Swapping time for money should never be your core pricing strategy.
1. Coaching requires a lot of your emotional energy, so frequently coaching more than 2 or 3 people a day will leave you burnt out, stressed and frustrated.
2. What happens when you’re sick? Or when you go on holiday? Or the hours you’re restricted to during school holidays?
3. You’ll end up being compared to other coaches purely on an hourly rate basis. And who wants to be seen as just a commodity?
And if you’re lucky enough to already be running a thriving coaching practice based on hourly rates, what happens when you become fully booked? Do you increase your rates? Start working weekends or late into the evening?
Whether you’re a new coach just setting up your online business or an existing coach with a face to face business, it’s time to swap hourly rates for packages.
What are the benefits of a package-based pricing model?
1. You get paid upfront or in monthly payment plans (you absolutely MUST have a client contract, please don’t skip this part!) which means you get to budget and spend on your terms and never have to stress about getting new clients or last minute payments to cover your bills.
2. A package is always more attractive than an hourly rate. A package is marketed in a way that highlights the benefits and the outcome or results for your clients. Therefore, from the outset the client is thinking, ‘yes, that’s how I want to feel’ rather than instantly wondering how many sessions she might need in order to get the result she thinks she wants.
Package based models aren’t limited to coaching of course, as we found out when we recently went on a hunt for a great immigration lawyer. We narrowed down our choices to the two we liked, trusted and respected the most; the ones who we believed would give us the best chance of a smooth, successful move to the U.S.
One charges $250 an hour and the other one charges a flat fee of £6000 plus an additional £1000 for an added value service that would enhance our chances of getting a visa – a service I hadn’t seen anywhere else. Which one would you choose? Which one did we choose? Yep! The flat fee (package based) lawyer. Why? Because Mr $250 could go on for ever with no idea of how long it would take us to achieve our goal and could cost us $5k, $10k or even $20k in the end.
Top tip: When designing a package, consider how long it takes your average client to achieve their goal and create packages around that time frame.
Got questions around pricing and packages? Feel free to drop me a DM or sign up to receive your FREE Beautiful Coaches’ Starter Toolkit packed full of all the basics, templates and tools to help you become a beautiful coach with a thriving business.
Love & mischief,