Create Your Pricing Structure
- Feb 17
- 9 min read
Pricing your services in the wellness industry comes down to knowing your competition, coaching style, goals, and all the other parameters that really matter!
Like in every other industry, there is no one-size-fits-all answer. But this guide will give you the tools you need to determine what pricing structure will work best for you and your business.
Be sure to watch the video above for a full explanation.
At its most basic level, your pricing strategy should consider the following:
Know Your Costs and Salary Goals
Understanding your costs, including both operating expenses and the costs involved in delivering services, is essential. Additionally, define your salary goals to ensure your pricing covers your desired income. Calculate the total monthly and annual expenses, and add your target salary to this figure. This total will help you establish a minimum revenue target, which then guides your pricing decisions. Ensure your pricing not only covers these costs but also allows for profit and reinvestment in your business.
Your Operating Expenses
Operating expenses are the costs associated with running your wellness practice on a daily basis. These can include rent for your physical space, utilities, salaries for any employees or contractors, marketing and advertising costs, software subscriptions for scheduling and client management, professional development, and supplies. To accurately calculate your operating expenses, list all recurring monthly expenses and any annual costs, then divide the annual costs by 12 to get a monthly average. Knowing these expenses helps you set a baseline for how much revenue you need to cover costs and start making a profit.
The Costs Involved
In addition to operating expenses, consider the specific costs related to delivering your services. This includes materials or products used during sessions, travel expenses (if applicable), and any other direct costs incurred while providing your services. Calculate the cost per service to ensure you price your packages to cover these expenses while maintaining profitability. Including these costs in your pricing strategy ensures you do not undercharge and can sustainably provide high-quality services.
The Profit You Would Like to Make
To determine the profit margin you aim for, decide on the income you wish to generate from your wellness practice. This includes both your personal financial goals and the reinvestment needed for business growth. A common approach is to add a desired profit margin percentage on top of your total costs (operating expenses + costs involved). For example, if your total costs are $2,000 per month and you aim for a 30% profit margin, you would need to generate at least $2,600 per month in revenue. This helps ensure your business is not only sustainable but also provides a healthy return on your investment and efforts.
Know Your Competition
Researching your competition is crucial when pricing your services. Look at other wellness practitioners in your area or within your niche to understand their pricing structures. Consider the value they offer, such as qualifications, experience, and unique services, and compare it to what you provide. This helps you determine a competitive price point while ensuring you’re not undervaluing your services. Aim to position your pricing in a way that reflects the quality and uniqueness of your offerings, while also staying attractive to potential clients.
Are You Coaching Long-Term Change vs Offering a One-Time Service as a Consultant
The nature of your services significantly impacts your pricing strategy. Long-term coaching often involves ongoing support and personalized guidance, justifying a higher price due to the commitment and continued value provided over time. In contrast, one-time consulting services may focus on delivering immediate, actionable advice, which can be priced lower but require a different approach to volume and client acquisition. Determine whether your services are geared towards sustained client relationships or single, impactful sessions, and price accordingly.
Pick the Best Pricing Model for Your Business Type
Choose a pricing model that aligns with your business type and client expectations. Common models include hourly rates, package pricing, and subscription-based services. Hourly rates can be straightforward but may not convey the full value of your services. Package pricing often works well for long-term coaching, offering clients a clear commitment and value. Subscription models can provide a steady income for ongoing services. Evaluate which model best matches your service delivery and client needs.
Pricing for Your Industry
Your hourly rate is influenced by the standard pricing within your specific industry. Different wellness niches, such as holistic health coaching, massage therapy, or personal training, have varying pricing norms. Understanding the average rates in your industry helps you set a competitive price point. Research industry reports, surveys, and competitor pricing to gauge the typical hourly rates and ensure your pricing aligns with industry standards while reflecting the value you provide.
Your Expertise Level
The level of expertise you bring to your practice significantly affects your hourly rate. Higher levels of education, certifications, and years of experience justify higher fees. Clients are often willing to pay more for practitioners who demonstrate a high level of knowledge and skill in their field. Highlight your qualifications, specialized training, and experience when setting your rates to reflect the value of your expertise.
