value.

Think about it…

Imagine that you were shopping around for a personal trainer. You got the names of 2 people. One charged $40 per hour and the other charged $60 per hour.

While you may love the $40/hour price, you’d probably wonder why she wasn’t charging more. You’d assume that the $60/hour trainer had more experience, was more skilled, and would get you better results.

You can certainly set your rates too high, but you can also set them too low.

When you charge a higher amount, you’ll find that people have more confidence in you, they take working with you more seriously, and you’ll attract ideal clients who are ready to take action.

What are people willing to pay?

This is the million dollar question, isn’t it? If you knew the maximum people were willing to pay, you would charge it (or close to it!).

While you can’t read people’s minds, there is an easy way to figure this out.

When I was a brand new health coach, I decided that I would gradually raise my prices over time.

At the time, I was offering a 6 month one-on-one coaching program. When I started seeing clients I was still in school, so I started charging $75 per month.

I generally do NOT recommend such a low investment, but for me it was a way to easily sign on clients and gain experience. After I signed on 2 clients, I went up to $95 per month. After 2 more clients, I went up to $125. I kept going until I reached $297.

While my rates were pretty low, remember this was several years ago.

I still love the approach of gradually raising your rates because it allows you to charge more as you gain more experience and confidence.

There are lots of coaches who will advise you to charge $3,000 or more for your private coaching program. I think it’s great to charge that amount, but you have to be able to OWN whatever price you charge.

If you currently charge $900 for your program, going up to $3,000 is a BIG leap. You may not be convinced that you’re worth it or that people will pay that amount. If you’re not convinced you can “own” the number, your potential clients will pick that up and likely won’t sign up.

By gradually raising your rates, you’re able to see how your pricing impacts people’s willingness to sign-up.

How do you know when your rates are too high?

I used to think that I was failing if I wasn’t “closing the deal” with every potential client I spoke to.

I then learned from a wise marketer (Rob Scott) that if I was closing the deal 100% of the time (or close to that), that it meant my pricing was too low.

What an eye opener!

As Rob shared with me, I shouldn’t be closing the deal more than 80% of the time.

What can you learn from this?

As you gradually raise your rates, you’ll start to see where you get resistance.

If you’re accustomed to closing the deal 90% or 100% of the time, you might notice that you start closing only 70% or 80% of the time.

This is a great place to be. But if your closing rate dips below 70%, that’s when you’ll may want to slightly reduce your pricing.

Offer Different Levels of Support

I don’t believe in overwhelming potential clients with too many options, but it’s always great to give clients at least two options to choose from.

When I was a health coach, I offered 3 different one-on-one coaching packages. My highest end program was called “Total Support” and it was by far the most popular.

You will find that most clients will choose your top offering. This is because they’re serious about feeling better and they don’t want to mess around with a program that doesn’t give them everything they need.

Of course, some potential clients will be price sensitive, so it’s great to have a lower-priced offering. This lower-priced offering should have significantly less value than the higher-end offering.

Nailing down the numbers

When you offer a service (such as 1:1 coaching or a group program), you’re providing your energy in exchange for your clients’ monetary investment. When determining your pricing, I think it’s important to consider what that energy exchange is worth to you.

The numbers will change over time, as you grow and evolve. But when creating your pricing, check in with yourself on what you feel it’s WORTH to you.

Sample Pricing

New Coach More Seasoned Coach
“Total Support”
12 Week Private Coaching Program
$997 $1,697
“Jumpstart”
6 Week Private Coaching Program
$697 $997
7 Day Group Cleanse $97 $147

Feel free to use this chart as a starting point as you think through your pricing. But remember, your specific pricing will be based on what stage you’re at in your business, the demand for your services, the types of clients you work with, and what’s included in your programs.

Experiment to find the “sweet spot” where you’re enrolling clients at a good rate and you feel the investment level is a good exchange for the time and energy you put into your programs.

 
Now I’d love to hear from you!
If you have pricing you feel really good about, share it below. If you have questions about pricing your programs, post those questions below so I can support you.

20 Responses to HOW TO PRICE YOUR PROGRAMS

  1. Cassi says:

    I don’t even know what to include in the packages…

    • Amy Lippmann says:

      Hi Cassi – I know it can feel overwhelming to know where to start. I will definitely cover this in a future post, but start by thinking about all of the things your clients need to know/learn in order to get the results/change their looking for. Make a list and then put the topics in the order that you think makes the most sense. I hope this helps!

  2. Cynthia says:

    Great article..for the 6 week coaching, did you meet weekly? for the 12 week, did you meet twice/month or more frequently? Right now I offer 3 and 6 month options….I have reduced the time to 30 minutes/twice/month and that has been doing well, but i’m wondering if I need to readjust my pricing based on this article.

