3 Steps You Must Take And Questions To Ask Before Raising Your Coaching Rates
Congratulations! It’s come time, as it inevitably does for every coach, to raise your rates. Whether it’s been too long since you’ve given yourself a well-deserved raise or you’ve gained new skills. Or maybe you’ve decided to increase your pricing in the hopes of attracting a higher demographic of clientele. Your reason doesn’t matter – all service professionals must deal with rate increases.
If you’ve recently achieved a higher level in your industry or niche, such as a new certification or license. Or if your name recognition, and consequently demand for your services, has increased due to book sales, media coverage or major social media milestones, it’s time to tap up your rate. With a wider audience and more attention, a rate increase is expected and will come as no surprise to your clients.
Regardless of the scenario, you’ll want to have a plan in place before announcing the increase.
Three Steps to Prepare for Your Rate Increase
Step 1: Look at your current clients and get honest with yourself.
Will you raise rates on your current clients?
If you intend to leave your present roster unchanged, consider if hanging onto them will be worth your time. You may think it is right now, but when higher paying clients start flooding in, and you must start turning them down for lack of time, will you begin to feel resentful?
In choosing not to raise their rates is there a chance you may end up providing substandard service whether from unconscious resentment or simply due to a packed and overworked schedule? Is even the possibility of subpar service worth the risk to you?
On the other hand, if you decide to raise their rates as well, prepare yourself for a possible client bleed scenario. You will have some clients (you probably already know the ones) leave you. Some may threaten to test your resolve and see if you will back down. Others will walk away. Are you prepared for that financial punch?
Step 2: Figure out the timing of your rate increase.
When will your price increase take effect? This will most likely not be uniform, depending on payment specifics per client. Some clients on an annual plan likely won’t experience the rate increase for months. Whereas your clients on monthly payments may feel that their wallet is a little lighter in only a week.
It’s important, whenever possible, to make sure to give your clients a full 30 days notice of the increase. This affords the time to budget appropriately or to shop around for a new coach. Not all your clients will be able to afford your new rates. It’s not personal and as their coach you want them to find someone, they can afford, but will continue to help them.
Step 3: Do you want to use your rate increase as a quick marketing tool?
Some clients will remain with you. Some will not, and you may not get as many new clients at your higher rate right away. An approaching rate increase is a marketing opportunity if you can afford to be flexible.
Consider an email or social media announcement that your rates are increasing and specify when. Explain that you’re going to open your enrollment to the next X number of new clients who will be able to lock in the current rate for the next 12 months if the contract is signed immediately.
Granted, you will be working at your old rate, but your cash flow will be secured (and possible even increase) as you lose a few clients and wait for new ones. You’ll also have a handful of new clients who are grateful for the opportunity to receive, what they perceive, a discount for the remainder of the year.
These new clients will have 12 months to prepare themselves financially for the rate increase – most will stay.
Another option when offering your pre-increase rate to a select few clients is in the packages themselves. You can always reduce the overall value of your coaching package to compensate for the lower price these new clients pay. Be upfront about it.
By providing a reduced version of your coaching service along with reduced benefits, these select clients will perceive the rate increase, when it hits them, as paying more to get more. Yes, the rate increase will hit them a year later but that higher price, at that point, provides higher value.
Every professional must ask for a raise occasionally. And every self-employed coach who has gone years without one should change that right away. In the end, you know what you’re worth. If you feel that you could charge more, you can.
Hosting a group giveaway is a guaranteed way to multiply the number of subscribers on your list in a relatively short time frame. All that’s required is some proper planning, organization and the right tools. I’m going to walk you through it. Keep Learning >
You could be the best coach in your field, but how are people supposed to know that? I’m here to help you get the attention you deserve. Follow my five golden rules of publicity, and you’ll be promoting yourself like a pro in no time. Keep Learning >