Welcome, coach, to a transformative journey to reshape your business and unlock its full potential.
Today, we dive deep into value-based pricing, a strategic approach that will revolutionise your revenue and propel you towards extraordinary success. Maybe it’s a concept you are totally new to, and if that’s the case, congratulations and prepare to be captivated as we explore the art of pricing that ignites passion, delivers incredible value, and positions you as a leader in your industry.
In the voice of Kevin Hart, “You gon’ learn, today”
The Power of Value-Based Pricing: Unleashing the True Value of Your Offerings
Gone are the days when you exchange time for money. You are no longer in ’employment’ earning money. You are in business, an entrepreneur, a coach, where you ‘make’ money based on providing value that can solve a problem or lead someone to their ultimate desire. It’s a whole new world, but sometimes your old employee mindset makes it challenging to enter this world. But it’s 100% necessary.
Value-based pricing is an approach that enables you to align your prices with the exceptional value you provide to your clients. It goes beyond traditional pricing methods that rely on cost or competition, instead focusing on the transformative outcomes and benefits you deliver. By embracing value-based pricing, you position yourself as a strategic partner rather than a commodity, and the impact on your business can be extraordinary.
Imagine the prices of your offers effortlessly reflecting the exceptional value you bring to your clients. No, really, imagine it for a moment… sit in the feeling of mutual satisfaction where they are happy with their investment and you are happy with the exchange.
Doesn’t it feel good? I don’t just see value-based pricing as a strategy; I see it as a philosophy that has the power to set you apart, while repositioning you in the eyes of your clients. It’s time to embrace this philosophy inside of your coaching business.
Errr JJ, so, what is Value-Based Pricing… exactly?
Well, coach, it’s just as you read above; it’s a value-based pricing strategy that entails setting your prices based on the unique value you offer and the desired outcomes you deliver or the impact you create. It takes into account the perceived worth of your offerings by your clients, as well as the return on investment they can expect. It is a client-centric approach that recognises the value clients derive from your expertise, solutions, and the positive impact on their businesses or lives. But listen, don’t get it twisted, if your service doesn’t create real value or transformation for your client, if they don’t see, experience or envisage a shift once you’ve carried out your work, then the whole premise has fallen down, and it becomes an epic fail. This needs to be made really clear.
The value must be perceived by your client (not just you), and the value must outweigh the cost in the eyes of your client, so yeh, you better be as good as you say on your website… or better!
“Value is what people are willing to pay for, and it’s how they measure the benefits they receive.” – Chris Do
Let’s explore a couple of common examples to illustrate the power of value-based pricing:
- Software as a Service (SaaS) Companies:
SaaS companies often utilise value-based pricing by offering different pricing tiers based on the features, functionality, and value they provide to their customers. The more comprehensive and impactful the software, the higher the pricing tier. For instance, a project management tool may have a basic plan for small teams, a professional plan for medium-sized businesses, and an enterprise plan for large organisations with advanced features and customisations.
- Professional Services:
Coaches, consultants, and agencies frequently use value-based pricing as their expertise and guidance directly impact their clients’ success. Pricing is determined based on the specific results clients aim to achieve. For instance, a marketing consultant may charge based on the expected revenue growth or customer acquisition rate their strategies can deliver. This pricing model allows both the client and service provider to align their goals and invest in a mutually beneficial partnership.
Types of Businesses that Benefit from Value-Based Pricing:
Value-based pricing is particularly effective for businesses that can clearly demonstrate their positive impact on their clients.
This includes:
- Service-Based Businesses:
Coaches, consultants, freelancers, and agencies that offer specialised expertise, guidance, or problem-solving thrive with value-based pricing. They can quantify the specific results they can achieve and align their prices accordingly.
- Innovation-Driven Businesses:
Businesses that bring disruptive innovations or unique solutions to the market can capitalise on the value they create. By pricing based on their revolutionary benefits, they position themselves as market leaders and attract clients who recognise the transformative potential.
- Customised Solutions Providers:
Companies that offer customised products or services tailored to the individual needs of their clients benefit significantly from value-based pricing. The tailored experience and unique outcomes they provide justify premium pricing.
Businesses that may be excluded from value-based pricing offer standardised, commoditised products or services where differentiation based on value is challenging. In these cases, other pricing models, such as cost-based or competition-based pricing, may be more appropriate.
Let me give you a few steps to get you started on the pathway to value-based pricing…I’m excited for you!
Step 1: Rethink Your Money Mindset: Embrace Abundance
Let’s start by rewiring your mindset for abundance and success. As a visionary coach and entrepreneur (if you’re connected to me and you’re reading this blog, then you are a visionary coach or entrepreneur or wantrepreneur who is yet to get started, and that’s ok too), you possess unique, precious gifts and talents. You must believe in the unlimited possibilities and the profound impact you can create for your clients. You must recognise you are purposed to do what you do and to be who you are. This belief will radiate through your offerings and attract those who recognise and appreciate your exceptional value. However, if you don’t believe in the power and value that you have and can bestow on others, then that will spill over into your capacity to create valuable transformations for your clients.
Something I love to help my clients with is identifying their current money story and transitioning to an abundance mindset. This is something I teach in my The Purpose-Driven Coach Collective. Let me give you a quick run-through of some of the key concepts:
- Start by examining your existing beliefs about money. Do you believe:
- Money is scarce and hard to come by.
- I don’t deserve to be wealthy.
- Rich people are greedy or unhappy.
- Where did the belief come from? What is the evidence you have that supports this belief?
- Be willing to challenge beliefs, limiting thoughts or fears that may be holding you back and surround yourself with positive influences, engage in personal development practices, and visualise the abundant future you desire.
- Embrace the idea that your expertise and contributions are valuable and deserving of fair compensation.
