WE WANT OUR OFFERS TO BE REALLY EASY TO SELL, IN A WAY THAT HONORS BOTH YOU AND YOUR CLIENTS. 3 TIERED PRICING ALLOWS US TO ACCOMPLISH THIS.
How you can make it easy for your clients to say yes, for your prospective clients to see the value in the offers that you have, whether you’re selling products or courses or coaching or retreats or workshops.
There is a way to package that up so that your clients and prospective clients can really see that.
And that is with the 3 Tier Pricing Strategy.
Having three different tiered offers is a really beautiful way to organize the way that you work with people.
Now, don’t worry. Once you outline your three offers, they’re not set in stone. They don’t have to be static. You can always change them, and even customize them as you work with different clients.
In this post, we’ll go through the process of creating your tiered coaching packages together. I also list a few examples of different ways you can use this strategy in your business, to help get your creative juices flowing!
Questions to Clarify What You Offer
Before you outline your tiers, you need to know exactly what it is that you offer. Depending on where you are in your business journey, you might have no idea, or you might have some offerings that aren’t structured into packages, and you’d like them to be.
Here are some questions and thought exercises to help you really get clear on what you offer as a coach.
Think through these questions, in your journal or during your meditation or over your morning coffee. Then think about how your answers could be built into your offerings and what processes you would take your clients through.
If you’re at the beginning of your business journey, you might have no idea what you will offer and sell. Ask yourself some of these questions:
- What are you really passionate about?
- What do you find yourself talking about over and over?
- What problems do people have or do prospective clients have that you can help solve? How do you solve them?
- What type of advice are you always giving away for free?
- What are you always telling people to do?
- What are you the go-to expert in? Or what do you want to be the go-to expert in?
- What are you highly educated in?
- What has your life been based on? What are some of the lessons you’ve had to learn over and over again?
- What could you have helped a younger version of you with?
If you already have a business that’s running well, here are some different questions that I invite you to think about:
- What are some of the things that you do with all of your clients again and again and again?
- What do you find yourself talking about over and over that can potentially be turned into a group offer or a course or some kind of class that you can deliver on-to-many as opposed to one-to-one?
- How can you make your one-on-one services your premium offer?
Clarify Who Your Offers Are For (and not for)
After you’ve answered those questions for yourself, you’ll have a clearer idea of what you’ll be offering, but not necessarily how or to whom.
As you’re building your offers, you’ll be using very specific language and energy based on who you want to attract in. Hopefully you already have a clear idea on who your ideal clients are.
But as much as your offers are about who you want to attract in, you always want to think about who you don’t want to attract.
Make a list of who you serve, and also who you don’t serve. Who are the people that you absolutely don’t want to work with?
This is just as important to know as you build your offers, because what you put out is going to be what you attract back. So be really clear and decisive about what it is that you’re putting out there and what it is that you’re calling in for clients.
The Three Tier Pricing Structure
When you’re creating your packages, you typically want to have three offers.
- A small bite
- A medium bite
- And a large bite
$ – The small bite is some way that people can work with you that is a taste of what it’s like to work with you in those higher capacities.
$$ – The medium bite is your signature offer. This is the thing that you want most people to buy and that you’ll sell again and again. This could be a group program, or it could be a middle of the road kind of coaching program, or a premium online course. There are lots of ways to think about this.
$$$ – The large bite is your premium service. This could be a done-for-you type service if you’re a service provider, or more of a white glove treatment, or a VIP offer with lots of one-on-one time.
In an ideal world, clients should be able to move from one offer to the next.
This isn’t always the case. Some people are going to start on a lower-end offer and want to move up, others are going to come in at a higher-end offer and stay there, and other people are going to move all the way through the funnel from beginning to end. And that’s all totally fine.
But as you put your offers together, think about the customer’s journey and how you can move them through with your different offers.
