May 5, 2021
Determining the price to charge for consulting and coaching services can be challenging for both beginners and individuals who have experience with this work.
Some examples of consulting niches and varieties of ways to charge include:
When it comes to charging for your services, it’s about finding a balance. Charging an amount higher than people want to pay will result in lacklustre sales. In contrast, setting your prices too low may require more work than it's worth - and attract poor quality leads.
Implementing a more straightforward pricing strategy can be completed by analysing a few different methods. Choosing an hourly rate, retainer or package option offers both pros and cons. Weighing the benefits and negatives of each strategy will help when trying to select the best option.
One of the most efficient options to choose when charging for coaching or consulting services is to use an hourly rate. For example, a financial consultant might choose this method when offering investment and personal finance advice to a client.
Doing so is easy to track and helps ensure there is money coming in for the time spent on helping a client. However, getting paid hourly can set up specific expectations from a client, making it unprofitable to use this method. You are also exchanging time for money, which can limit your earnings.
If a coach is offering a significant amount of valuable information, helping a client learn quickly, the coach may not be fully benefiting from the service they are providing by using an hourly rate. Some clients may be able to gather all the information they need and only pay for just a few hours of coaching. Using this method may not be best if a result is provided and only a small amount of compensation is received for the value given. In this scenario, the client is getting the best part of the deal, which may be detrimental to the success space of a coach's long-term goals if they continue using this method.
In some cases, like a new business coach who is trying to figure out how to price their service correctly, the value and result they provide may be much higher than the money they get paid for their advice. Using an hourly rate may not be the best way to charge when this imbalance occurs. Considering other methods should be completed to help reach long-term financial objectives.
Another method to use when charging for consulting is a retainer rate. With this method, a client pays a specific amount for a predetermined period. This timeframe can be biweekly or monthly, depending on the scope of consulting required. Choosing this option requires the coach or consultant to set a few boundaries. Knowing the degree of support required beforehand can help clarify the amount of help or services provided.
Setting up this pricing method may mean supplying a specific number of calls for the period covered by the retainer. It might also entail offering unlimited calls or another type of support, such as email.
While charging a retainer rate allows a coach to determine the amount of help they will provide, this option could become overwhelming if they are trying to take on several clients simultaneously. Even by limiting the time limit provided for rendering services, it can still set up a coach with an improper balance of income for the value they are offering. Choosing to use a retainer rate when charging for consulting leaves the amount of information offered open-ended.
Looking at the value of time when pricing for coaching can quickly lead to using a set program or package. Utilising this option offers a client a specific period for consulting. The timeframe for a package might be set up for two months and eight individual sessions via videoconferencing or in-person, depending on the industry where coaching is being provided.
Using this method shifts the question of offering value into the coach's hands, allowing them to set up and meet specific expectations. Offering a program or package provides an accountability partner to a client and helps ensure results are achieved. Offering this method for coaching services can be a win-win situation for a client and coach.
Setting up a coaching service package requires an understanding of the ideal length for the program, whether it's for one month or longer. Determining the length of time or number of sessions may be challenging for a coach who is just getting started with this type of work. Understanding the expectations of each client is essential when using this form of pricing. In the long run, it's probably going to be the best way to approach clients from a financial perspective. However, it may be difficult to determine the appropriate length without experience.
Coaches who are up against seasoned competitors who have been offering services for many years may need to swiftly penetrate the market by offering their service at the low end of the pricing spectrum. Doing so can be an excellent way to get clients, gain experience, become an expert in their field and truly understand the value they provide.
Raising the pricing for the coaching services offered can always be done when a coach feels comfortable or uncomfortable about the price they're asking in exchange for their knowledge, skills and wisdom.
Working with several clients can make it more straightforward and easier to understand the pricing method to use. Having an established brand and testimonials will likely make a significant difference in a coach's value. If they are being bombarded with inquiries from potential clients and therefore in demand, it will be easier for them to ask for more money for their services. Raising the price can always be done if the value clients are receiving exceeds the amount currently charged for the coaching services being rendered.
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