Pricing in times of uncertainty
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Kids on a walk with their Dad (while I coached clients) on the nearby Rail Trail. #homeschool
When the economy wobbles, companies start to put their products and services on sale.
You've noticed that too, right?
Well, that’s works fine for a large company that makes its numbers on a large volume of clients and customers.
For most coaches and practitioners, we don’t do business on a big volume of clients (unless you have an empire).
So lowering your fees doesn’t work without personally taking an income hit.
In the Happy Little Practice Method, we work with a small number of clients, served supremely well, at a premium price point.
For the average, experienced coach, that’s a rate in the $3,000 range.
When you are charging in that range, you stand a change of earning a six figure income, at three new or renewing clients per month.
Of course, it usually takes some experience and a building a body of work to get to that rate.
20 years ago, I started my first coaching program at a rate of just over $1000 for 6 months of private coaching.
It makes sense that I now create 6K to 10K per client, and 20K+ for highly custom work for advanced businesses. I’m better at what I do, I can do it faster and have streamlined my process.
Of course, some brand new coaches start much higher than I did, based on their life and work experience, education and the training (most of my new in coaching clients start higher).
It doesn’t matter as long as you like your rate, you have a plan to steadily raise it over time and your chosen ideal client can easily afford it.
You Are Not on Sale
When you lower your rates in times of crisis, it can make your client base wonder — Why didn’t she just charge that before?
It’s important to give clear reasons why you’re doing what you’re doing so others don’t make up (less flattering) reasons for you.
Instead of lowering your rates in times of crisis, consider a few alternatives:
Build in Flexibility — Gift new clients a little extra time and grace period in your coaching program to account for COVID, homeschooling et al, if needed and appropriate. Or, offer an extended or flexible payment plan for your signature service.
Offer a Short Term One-Off Solutions - Consider creating a short term offer that’s super responsive to what’s going on in your clients' lives. This may not be a huge money maker but it builds trust, connection and positions you as a leader. And it can be a stepping stone into your signature service. For example, things like a one-off workshop that you can repurpose and resell; a private, virtual retreat on a specific topic; or a one-time session offer focused on solving one challenge.
Create a Brand New Service — Pull out just one powerful result from your signature service and make that a new, stand alone offer at a lower rate. Alternatively, create a brand new super high end offer for the folks who have money, time and energy to invest in this time (this could be a sub-set of your niche or a totally new niche.)
The best place for free stuff is not your services, but in your marketing.
In times of crisis, we all want to help, don’t we? This is a good thing.
However, as coaches we can tip into unfocused helping (doing a little bit of everything) and our efforts don’t cut through the noise.
Redirect your desire to help into your marketing.
Select a focused marketing activity that allows you to educate, enlighten and invite people to solve their challenges with you.
This can be something new or a deepening of an existing marketing activity that you recommit to.
Think consistency, not intensity.
If you speak to fill your practice — Perhaps this is the time for a new signature talk that’s timely and also points to your signature service. You can you can shop this new talk to past speaking gigs. Or simply do more of your signature talk with a slight tweak.
If you love to teach — It could be hosting a a monthly Q&A class or sharing a weekly video or audio tip and always (and I mean always) including an invitation to talk with your privately about solving the problem you solve.
If you’re a writer — it could be writing a series of articles on a specific theme and publishing it in a local or online publication that your ideal clients read, or publishing a short, speciality themed ebook and advertising it on Amazon.
If you’re a networker — you could join a new networking group and become known for contributing positively by taking a leadership role in that community. Or host your own community! (See my Happy Little Practice Community I started during on MeWe.)
If you love referral marketing — ask what your referral partners need right now and deliver it. See if you can do so in a repeatable way rather than reinventing the wheel for every referral partner.
It’s normal to want to help.
Just make sure your kind of helping does not force you to sacrifice your income and focus.
Has this been useful? If so, let me know what landed .
Karin
Happy Little Practice Method Creator
Coach - Small Business Mentor - Author
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