Which pricing method should you choose for your coaching activity?
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There are several pricing models you can consider. Depending on your objectives and your clientele, certain models will be more suitable than others. Understand that everything is connected. Pricing is an important point of your strategy, which however arises from a more global marketing strategy and which will impact your communication strategy.
The hourly rate
There are both advantages and disadvantages to using an hourly rate for coaching services, and it's important to consider them to determine if it's the best pricing model for your offerings. This pricing method is ideal for launching your business, attracting your first customers and taking your place on the market.
Simplicity and transparency for all
The hourly rate is simple for clients to understand, making the pricing structure transparent. Clients know exactly what they are paying per hour of service, which can make the purchasing decision easier for those new to coaching.
Flexibility for your customer
Clients enjoy the flexibility of paying for the time they use, which can be particularly appealing to those who aren't sure they want to commit to long sessions or packages.
You sell your time fairly
You are paid fairly for every hour you work. This can be particularly beneficial in early coaching sessions where the time spent understanding the client and setting goals may be more important.
Plus, for every client, you sell your time the same way. There is a form of fairness in this pricing method which can allow your customers to knowingly recommend you to friends and family. This also allows them to organise their sessions according to their budget, without unpleasant surprises.
What you should consider with the hourly rate
Your turnover is limited to your availability
If you charge per hour, your earning potential is directly linked to your availability. This limits your ability to increase income without increasing your work hours, which can lead to an income ceiling that is difficult to exceed.
Your customers can opt out at any time
Clients may be hesitant to schedule regular sessions if they feel pressured by the hourly cost, which can lead to discontinuity in coaching and fewer stable results for them.
It can also create a decrease in the value perceived by your customers. Indeed, by carrying out intermittent sessions, improvements may take longer to be felt.
You don't sell your worth
Sometimes, clients may perceive services billed by the hour as less valuable compared to packages that promise concrete results. This can affect the way your services are valued in the market, such as the involvement of your customers.
You must learn to manage your time accurately
Hourly pricing can create pressure to maximize every minute of the session, which can sometimes harm the quality of interactions when the focus is too much on the clock rather than on the content and quality of the coaching.
Conversely, if you go overboard to give your clients the time and space to complete their thoughts, you will gain feedback on your schedule. This can have repercussions on your turnover and the image you project.
Packages
Ideal for long-term commitments or specific programs. This pricing method allows you to bring your activity to a threshold of profitability and financial security.
Increased perceived value
Packages may be perceived as offering greater value compared to individual sessions. They help structure comprehensive programs with clear objectives and tangible results, which can justify a higher price and strengthen customer engagement.
Predictable income
With plans, you receive an upfront payment or installment payments over the life of the program, making it easier to forecast your income and manage your business financially.
Improved customer engagement
Customers who commit to packages are often more dedicated and motivated to achieve their goals. This generally results in more significant progress and more satisfying results.
Operational efficiency
Planning and running sessions as part of a package reduces the time spent on weekly planning and administrative management, thereby optimising your schedule.
How to manage this pricing?
You must carefully calculate your break-even point
If the package is miscalculated in terms of time and resources needed, you may find yourself working more without adequate compensation, which can reduce profitability. Defining package content and pricing can be more complex than simple hourly pricing. It requires a good understanding of the value you provide and how it translates into results for your customers.
Your customers may lose flexibility
Some customers may be put off by the lack of flexibility in plans, especially if they're not sure they want to commit for a long period of time or would prefer to test your services before committing further.
You will need to set clear performance indicators
With packages, there is greater pressure to produce concrete results within a fixed time frame. This can increase stress and expectations for your services. During your first session, take the time to clearly define your client's goals.
Do not neglect this step. It is essential, among other things, for:
- ensure that you are able to help your customer;
- note the points which will prove the effectiveness of your support;
- allow your customer to see their progress.
Value-based pricing
Ideal for highlighting the specific impact and results your coaching brings to clients, this pricing model takes into account the perceived value of results rather than time spent. With this pricing method, you take your activity to another level, that of financial abundance. Here, you are looking to assert your business and generate significant income.
You are selling a transformation
This model directly aligns your fees with the results obtained by the client, which can increase client satisfaction and strengthen your credibility as a coach. Customers pay for the specific transformations or results they achieve, which can make them more invested in the process.
You are aiming for premium support
By setting your prices based on the value you provide, you can potentially charge much more than a standard hourly rate or package would allow, especially if the results you deliver could be seen as having a significant impact on your clients' professional or personal lives.
Time is no longer a limit
You are not limited by the number of hours you can work, allowing you to maximise your efficiency while earning more, without increasing work hours.
You aim for quality and not quantity
This model encourages a focus on the quality of service and the effectiveness of coaching sessions, since the emphasis is on achieving results rather than the quantity of time spent.
How to sell your value?
You will need to communicate effectively
It can be difficult to quantify the value of a personal or professional change, making pricing a challenge. This requires a clear understanding and effective communication of the specific benefits your coaching provides.
You must prove your results
You must be able to clearly demonstrate the results and benefits of your coaching to justify your prices. This can put additional pressure on delivering measurable and tangible results.
You will have variable income
Your revenue can vary more widely because it is tied to the ability to deliver results that customers highly value. In periods of lower perceived performance, your income may suffer.
You will need to construct a good sales pitch
Some clients may be skeptical or resistant to the idea of paying for results rather than time, especially if they are used to more traditional pricing models.
Pay-coach helps you choose the pricing method that suits your coaching activity
The pricing method you choose will greatly impact your activity, both during its creation and in its development. Take the time to weigh the pros and cons. Remember also that you have the possibility to change things. Test and adapt your pricing method based on your needs and those of your customers.At Pay-coach, we are dedicated to providing you with all the resources necessary so that you can confidently navigate the world of coaching.
Stay tuned for more articles on how you can grow and protect your coaching business. At Pay-coach, your success and safety are our priority. Join us now to explore more resources and advice dedicated to the exciting world of coaching.
