Aside from a price hike or a rate increase, are there other ways a Coaching business can increase its profits? There are actually numerous ways—scaling both large and small—that a Coaching business can increase its profits. Whether that profit comes from earning new revenue or freeing up some costs, here are five of the more simple ways to do so.
Convert your leads into paying customers
Depending on how full your sales pipeline is, it might be time to make a push to convert some of these leads into paying customers. Task yourself with closing outstanding deals or offers that have been languishing. Or offer a special deal for first-time coaching clients and make it even more enticing for them to try you out as a Coach.
Tip: Conduct a month-long sales push set a goal for yourself that revolves around closing deals with new clients or upselling current clients. Sometimes the monotony of the selling process needs a bit of a shake-up, and setting goals above and beyond the norm may reinvigorate your bottomline.
BUNDLE PRODUCTS OR SERVICES
Bundling works if you offer products or services that naturally fit together. For example, a Coach might bundle together their Coaching services with special assessments. The point of bundling is to give the client a slight discount while increasing your profit per client.
Tip: Be careful with the language you use when putting bundles together. While telling clients they are getting something for “free” (i.e., you’re paying part of the cost instead of the retail buyer) is definitely one way to get their attention, it can also backfire in the long-term. Charging for something that was once free can irritate clients to the point that they won’t come back. It might be better to simply say you are giving the client a deep discount or preferred pricing on the other services.
Offer retainers or maintenance coaching
Depending on your business model, charging clients an ongoing fee for maintenance Coaching might be a great way to generate steady income. A retainer model, which is typical in the legal profession, might also work for your Coaching business.
Tip: Locking clients into long-term retainers without a way out can be seen as unethical. Clearly outline what your client can expect for the retainer fee (how many times a week/month you will you Coach them? For how many minutes? Will they have ‘special’ access to you when needed?). Finally, consider offering other discounts for longer-term retainers.
ask your clients for input
Many business owners know this, but your clients are a treasure trove of information. Chances are they’ve already thought of ways to cut costs, increase revenue, or improve what you’re doing; and simply haven’t mentioned it because no one has asked. You’re not the only innovator for your Coaching business. Leverage the talented clients you are already in touch with.
Tip: If you do ask clients for input, make sure to respond to their suggestions. Make sure to acknowledge clients who have offered solutions—and this is important—even if you don’t use them. Doing so ensures you’ll continue to receive client feedback the next time you ask for it. If you do implement a clients’ idea, celebrate it! Get their permission first, then make a big deal out of the fact that Bob and Sally are innovative thinkers who are helping your business move forward.
scrutinize expenses and understand where profit margins are healthy/unhealthy
Coaches often fail to realize that profit margins are fluid. Many Coaches may focus heavily on increasing income and forget that expenses are also fluid. Sometimes the most effective way to improve your profit margins is to decrease your expenditures. This can be achieved through reducing redundancy in your systems, leveraging emerging technologies, or seeking out better/more cost efficient means of doing what you’re already doing.
Tip: Try to find one change each month that can save your business money. Ask yourself ‘what am I paying for that I’m not really using/optimizing?’ or ‘how can i do xyz better, but less expensively?’ Don’t ignore the forgotten metric (expenses) that matters; decreasing expenditures can really pay off.
What other ideas do you have for increasing your profit margin? Let us know in the comments section below.