Welcome to How to price and package your coaching services – the foundation! It's a blog post all about numbers and packages.
This is one of the most requested topics and I find that a lot of business coaches don't really teach this. You're either a financial coach or you're a business coach and very often business coaches tend to kind of throw some numbers at the wall, but there's not too much thought behind it.
I find it absolutely necessary to do this following step first before we can even talk about how much you want to charge.
Step 1 – Know how much money you actually need
When I say need, I mean generating from your business to support your personal expenses, your business expenses, a profit margin, and paying taxes. That adds up to quite a bit.
I want you to always calculate this as if you had to pay the bills all by yourself. For some of you that will be true anyway. But some of you might be married or you might have a trust fund or similar, and so you don't need to worry about this as much. But I promise you, once you see how much you will need to generate in case all of that falls away (which it can always do), it will motivate you and it will help you so much in developing your own worth and in pricing yourself and in selling with integrity.
The first thing you do is add up all your personal expenses.
- add your Netflix subscription, your Disney plus subscription to your monthly (yearly) bills
- add bills that you forget about most of the time, which could be communal tax or the tax you need to pay for your bins.
- Something I'm very good at forgetting are Christmas needs! That needs quite a budget!
- Birthday gifts throughout the year
- New outfits (twice a year I want to get some new clothes!)
Calculate all of these things and divide them in a way that you know how much you need per month. I have a calculator who does that for you, in my masterclass about numbers and packages.
- The same thing happens with your business expenses.
- Add up all your subscriptions from website hosting to your scheduler, where you might have the pro version to social media schedulers, your payment processor that might ask you for a fee.
All of these things cost money, so make sure that you round them up, and sometimes it will be worth going through all of last year's expenses in your PayPal in your credit card statement because you will forget some subscriptions that you forgot that you even had.
Write them all down and do the same exercise. The calculator in my masterclass, will walk you through that too. And now it's time to calculate how much you actually need! You will have two monthly totals.
Add all those up, then calculate that. You will have to pay 25% for anything that you make, so you will need to add that too, because you want to have that apart. Ideally, you also want to make a profit from the beginning. So calculate that on top as well. This will give you the amount that you actually need a month. And for a lot of you, it's going to be a lot more than you thought.
Personally, for me, it's going to be around 8,000 Euros a month that I need in order to cover all of those expenses. Even if those expenses are only 11 months away. I want to make sure that I have enough every month so that I can budget it month by month. When that bill comes in, I don't need to go into my savings, but instead, it goes from my expense account because I know it's there. Piling up for that exact purpose.
Once you know that, then you can go into your packages. We have a certain way of structuring those packages in tiers so that you can actually see exactly, “okay, I've done step one! Now I will develop my packages and then place a number on it”. This time it's really important that you don't compare yourself to others and charge by the hour. Focus really on the result that you provide to your client. Plus you wouldn't know how much you may need to make a month. If you charge by the hour, you will quickly see that that is pretty much impossible a lot of the time.
You will have to change your mindset thinking for that in order to know how many packages you need to sell or how you can divide them into payment plans or structure the different tiers so that you maybe only need one VIP option to cover a month. Then you can price it accordingly. When you suggest that price to your potential client, you are not cringing because you have the feeling that you are taking advantage of them. This is your business and this is your life! You worked hard to get that knowledge that you're giving to them and you are well-deserved to be paid accordingly.
So it's not a scam! It's serious. We are out of the amateur league. We are out of an expensive hobby league. This is a business. And it will be so much easier to explain that when you actually know why you need to charge what you charge and why you want to charge what you charge.
Step 2 – Mindset or money mindset as I call it
Money mindset is what holds us back a lot of the time. Mindset means when you have thoughts occurring in your head that are stopping you from being authentic and from being brave and being happy to be asked to be paid. Those might be sentences like,
I'm not good enough, I don't have enough certifications, I don't have a university degree in this.
You might just be uncomfortable with a lot of money, which is actually something that happens frequently.
So knowing how much money you need and your mindset, are the things that you should have in place in order to make sure that you know how to price and package your coaching services and to sell with integrity.
Download the infographic below, which walks you through those steps very simply. If you want more detailed information, then obviously check out my masterclass in my store.
I hope How to price and package your coaching services has given you a basis for where to launch for your next packages. I'm looking forward to seeing what you've come up with. Feel free to email your suggestions to me and I will have a quick look.