And remember, as a person moves through the tiers, they’ll get more access to you. Your time is valuable, and you want to honor that, so these offers with lots of access to you will be more expensive. This is a really effective way to build your business in a way that prevents you from being completely overworked.
One of the ways I like to brainstorm and create this 3-tier packages structure is with index cards.
I write down all the different ways I can work with people on different index cards, and then I move them around to see what makes sense.
I think about what would make sense for my customer and how he or she wants to work with me, and also how I can funnel them through the tiers from one service to the next, or how I can really serve them at exactly where they are.
Let’s See it in Action: Three Tiered Pricing Examples
Here are a few examples of this type of business structure in action, so you can see how this can work in different ways.
How I’ve Used the 3-Tier Structure in My Business
Tier 1 (Small Bite):
When I first started my business, I offered a one-time coaching session called the Money Mastery Session. This was a 90-minute Zoom session where we would work together one on one on money mindset issues.
This was for someone who was stuck at a certain income level and they wanted to accelerate and poise their business for unlimited potential.
I’d also consider a retreat as a Small Bite tier offering. While the price of my retreats is similar to my VIP Premium offer, people come to a tropical destination with me and a group of people for intensive work. I find that after a retreat experience, a lot of people feel inspired or motivated to work with me in a deeper capacity.
You could also have a course as your small bite experience, as I envision for the future of my coaching business. (So yes, don’t forget that your tiers can change).
The idea is to be able to serve more people, but give some type of experience that shows what it’s like to work with you in a deeper way.
Tier 2 (Signature Offer):
From the Money Mastery Session, the client would have gained clarity over their business, would fall in love with me, and want to book into my next tier of offerings.
At the time, this was one-on-one coaching packages. Today, this would be my mastermind.
This next tier addresses the next steps in the client’s journey, the things that they’re now ready for after doing the Money Mastery Session. They want clarity, and a customized business plan and action steps. They want to know what to do and they know that they are the only person holding themselves back.
Tier 3 (Premium Offer):
The highest tier in my business is the VIP experience.
This is a luxurious one-to-one session in person, where we spend a full day together getting super clear on one idea or one aspect of your business. Then the client walks away with clear action steps for what’s next.
More Examples of the Three Tier Pricing Structure:
I’ve illustrated the ways that I’ve used this strategy to structure my offers, but let’s go through a few examples to give you some more ideas. These are all hypothetical examples, but they’re all perfectly valid uses of this 3-tier packages method.
Tiered Pricing Example 1:
You could teach a group masterclass online as your Small Bite Tier. You invite 20 or 40 or 60 people into this masterclass, and they’re all paying $500.
They get a taste of what it’s like to work with you, and they they decide to sign up for your retreat, at $4000.
And from the retreat, you move them into a one-on-one coaching package that’s $7,500.
Tiered Pricing Example 2:
This example starts out exactly how I started my business. You could offer a 90-minute breakthrough session for $500. From there, some people would move into either a three month accelerator program for $2,500 or a six month coaching package for $5,000.
One interesting thing you could do with this is apply the $500 from the breakthrough session to the next package. So the $2,500 would become $2,000, and the $5,000 package would become $4,500.
Once they’ve worked through those coaching packages, maybe they then join you for a luxurious one-on-one retreat experience as the VIP premium offer.
Tiered Pricing Example 3:
For this last example, let’s say you have an ebook or small digital product for your small bite, priced at $25.
From there, people are thinking “Oh my gosh yes! I want all of this! This person has tons of expertise” and then they buy your signature course at $2,000.
And then maybe they attend the live event where you’re speaking as the highest level tier.
I hope these examples get your juices flowing and thinking “How can I structure my offers to really optimize it, not only for me, but for my clients?”
There’s so many options for this 3-Tier pricing structure for your coaching or service based business.
For further support with creating offers for your business, check out my mini-course THE SALES REMEDY, where we dive into pricing, sales and more!
Do you have any new ideas to use this tiered pricing strategy in your business? Drop them in the comments below! I’m excited to hear what you come up with.