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March 23, 2023

195 | Premium Pricing, Discounts, and to Grandfather or Not

Pricing is one of the biggest roadblocks that new and old coaches run into. Not knowing what to charge, and having mindset blocks around different price ranges. Along with not knowing whether to grandfather people, and when they want to increase their prices, or even how to increase their prices. 

That’s what we are going to dive into in today’s episode. These are just opinions and my thoughts, so take them for what they’re worth, but I hope that they provide some questions or perspective on the topic. Maybe some affirmation of what you already knew in your gut. 

Premium pricing & Discounts

How to use discounts but not devalue your offer – price higher, then cut

I am talking about this topic from the perspective of someone in the health and fitness industry in the online space.

Most coaches start off with some kind of one on one offer whether you are in the nutrition space, fitness, PT or something else. One on one is likely going to fall into premium pricing.

It’s a high touch offer, the demands time from you. In other words, it’s active income, not passive. Which is more of a premium.

I want you to be able to look at that objectively when deciding on your pricing. We don’t want to just say that we are $500 a month because you pulled that number out of your asshole. I want you to lay out the deliverables of what it is that you offer, what value they are receiving and also what time it takes from you. I’ve said this 1 million times but you want to feel compensated for the work that you are doing otherwise you will end up resenting our clients. And that’s just some thing that is silly and doesn’t need to happen.

So let’s say that your offer is above $250 a month, or above $300 a month. You are in my opinion now into premium pricing. Again that is going to be very individual. Maybe you do one call per week, or no calls, but use Voxer to communicate with your clients. If you have taken my fitspro foundations course, you have all of this laid out in your final offer breakdown.

There is messaging out there on both ends of the spectrum – be a gucci brand and never give discounts, and then the need to be accessible.

Frankly you need to decide where your brand is going to sit in the market place. But I don’t think you need to go fine yourself a box either.

So let’s talk about ways you can be premium and offer incentives and discounts.

The slippery slope that can come with discounting your offer is the expectation for people to then just wait for the next discount. In turn, devaluing your offer.

So, when launching, one approach we can take is to price your offer at the higher range of the value you’ve assigned it, and then discount it to a price still with your value buffer. So maybe you could charge $329 to $379. You list the price high and then discount it to a price you still feel good about.

Another option is to ADD value for free vs cutting the price of your offer. Can you create something or add a call or service to make your offer even more desirable? Ideally this is a 1:many add on or something that DOES NOT require you in real time. For example, if they enroll in your coaching by x date, they get access to an excluding on demand training, or a group webinar for planning out their fitness goals this year.

Discounts and promos can be inline with premium offering. That’s my point. You can do both and feel compensated.

I do not suggest heavily discounting your premium pricing. Or if you do, make it limited to the first month for instance. The last thing we want is a 6 month client paying $100 less per month than they should be.

For those who are passionate about accessibility – I see you. Hear me out.

Accessibility AND profitability require large client pools. So focus on creating profit and revenue FIRST, so that you can then scale and create something with a lower price point.

Being accessible but not profitable is not a successful or rewarding BUSINESS plan. It is a passion project. Okay? Little tough love there but I know you can take it.

To grandfather or not

Not charging enough, to grandfather or not? How to raise prices for old members.

This. Is. So. Common.

You had lower price points starting out and then as you build your systems, get client results and gain confidence in your process, you need to increase your prices. BUT HOW?

Per usual, you have options.

If in your gut, you want to grandfather in and have the revenue bandwidth to do so, then do it.

For instance I did this with my 1:1 fitness but only because I didn’t solely depend on that income. I had other offers making up for that deficit and that felt fine for me.

Especially if you have long term clients, consider increasing pricing for everyone.

Here’s how you can do this and feel good about it:

3 month increases and a lot of communication.

People WILL likely leave but you’ll gain new clients at the higher price point. No bridges should be burned here. You should be sensitive to the fact that these people are giving you their hard earned money and that holds weight. You’re about to ask for MORE OF IT. You want the best for them AND you’re running a growing business. So act like it.

Let them know the increases coming and WHY. What has been added or improved over the years/months?

If they don’t want to continue, can you provide other, low price coaches and programs that you back? So you’re still on their team – taking care of them.

No one wants to feel awkward asking for more money. I get it. So I hope these ideas make it a bit smoother for you. That you feel more confident increasing pricing – for new and old clients.

Think about the consumer perspective and how you’d want to be approached about the topic. 

To grandfather in or not is ultimately up to you. But be sure to look at it from an objective business standpoint as much as possible.

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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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