    • Amy Lippmann says:

      Hi Cynthia – I never offered a 6 week program, but if you do offer this type of program I think it really depends on what you feel will work for your clients. This decision is less about marketing and more about what will work from the coaching side of things.

      I think you could certainly offer weekly calls, or every other week. The Jumpstart program I mentioned in the post isn’t meant to necessarily solve all your clients health concerns. It’s a way for they to get started. If you offered a 6 week program with weekly calls (6 calls) and a 3 month program with calls 2x a month (also 6 calls), then the pricing should be similar for both programs.

      I think it’s great to offer a 3 and 6 month program with 30 min calls twice a month. If that’s working well for you and your clients then there’s no reason to change it!

  3. Mas says:

    Thanks Amy, this is awesome advice as it’s something I’ve been struggling with for a while. You’ve explained it perfectly!

  4. Sandra says:

    This was a great post. The pricing chart was very helpful. I haven’t offered a 6 month program for years. By the 5th month, my client felt he had everything he needed and I was feeling a little drained. I like 3 months and I’ve also began detox programs. I also like that you mentioned offering different levels of support. So it’s offering the same program, with less offerings. I need to review what I’m offering then decide what to reduce for the lower priced-option.

    Thanks Amy.

    • Amy Lippmann says:

      Glad it was helpful Sandra. I remember feeling the same way about the 6 month program. It’s great to get clarity about what works best for your clients AND you!

  5. Tahlia Sage says:

    This article gets me thinking about the value and services I include in my packages. I can’t OWN my packages because I didn’t see the value I’m offering objectively. I feel bad about charging for my knowledge. In fact, it is the accountability and support (in your words, energy) that gets clients the results they are looking for.

    • Amy Lippmann says:

      Tahlia – Great insight. I hope you do see the value of what you’re offering. You are helping change people’s lives!

  6. Nathan says:

    Amy,

    This was very helpful. Thanks for writing such an easy to follow and practical article on a very important subject.

  7. Elaine Durden says:

    Great info to help me to find a starting point for my career as a health coach. I also learned a lot from your replies. Thank you! I feel strong about how to create my packages for my business.

  8. carmen Female Estrada says:

    Hi Amy, I am planning to offer a 6 week Corporate Wellness package and I was wondering if I should do the onsite meetings every other week instead of weekly. Any suggestions? Also, do recommend online meetings in-between to keep people more engaged in the program? Thanks in advance for your feedback!!

    • Amy Lippmann says:

      Hi Carmen! I think weekly meeting would be very important to keep people engaged. In terms of online meetings, I think it would depend on the group and if they travel or are in different locations – or if many people will need to miss the in-person meetings. If most will be in the live meetings, I don’t think you need online meetings. I do think it would great to have an online forum, like a Facebook Group, where people can get support from you between sessions. Make sense?

  9. Hazel Saigo-Valentine says:

    An earlier comment from Sandra – “my client felt he had everything he needed and I was feeling a little drained” – got me thinking about program design.

    If the course/program were designed in such a way that it is graduated out and each session builds on the preceding one, the client can be retained (compelled to stay) to the end of the course, no? If we can design in such a way that the client feels there’s more to come, that might deter him from leaving before the end, certainly before he’s gotten all that he’s paid for.

    Another justification for selling our programs as “packages” as opposed to individual sessions.

    Does what I’m suggesting make sense?

    Hazel

    • Amy Lippmann says:

      Yes, that’s exactly right Hazel! And sometimes our clients *think* they have everything they need, and it’s our job as coaches to articulate the additional ways we can help them create change for themselves.

  10. Laurel Sakson says:

    Hi Amy,

    Thanks for your assistance and expertise on this over-whelming venture into starting a new business.

    I am a certified Precision Nutrition Coach which follows a 12 month curriculum which I also offer in a 6 month program but I’m struggling on how to create a 6-week jumpstart and have no experience in the detox field. I also offer personal training and fitness programs. Can you give me some tips on how a 6-week jumpstart or challenge works from the coaches perspective? For example, would a coach create meal plans or food lists and workouts for them to follow? Is it a pre-made general program to get them started and/or designed to prepare them for our better life-changing program? Is it best to individualize the shorter programs?
    Since my 6 month program is habit-based that starts slow and builds upon itself, I wonder how I would offer a 6-week challenge that would be fast and furious (i assume) then lead them into the next program which may seem like going backwards. Perhaps I’m struggling with how my target market/clients will perceive it. Eeek!
    Hope this makes sense. I feel a bit scattered setting up my programs.
    Thanks,
    Laurel

    • Amy Lippmann says:

      Great question Laurel. What I’d suggest is that you take a piece of your 12 month curriculum and have that be what you provide in the 6 week program. It should be something that helps them get some immediate results, but of course won’t solve everything you do in your 6 month program. It should be results-oriented and scratch an itch your ideal clients have.

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