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What to charge as a new coach?

May 14, 20243 min read

How to Set Your Coaching Fees as a New Coach: Essential Strategies for Pricing Right

As a new coach, setting the right fee structure is crucial for your success. You want to attract clients while valuing your expertise adequately. This blog draws from key insights shared by Chris Berry, who explains how to determine what to charge as a new coach, using real-world examples and a practical approach to pricing.

Key Takeaways:

- Understanding Value: Learn that value is determined by the buyer, not universally set.

- Solving Problems: See how pricing should correlate with the magnitude of the problem solved.

- Avoid Common Mistakes: Why simply undercutting competitors is not a sound strategy.

- Outcome-Based Pricing: Move away from hourly rates to pricing based on the results you deliver.

- Communicating Value: Master the art of expressing the value of your solutions to potential clients.

1. The Biggest Pricing Mistake New Coaches Make

Many new coaches start by checking their competitors’ prices and then slightly lowering their own in an attempt to stay competitive. However, this approach often undermines their value. Price should reflect the value perceived by the client, which varies greatly from person to person. A valuable lesson here is that what one person spends on luxury, another might hesitate to spend on essentials. Understanding and leveraging this perception of value is key.

2. Price Based on Problem Size and Solution Impact

Clients buy solutions, not just services. The bigger the problem you solve, the more you should charge. For example, if you help a business increase revenue by $500,000, charging $100,000 is reasonable because of the significant impact you’ve made. This direct correlation between the problem’s scale and your fee highlights the importance of defining and communicating the specific benefits of your services.

3. Avoid Trading Time for Money

A critical shift for new coaches is to price services based on outcomes rather than time spent. Hourly pricing can incentivize longer, less efficient engagements. Instead, focusing on achieving specific outcomes for clients not only increases perceived value but also aligns your success with theirs.

4. How to Communicate Value Effectively

Understanding the client’s problem is the first step in setting your fees. If you cannot articulate how your service solves a specific problem, it will be challenging to justify your fees. Make the client’s problem and your solution very clear. The better you can communicate this, the higher the price you can command.

5. Utilizing Guarantees to Reduce Client Risk

For new coaches, offering guarantees can help mitigate the perceived risk for clients. For instance, guaranteeing specific results with money-back assurances can significantly boost client trust and willingness to invest. This strategy not only secures initial clients but also builds your reputation as results are achieved.

6. Starting Small and Scaling Up

New coaches can start by offering services for free or at a significant discount to gather testimonials and case studies. This can increase the perceived likelihood of success for future clients, allowing you to gradually raise your fees. This approach is particularly effective in building credibility and a track record without requiring a large upfront investment from clients.

Conclusion: Setting Effective Coaching Fees

Setting the right fees as a new coach involves more than just evaluating the market. It’s about understanding the value you provide, articulating it clearly, and aligning your pricing structure with the results you deliver. By focusing on solving significant problems, communicating value effectively, and reducing risk for your clients, you can establish a fee structure that reflects your worth and attracts the right clientele.

The purpose of this blog is to be a comprehensive roadmap for new coaches to not only determine their fees but also to understand the deeper rationale behind pricing strategies in coaching. Implement these strategies to ensure your coaching business not only starts on the right foot but also grows sustainably.

Supplemental Video

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