Your Visibility in the Industry or Authority Status
Being a recognized authority or having a strong presence in your industry can justify a higher hourly rate. Visibility can come from speaking engagements, published work, a strong online presence, or being featured in reputable media. Establishing yourself as a thought leader builds trust and credibility, allowing you to command higher fees. Invest in activities that increase your visibility and position you as an expert in your field.
Legitimate Referrals and Recommendations
Referrals and recommendations from satisfied clients or respected professionals in your industry enhance your credibility and can support higher rates. Testimonials and word-of-mouth referrals serve as powerful endorsements of your services. Encourage happy clients to provide feedback and recommendations, and consider forming partnerships with other professionals who can refer clients to you.
Your Already-Proven Results
Demonstrating proven results with past clients can justify a higher hourly rate. Case studies, success stories, and measurable outcomes show potential clients the value and effectiveness of your services. Use data and specific examples to showcase your impact, helping clients understand the tangible benefits they can expect from working with you.
How Many Clients You've Had
The number of clients you have worked with can indicate your experience and success in the industry. A larger client base suggests reliability and trustworthiness, which can justify higher rates. Track your client numbers and use this as a metric to demonstrate your experience and popularity in the field.
What Your Competitors Are Charging
Understanding what your competitors charge helps you position your rates effectively. Analyze the pricing strategies of other practitioners in your area or niche, considering their experience, services, and client feedback. Ensure your rates reflect the value you offer while remaining competitive within the market. Avoid underpricing yourself, which can undermine the perceived value of your services.
Test Your Pricing
Testing your pricing is a vital step to ensure it resonates with your target audience and meets your financial goals. Start with an initial pricing structure and gather feedback from clients. Monitor the market response, conversion rates, and overall client satisfaction. Be prepared to adjust your prices based on this feedback and market conditions. Regularly reviewing and refining your pricing strategy helps you stay competitive and aligned with client expectations and business growth.
Assignment: Create Your Pricing
This breakdown will guide you through setting a rational and competitive pricing structure for your wellness business. Ensure that you periodically revisit these calculations and market analyses to adapt to changes in costs, client expectations, and the competitive landscape.
Step 1: Calculating Your Costs:
a. Fixed Monthly Expenses
List all your fixed monthly expenses. These are costs that remain the same regardless of how much you work. Include:
Rent
Salaries (if applicable)
Utilities
Insurance
Licenses
Accountant fees
Internet and cell phone charges
b. Variable Monthly Expenses
List all your variable expenses. These costs vary depending on the volume of your business activities. Include:
Supplies
Marketing and advertising
Website fees
Banking fees
Materials for promotion
c. Total Expenses Calculation:
Add all fixed and variable expenses to determine your total monthly business costs.
Step 2: Define Income Goals and Profit Margins
✓ Desired Income:
Specify your desired monthly or annual income from your practice.
✓ Profit Margin:
Decide on the percentage profit margin you are aiming for. This is essential to ensure your pricing covers costs and generates a profit.
Step 3: Determine Your Hourly Rate
✓ Hourly Rate Calculation:
Add your annual desired income to your annual total expenses. Divide this sum by the number of hours you plan to work in a year (consider weeks off for vacations, sick days, etc.).
Example Calculation:
Desired Annual Income: $45,000
Annual Total Expenses: $7,200
Total Annual Requirement: $52,200
Hours Worked Per Year (assuming 20 hours per week for 52 weeks): 1,040 hours
Minimum Hourly Rate = $52,200 / 1,040 = $50 per hour
Step 4: Assess Market and Competitor Pricing
✓ Market Research:
Research the standard hourly rates and package prices in your wellness niche.
Identify your main competitors and analyze their pricing strategies.
Evaluate how your services compare in value to those of your competitors.
✓ Questions to Consider:
Are your services more comprehensive or specialized compared to competitors?
What unique value or results do you provide that justify your pricing?
How receptive are your clients to your current pricing?
Step 5: Set Package Pricing
Based on your hourly rate, calculate the cost of various service packages you might offer. Consider long-term engagements and how they might be priced more competitively than single sessions.
