How to Raise your Prices
Written By Dino Gomez
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In today’s episode, we’re going to talk about how to raise your prices without losing customers. Let’s go.
Hey, you guys, Dino Gomez here and you are listening to the Secrets of Coaching podcast, where we break down the nuances of growing a seven-figure online coaching business. And we are about to get started in 3 2 1.
All right, guys, it is 07:00 A.m. I have a few moments here before I lead a mastermind call for the seven-figure visionaries. Today, we’re going over copywriting techniques and strategies on that particular call, but I want to talk to you guys today first and foremost, about how to raise your prices without losing clients. All right? And so I’m going to tell you guys a quick story. If I go way back in time, and this was three years ago, four years ago, I joined a program, and my coach said to me at the time, I was charging $500 for an online course. And it was more a course at that point in time rather than like, a mastermind rather than an actual coaching program. I would call it more of a course. Most of it was done in the format of going through the video training with a Facebook group. So there weren’t, like, one on one calls. They weren’t like, group coaching calls or support calls. It was really just video training and asking questions in the Facebook group. That was the format. Low ticket, $500. So that was like, the format, and dove into this program because I wanted to raise my prices.
I wanted to create a better program. I wanted to become more profitable. One of the very first things that my coach said is, hey, you need to raise your prices to $3,000. And it was very finite. Like, it has to be $3,000. And here is why. The explanation was if you want to grow your profitability if you want to build a team, if you want to provide better support and coaching to your clients, you need more revenue. You need more profit margins to be able to do so. I looked at that, and also, it’s like if you want to actually grow and be able to have the margins to run paid ads so you can reach more people, so you can help more people, so you can become more profitable simultaneously and together, then you have to charge $3,000, because otherwise, you won’t have the margins there. I looked at this, and I was like, okay, I understand why it has to happen. That was kind of like, step one is like, okay, I understand now the economics of this, of why it has to be this way. And so then the next piece was like, the mindset piece.
What do I really think about this? So what I did from a framework perspective, right? And that’s a big leap. It wasn’t like, double your prices from 500 to 1000. It was like six x your prices, you have to be at $3,000. And so that’s a huge leap. So I was excited every time a $500 client came on board. But then to digest $3,000.06 times the price initially imposter syndrome like, no, I’m not sure if I can do this. Who’s going to want to pay $3,000? Do people even have $3,000 for a mentor or a coach? What if nobody pays? All the what-ifs, right? And when you are faced with the what-if dialogue in your mind, one of my favorite things to do is to play into it. That’s one of the easiest ways to dismantle a fear or a limiting belief that you have is to actually play into it. So if you’re asking yourself, what if this goes wrong? Continue to play it out. What if it does go wrong? Does the world stop? Does everything fall apart in your life? What would you do if you raise your prices and nobody bought?
You’d probably figure out a way to make your offer better, to add more to your offer to justify the price. You could lower your price back down. Nobody has bought at your increased price point, so nobody is going to be upset that you are dropping your prices. Like, you have a lot of options, right? You could get somebody to sell for you that’s better at sales and that can convert at that higher price point. Or you might just be getting studying sales so that you can convert at that higher price point. You have a ton of options if for some reason it didn’t work. So as I sat there and I was like, okay, $3,000, what if nobody buys? And then I was like, okay, what if nobody buys? And then I went through, what would I do in that situation? If I was just dropped into that situation and had to work my way out, would I be able to do it? I was like, Yeah, I have a ton of options. I can get better at sales. I could hire somebody that’s good at sales. I could make the offer better. I can make the service better.
