Why Coaches Deserve to Charge Premium Prices

This is the Paul Vet podcast, a podcast about hypnosis and mindset, ownership and entrepreneurship. Enjoy listening. Coaches aren't allowed to earn much money. It's completely ridiculous that they dare to ask hundreds or even thousands of euros to help people. That's not what I think, but that is what still a lot of people think, including the coaches themselves. And that frustrates me. Why? Well, I'm going to explain that to you in this episode. And I also want people who hire coaches, but especially the coaches themselves, to really understand this. Because I just see that there are still an awful lot of coaches, therapists and other service providers, even entrepreneurs who sell products, who run into this as well, who deep down inside don't sufficiently believe in asking the right price. By that I don't mean that you should just rip people off, but I especially mean that you shouldn't shortchange yourself and that you can actually achieve much more if you do ask the right price. So that's what I want to talk to you about today. It's been a long time since I made a longer podcast recording. I'm also filming it, so it'll be on YouTube too. I've got a cup of coffee with me, so I don't know how long it's going to last. In principle I have to leave in fifteen minutes, but we'll see. Coaches and other service providers really struggle with it when I say okay, you need to ask a certain amount, because then at least you can lead a good life too. And then they stumble over that, because then they think yeah, leading a good life, then I'm driving a fancy car on the backs of others. Because that's what a lot of people automatically start filling in in their brain. That's because they often don't do the math at all themselves. But imagine, for example, that you're a coach and you say yes, I'm going to help people for 50 euros, because then at least people can still afford it. And that's very noble, I understand where that comes from, but I'd like to take you through the story, okay, suppose you help 20 people for 50 euros a week. And 50 euros, we're often talking about rates for individuals. That's including VAT, so actually you only keep 40 euros. That's 800 euros a week. That's about 3200 euros, say 3500 euros gross per month. And then all your costs still have to come off. You can't tell me that if you have your own business which you have as a coach and this is your only source of income, that with 20 sessions a week for 40 euros ex VAT, that you keep that, that you can then lead a good life where you're also sufficiently nourished. Can you eat healthy then? Can you exercise enough then? Do you then have opportunities to also enjoy life yourself? Do you have enough relaxation? And besides, come on, 20 sessions a week and some people do it, you know, I really have a lot of respect for that. But that's heavy. That's really tough. One hundred percent, that's really tough. And it's possible, you know, and it also depends on what kind of coaching you do and in what way you also do and deliver that. But when you look at that total picture, you keep very little for yourself. And besides, okay, you do help or you do 20 sessions a week, say that's approximately 90 per month, say you need 5 sessions per person to help someone. Well, then you end up with about 8, 9 clients per month. I'm calculating it wrong. 16, 17, 18 clients per month. But when you do that, then after so many years, say in 10 years, you've helped 180 people per month every month times 12. You also need to have free time, so I'll do times 10, that's 1800 people. Which is a lot, you know, let me say that upfront. But what I also want to tell you is, for a lot of people 50 euros is a lot of money. But for just as many people, maybe even more, who also need coaching, 50 euros is so little money that they won't even come to you. I know that from experience. Someone once left my program because I was priced too low. They didn't find me authoritative enough because of that. I went to someone who asked 3 times as much money and I was asking 250 euros for a session at the time. So you can imagine. You also have to imagine, people who have a lot of money, for them an investment of 50 euros is so low that their own attention span in the sessions is also just too low. Hence the saying if you pay you pay attention. So what I really want people to do, coaches or therapists, service providers, is that you, so probably you, understand that you're also allowed to lead and even must lead a life in which you take in sufficient nourishment. Nourishment for your soul, nourishment for your body, nourishment for your brain, but also nourishment for your loved ones and nourishment for your community. Look, when you earn a lot of money, you can automatically also do a lot for others. That's the flip side. So I believe much more in a different business model where you just work at the right price for the people you want to help. And when you're priced lower, there's of course also that possibility that you do fewer sessions and that instead of 20 sessions a week for example you do 10 sessions a week and that you then also give 5 hours of your week to groups. Then they pay less in the group, but you keep just as much or more per hour, so you can help more people and also have a bit more time left to just relax, because you just need that. The other business model, and I see even more value in that when you're really just a good coach and a good therapist and that's also a matter of building up over years, so I'm not talking about when you're actually starting out, only when you start you can already have this mindset, because for 25 euros or 35 euros per session you just can't make ends meet and I see people do that. Doesn't work, especially not because they say yes, I'll raise it later, but then they don't do that, because they're stuck on that low rate. So when you start you need to already have this mindset, but you can build up over years to reach a certain rate. But when you suddenly start asking a higher rate and you make sure that those sessions are worth it for those people. So clients who come to you, they then pay for example with pleasure for a program, let me talk about a program price for a moment, with pleasure for a program 1000 euros. And when you then have a number of those programs in the month, then you already know okay, my base is covered. Then I'm not only talking about your costs, but also on top of that that you can live healthily, that you can nourish your soul, that you can nourish your brain, that you can also just stay physically fit and that you also have time to relax and enjoy with loved ones. When that's covered, and you also keep something left over so you can build up a buffer and eventually also just go on vacation regularly. When that's covered because you sell a number of programs of let's say 1000 euros and you make sure that comes in in less time, then you have time left to offer things to groups. And then you organize for example programs for groups. Well, when you then organize a group program and you invite 10 people into the group and they all come 3 times a month at the same time and then they come for 2 hours, just as an example, and they all pay 100 euros, you've also sold a program of 1000 euros and that then costs you suppose each time they come they come for 2 hours is a lot, but it depends on what you offer. Then they come for 6 hours in the month, then in those 6 hours you've also earned 1000 euros, but you have helped 10 people with that. If you also just have 10 other clients in that program, then with this model you're already helping 20 people each month. That's already 2 more than in the previous calculation. And I'm calculating roughly, I'm not becoming a calculator now. When you do that, you have time left over, even more time left over, because those programs you do with people who pay 1000 euros, they maybe also come 3 times or 5 times, doesn't matter, but when you do that and you also have those groups besides that, 6 hours, maybe a few groups in the week or in the month, 6 hours in the month, then you still have time left over. And what can you do then? Then you can also create things that are of value to people that you can give away for free or for little money. So you can for example make a completely online program to help people get over their depression or to help people prevent burnout. Or a completely free program to help people stop drinking. Or a complete program for 3 euros a month or 5 euros a month. And then you just put 200 people in there. 