Are You More Interested In Holding Your Price High or Making More Income
I remember when I started out in coaching. That’s been almost 14 years ago now.
In any case, I remember people I looked up to as THE EXPERTS telling me to shoot for thousands of dollars per coaching or training program, and to NEVER take less since that would devalue my program and we wanted to keep making what this thing was really worth, right?
It took me a few years to realize that I wasn’t selling much coaching, or anything else for that matter, so for the heck of it I lowered my price. Who’d have thought that I’d make more money, lots more, by asking less for my coaching. There is a sweet spot where you’ll make the most and your income can shoot up rather amazingly.
Clients pay what they believe is the value. Sometimes it’s the perceived value you put out there for them that limits what they see as value. Sometime it was the actual value. So, on one hand I have to keep increasing the actual results I give and the value of those results, then they’ll pay more for bigger and bigger results, and I also have to be careful to make sure that the values I’m laying out there in marketing as what I sell to also lead with higher values.
But there’s one more way to look at that. Find your sweet spot.
What that means is that as you lower your price for any specific value you say you deliver you’ll discover that the number of sales goes up, and as you lower the price the total income you make goes up, at least until you find the sweet spot where as you lower it further your income starts down. That’s where you want to be, at least for the time being. That’s what your clients believe is about right for what you sell.
And, of course if you aren’t laying a value out there in your marketing, well, at that point no one knows what your value is so it’s assumed a lot lower than I know you are worth. In any case, there are a lot of ways to do this. Raise the value, or lower your price. Raise the value of what you actually deliver. Raise the value you are selling in your marketing. Or lower your rice.
And actually you can do all of those things in any specific market, and find the sweet spot, where you make the most total income by finding he sweet spot. For some coaches, and depending on which kind of market they are in the sweet spot is lower from where you are, while for others it’s higher. We’ll come back to this later.
However, let’s say that you have lowered your price a bit to find your sweet spot, then when you raise your value by offering bigger and more valuable results, now you can charge more and your total income goes back up with it.
I learned about the sweet spot as I was selling my books on Amazon, and also helping my clients find their biggest income from their books. As you raise the price of the book, at first you’ll make more every time you raise the price, the total income for the month, not the individual cost of the book. In any case, eventually there will be a spot where when you raise the price again, the market says, “ENOUGH” and fewer will buy. The total income for the month will start down from that point. So the price for the book, or for your coaching is now maximized. At that price you’ll make the most money, at least based on the value your clients perceive from you.
Then you have to increase the value your clients experience, or believe and your price can be literally anything you want to be. Just show the client how much value it would be to hire you, and, of course you do have to deliver it and your clients will be extremely happy.
I said earlier that, for some coaches, the sweet spot is lower, while for others it’s higher depending on your market. Let’s say that your a business coach selling to $100K businesses, really small ones. No matter how much value you provide, many of these businesses just believe they can’t afford coaching, at least your full one-on-one $1,000 a month or more coaching. When I started offering smaller services, such as virtual coaching (working by email) they got a taste of my coaching for only $99/month and I got 100’s a month taking me up. But my $1000 a month one on one coaching was difficult to sell to this group, at least not in higher numbers. You see, it’s not just holding onto your thought that you should be selling your higher cost coaching, but finding a way to show your skills where it takes up less of your time and you can sell larger quantity for less, and make even more.
In any case, in my book “Secrets to $100K+ Coaching/Consulting: Getting Higher Paying Clients Faster & Easier” I’ll walk you through building a marketing funnel. That’s building a series of steps for your prospective clients to take a taste of your coaching at price points they believe they can afford. So you might start with virtual coaching at $99/month, group teleseminars at $200 to $295 a month, mastermind groups at $500/month, and finally to one on one coaching at $1,000 a month. Or even with one on one coaching, you could easily change from 4 1-hour sessions a month at $1,000 to one 1-2 hour session a month for $250 or so. You see, this is about helping people get what they want and helping them find a price point that works, and you’ll find a spot where they gang up to hire you.
Now, let’s look at what happens when your sweet spot is higher, or at least by making a strategic change in your business that will make the sweet spot higher than where you are. My example above was that you were working with a $100K business that traditionally thinks that they manage their money by cutting costs rather than looking for Return on Investments. In general, even within the same industry, when you move to more successful business owners, you can charge more, and, of course, you should be delivering bigger numbers. So if you move to $1M companies who are used to hiring consultants, coaches, advisors, contractors, etc. You will likely find that your sweet spot can move up. For instance I charge $1,000 a month to smaller companies for one on one coaching, and $2,500 a month for bigger companies. I’ve even been known to get $5K a month for some things I’ve done for the bigger companies.
To summarize, if you are working with either smaller business, or for life coaches, small income individuals, or small thinkers you may find a sweet spot lower than where you are, but use that as a high volume sales that will lead some of them to your one on one coaching. Or you can make a strategic decision to move up to larger businesses, higher income individuals where you can actually charge more. But be aware, that to do this you are delivering bigger, higher value results. To put that in perspective, you may help a $100K business double, which is $100K growth, or your may help a $1M business double, which is a $1M growth. Obviously the $1M growth will justify you charge more.
So where’s your sweet spot? What price point makes you the most money.
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Helping coaches, consultants, speakers reach another $100K to $1M within months and to stop playing in the kiddie pool when attracting new clients.
Author of the upcoming book, “Secrets to $100K+ Coaching Business”