PRICING – Health Coach Rates

How to Charge for Your Services

Health coach rates vary for many reasons.  What is the going rate for health coaching?  Almost every single health professional that I work with asks this question at one time or another.  It’s impossible to tell you a flat amount because there are so many variables.  But, I’ll get close.

It’s a rather scary proposition because you could be charging too much or not charging enough and the result for either is that you’re losing money.

If you’ve been working with clients for very long, then you’ve experienced some of the problems and frustrations that will be discussed.

I think you can associate with this; sometimes patients/clients don’t show up for appointments, they cancel, and they don’t do the work….the truth is, they don’t value the time with you the way that they should.

There is one thing you can do to change this and ensure that your clients are engaged and value their time.

The secret?

Raise your prices!  I know, it’s VERY scary, but if you listen to my reasoning, it makes sense.

This is the one secret to get more valuable and ideal clients for your business as well.

Not only will you step out of the “price shopping arena” – you will be valued for what you offer, and the client will respect the time spent with you.  Their commitment is higher, and therefore they get results.  Results are what we all want.

Higher prices that are published attract more affluent clients.

When I was looking for a business coach, I looked at the prices.

There was one that cost $500 an hour and another that was $3800.  Return on my investment was more important to me than the dollar amount that I was spending.  Value and my return on investment are much more important to me than saving money on the initial cost.  Does that make sense?  If I can reach higher results by spending more money…that is what I would do.

In business, the bottom line is the bottom line.  In health…it is the same story.

It doesn’t always mean that they are worth that much…that will be your job…if you are charging higher prices – be sure you deliver more value than your customer pays!

Factors

There are factors to be taken into consideration when pricing your programs and services.  That is why market research is so important.

Consider the following:

1. Geographic location
2. What is included
3. Client Origination
4. Experience
5. Education
6. Niche and Target Market
7. Payment – Insurance or Corporate Sponsorship
8. Demand
9. Existing Market

Geographic Location

In Omaha, NE, where I live, the price for anything is generally much cheaper than any of the coasts.  In Nebraska, we can’t charge as much as you can in Hawaii, New York, or California.  However, with the internet and online business, your location is no longer a factor.  The location of your customers still is, so if you’re advertising to Nebraska, you’ll need a lower rate.

What’s Included

Are you pricing your time alone?  Make sure you take into account that you’re meeting with your client for 45 minutes and you probably are going to have an hour before and after the meeting to prepare and note take.  So if you’re figuring you’re making $75 an hour, but it’s really almost taking you 3 hours, you’re not.  You’re grossing $25 an hour and then, you have costs.

Are you selling a program?  How long does it last, how much material is included, how much or your time is included, and what is the value for the customer?

Check out this SMARTER REVENUE spreadsheet that helps you to put things into perspective.

Client Origination

You can charge less if you don’t have to advertise and nurture to acquire clients.  Health coaches who have arrangements with doctors, schools, or organizations to receive their patients/clients have less time and money invested into each client.

Experience

Experience makes it easier to charge more and your success offer social proof.  You may start off at $50-75 an hour.  You should be raising your rates as you gain experience and successes.

Education

Your education is perceived by the marketplace as adding to the value of your services.  It is globally accepted that the more specialization, and education you have, the more you have to offer.

Niche and Target Market

Who is your ideal client?  If it is an affluent baby-boomer, then more is more.  If it is a millennial,  then you’ll need to figure out how to give more value for less money and still end up with a profit.  Average household income, as well as age, culture, and habits needs to be taken into consideration when setting rates.

Payment

If you’re accepting insurance payment, the amount that the insurance company will pay may sometimes set your rate.  If you don’t accept insurance, it can be a plus.   You’ll be able to set your own price and at the same time, eliminates the additional objections that can come along with insurance compensation, is it covered or not.  If it’s not, it’s not and then the only objection is does the customer need it or not and will they pay the fee?  You should also take into account the cost of doing paperwork involved with insurance reimbursement.

If you’re getting paid up front or accepting payments will affect your price as well.  You need to cover your expenses if you’re extending payment plans.

Demand

The good news, in this day and age, health coaches are desperately needed.  The health situation combined with the health care crisis guarantees that health coaches will be in demand for years to come.  Demand commands a higher rate.

Existing Market

During your market research phase, look at some of the numbers that are out there.  Google Health Coach Salaries, Nutritionist Salaries, Weight Loss Salaries, Health Coach Salaries….. you see what I’m saying.  Indeed shows $14.54 per hour as most reported wages.  Glass Door shows annual salary of $52,401.  Thumbtack shows $50-60 an hour (in Omaha, NE).  The reports vary, but so does the income of most health coaches.

Why are some health coaches able to earn 6 and 7 figure incomes and others are losing money?  If you aren’t making money, you have a very expensive hobby, not a business.

Coaches leave school ready to change the world, but most don’t have a clue how to do business.  Many new coaches are even giving their services away for free.  I know, it’s nuts but here’s why.

• They think their fees are too high
• They feel sorry for their target market because they can’t afford it
• They feel like making a good income does not coincide with helping people
• They’re afraid of being pushy
• They don’t feel worthy

This is a whole other article topic but in a nutshell.  People deserve help and you can do it.  Most health professionals aren’t in hobbies, they’re in business and you have to make money.

Our Programs – Ideas for Pricing

$847  Program with 6 coaching sessions

Part of a Membership Program

$747  The program -plus daily email support and 2 appointments

$1647  The program -plus daily email support and 12 30 minute appointments

$147 mo Annual Membership with 2 appointments and  group support

$747  The program -plus daily email support and 2 appointments

$1647  The program -plus daily email support and 12 30 minute appointments

$147 mo Annual Membership with 2 appointments and  group support

$497 Group support with daily email support and one 45 minute appointment

$947  Group support with daily email support and one 45 minute appointment and product

can be part of a seasonal cleanse membership

$57 mo

$597 Group support with daily email support and one 45 minute appointment

$947  Group support with daily email support and one 45 minute appointment and supplements

This program should move to a long term nurturing program

Hourly Rates

To get right down to hourly rates, the price varies by the factors above.  You need to budget.  Decide what your net annual income should be and work backward.  To do that, you need to decide the scale of your business.  Do you want to work one-on-one with customers and can you live on a limited income?  If the answer is yes, there’s nothing wrong with that.  Just plan accordingly.  Use the pdf I’ve included on this call and be honest with yourself about the efficiency percent of your time.  The sheet factors in 40% efficiency and to be honest, you may need to reduce that number.  40% efficiency at $95 an hour is $76,000 a year.

$25 an hour at 40% = $20,000 per year

$25 an hour at 80% = $40,000 per year (only possible if someone is giving you customers/patients)

$75 an hour at 40% = $60,000

$150 an hour at 40% = $120,000

$300 an hour at 40% = $240,000

I’ve worked with health coaches on both ends of this spectrum, $25 and $300.  The secret is to factor in the variables and offer the right price for the right product or service.

If you add programs, group or individual, to your business plan you have an unlimited number of people you can work with and it can possibly include 0 hours.  If you play with the sheet, you will see that the way to increase your income potential beyond the hours in a day, is to add programs or membership income to your business model.