Have you been struggling with pricing your coaching program?

My friend Bryan Halverson wrote about how to calculate your coaching rates 2 months ago, but today I asked him to be our guest and share more about the supply and demand principle in coaching, and how you can use it to dynamically adapt your pricing in your ever-changing business.

Enjoy!

Is your coaching practice profitable yet?

Have you determined your startup costs and what to charge for coaching yet?

Maybe this will help.

Let’s talk a little about supply and demand, 2 basic principles of economics.

Now don’t go passing out and jumping to some other distraction. This 2-minute read might just make you some money.

Supply and demand are 2 factors that interact with each other. One influences the other.

Let’s define each.

Demand is how much of something people want.

Supply is how much of that something is available.

Your coaching supply is your content and your time available to coach.

Your coaching demand is how many clients you have.

If your coaching demand is low, you will have an excess supply (too much time on your hands or unused content).

If supply is low, you don’t have enough time to coach all of the clients that want your help (wouldn’t that be an amazing place to be at?!?)

And when supply is high and demand is low (too much time and not enough clients), that is the time to lower your price. Some revenue is better than none right (as long as you are still covering your costs).

This is the economics behind why Kirk recommends getting practice clients at first – what else would you do with your time, and you need the practice!

But once demand is high and your supply is low, that is the time to raise your prices. (Remember that Kirk has taught us that after your first 5 clients you should start charging, and after the next 5 you should raise your prices, and so on.)

Business has an ebb and flow to it. There can be seasonality in your coaching business. So determine your base rate (the break-even point to cover your fixed and variable costs as well as your time) and then experiment with different prices to see what attracts more clients. Offer sales and promotions and scholarships to increase demand when supply gets too high.

This is your business, and there often isn’t a right or wrong (unless you are losing money) about it. You get to be the creator of it, so what do you want to create?

Sign up for Coach Fast Track to get help becoming a better coach, and I’d love to help you with the financial aspects of your business so you can maximize your financial results!

Happy Coaching!

Quote of the week:

Song of the week:

- Kirk