5 euros a month, 200 people. Well, calculate that again. And they all only pay 5 euros, where you guide them step by step towards a fit lifestyle. So not just towards a fit body, but really a fit lifestyle. You can do that, because besides that you sell those programs for 1000 euros and to those groups you sell for, what did I say, 100 euros per participant. That's still a lot of money for people, but 100 euros or a program of 1000 euros, that's quite a difference. And then for 5 euros you can make such a complete online program for 200 people. And actually you earn the same amount with each of these things. But suddenly, imagine you have 200 people online, 10 people in the groups and you have 3 groups, so you have 30 people there and you have another 10 people you're coaching personally. That doesn't even need to be that many to make ends meet, because I'm sure your costs are lower, but let's keep the math simple. So you have 10 people, 30 people and 200 people, you're helping 240 people a month. That's a whole lot more than those 18 you do when you give 20 sessions per week. And in all those things you can really give away all your value. You can just give away your complete self, but I believe much more in that business model, because you're definitely more dynamic. The moment you have 20 clients every week and you help 20 people again and go from 16 to 16 to session, I'm sure the quality per session eventually declines a little bit at the end of the week. Not saying you don't get results, not at all, but I'm sure you can do better. By spreading this out, you also use different talents of yourself at different times and you just make sure that both you lead a nice life where everything you want to nurture is nurtured and you still have some money left over, and with this business model and this calculation you even have enough money left over to give some money to a good cause. You even have time left over to be there for your community too. You can also invest money in your community and then you can give away much more. Then you can mean so much more to yourself, your family, your community and to more clients. You're just more relevant to more people. And I really want to stress to you that this is a much smarter way than just going really low on price. And if you absolutely want to also offer sessions to people who just need 1-on-1 guidance and who ask less with this business model. Yes, then you don't do 10 clients for that 1000 euros a month. No, then you do 5. And what do you do then? Then you do 2 people, you just make a separate website for it. Lots of coaches and therapists do this. You make a separate website for that which doesn't radiate the high-end thing of 1000 euros per program, but radiates hey, come to me, I'm trustworthy and then you charge 35 euros per session or 50 euros for a whole program, because you can offer that, because you have enough financial resources and time left over to be able to do that too. There are so many people who can be helped by what you have to offer. What you have to offer is worth a different amount to every person. When someone is getting 30,000 euros net credited to their bank account every month, then an investment of 1000 euros is already little. Then you can even think about okay, do a VIP day for such a person and charge 5000 euros for it. If you pay you pay attention. You don't have to do that, but it's about the mindset that there are so many people who just have more money to spend and so many people who have less money to spend. And this way you can deploy your full potential and give all your value in a much better way, specifically targeted at what someone can pay. And why this is also really important, is because otherwise you're going to hold yourself back, because otherwise a little voice will keep singing in your head, and that might be happening right now while listening to this podcast, that you think I'm not allowed to earn a lot of money, because I help people. And when I help people, I do that from my heart and I do that from my soul. And that's also why you started doing this. And then it's smart to look at how you can best help people. And that's just different per situation per client. And that's why it's just very helpful to offer different rates for different services, 1-on-1, group or online. There are other possibilities, but it's not entrepreneurship training or it's not a podcast about what kind of things you can all offer to people. It's just an example to change your money mindset, actually to strengthen it. And quite honestly, I'd rather they pay you 1000 euros than that they go to Media Markt every 2 years to buy a new TV. I wouldn't recommend that store anyway, but that's beside the point. I'd rather people invest money in their own mental and physical state, that they become nicer and better people for themselves, their loved ones, community and the rest of the world, than that they invest it in very expensive bottles of champagne, big TVs, fat cars, whatever. I'm also in favor of those things when you know, hey, this feeds my soul to just have a nice cinema room and once a week watch a really great movie alone or with your family, then you should do that too. But I give it as an example to let you know, hey, there are people who just spend money monthly on junk, while I'd rather they give you that money, so they just become better and nicer people for themselves and the rest of the people around them. I'm very curious how you think about money and how you see that with coaches, especially after hearing this story? I'm just curious, so leave a comment below or come online on Instagram hypnomaster dot nl or add me on LinkedIn, I'd really like that too under the name Paul Vette. Well, I hope of course that you're doing well too. And well, let me just say this, because nowadays I also do live days for groups and I think I'm including that here, because the first one is coming up and the sales are going quite well. At the moment I'm recording this there are only 2 spots available, but I think I'm going to do it every so often. So for coaches, therapists and service providers who are still making less than 2500 euros in revenue per month. If you provide a service based on a selective product the revenue can be higher, so check before you find yourself fitting in, but then go to hypnomaster dot nl slash starters to see if you can be at the next live day, because that seems really cool to me too. Well, I hope in any case that you're doing well. I hope things are going well with your loved ones and I wish you of course a very nice day. Bye --- This transcript has been translated from Dutch.