Can you list benefits from high prices for your clients? They boil down to how you structure your business.
Business Structure
How do you understand the way finance works for your business? There are many possible financial objectives and your business may adopt several as it develops. You can choose to maximise sales, revenue or profit, for example. Your choice determines how you market your business.
So, when you estimate the money you need, decide the financial structure to meet that objective. For example, if you seek maximum sales, you must increase traffic to your business and consider how quickly you convert as many as possible.
If you maximise revenue, seek clients who can afford your high-end offers. This may mean reduction in traffic and increased conversions.
Your clients receive a better service from you if you know what you are doing!
Their Confidence in You
When your client trusts you, they are more likely to share openly with you. Price tells them how much you value your offer. If they don’t think you value your offer, why should they trust you can help them? Furthermore, if they see you as successful, you are likely to have inside information to help them be successful too.
This applies to all types of coaching. Say you coach people for stress reduction. If someone faces a crisis, they look for someone with a proven track record so they have confidence their coach can help them. At a time of crisis they may want to meet more often or have access to their coach as things develop. They will expect to pay more for this level of service.
The same applies for resilience coaching. Someone in a responsible position wants a coach to equip them for the inevitable crises. They expect to pay for an effective service.
It is easy to see why self-confidence is important. If you do not believe you are worth a high price, how do you persuade your high-end clients you are worth hiring? If you make a first offer of a high-end product, you can always downsell to a low-end product. This establishes your worth and so long as the low-end product is clearly a lesser product, you establish your credibility. Someone with fewer resources to commit can be reassured by the prices they cannot afford.
More Time
Your aim is to create more time for your clients as you increase prices. With limited hours in the week, knowing how much you need to earn, work out how much you need to earn per hour. Offer high-priced products and you need fewer clients and have more time to devote to each client. This is true for both preparation and face-to-face time.
More Resources
With higher prices you have more resources to devote to your clients. So long as you budget for resourcing your offers, there are many ways to improve your client experience:
- Equipment, eg cameras, tablets, etc.
- Room hire so that you can meet in comfort
- Personal development, training and coaching for you.
- Books and other reference materials for the clients
- Hire specialist support for the client, this will normally be in the contract with the client
- Hospitality for the client, eg meetings over lunch.
- Spaces at events created by you, gets you an audience and is a bonus for the client.
Self-Confidence
Over confidence is a possible downside. What happens if success goes to your head? There is a species of arrogance, sometimes among successful coaches and consultants. Many business owners see this and do not want to be perceived this way.
The main thing to remember is most people lack self-confidence. Being under-confident is more likely to be your problem. They ask: “What if I am not as good as I think I am?” To which the obvious response is: “What if you are better than you think you are?” It is possible low self-esteem deprives the world of your unique, valuable contribution.
Pricing is not the sole criterion for the successful entrepreneur; arguably it is the least important. But reality dictates without sufficient income, other advantages of success are unlikely if not impossible.
Next time, I share ideas about other positive results from financial success, beyond satisfied customers.
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