Eric Tyler, a follower of our weekly show, Coach’s Corner, asked by email: “I’m a fitness personal trainer. How can I raise my prices?”
Here’s my answer to Eric:
This is a pretty interesting question and I can give you some cliff notes. Let’s say you’re doing an hourly rate and you’re selling your services for a $100/hour and you’re making 10 to $12,000 a month, it’s really good money because in today’s economy, it’s great money. The problem with charging an hourly rate is that you are a slave to your business.
If you charge at a higher price, it will push your cheap clients away, which is great because anytime you can get rid of cheap clients, things are good. That’s why our agency prices are very high because I’d rather work with people who have money because generally, people who have money are easier to work with. We also have packages that range from 3,000 to 30,000 and in my experience, every time we launch a discount offer and cut pricing by 50% or 90%, that’s when we have the biggest issues with clients because it attracts the cheap clients.
If I were you, I would raise my prices today. If you’re selling your services for a $100/hour, I would double it, even if you lose a few clients. But always remember a simple math: if you have 20 clients who are paying you a $100 and then you raise your prices to $200, you will lose ten clients. Think about that: it’s the same amount of money with less work. Instead of having 20 clients and doing one hour each every week, you can actually cut your work by half and keep the same amount of money and actually keep the best clients who value your work.
In my opinion, that’s the number one way I would do it if you want to stay in the hourly dynamic. I don’t recommend doing hourly because I have done hourly, and it sucks. It’s bad for the client and it’s bad for you. I’d prefer selling packages but if you want to do an hourly dynamic, double your prices or maybe triple them even. Only work with fewer clients and with people who are more committed. If you do that, you’ll need to work fewer hours and will be able to increase your income anywhere between 300% to 1,000% like our clients have done for years.
What do you think? I’d love to hear from you! Leave a comment in the section below 🙂