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Setting the right group coaching pricing is crucial for maximizing profitability. However, many coaches need a clear strategy when determining their pricing.
For instance, if you charge $1,000 for your program, but half of your members would be willing to pay up to $2,000, you're missing out on potential revenue.
Instead of increasing ad spend, securing more clients, or expanding your team, prioritize finding the optimal price point for your program.
Todd Herman, an award-winning coach whose group coaching programs generate well over six figures, uses a specific approach to pricing.
Understanding the fundamental differences between expensive and cheap group coaching pricing
In the realm of coaching, the prices charged can span a broad spectrum, with some providers offering their services for as little as a hundred dollars per hour while others charge well over a thousand dollars.
However, there exist a few rare and exceptional coaches like Todd, whose clients are willing to pay an astounding $100,000 annually for customized coaching services. Todd's value is unquestionably unmatched, and his clients are more than happy to pay a high price point for his unique expertise.
Now, you might be wondering what sets these coaches apart and how you can close the gap. To stand out as a coach, focus on industry authority and target audience specificity.
Having authority in the industry makes it easier to sell coaching programs. For instance, Susan Cain wrote a book on introverts and can charge thousands for a course to help them get a promotion in six weeks. However, building credibility will take more effort if you're still determining.
So, how do you do that? Help people achieve the results you're promising in your course and share those results with others in the industry. Doing this will eventually build up your brand and drive leads organically.
To charge more, specify your target audience. For instance, if you're a single mom trying to lose weight, find a coach specializing in that area. They'll provide a more personalized offer.
But beware! Beginner coaches often mistake their offers as specific when they are still generic. For instance, "How to Publish a Book For First-Time Authors" needs more specificity.
Todd advises narrowing it down to "How to Publish a Book For Educators That Are First-Time Authors" to target specific pain points and boost conversion rates.
So there you have it, folks - build up your authority and get super specific with your target audience. If you can do that, you'll be able to charge way more than the average coach. Good luck out there!
How to get minimum viable pricing?
When determining the initial price for your coaching courses, it's essential to consider the pricing strategies used by top-performing coaches compared to average coaches.
First, research your competitors, but focus on something other than their pricing. Instead, create a spreadsheet that includes the following categories:
- Price point
- Number of accountability sessions/check-ins
- Amount of one-on-one time with the coach
- Course content, worksheets, and other materials
- Templates, tools, and other resources provided
- Support
Examining these factors is crucial because a course with only a few videos will differ significantly from a course that offers frequent check-ins with the coach and comprehensive templates and tools for each lesson.
How to justify your group coaching pricing?
When determining the appropriate pricing for your coaching program, it's essential to consider how your customers will perceive the value. To do this, use the following formula:
Offer + Transformation + Price = Perceived Value
- Offer: The contents of your coaching program, including templates, worksheets, video modules, and accountability sessions.
- Transformation: The results that your clients will achieve through your coaching program. Such as receiving a $5,000 promotion or doubling a $10,000 sales pipeline.
- Price: The cost of your coaching program.
If you need clarification on whether your pricing is reasonable, you can adjust any of the three variables (price, offer, transformation) to find the right balance. Moreover, you can enhance the offer and transformation components if you want to charge more for your program.
Testing the different group coaching pricing
After determining your initial price point, it's important to remember that you can constantly adjust it later. If you're stuck between two prices, it's recommended by Todd to choose the lower one initially and increase it if you get a lot of sign-ups.
The rationale is to avoid upsetting early buyers who pay a higher price if the price is reduced for newer customers.
If only a few customers are willing to pay the initial price, you might need to lower it to make sales.
In such cases, Todd suggests modifying the offer by removing some of the value and re-releasing the course with the new proposal at a lower price point. This way, you can avoid upsetting initial customers by saying that the more recent version has a lesser value.
For example, Todd applied this strategy in his 90-Day Year business. Where he found that customers preferred the accountability aspect over the content.
So, he shifted the course's focus to "transforming into a professional entrepreneur" by removing much of the content and emphasizing accountability. This allowed him to lower the price point without upsetting initial customers.
If you want to test different price points before launching your course, Todd recommends running Google ads with varying prices and redirecting users to a waiting list page. By monitoring which price point gets more sign-ups, you can determine the most popular price for your course.
Not seeing conversions?
Worried your price is scaring off potential buyers? Don't sweat it; there could be other reasons you're not getting sign-ups. Maybe people are just too lazy to take the course; who knows? But if you want to know if your price is the problem, check the course reviews for clues.
Todd's rule of thumb suggests delivering value at least 10 times the price charged to satisfy clients and ensure a fair price point.
In teaching cake-making, a specific limit exists to how much one can charge. However, a caveat exists to this principle - the possibility of teaching clients how to create a cake valued at a million dollars. In such a scenario, the provider can charge a premium price without causing undue harm to the pricing structure.
And remember, who your client is matters too. If you're helping someone already making bank to 10x their sales funnel, you can charge much more than helping someone barely scraping by.
Learn more: How to Do Group Coaching Programs - Everything You Need to Know.
Final thoughts on group coaching pricing
To boost your course's profitability, pricing is crucial. Use these tips to evaluate your coaching pricing strategy.
Consider using Teachfloor, a comprehensive coaching platform that offers everything you need for a top-notch coaching experience. Try it out, or sign up for a demo now!
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