As health coaches, in a new industry, it is sometimes hard to know how to charge for our services and products.

 

We are told that we can charge $75 an hour – but fresh out of school, it may not be so easy to do that.  If you are getting clients from another source like your school or a company that refers out customers, $25 might be what is paid.

 

As a health coach who is running your own business, you have to charge enough to pay for your time and expenses.  You also should take into consideration your market.  Health coaches on both coasts are able to charge quite a bit more than coaches in the Midwest.  It is important for you to do market research.

 

To take it one step further…you look at what you are offering compared to other businesses of your type  If you offer something special, you can qualify charging more.  If you don’t offer as much time or a lower quality program, you will charge less.

 

We do not have a retail price plan for any of our programs.

You should price your programs with a base value + your costs + your profit.

In the costs, you should include the time you spend with your client as well as the time that you spend preparing for your client.  Online programs should help to cut down on the latter.  If you are selling a 6-month program, you may just want to figure up how many times you meet x’s your hourly rate.  If your rate is $125 and you meet 12 times, then a good cost for your time would be $1500.00.  If you have additional giveaways that total $300.00 then your total price for a 6-month program might be $1800.00.

 

However, sometimes there are other considerations.  Your 12-day detox may be a “loss leader” to pull in new 6 month clients.  In that case, there have been several health coaches who have done really well with a $99 introductory price point.  (Self-guided and one 15 minute meeting to move your client up to a 6-month program).

 

As you become more experienced and learn what to charge, you need to be careful not to put your existing clients off.  As you reconsider and raise your prices, you may want to grandfather your faithful clients who were with you since the beginning into their old prices.

 

What you don’t learn in school:

HOW TO RAISE THE ROOF – for health coaches!

I believe often health coaches spend more time preparing for meetings than most occupations do…plus you need some time to run your business. I think 40% is even a little too forgiving. SO…if you want to know how to affect the outcome of your income – here is a spreadsheet and a short video to tell you how to play with it! Have fun…LOOK at the possibilities!

CLICK HERE to get your copy of the What to Charge Spreadsheet

 

How to raise your income ceiling.  This video will explain how to use the spreadsheet.  Click on the green button above and make the calculations yourself.  You will also have an opportunity to sign up for Health Coach University – just uncheck the boxes if you are already signed up.  You don’t have to opt in to receive this spreadsheet…but you can.

 

Try it out and let us know what you learned in the comments below!

 

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11 Comments

  1. Lori

    Hi Cathy! The income ceiling makes complete sense to me. As an esthetician, I often do a lot of back end work such as researching a client’s issues and making product recommendations. I usually create a PDF of information for the client along with a written discussion of appropriate products and protocols for using them. This is very time-consuming. I need to acknowledge this work and incorporate it into my pricing in the future. Thanks for explaining the spreadsheet and how to use it!

    Reply
    • Cathy

      I never thought about all the time it has to take an esthetician. You have additional work of cleaning in your profession. That is really nice you do the pdf. I never had an esthetician do that for me. It would be very helpful. You are welcome! Thanks for the thoughtful comment.

      Reply
  2. Janie G

    Love this spreadsheet, Cathy! Thank you for sharing it with us and also taking the time to do a tutorial. It was very helpful and super insightful.

    Reply
    • Cathy

      You’re welcome. I’m glad you found it helpful.

      Reply
  3. Cathy

    I had seen Nathalie explain this ceiling calculator once and didn’t quite get it, especially the part about the efficiency. (Love her too, she’s a real treat!) You’ve made it all very clear, explaining it in language that works in the field. When I think about it, my efficiency rate is quite low now: 20%. Tells me I need to change some of my systems to improve that, first and foremost.

    I’m unclear about the employee line. Does that mean tell you how much extra you would need to make in order to pay x people, z dollars?

    Reply
    • Cathy

      Thanks Cathy. That is a good question. The employees can free you up and allow you to sell more. It is enlightening to think of employees as income producers instead of just an expense. I’d be a goner without my team.

      Reply
  4. Cathy

    It seems counter-intuitive, but it makes sense. And I like the idea! Thanks Cathy.

    Reply
  5. Maria

    I love to listening to your advice always so accurate, simple and implementable. Doable is a way forward. thanks Cathy xx

    Reply
  6. Michelle

    I admittedly have a bit of spreadsheet phobia, but if this is coming from you, then I know it’s got to be good, Cathy. I’m going in! Wish me luck! 😀

    And thank you!

    Reply
  7. april

    i read michelle’s comment and laughed, for i too have a spreadsheet phobia (i think it’s from my year and a half as an accounting major!). i’m curious enough to play with it though, cathy. your advice about experience, geographical location, specialties, and prep time is extremely valuable – thank you.

    Reply
  8. Cynthia

    Thanks for the recording and the spreadsheet. Will have to look it over more for detail. I have a business consultant friend who is REALLY into the numbers. I think it’s important for practitioners to see how many hours it takes to make a certain level of income. This final income amount is without expenses and overhead obviously, yes??

    Reply

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