You’re probably undercharging for your offers, here’s why.

Do you ever get hung up on pricing?

I used to… a lot.

This is something I used to overthink the MOST in my business until I figured out a strategy that makes it really easy to state my prices & stick to them.

As someone who is generally anti-capitalist and who lives from a space of service & belief that we only have true wealth when we are wealthy as a collective… deciding on pricing for my offers has always been one of the biggest challenges for me.

I know that I need to charge ENOUGH to reduce money stress and thrive but it’s also really important for me to feel good about the exchange of value for what I’m charging.

Did you know that most coaches charge more per hour than a surgeon?? In Canada, a new surgeon makes about $185/hr.

I’m definitely not saying that you shouldn’t charge a premium for your coaching, I am saying that we should be honest (and ethical) about how we come to pricing conclusions and it’s not that our work is more valuable than that of a surgeon, because in most cases… it isn’t.

There are A LOT of stories we tell ourselves about how we make money in the coaching world that actually end up perpetuating toxic capitalism such as “when good people become wealthy, it benefits the collective” which is actually a very flawed economic concept called “trickle-down economics” which essentially says that giving tax breaks that benefit corporations will eventually benefit poor people or when rich people get richer, poor people benefit.

One look at the price of yogurt at your local Loblaws grocery store will tell you that tax breaks for corporate entities aren’t helping you out a whole lot right now.

So… let’s ditch the weird stuff we say to justify our pricing strategy and ACTUALLY look at how to feel good about what we charge for our offers.

Because, here’s the reality:

You need money, especially if you like Greek yogurt.

And you need a pricing strategy that feels ethical AND sustainable.

The one and only strategy I use in pricing my offers is this:

1. I figure out how much money I want to contribute to the family budget every month including living costs, entertainment, savings, retirement, investing, vacation time, insurance etc.
2. I multiply that number by two.

= The total amount I need to bring into my business every month.

Eg.

I want to bring in $5000/month into the family budget.

I need to earn $10,000/month in my business.

If this number shocks you – it may be related to the way you’re thinking about your business earnings – and this is where you can start to feel a bit better about charging double or triple the rates of a surgeon for your work.

This is because the amount of money you earn in your business IS NOT the same amount of money you will contribute to your budget. When you bring in money to your business you have to PAY yourself, pay your taxes, keep money in your business for expenses and investment in your biz growth, and you should save some $$ for a rainy day.

Now, look at your offers. Are they priced in a way that you can earn what you want to earn without working every waking hour of the day?

For example, if you’re offering coaching sessions at $250/hr and you’re doing 10 sessions a week and earning $5000 each month – to TRULY contribute $5000 to your income, you’re going to have to either double your hourly rate or double your client load (or change your business model to 1:many, courses, or become an agency to keep your price & workload lower).

Also if there’s a small part of you questioning the VALUE of your offers – don’t go adding more bonuses & extra stuff to increase the value, get REALLY good at what you do and get results for your clients. Make what you do invaluable to the people you serve!!

When you can look at the numbers in this way and get real with yourself about the cost of living right now, what you need to make to have minimal money stress now and in the future, and then remember what you make in your business is NOT a direct correlation to what you are contributing to your personal budget – pricing becomes a far less emotionally complex thing.

It’s just numbers & facts.

And the numbers you land on are numbers you can feel confident stating in your sales calls because you’ve done the work to understand this is what you want to make and what will help you live comfortably doing the work you’re doing.

If you still feel uncomfortable with charging those rates remember that Elon Musk makes over $2000/second.

You, a wise, brilliant human who is contributing GOODNESS to the world, can charge $2000/month. Because your mortgage needs to get paid, your kids need clothes, and you deserve that Greek yogurt!