3 practical tips for justifying your coaching-fees

A common question I get from coaches is: “How can I justify my coaching-fees?” Coaches are struggling for justification but who are you justifying your price to? The truth is that often there is only one person you have to justify your price to. In the end it is about convincing yourself. You are the only one you have to justify your price too. Prospects will either take it or leave it. Not everyone will be able to afford you. And not everyone is the right client for you. You simply want enough people to pay your fee, but you don’t need everyone to pay your fees.
 
 
 
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Tip #1: Believe in your own coaching-fees

Coming up with a price is a combination of many factors such as what similar service providers charge and what the market will bear etc. And you don’t have to charge what everyone else charges.You can also charge more than others if you can check off one or more of the following. Provided, that is, that YOU believe in your own prices.
 
  • You’ve got a lot of experience.
  • You’ve got a great relevant educational background- certifications etc.
  • You provide a specialized service.
  • You get results for your clients.
  • You are primarily driven by referrals
 
I share this list merely to help you “justify” your price to yourself. It’s to make you feel better about your fee. Because you don’t need every bullet point. You only need ONE. If you have a lot of experience, then rest easy about your price. If you’ve invested in your program, then you should charge good money and feel good about it. If you are brand new, but you get great results for your clients, then you may also feel great about what you charge.

By Mikelan Valterra

 

 

Tip 2#: Quantify the Benefits Your Client Can Expect from Coaching

In general, the coach’s role is to help their clients improve some aspect of their lives. This can be the client’s professional productivity, happiness or health. Every improvement brings a benefit. Every failure to improve brings a cost.For example, let’s talk about a health coach who helps a man quit smoking for a fee. There are directly displaceable costs equal to the cost of the cigarettes that the man no longer buys. There are avoided costs related to the medical bills the man will avoid since he no longer smokes. Finally, there are less-tangible costs like the cost of feeling bad if the man continued to smoke. Similarly, you can consider direct benefits, indirect benefits and less-tangible benefits.Ask your prospective client to estimate these costs and benefits. Then ask them to identify the part of each that they feel very comfortable they will actually achieve through your coaching.
 
By Dave Iuppa

Tip #3: To Justify and even raise your prices. Do it with confidence

If you are 100% confident in the service and value you are offering to your clients, then you have absolutely nothing to fear from justifying or even raising your rates.As long as you are following your a planned pricing structure and not just implementing an increase in an ad hoc manner, you are fully justified in raising your fees.The benefit of raising your rates according to a strategic plan means that you have clear reasons and justifications for doing so.If a client questions your actions, then try this:Explain the reasons behind the increase in a confident, non-defensive tone.
Highlight any additional training, qualifications or investments you’ve made in the business which justifies the increase.
Find a way to demonstrate the added value you can now provide to justify the increaseAnd don’t forget, in your explanation often just using the word “because” has been shown to induce a more accepting state in people.
 
By Lea Woodward
 
 

If you have any additional tips, please type them down in comments section and it could be added to the list.

 

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