Table of Contents
Undercharging: The Silent Success Killer
Charging by the Hour: A Restrictive Practice
Low Ticket Offers: A Threat to Your Expert Positioning
Avoiding the Discounting Pitfall
Transactional vs. Transformational: Why it Matters
Picture this as a professional coach or consultant, providing top-tier solutions for corporate clients. You’re highly skilled, results-driven, and passionate about making a difference. But you find yourself in a constant struggle to break into the 5-6 figure income range. You’re working harder, not smarter, and your business, instead of thriving, is just barely surviving.
How do you turn this around?
As a coach or consultant, you understand the importance of a strategic pricing model. It’s a powerful tool that not only defines the worth of your expertise and services but also shapes how potential clients perceive your value. However, we all know that determining the right prices can sometimes feel like walking a tightrope. Whether you’re a novice in this entrepreneurial journey or a seasoned veteran, it’s crucial to correct any pricing mistakes for your business to flourish.
Undercharging: The Silent Success Killer
First, let’s address the elephant in the room: undercharging. This pricing mistake can quietly eat away at the foundation of your coaching or consulting business. It not only impacts your financial health but also undermines your services’ perceived value. So, why does undercharging occur, and what toll can it take on your business?
Imposter syndrome is a common culprit. It’s that nagging voice that whispers doubts about your abilities, making you feel like a fraud despite your proven competence and qualifications. It can trick you into believing that you’re not deserving of higher rates, hindering you from accurately pricing your services. It’s a common challenge, even among experienced professionals. But remember, many successful coaches and consultants have wrestled with and overcome this beast to confidently charge what they’re worth.
Another undercharging catalyst is the lack of market rate awareness. If you’re uncertain about what the market can bear for your services, there’s a risk of setting your prices too low. This can stem from inadequate market research, not keeping up with industry trends, or not leveraging advice from mentors or colleagues.
Charging by the Hour: A Restrictive Practice
Let’s discuss the second common pricing mistake: billing by the hour. Many coaches and consultants fall into this trap, often influenced by their prior corporate experiences. Although it might seem logical and straightforward, hourly billing has several limitations.
The main issue? It puts a ceiling on your earning potential. Considering the finite number of hours in a day, this approach creates relentless pressure to work longer hours, risking burnout and diminished service quality. As a coach or consultant, your value extends far beyond one-on-one session time. The impact you can make on your clients’ lives is much broader, and hourly billing simply can’t capture it.
Now, let’s turn our attention to the solution: the transformational package model. It’s an innovative approach that allows you to deliver value beyond individual sessions. Imagine designing comprehensive packages that combine one-on-one calls, additional resources, ongoing support, and bespoke strategies. This holistic experience enables you to fully utilize your expertise, knowledge, and unique methodologies, guiding your clients towards their goals.
By offering transformational packages, you position yourself as a consultant or advisor, not just a service provider.
This shift moves the focus from the time spent on calls to the outcomes and results that your clients can achieve. Clients are more likely to invest in packages that promise meaningful and lasting change rather than just paying for a specific amount of your time. Besides, adopting a package model opens up opportunities for higher pricing, as you’re offering a comprehensive experience that clients perceive to be of higher value.
Low Ticket Offers: A Threat to Your Expert Positioning
Here’s another critical pricing strategy mistake: pushing low ticket offers. While it may seem like a viable strategy to attract clients, it can inadvertently weaken your positioning as an expert. Instead, consider the power of ultra-high ticket sales. By charging premium prices, you reflect the value and expertise you offer
The Power of High Ticket Sales
High ticket sales have the potential to revolutionize your business. By charging premium prices, you reflect the value and expertise you offer. Potential clients often equate high prices with high value, which enhances your positioning as an expert. It’s also important to remember that higher prices often attract clients who are serious about change and ready to invest in their transformation.
Navigating the Ascension Model
So, how do you transition clients from low ticket offers to high ticket sales? That’s where the ascension model comes in. This strategy involves offering a range of services, starting with lower-priced entry-level offers, which lead up to your premium services. The key is to offer compelling value at each level, while making it clear that premium services offer the highest value and transformation potential.
Avoiding the Discounting Pitfall
When it comes to pricing strategy for coaches and consultants, offering discounts on your services can have detrimental effects on your expert authority and positioning in the marketplace. While it may seem like a quick way to attract clients or boost sales, discounting can send the wrong message and undermine the perceived value of your services.
One of the main reasons why discounting is problematic is that it can make you appear desperate or in a weak position. By lowering your prices, you convey the impression that you are willing to compromise the value of your expertise to attract clients. This can erode the trust and confidence that potential clients have in your abilities and undermine your positioning as an expert in your field.
Moreover, offering discounts tends to attract clients who are primarily motivated by finding a good deal rather than valuing the true worth of your services. These clients may not fully appreciate or be committed to the transformational impact you can provide. They may be more likely to question or negotiate your pricing, leading to a more transactional and less trusting relationship.
Exceptions can be made for limited-time Founder’s rates during program launches or when introducing a new service. Founder’s rates can create a sense of exclusivity and reward early adopters, while also allowing you to gather testimonials and refine your offerings. However, it’s important to clearly communicate that these discounted rates are temporary and that the value of your services will be reflected in the regular pricing.
Instead of relying on discounts, focus on attracting clients who recognize and appreciate the value of your expertise.
Position yourself as a trusted authority and emphasize the unique benefits and outcomes that clients can achieve through your services. By effectively communicating the transformational impact and the tangible results that clients can expect, you can differentiate yourself from competitors and justify your pricing.
Transactional vs. Transformational: Why it Matters
Finally, let’s address the crucial difference between transactional and transformational services. Transactional services typically involve one-off, standalone sessions with no follow-up or support. They tend to be lower-priced and offer limited value.
Transactional packages only focus on delivering specific tasks or services to clients for a fixed fee. This type of package often provides limited value beyond completing a specific task. As a coach or consultant, your goal should be to create transformational outcomes for your clients. Transformational outcomes packages aim to deliver long-term change to clients by helping them achieve their goals, solve problems, and reach their full potential.
When clients invest in transformational packages, they are investing in themselves and their future success. As a result, it’s crucial to position your services as transformational and highlight the potential long-term benefits they can provide. Instead of focusing on the immediate value of your services, focus on the transformative impact they can have on your clients’ lives or businesses.
By emphasizing the transformative outcomes of your services, you can justify higher pricing and attract clients who are willing to make a significant investment in their future.
These clients are looking for long-term results and are willing to pay for the expertise and guidance needed to achieve them. In contrast, clients looking for a quick fix will be less likely to invest in transformational outcomes packages.
Overall, it’s essential to shift your focus from transactional packages to transformational outcomes packages to maximize the value you can provide to clients and increase your revenue. By positioning yourself as an expert who can deliver transformative outcomes, you can attract clients who are willing to invest in themselves and their future success.
Your pricing strategy is an essential component of your business model. By avoiding common mistakes, such as undercharging and discounting, and adopting strategies like transformational packages and high ticket sales, you can enhance your profitability while attracting the right clients.
Remember, as a coach or consultant, your pricing strategy should reflect your expertise, the value of your services, and the transformational outcomes you can deliver. Ultimately, the right pricing strategy can elevate your business and cement your position as a leader in your field.
I want to hear, what pricing mistakes you unconsciously made and when you are ready, book a call so I can help you make the right decision for your coaching and consulting business!
