Talking About Money by Beth ColeJun 12th, 2009 | By Beth Cole | Category: Web Marketing
I think one of the most difficult aspects of being self-employed as a coach, is setting your prices and feeling good about it. So many people I talk to have angst in this area. While I am not a pricing expert I want to layout some ideas here that might help you feel more confident when it comes to talking about money with your prospects.
One idea is to get away from the notion that we compete on price and that we will win more clients if our rates are lower than someone else’s. If this is your mindset and approach to pricing it’s time for a reset. The truth is, you are selling yourself. Much of what you are offering the client is wrapped up in your personal brand, the promise of value, the evidence of success and credibility that you bring to the table. As believers, we know we were created by God (Ephesians 2:10), He gives us our talents and abilities and we give Him the credit for it.
So as good stewards of His gifts in our life, we need to have the mindset of value pricing vs. commodity pricing. Your coaching service has value to your prospect because of your depth, who God has made you to be, your expertise, your satisfied clients, approachability, packaging, etc. It is worth something to the client. It has VALUE.
You are not competing on price. I think it is good to know the rates of other coaches in your niche but I wouldn’t let that dictate your pricing in the end. Instead, make your pricing your own.
Another idea is to think about how you arrived at your hourly rate. I think sometimes we confuse the hourly rate we need in order to make a profit, and the rate we are actually charging. Remember,the hourly rate is not all ours to keep even if we are an office of one. And profit is not a naughty word. God’s word tells us to be free from the LOVE of money, but God designed business so that we could be kingdom minded with our earnings. Earning a profit will help you practice good stewardship. We need more kingdom minded businesses! So your hourly rate should take into account all of the overhead you have in running your company, as well as taxes and profit. Your hourly rate shouldn’t be based on going wages or what you were paid at your last job.
And how about the actual conversation about money, how is that going for you? Most of us offer a 20 minute consultation or a free session as a test drive to see if there is a click. This is an opportunity for us to listen and connect with the prospect, and talking about money may seem out in left field, but I think you should always talk about money during this conversation.
One way to do this is to ask about the prospect’s budget, find out where they are in terms of what they are looking to spend for coaching. If the prospect isn’t sure, ask if there is a range for example less than $250 per month or more? They can usually answer this question and if they say less, and your coaching package is over $250 per month, you know there is not a click. So what next? How about offering this person a group rate? Or a payment plan? There are always alternatives. Not everyone will be your client and you don’t have to say “yes” to everyone, especially those that expect you to give your coaching away. I am not saying we shouldn’t minister with the gift of coaching when necessary but pray first! This will help you know.
God has gifted you (given you talents Matthew 25:14-30). Because of Him, you have special ability and specific training, it’s okay to use it!
What have you found to work in the area of money and pricing? Please comment and let me know your problem areas or solutions to money issues.
Let’s practice the talent principle and multiply together!