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The most common question that I get from health coaches is how to price their programs and services. Luckily I have a simple formula for pricing your programs that is going to help you make money and prevent you from going broke. Watch my video to learn more or continue reading!
I totally understand the struggle and the pain that goes into trying to price your programs and services. I was a health coach for five years and this was by far the biggest struggle that I had. I went over it and over it again in my head....what is my value? Am I charging too much? Not enough?
Money is a pretty tough subject for most health coaches because a lot of us got into this industry because we wanted to help people, not necessarily because we wanted to become rich. The thought of charging higher prices to help people who are desperate and suffering might feel a little bit icky, or maybe even a little bit gross. But what you may not realize is that by undercharging your services or even offering them for free, you are actually preventing those people who are suffering from getting the results that they desperately need.
The exchange of money with your client is a massive part of their connection to actually doing the work and getting a result. As you know, you can't actually do the work for your client. They need to do it for themselves, and they need to really want it for themselves. So, in order for them to succeed and get that results, they need to be committed. And that exchange of money is actually a massive part of that commitment that they make to their health. Your client needs to find enough value in what you are offering that they actually want to give something away of value in exchange for what you are offering. And if they don't, it's pretty unlikely that they are going to be committed to your program and even complete it.
Have you ever offered a discount on your services, or maybe even offered to give your services away for free? And what was the result of that client? Did they actually stick with it? Did they actually get a result? I would say like 9.5 times out of 10, they didn't actually complete it, stay the course, or get the result that they initially wanted to get. And you also might have experienced this personally. Think of something that you were given for free. How likely was it that you actually committed to it?
If people aren't committed to your programs, then it's actually a huge waste of your time, but it's actually a huge waste of their time as well. If you're going to spend the energy working with a client, you actually want them to get a result. You want them to be happy and give you a testimonial after working with you. So their investment should be enough that they stay fully present and fully committed to the process that they are signing up for you with.
When it comes to a pricing formula, the first thing you want to do is you want to determine your hourly rate. Your hourly rate is for your reference only - you should never disclose this with your client. And if you have no idea what to charge for an hourly rate, think of the last job you just had, maybe the highest-paying job you've had up until this date. Take that number and double it, and there's your hourly rate. So, let's say your last job was working as a personal trainer for $50 an hour, so I would start at $100 an hour for your health coaching services.
The next thing you want to determine is, how much time are you going to be spending in session with your client in that specific program? So, your program might include a one-and-a-half-hour intake session followed by a one-hour test results session, and then maybe you do four 30-minute follow-up sessions at the end of the program, so that is a total of 4.5 hours.
Now, we can't stop here. We actually need to determine the time that is spent behind the scenes with each client. And this is a big mistake that I see a lot of health coaches making, is that they charge for the in-session time, but they forget about the time that they actually spend behind the scenes with each client. So, let's say that you need 10 minutes prior to a session to prepare, and maybe you need 10 minutes after a session to log notes and maybe send resources to client. And then let's say you're running labs with your clients; you're probably going to need at least an hour to review those lab results and develop a protocol. So, if we consider all that, that's actually going to equal an additional two hours of your time.
The next thing you want to do is determine how much time you're spending supporting each individual client. So, maybe you offer unlimited email support. How much time on average are you spending answering emails with each client? And if you don't know this, that's okay, just come up with kind of a generic average. And then you want to track this over time with each individual client so in the future, you know exactly what this number should be. Let's pretend that it's one hour per client. The next thing you want to do is add in any extras that you might pay for with each client. So, for example, do you offer a welcome gift? Make sure to include that. Do you pay for your clients' lab tests? You want to include that in the price as well. So, let's pretend that in this example, that total is $300.
Finally, let's do the math. So, you want to total up your hours spent in session, out of session time, and the time to support your clients, so in this example, that's going to be seven and a half hours. Now you want to multiply that 7.5 hours by your hourly rate, which in this example is $100, and that equals $750. Now you want to add your extras to the total, so that's going to be $750 plus $300 of extras. So, the price for this specific package is going to be $1,050. Now, this price shouldn't actually be set in stone. This is not going to be the price you charge for an eternity.
As a new health coach, I actually don't recommend listing your prices on your website, and I actually recommend increasing your prices with every few testimonials that you get. And so, as you get more testimonials and raise your hourly rate, you're just going to complete this formula again. There it is. It's that simple.
Okay, so now that you know how to price your signature program, you might be wondering about scaling it and actually turning it into a group program. So, if you want to know how to do that, make sure to grab my free Launch Your Group Program checklist!