In Our marketing, we could probably fine-tune to attract more of the audience and buyers who want to spend that type of money on themselves. There are so many options. I was like, Oh, I have a ton of options. If this doesn’t work, now, I can relax and actually go for it and do this right. And so the first thing after that was upgrading my offer and upgrading the program. So I went and recorded a bunch of new training modules and case studies and different things. And then I was like, okay, now we’re going to start providing twice-weekly group coaching calls. So it’s no longer a course. It’s a program where there’s going to be live coaching calls that clients can attend and get feedback, get support, have a good strategy, and have mindset stuff. So the offer increased from just being like a video training to no, now it’s the actual video training. The video training was updated. It’s even better now. There are twice-weekly live coaching calls. We also added a kick-off call, a one-on-one kick-off call. We added a one-on-one strategy call that you can use at any point in time.
So we literally made the actual offer that much stronger. And then now all of a sudden, my confidence level is raising that okay, now I felt good. That $3,000 price point would be an amazing deal. And then I looked at client results, and I was like, the client results are insane. And I started wrapping my head around that, and I was like, Okay, this would make sense from an ROI perspective as well. And so all those things happened, and then it was time to raise the price, right? And so then I decided that at this point, it was self-checkout. When you have a product that’s low ticket right under $1,000 or under $500, normally you can do self-checkout. And that’s how people would enroll. There’s not a sales conversation needed. You can actually sell high tickets at self-checkout. It just depends where you sit in the industry and where you sit with your audience if there’s enough authority built, right? I’ve seen self-checkout for $100,000 Masterminds. Like, you don’t even talk to somebody before you pay $100,000. But the individual is such a huge influencer. There’s a level of trust there.
So generally speaking, right, you do self-checkout when it’s a little bit less expensive, and you do create more opportunities for yourself if you do sales calls because people can have their questions answered and objections handled. So anyways, at $500, it was self-checkout. Now, to go into $3,000, I was like, Okay, we should actually do sales calls so we can answer people’s questions. And again, whether you should do sales calls based on your price point is based on your target audience and how much authority you have. There are different buying audiences that wouldn’t necessarily need a sales call even at a $30,000 price point because of that audience, because of who you’re speaking to. So you need to know where you sit in the marketplace. But at $3,000 to the particular audience, we were marketing to, I was like, they’re going to want to talk to somebody before they buy. So we needed to do sales calls. So that meant I needed to start making sales calls first and foremost before I actually hired a sales team member, a sales rep for our team, all right? Because first you want to prove that you can do it yourself, and then you also want to record those calls so that they can become training material for your sales rep.
They can learn your style of sales and how you answer questions about your program and your coaching. So I remember taking those first few sales calls and being nervous, because now all of a sudden, I’m, like, pitching this $3,000 program, and so I’m super nervous. And again, I had the what-if thing going through my head, but I’d already worked that out. So anytime the what if pops up, again, if you’ve already worked it out in your head, you can remind yourself, no, it would be fine. Here’s what I would do afterward, right? So, again, no matter what it is, what if I launched my coaching business? Do you know, and it doesn’t work out? Well, you tell me what if. What would you do next? Or then? Would you get better at coaching? Would you get better at sales? Would you get better at client attraction? Would you give up? Would you go get a job? What would you do? Ask yourself what if and play it out. And then the next time that pops into your head, right? I already worked that one out. I’ll deal with that when I get there. But I know that there are solutions and opportunities and other things I can do afterward, which is awesome.
Okay? So that’s what I did. I’m getting ready for that first sales call, and I’m a little bit nervous because I’m doing first-time selling at the $3,000 price point. And again, our program is now upgraded. We have a lot more than we’re bringing to the table in terms of value. And so I go through the entire offer. The person actually, purchased it on the spot. I remember I dropped the price, and they sat there, and they go, okay, and they’re thinking about it, and I’m just allowing them to think about it. And again, I’m like on pins and needles, like, what’s going to happen here? And they said yes, and they closed. And so I tried to act cool and calm and collect, and what I did next is this is a big one for you guys, is that I knew exactly how to onboard them, right? So they said yes on the call. I was, okay, let’s process your credit card. We did that. And actually, we have a cool onboarding strategy for new clients that our clients afterward turn around and use. But I was like, okay, let’s get you all on-boarded.