Step 2: Break Free from Hourly Limitations and Exchanging Money With Time (.. a very unfair trade!)
It’s time to liberate yourself from the shackles of hourly rates. I’m pretty sure most coaches and consultants start of with hourly billing, and I see why it makes sense. I did it myself because I didn’t know of any other way.
Until you have a client base and fully understand the transformation you can provide, it is hard to price in any other way.
But this is also why when you start a purpose-driven business or service to help people, you must
- Know your ideal clients very well, and,
- Know yourself even better!
When you do, you are better placed to recognise that your expertise, knowledge, and efficiency cannot adequately be quantified by time, and neither can the totality of the value you provide for your client. When you have an understanding of the value you create, it would be wise to embrace the freedom to offer transformative experiences that are not bound by the constraints of the clock. Your value is immeasurable, and it’s time to let it shine.
Consider the unique skills, knowledge, and experience you bring to the table. What if you are exceptionally efficient and able to transform a life or a bank account in 5 minutes? Should that determine how you get paid? As soon as you are able to translate your value into an impact your client can expect, you are ready to consider value-based pricing and can begin to ask yourself, ‘How can I package and deliver this value in a way that goes beyond simply charging for my time?’
Explore alternative pricing models such as project-based pricing, retainer-based pricing, or value-based pricing frameworks. Focus on the outcomes and impact you can deliver rather than the hours you put in.
Step 3: Create Your Unique Value Proposition: Be Unforgettable. Be Remarkable.
Discover the true essence of what makes your offerings extraordinary. Identify the transformative outcomes and the results your clients can expect and learn how to communicate your unique value proposition with confidence, highlighting how you will revolutionise their lives or businesses. Become unforgettable in the minds of your ideal clients. Become the person who they talk about in support of, as the person who helped them change their lives.
I’ve always stood by something that I never want to be known for, and that is ‘The cheap option’. While I ensure I always have options for everyone’s price point, one thing for sure is I will never compete on price with my services.
I do not participate in the likes of Aldi v Tesco price match wars!
So, back to you. When it comes to crafting your unique value proposition, as I mentioned, you must deeply understand yourself and your target audience. Understand your capabilities to deliver transformative solutions for your client and be confident about your ability to do so. Then be sure to know the answers to the simple questions:
- What are your ideal client’s pain points?
- What are their dreams and desires?
- What are their aspirations?
- How can your expertise and offerings address these needs in a way that no one else can?
When you can clearly articulate the unique benefits and outcomes clients will experience by working with you, it can change the way you operate.
Step 4: Amplify Your Success Stories: Inspire Through Results
Success stories are your currency of credibility. Share captivating case studies and testimonials that showcase the tangible results achieved by your clients. Paint a vivid picture of the transformations and growth they experienced, inspiring readers to embark on their own journey with you.
When showcasing success stories, focus on your client’s specific challenges, the solutions you provided, and the measurable outcomes they achieved. Use data and testimonials to illustrate your work’s positive impact on their businesses or lives. This social proof will build trust and credibility with potential clients who will come to you for the results you can provide rather than because of the price you charge. It will also boost your confidence and self-belief. One thing I never shy away from is a chance to celebrate my own accomplishments. The moment you do, that is the moment imposter syndrome and self-doubt slips into your life!
Step 5: Curate Irresistible Offers That Transform Lives
Leave behind the cookie-cutter approach and curate irresistible packages that cater to your client’s desires and aspirations while diminishing their pain points. Create experiences that encompass your extensive expertise, ensuring every touchpoint delivers exceptional value. These offerings will become the gateway to transformation, enticing clients to invest in their success.
When mapping out your offerings, consider your target audience’s specific needs, goals, and pain points. Design packages that provide a comprehensive solution, incorporating various elements such as coaching sessions, resources, ongoing support, or access to exclusive events. Focus on the unique value and benefits clients will receive by choosing your offerings over your competitors.
Want more?
This journey has only scratched the surface of the remarkable transformations that await you. To unlock your coaching business’s extraordinary potential and start charging for the value you create, I invite you to book a Nail It Strategy Call with me. This is your opportunity to work with me as we focus on your pricing strategy and uncover the value you create and the transformation your clients experience. Together, we’ll explore your unique circumstances, address your challenges, and map out your next best moves.
Elevate your business to new heights.
Congratulations, purpose-driven coach, for embarking on this transformative exploration of value-based pricing. You have delved into pricing strategies, understanding the significance of aligning your prices with the exceptional value you provide. By embracing value-based pricing, you position your business for unparalleled success and create a pathway to extraordinary heights.
As you continue on your journey, remember that value-based pricing is not just a strategy but a mindset—a mindset that recognises the profound impact you can have on your clients’ lives or businesses. By rethinking your money mindset, breaking free from hourly limitations, and creating an irresistible value proposition, you set yourself apart as a leader in your industry, attracting clients who recognise and appreciate the transformative outcomes you offer.
Over to you, Coach!
Now, armed with a deep understanding of value-based pricing, it’s time to take inspired action. Remember, this journey requires continuous growth and refinement. Regularly assess your progress, adjust your strategies, and celebrate your achievements along the way.
If you found this valuable, I’m excited to say, there is so much more value to gain by joining my exclusive community, The Purpose-Driven Coach Collective where you not only get to be part of a community of supportive and likeminded coaches in the same position as you, but also you can take advantage of The Academy, the learning platform where you get to be mentored by me to help you grow your coaching business and support you, and you can watch all of the past mentoring sessions in your own private platform – off social media. And, you don’t have to pay a dime so there is zero risk!
Join us, and transform your life by building a coaching business of your dreams and unlock purpose, passion and profit with a purpose-driven life.