Package Pricing Examples (see more detailed examples below):
Basic Wellness Package: X sessions per month = $X
Mid-Tier Wellness Package: Includes X sessions + additional support = $X
Premium Wellness Program: Includes X sessions + additional support = $X
Feel free to use our Pricing Worksheet to map out these elements.
Pricing Examples
Consider these pricing examples to use as guidelines when crafting your own packages & pricing:
Free Consult
We always recommend giving a free consult of 30 minutes when first starting. This ensures that you and your client are a good fit, allows you to find out more information about them, and offers solutions (your packages that line up with their main complaints). This ultimately allows you to sell to your client effectively. Sending an intake form to gather more information before the consult shows a level of professionalism and helps you learn about their goals and needs before the session. Refer to the "How to Sell on a Discovery Call" lesson to find out how to implement this effectively.
Hourly Rate
Usually, coaches charge an hourly rate of between $75 and $125 when starting out. Of course, you should take into consideration things such as your experience as well as other certifications and qualifications that you hold. For example, if you are also a personal trainer & nutrition coach you may want to price your rates closer to the $125 mark.
One on One sessions - spaced out weekly or bi-weekly
The first session would be to do a consult to determine the goals of the client then together we would come up with a plan to reach those goals. Each session we would tackle a different portion of that plan. For example, if we determined in the consult that they had a hard time not eating out at lunch because of their busy schedule, provide them with a few recipes that could be prepped ahead of time for the week. They could then bring their lunch with them to work. The following week we would implement another task and so on.
These sessions would have to be used up within 6 months of purchase. Make sure that coaching packages and fees are paid upfront before the client starts. When a client buys a package vs a one-time coaching session, it is a good idea to give them a small discount. This often helps to retain the client for a longer period and means that you can count on this income. The discount amount is up to you, but be sure that you are still making the hourly rate necessary to maintain your level of income needed to pay bills (refer to notes above if needed).
4 sessions - $340 + taxes ($85/hour)
6 sessions - $435 + taxes ($72.50/hour - client saves $80 the equivalent of roughly 1 session off)
When doing this type of coaching you must be sure to track when clients use a session. Creating a spreadsheet with this information or having a CRM software that can do this is often helpful.
Consulting Package Outlines
Note*: These programs/packages were created to use alongside assessments Lynne created for nutrition practitioners. These have been provided to show you how you can create packages. If this is not relevant to your field, replace them with assessments/questionnaires that are high value in your package idea to make them your own and relevant to your niche.
These are more comprehensive plans that can help you implement client goals over a 4-12-week period.
"Feel Better" Pack $359 + taxes (Value $450)
Online Nutrient and Antioxidant Assessment
2-Week Meal Plan and Shopping List
45-minute meeting to go over food and supplement recommendations
Optimal Foods Nutrition Package $549 + taxes (Value $899)
45-minute Initial meeting with a nutritionist
In-depth Lifestyle and Body Systems Assessment
Personalized nutrition plan including daily caloric intake requirements
Optimal food list for your body’s needs
2-week meal plan
Supplement recommendations
Ongoing email/phone support
1-30 minute program review session (recommended during the first 6 weeks)
"Digging Deep" Pack $859 + taxes (Value $1170)
In-depth Lifestyle and Body Systems Assessment & Nutrient Assessment
Optimal food list for your body's needs
2 Phase Meal Plan and Shopping List (2 Months Total)
2 x 45-minute meetings to review each Phase of the plan
Grocery Store Tour and Pantry make-over
Supplement recommendations
Weekly Email Support for the 8 weeks
Meal Planning
Giving potential clients who are interested in your services but may not be ready for a full package, the option of a 1-week or 4-week meal plan is a great way to secure a long-term client. Working with someone for 1 week gives them a taste of the work that you do, but may not give them all the results they are looking for. For this reason, we always suggest offering a 4-week option. This allows you to work with them a bit longer and see the results you can offer.
1-week meal plan - $79
4-week meal plan - $275 (gives them $10 off per week)
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