No you are not evil or greedy to charge higher fees, yet you give away your services when you should be valuing it as the most precious highly compensating thing you do.
You give away a lot of free sessions, buttloads of coaching and support in between sessions and you undercharge.
And why do you undercharge?
Because you’re afraid of raising your fees, you’re afraid of being judged, you’re afraid of being seen as being only about the money and you fear not being not enough.
But how can you help your clients be successful if you’re holding these things within yourself. You have to change your mindset about the value of what you do. Your work is worth more than you give it credit for and you must hold yourself as powerful if you are to truly hold your clients as powerful. And it starts by charging what you’re worth.
Let me share some reasons why you’re not greedy for charging higher fees and dive deeper into why undercharging hurts your coaching business.
I know that there are those that will scoff at the idea of raising prices but that’s about their money story of lack and limitation. This is an abundant universe and it is your divine right to have more than enough. If I may be so bold and esoteric for a second… “Making good money is part of your spiritual path!” If that isn’t something you want then that’s fine too.
When you are truly convinced of the value that you’re providing to your clients and customers, and of your own worthiness it will be easier and make sense to charge premium prices.
So let’s break this down.
There are costs for running your business, right? Just as when you buy a car, not only is there the purchase price there’s maintenance fees, insurance, gas, repairs, etc. It’s a real investment you’ve made and it’s no different with your business. Running your business includes the investment you’ve made in yourself in training or experience or development to get you to the point that you’re able to provide services to your clients.
You deserve to make money, the point of running a “business” is to make profit. You’re not an employee, you’ve taken a risk to get that wonderful thing you do out into the marketplace, and the reward for that risk is REVENUE!
You have the right to set prices that you feel are fair for your skills, experience and expertise and for the investment that you’ve made in yourself up to this point. Some may not like it but it’s got to be ok. We’re not here to be people pleasers. We’re in business to serve but not in a way that devalues our work and worthiness. And the hard truth is that if you have any problems asking for what you’re worth – it’s not about them – it’s about you!
Now let’s look at how undercharging really hurts your business.
#1 When you’re just selling your time, you can’t possibly make that up in quantity!
A lot of people think that if they cut their prices they won’t have to leave anyone out who can’t afford their services. And if you’re a loving person, and you want to help people, sure you might be tempted to hook them up. But the problem with that is that now you’re selling your time and you can’t manufacture more time.
As a side note: It’s truly not up to you to decide what someone can or can’t afford. When you decide ahead of time in your mind that others can’t afford you, guess what you attract… those very people who can’t! (Store that tip in your memory banks!)
Back to manufacturing more time… Say you’re charging $100 per session and you decide that a certain client can get a discount and only pay $70, you’ve just lost $30 and there’s no easy way to make that up. You’re basically on the “dollars for hours” pain train and you can’t get off. No matter how well-intentioned you are, as soon as you start discounting your fees, even it you convince yourself that it’s just one time, you’re putting a vicious cycle into motion. And the reverse is equally true. As you recognize the true value of your offerings, raise your prices, and start to ask for more you’re going to get more in return.
#2 Getting further training and developing yourself falls by the wayside because you don’t have time because you’re what… Undercharging
When you’re undercharging you’re losing out on the time necessary to further develop your skills, do research and get coach training to stay current. And you’re missing out on the money to help you do that.
When you charge higher fees you can invest in yourself to become better at what you do, to become more valuable to your clients and to then once again raise your fees.
#3 When you undercharge, the more you’ll have to move your ass!
You’ll have to work longer and harder because you now have to find additional business to make up for your discounting. So in a day where you might spend time working on your business you have to now use that time to SELL just to cover your costs. You might think that a larger quantity of clients will make up for your shortfall, but when will you have time to market or for research or to further develop yourself personally or hell… when will you have time to spend time doing other things you love outside of your business if you’re burned out from working with all these clients who aren’t paying you enough.
When you’re first starting out in business what you feel you want is to be “busy,” because then you equate being busy with giving value to people. There’s this false sense that you’re really makin’ moves if you’re busy. But you don’t want to be that busy. You want clients and you want to be making money, but you don’t want to be so busy that you’re burned the hell out. And being burned out is a good sign that you’re probably not charging enough.
#4 You’ll be resentful.
When you undercharge, you end up spending less time on preparation. And no it’s not because you’re lazy, it’s because you’re frickin’ tired. And soon it takes it’s toll on you mentally and how can you tell? Because you start resenting your work and those low-paying clients who have filled up your calendar. And they’re paying the price too, because you’re not loving them as much as you thought you would. You don’t have the time or energy to give your clients the attention they deserve. You don’t give the best of yourself cause you don’t have it to give.
When you’re on the “dollars for hours” pain train your ability to be your best depends on you being healthy and refreshed. You’ve got nothing to give if you aren’t giving attention to your own self care. Your clients deserve to have your presence and spirit on their work, and you deserve it too.
#5 You attract uncommitted clients when you undercharge.
Plain and simple you want to only be attracting clients who are committed. When you keep your fees low you attract clients that you’ll have to do all the work for. But when a client steps up and invests in themselves at higher fees they take themselves seriously… they take you seriously.. and they get better results. Further, clients are proud to pay more for something – nobody brags that they have the “cheapest coach/trainer/mentor!”
#6 If you put yourself out of business by undercharging, it’s not just you who loses.
The people who are actively looking for and praying for your solution are losing out too. Make a commitment to yourself and your clients to keep your prices at a level that has you showing up to do your best work, that has you deeply appreciating the clients you work with, and that has you pulling the best out of them.
You’ll be amazed at your clients ability to get into action FAST once they’ve invested in a high-end program or service. It’s often that newly lit fire under their ass that has them moving forward with gusto!
You are worth being paid generously for your gifts and talents. Your clients want you to be a leader for them. They are not sheep. Where you go gives them permission to go as well. If you’re coaching them to value themselves you MUST be valuing yourself. Begin now by charging what you’re worth.