Today we’re talking pricing – specifically my do’s and don’ts when it comes to pricing your online course or coaching package.
The women that I work with in my coaching practice are coaches and course creators. So when I am talking about pricing. I really am talking about service based businesses.
They have a course or a coaching service, but this works for “done for you” services as well when you’re putting together a package of services and you’re going to deliver that package for your client.
What this does not apply to are product based businesses where it’s more retail or physical product based businesses. This method of pricing does not specifically apply to you. So I just want to make sure that you understand that from the get go.
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I just finished up a workshop with some of the people in my facebook group and we went through the whole pricing exercise of developing what is it that you do for your client. What are the results that they get? What’s the cost of not doing business with you? What are they getting stuck in. Basically, what are they going to have to live with.
Then we went through an exercise where you actually priced your services and created your payment plan and any kind of fast action incentive that you might provide.
Today, I am going to share my do’s and don’ts of pricing.
This is really going to help you out, once you have developed your pricing, to help you really feel empowered about that pricing and to be able to speak about your pricing with ease. It will also help you overcome some different stumbling blocks that you may have in your mind around your pricing.
Check out these blog posts to help you connect with your ideal client
The Do’s and Don’ts of Pricing Your Offers
Don’t use words like price, cost, or discount. It really is an incentive. When you’re talking to your customers and your potential clients, you want to say, “I’ve got an incentive for making that decision right now. Here on the phone.” and that is $50 off or $500 or $1,000 off, depending on the price of your package.
What you do want to do is use the word investment. When you are selling your services, your coaching product, your course. You are selling something and they’re investing in themselves. They’re investing in their business. It’s not just a sunk cost, where it’s just like a necessary expense like buying toner for their printer. It’s not the same. It is an investment in their business and there should be return on that, right, because of that work.
That’s why it’s an investment.
Moving on… don’t, don’t discuss the investment until you’re sure they’re a fit. This is really key on enrollment calls, sales calls, discovery calls, whatever it is that you term that for you within your business.
That sales call that you are having, or that enrollment call, you want to make sure that they are really good fit and invite them into your program or invite them into a particular package based on their needs. Then you discuss the investment involved.
Don’t discuss that until you’ve actually talked through everything and they understand what they need and how your program will help them. They understand why they need it and they they’ve gotten to that mental place where they are ready to go.
And it just comes down to them saying, “Okay, I’m ready. But what’s the price?”
You need to know they are a fit and they need to know they’re a fit. You’ve decided you want to work with them. They are the type of person you want in your program and they feel like a good fit with the other participants if it is a group program.
Really be clear on your niche and who you want to work with in your program.
And definitely listen to your intuition about who is or who is not a fit. So if you’re on that call, and you feel as if everything seems right, but there is something that seems off.
Give your intuition some weight on whether or not you actually invite them into your program.
Don’t allow a client to negotiate their deposit or their payments, especially during initial enrollment. How you handle payments sets a tone for your credibility throughout the program.
If, during the enrollment call, you are already letting the client negotiate with you. You’re already letting them manipulate and change things. Now it’s one thing if you take the lead and you decide to offer them something specifically tailored to their situation. But if it’s coming from them, for example your potential client says, “Would you take this much instead?” That’s going to be a clue of what type of client they are going to be as well. And they may try to negotiate a lot of things with you that you’re not willing to give and then it becomes a very contentious relationship. So don’t allow a client to negotiate their deposit or your prices.
Do always make the deposit non refundable. So this is their commitment to their transformation. And their transformation begins with this transaction.
This isn’t about you. This is about them physically and mentally making a commitment. So they’ve mentally said, “yes.” And now they’re going to physically say, “yes” and invest in that commitment by making that deposit with you.
Don’t under charge as it devalues your credibility and reputation. People respect what they pay more for.
And do remember that your clients aren’t investing in you. They are investing in themselves through you. You’re the vehicle, but they’re really investing in themselves and their business, in their potential, in in their mindset, in their happiness, in their joy, whatever that that is and whatever type of coaching that you do.
Don’t base your pricing on the time investment. Clients are investing in results and accountability, not your hours.
Do have your client sign a very simple agreement that outlines what they get in your package, so they’re not paying per hour. This is a package deal.
Completely explain what is included in the package, not just on your enrollment call, but also in your contract so they understand before they ever pay you. The contract or agreement doesn’t have to be super complicated, but something that really outlines what you’re delivering and sets the expectations for the client/coach relationship.
Don’t decide what someone can or cannot afford. You have no idea what they actually can do. You have no idea how powerfully someone can step up looking at something that they really want.
Do adopt the mindset of holding your clients as powerful, no matter what.
Even if they want to drop out of the program or delay their payments, you’ll be surprised how often the mindset of holding your client as powerful and asking key questions can help.
Help your client by coaching them to make a new and empowering decision in their transformation.
Don’t always publish your fees on your website do consider offering payment plans as one of your payment options.
When it comes to posting your fees on your website, this really does depend on the size of the package.
The rule of thumb that that I use is: if it’s under $2,000 then you can probably post the fee with a Buy Now button. For $2,000 or more require an enrollment conversation. Have them schedule a call and on the call help by coaching them to a decision.
But make sure that you are helping them to invest in themselves. You’re helping them buy into the transformation that they really want
Do remember that a payment plan is a courtesy, you’re offering your client. So they are investing in a program not paying month by month.
Make sure that they understand that that payment plan. Sometimes it doesn’t match up to the length of the program.
Do accept all four major credit cards, most of the the methods of receiving payment that are available to you allow you to do that. So that’s usually not an issue.
Do consider not accepting credit cards with higher package investments. So when you’re getting into the multiple thousands of dollars, you might want to actually look at receiving a physical check. There’s something different in that there is a different feeling. It’s just like when we paid cash for something versus a debit card.
Do always put a time limit on when the package must be completed. In your contract, you want to make sure that you include that end date for your coaching program.
If it is a service that you’re providing, then you want to be clear in your contract which exact services are included. If it’s something that may include revisions, you might want to actually specify how many revisions are allowed.
Do expect your clients to get into action quickly once they invest in your program. They are busy. You’ve gotten them excited and they’ve paid – now deliver something.
So even if you are doing enrollments for a short time period and everyone begins on a certain date, you want to make sure that you have something for them to do during that gap between when they enrolled and the official start.
You want to have some type of materials for them to work on now. It could be journaling exercises. It could be a few short videos that are quick start so that they have some kind of tasks to do that they can start immediately and they won’t lose their momentum in their mind.
They won’t lose their enthusiasm! They have something to jump into so if there is a two week gap, a three week gap, they’re less likely to fall into any kind of buyer’s remorse if you’ve got something for them to do immediately.
I really do hope that you found these do’s and don’ts of pricing helpful. This is just a portion of what I teach within the Kingdom Biz Incubator membership. KBI is a group coaching membership program for women who are in the early stages of their coaching practice who need a clear framework to create their group programs and online courses.
If you are ready to build your first course or online group program, Kingdom Biz Incubator is for you! Come on in and join us!
My mission is to encourage women to trust in themselves in life and in business. With love and faith I lead women business owners to find freedom in their God-given identity so they can live out their purpose with confidence. By helping you set expectations that lead to action, your dreams become a reality!
Stephanie Ferrara
Coach, Speaker, Freedom Fighter
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