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July 19, 2022

161 | Three Ways To Determine How Much You Charge

161 | Three Ways To Determine How Much You Charge with Annie Miller

Coaches are always wondering how much they should charge, what to consider and how to increase prices if needed. That’s what we’re getting into today. This is a straight forward, nitty gritty episode.

The market is the first thing we consider. 

And where you want to sit in the market. We will go over what is typical pricing in the market of online health and fitness shortly, but where you sit in any market needs to be considered.

Are you a premium brand?  Mid tier?  That’s up to you and will also be determined by who your offer and your customers.

If you work with high achieving CEO’s, you will likely have a premium brand charging premium prices, doing a lot to make this client’s life easier.

Not every ideal client falls into a specific demographic from an income standpoint, but it can be a factor which is why I mention it. 

Don’t let your own money mindset limiters get in the way of charging what you should be charging. For instance if you think “I wouldn’t pay x for this” – consider that perhaps you are not your ideal client. Maybe you aren’t in need of what you’re offering. Or maybe it’s not in your current budget even though you understand the value. IT IS of value to those clients who are willing to pay for it.

Food for thought. You’ll feel much better charging a price that makes proper sense for your service. And they will be invested, ready to do the work. Not guaranteed but likely correlated.

You need to feel compensated for the work.

Don’t limit yourself to thinking about time as an exchange for money. Energy balance and demand is a thing. Charging for your ability to be thorough and efficient is a thing. For instance it took me longer to write 1:1 programming when I charged $99 per month than when I charged $250 per month. People are paying for the experience. Not for how long it takes to create a program. Just something to consider from a mindset perspective.

I talk about this in the perfect pricing guide inside FitsPRO Foundations –  pricing should be a win for you, a win for the value of the offer, and a win for the client. Not that the pricing is no big deal for them, but that they understand the value, and feel like they are making an informed and empowered decision in make the commitment to work with you.

If you find that you are indeed undercharging, then increase your pricing.

Don’t make this harder than it is. But do the following, or rather, choose from the following.

You can grandfather in your current clients and simply increase price on your site and in contracts for new customers.

There is no rule for the amount you increase pricing by. You make massive changes by 2-400 dollars or more. Or make smaller increases. $50-$100. 

If you’re increasing pricing due to under charging, there is no need to alter your program and what’s offered within. If you would like to charge more but currently don’t provide that level of value, you can make the needed alterations to your service, offer that to current clientele at the higher price point.

If increasing pricing for current clients, you can absolutely go all in and drop it on them but these people did get you to where you are. So I suggest a drip system.

Over three month periods, increase their pricing. You would notify them with the coming structure, and give them time to adjust finances or whatever else they may need to do. Maybe it goes up by a total of $100/mo but it’s a $33/mo increase every three months.

These are just ideas and options. Ideally you communicate what has been added or why the price is increasing so that clients have an understanding.

Your business structure 

Not every business model works the same. If you’re going to have 10 online clients but you’re only charging $99 per month, you are capping your monthly income at under $1,000 and likely, back to number 2, not feeling compensated for the work you’re putting in. $1,000 per month, especially in today’s society is a joke. Let us reconsider.

A reason I encourage many coaches to start with 1:1 is because you can charge more of a high touch service like this. It also requires a smaller audience to pull from. Which tends to be what you’re working with when starting out.

I am all for accessible health and fitness. Love a $9-39 per month membership of some kind. But from a business standpoint that requires VOLUME to be profitable. Which works if you have hundreds if not thousands of humans who are willing to pay you. But is not likely the best choice in the early days.

And please know that I 100% made all of these mistakes. Undercharging, doing 20 day challenges for $20, hosting 6 week transformations for $97. None of it was BAD, but so so so backwards. This is why I share with you.

Think long term for sure. If someday you’d like to offer accessible options, build a business that allows for that over time.

Typical pricing tends to be $250-$400/mo for 1:1 coaching services on the fitness side. Lower for nutrition only, same or higher for a combo package of fitness and nutrition.

Pricing will depend on deliverables and processes used. If you have weekly calls, you’ll likely charge more than someone who doesn’t do any calls etc. Not definitely but an example to consider.

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I'm an adventurous introvert from Vancouver, Washington who lives on sleep + "me time." I'm a lover of lifting weights, dinosaurs, real talk and traveling with my husband. I am here to help you move better, lift more, bust the myths of the fitness industry, and inspire you to love the process.

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