Hola! My name is Mayra Salinas and I’m a First-Generation Latina Educator & Professional Coach. As a New York University (NYU) Certified Executive Coach, I support ambitious entrepreneurs, change makers and creatives navigate change, normalize growth and write sh*t down, get sh*t done through one-on-one professional coaching and consulting. My specializations include helping women of color and entrepreneurs strategize career, business, and life goals.
This blog article will explore the sliding scale pricing structure for a coaching business. Personally, I have considered piloting this structure because I feel that it aligned more with my values, beliefs and goals – I want to increase access and accessibility to coaching for people of color. I believe in the power of coaching and consulting and strongly feel that people deserve to have access to personal and professional development tools. I’ll be beta testing how this works with my coaching business during quarter three of this year and will be taking notes along the way.
What are the pros and cons of a sliding scale pricing model for coaching businesses?
In the coaching industry, determining the right pricing structure is crucial for success. One approach that has gained popularity is the sliding scale pricing model. This model offers clients a range of prices based on their individual financial circumstances. While it has its advantages, it also comes with certain drawbacks. This blog explores the pros and cons of implementing a sliding scale pricing model in a coaching business, specifically. However, many service-based businesses utilize this model.
Pros:
Accessibility and Inclusivity: A significant advantage of a sliding scale pricing model is its ability to make coaching services more accessible to a wider range of individuals. By offering different price options, coaches can accommodate clients with varying financial capabilities. This inclusivity allows individuals who might not have been able to afford coaching otherwise to access valuable support and guidance. As a first-gen latina coach, this is the biggest reason why I’m choosing to beta test sliding scale coaching this year in my business.
Enhanced Reach and Market Potential: By implementing a sliding scale pricing model, coaching businesses can expand their potential client base. Lower-priced options attract individuals who are price-sensitive or have limited financial resources. This expanded reach can lead to increased brand visibility and attract a more diverse clientele, ultimately resulting in a larger market share for the coaching business.
Ethical Considerations: Using a sliding scale pricing model aligns with the ethical principles of fairness and social responsibility. Coaches who genuinely want to make a positive impact on society and empower individuals may find this pricing structure to be a reflection of their values. It allows them to contribute to social equity by ensuring their services are accessible to a wider range of individuals, regardless of their economic background.
Cons:
Financial Viability: One of the primary challenges of a sliding scale pricing model is maintaining financial viability for the coaching business. Lower-priced services may not generate sufficient revenue to cover costs, especially if the demand for higher-priced services is limited. This can potentially strain the business’s resources, affecting its sustainability and long-term viability.
Pricing Complexity: Implementing a sliding scale pricing model adds complexity to the pricing structure. Determining the appropriate price range for different income levels requires careful analysis and consideration. This complexity can create confusion among clients and may lead to pricing disparities or challenges in communicating the value of services effectively.
Perceived Value and Client Commitment: A potential drawback of offering lower-priced options is that clients may perceive the value of the coaching services differently. Some clients might assume that a lower price equates to lower quality or less commitment from the coach. This perception could impact client satisfaction and their willingness to fully engage in the coaching process, potentially diminishing the overall effectiveness of the coaching relationship.
The sliding scale pricing model has both pros and cons for coaching businesses. While it promotes accessibility, inclusivity, and ethical considerations, it also presents challenges regarding financial viability, pricing complexity, and perceived value. Before adopting a sliding scale pricing model, coaches must carefully assess their business’s specific circumstances, target market, and financial goals to determine if this pricing structure aligns with their values and is compatible with their business model. As I mentioned, I’ll be piloting this model during quarter three of 2023 and will be happy to report back my experience using this model in my coaching business.
How can you work with me?
I’m currently looking for 2-3 new clients to work with this summer! If you’re interested in learning more, you can schedule a free consultation and see if we’re a good coaching fit. My coaching sessions for the summer will be sliding scale to increase access and affordability for people looking to explore professional coaching. Visit my website to learn more or email me at mayrasalinascoaching@gmail.com.
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