And boom, we get him on boarded. And his name was Doug, and I won’t forget his name because it was the first close at that new price point, right? And after the words, I’m dancing around the room, I’m, like, amazed. All these I’m just super excited, and my mind had just exploded because now I realize, wow, this entire time, we could have been charging six times as much, right? What it would have taken to generate $3,000 in revenue. It would have taken me it would have taken six clients to come in at $500 for that one $3,000 client. But now, to this day, this was about four years ago with my first ever program. To this day, I remember the gentleman’s first name. His name is Doug, and I won’t say reveal his last name, but I remember his name. I’ll never forget him because of that and because he was a client, not a customer. Now, right, at $500, it’s more like you’re a customer. At $3,000, you’re a client. So now I know him by first name. I had several one on one calls with him. He joined our program, and it was only one sale.
And what’s interesting, right as we talk about seven figure visionaries here, that’s what you need to strive for per day is if you want a million dollar business, it’s $3,000. You make $3,000 a day. A little bit under, it’s closer to like, $2,700, but essentially strive for $3,000 a day. So if you can create a coaching program that is valued or is worth right, $3,000, if that’s your price point, if you can get yourself to $3,000, then all you have to focus on is, okay, I just need to close one client per day, and I will have a $90,000 month, which is well over a seven figure run rate. You do that every single month, you’re going to make well over a million dollars in that calendar year. So now I’m like, okay, cool, this is proven. Did that a few more times. I didn’t like the next four or five sales calls. I think maybe we closed two or three out of the next five. So it’s not like a perfect close ratio. I wasn’t expecting that. But nonetheless, right. It would have taken six times as many customers to equal that one client.
And now I knew him by first name, and now I got to develop a relationship with them. And now they got a way more support that they needed to get better results. It created this win win situation. They were super happy with the level of support in the program because it was getting them to where they wanted to be. I was super happy. And now I was able to hire team members to provide even more support and expertise and even more one on one calls and even more group coaching calls, and everything started to explode. And so if you’re asking yourself, do.
You know, how do I raise my prices?
Oh, my gosh. I think if I started out as a coach right now, or you already have a coaching business, I want to raise my prices to ten grand or whatever it might be. If you’re wondering if you can do that, first think about number one. How do I upgrade my offer to justify that higher price tag? What would need to change? Or is everything already set? You could be under pricing yourself. Do I need to change anything? And what I recommend doing is stacking the deck. So in other words, make yourself so confident in your offer right that confidence radiates from you in terms of the value. That the value exchange that you’re providing to the market. So if you need to stack on ten oneonone calls to feel confident raising your prices, do so. Stack ten one on one calls on and sell at the higher price point. And with extreme confidence that this is a screaming deal, do that. Get yourself energetically, super excited and confident to sell at the higher price point. Upgrade your program if you need to. Add in more coaching calls and support and then raise your prices.
And when that little bit of self doubt kicks in, just remember this when you say to yourself what if, play it out. What if? And what would you do if things went terribly wrong and you’ll see that it probably isn’t as terrible as you expected. So the lesson here, guys, is number one, this is how you raise your prices. But then number two, play the what if out. And when you do, you realize you have a lot more to gain than you do to lose. If you go for it, whatever that might be in your business and in your life, things that you want, all right? Go after it. Because the what if it goes wrong is normally very minimal compared to the what if it actually works normally, that’s absolutely massive.
Hey Dino, Gomez here and if you enjoyed this, so be sure to head on over to the secretsofcoaching.com for more resources, downloads, videos and cheatsheets to help you grow your online coaching business. All right. And if you picked up a cool tip or strategy from this particular episode, we would love a five star review where every single month we choose one lucky winner to win access to one of our coaching programs. All right. So that is it for this episode. Guys, we will see you in the next one. Bye.
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