How to Charge What Your Product or Service is Worth
It’s always a mental struggle when you try to decide what to charge for your coaching services or online course.
Whether you’re suffering from imposter syndrome, uncertainty around getting your perfect ideal client a result, or anything else, your overthinking brain along with your ego can make the entire process harder than it should be.
Here are some objections to charging what your services or course is worth:
“my main competitor has more experience than me.”
“My clients won’t pay that much.”
“I’m not confident my course delivers a tangible result, so how can I charge for the transformation?”
“Most of my competitors are teaching [insert your subject here] for much less.”
“People can just hop on Google and learn about [insert your subject here] in their own time.”
There may be some truth to some of these statements however that’s no reason to charge less than your products and services are worth.
Before we talk about how to price your products or services it’s important to understand the types of learners and what they are looking for when it comes to products and services.
These are the three main types of online learners:
1. Do It Yourself (DIY)
These types of learners will spend hours, days, weeks, and even months searching Google. They wade through a mountain of free online content and resources and attempt to figure it out themselves.
Even though it appears that these are not your ideal clients you should 100% create a product that caters to these types of learners.
The product should promise a specific result, a result being one outcome.
For example, you could create a video about “How to stop your puppy from peeing on the carpet without losing your cool”. It’s pretty self-explanatory what the result is based on the title. After creating the video you could have the video transcribed by using a service such as Fiverr.com for a whopping $5 you will then have a written copy fo the video that you could offer on your website as a free download. You could also have the audio stripped out of the video and upload that to your website, audio is becoming more popular these days.
2. Done For You
Learners who either download free reports, watch videos on YoutTube, and in many cases buy a bunch of inexpensive course material never seem to get around to implementing what they have learned, they then complain about not getting results and blame you for their lack of implementation.
Just like the “Do It Yourself” offer you should create at step 1 above, you should 100% create a product that caters to these types of learners.
The product should align with the “Do It Yourself” offer.
For example, You could offer a puppy training service that delivers the same result as the DIY offer however you the puppy trainer arrive at the client’s house and train the puppy for the owner just like you did in the video, content, and audio for the free offer at step 1.
3. Done with You
This type of offer is hands down the best type of offer you can deliver. Learners are willing to pay good money to learn from an expert. They are willing to invest in a high-quality solution that allows them to work alongside an expert to get their desired result.
The product should align with the “Do It Yourself” and the “Done For You” offer.
For example, You could offer a puppy training coaching service that delivers the same result as the DIY and the Done For You offer however you are the puppy training coach and arrive at the client’s house on a regular basis (often weekly) to show them how to train their puppy with them.
Your “Done with You” services could include:
- How to stop your puppy from peeing on the carpet
- How to teach your puppy to shake hands
- How to teach your puppy to sit
you get the idea.
You could also offer a private area on your website that requires a username and password to access where your clients can view content to learn more. For example, what to feed your puppy, how often you should walk your puppy, and so on. This type of strategy then gives you the opportunity to generate recurring revenue by charging a monthly fee to access the private area.
Let’s move on to how to price each of the three services or products we have just looked at.
Result based pricing: It’s all about the customer
Before putting together your offer you what do you need to answer the following questions
- Who is your ideal customer or client?
- What is their age, gender, household income, family status
- What is their one biggest problem that keeps them awake at night starring at the ceiling?
- What’s your actual offer and what problem will it solve for the customer?
- Why should the customer choose you to solve their problem over all the other options they have
- How much is it?
To consumers, they are really only interested in one thing and one thing only, will this product or service solve my problem.
If we take the three products or services mentioned above – DIY, DOne for You, DOne with You they can be priced as follows
If you’re selling TVs, you could walk around a store or go online and see what other TVs cost. Do your research as if you were buying your own product or service and understand the choices you have. Once you have this knowledge you can better price your product or service if this is the market you are targeting.
A typical learner, service or product seeker will sift through many options to get what they want at the best price.
2. Cost plus Margin
This is where you work out what something costs you, add a margin (it should be quite a lot), and come up with a price
For example: going back to our puppy training example, after sitting down and understanding each little cost involved to deliver the Done For You puppy training it might look like this
1. Time to take the booking over the phone: $10
2. Travel time to the puppy owners property – 30 mins: Cost = $20
3. Wear and tear on the vehicle (incl: fuel, rego, servicing, insurance): Cost = $20
4. Puppy treats and training related materials: $10
4. Deliver training for 30 minutes: $20
5. Margin: $60
Grand total: $140 + Tax
So, the cost of the service is $80 and the margin is $60.
Customers don’t care how much something cost you to make or your competitors, they only care abotu the result they’re receiving at the price they want to pay. 2
3. Value to Client
This is a good one, especially when it comes to the delivery of coaching.
For example, going back to the offer for our puppy training coaching service you could charge a monthly recurring fee of $197. This is valuable to the puppy owner because they can access all the training information at once and browse through any of the material at their own pace. You could even offer a weekly call where you answer people’s questions.
The pricing strategy outlined in this article is part of the “Get Clients Challenge”.
You will learn how to price your course or coaching services based on the result you’re delivering
If you would like to learn how you can price your product or services then look to join the “Get Clients Challenge”. CLICK HERE TO LEARN MORE
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