The Benefits of Value-Based Pricing for Wellness Creators
Do you ever feel torn between chasing your passion for wellness and keeping your business alive?
If so, you aren't alone in this struggle. It's a dilemma that many of us face, especially in an industry where the desire to make a difference often feels at odds with the need to make ends meet.
In the wellness industry, there's this prevailing belief that everything should be free or donation-based. And while there’s nothing wrong with that if you’re a non-profit or charity, it can spell trouble when you’re trying to run a business.
When you factor in that the wellness industry is primarily led by women, things get even more complex. We've been conditioned to undervalue ourselves, to undercharge for our services—a cycle that's hard to break.
But today, we're diving into a pricing strategy we recommend for every wellness creator: value based pricing.
We’ll explore what value based pricing is, how to use it in your business, and, most importantly, how to shed the discomfort that often surrounds pricing discussions in the health and wellness space.
Whether you’re selling online courses, memberships, coaching, or digital products—this strategy can work for your business.
The Problem with Undercharging for Your Services
When guilt and shame cloud our relationship with money, it often leads to undercharging. This is a common pitfall that’s easy to fall into. But this habit doesn't just affect our own bottom line, it drags down the industry average as a whole.
Think about it: when you set your prices low—whether it's offering a $5 yoga class or a free monthly fitness membership—it triggers a domino effect. These prices set a standard that becomes a race to the bottom for everyone else in the industry.
And the repercussions aren’t just limited to your own business. They can ripple out, shaping broader perceptions within society. Clients start to expect wellness “shouldn’t cost me money.”
It's a stark contrast to the high costs of healthcare in the United States.
But in a capitalist society, we have to charge for our services if we want to thrive professionally. It's not about greed, but valuing our time, knowledge, and expertise.
After all, why shouldn't you get paid for the years of training and dedication you've poured into learning how to transform someone's well-being?
Take Lululemon, for example. Customers are shelling out $120 for leggings without batting an eye. Yet, when it comes to investing in a $15 class that could potentially change their lives?
Suddenly, the reluctance sets in.
We believe it's time to challenge this flawed mindset and recognize the true worth of what we offer.
Why You Should Shift to Value Based Pricing
So, how exactly do you pinpoint what your audience is willing to pay for your services?
Here's where value based pricing comes into play.
Instead of thinking of value by how many videos or live classes you offer, shift your focus to the transformation you provide. Let's say you're a wellness practitioner specializing in yoga for fertility.
Your goal isn't to teach poses but it's to help someone conceive naturally. So, instead of asking yourself, "How much should I charge for this fertility yoga class?" consider a different approach.
Think about the value of the transformation you're facilitating. If a client can achieve their dream of getting pregnant through your program, what's that worth to that person?
Let's put it into perspective:
What if IVF costs $30,000, but your yoga fertility program achieves the same result in just six weeks? You're not just selling a bundle of classes and sessions—you're selling the life-changing outcome your program delivers.
You want to break free from the notion that value is tied to the number of videos or coaching calls included in your program. Whether it takes 5 minutes of personalized attention or hours of video content, the result is what truly matters.
It’s the value of the transformation you provide with your work that should be the determining factor of how you price it.
If IVF costs $30,000, but a client can work with you in a yoga fertility program for six weeks and get pregnant, that's the conversation to start to have. You're not selling five classes plus two workshops plus a 1-hour session.
What you're selling is the result of what those sessions do for that person.
You want to get away from thinking that the value of your program comes from having 14 videos, 3 live classes a week, and 2 coaching calls, so you should price it at "X amount."
If you can give someone the same result because you spend five minutes looking at them, that should be the same price as if they watch 14 videos and get that result.
Ultimately, your pricing should align with the transformative experience you offer and the tangible results you deliver to your clients. Consider what it would cost them in terms of time, money, and attention to achieve similar results elsewhere, and let that guide your pricing decisions.
Should You Ever Offer Promos or Discounts?
Can you offer promotions without compromising the value of your content?
Absolutely! For example, if you offer both monthly and annual membership plans, providing discounts for annual subscriptions can work. This type of offer is a way to encourage long-term commitment from your customers.
Discounts can also help create an incentive and even exclusivity, especially in membership-based models however, you want to use them judiciously.
While discounts can be effective, you don't want to overuse them and risk diluting the perceived value of your offerings in the long term.
Final Thoughts
In the balance between promoting wellness and running a business, deciding how to price your services is a pivotal choice.
Through value based pricing, we can reclaim our worth as wellness creators and challenge the status quo in the industry.
When we start thinking about value based pricing, it’s like peeling back layers of an onion. We aren't just putting a price tag on our offerings, but digging deep to understand the true worth we bring to our clients' lives.
So, let’s ask ourselves:
What does value really mean in the world of wellness? And how do we measure the impact we have on our clients?
Because value is more than dollars and cents. Value is the profound, life-changing differences you make in people’s lives.
