PRICE YOUR BUSINESS TO KEEP CLIENTS!
Posted on October 22 2018
Do you look at your studio’s pricing and think “wow… I nailed it, this is totally working for me!!”? If not, don’t worry, you’re not alone. There is a major misconception in the fitness world around pricing and how to structure classes and membership. When it comes to boutique fitness, the industry has gone too long giving the clients free reign in deciding how pricing should be structured. Of course clients will opt for a cheap option, especially if that option is low commitment and gives them the opportunity to try out deals at competitors. What fitness business owners are missing is that pricing doesn’t have to look like anyone else. Below are 4 tips to establishing pricing that works for your business and how to train your clients to be YOUR loyal clients…
- Know your ideal client: Do you know exactly who you are targeting as your client? You might be thinking… “middle aged women” or “20-50 year old men”. But, I mean really know what your client looks like, where they shop, their habits, what car they drive, what they eat, how many kids they have, how old they are, etc. When you have an ideal “A” client type, you can design your pricing model around them and their habits. You know what they can afford and how often they will be at your studio. You’ll know exactly where and how to market because you know where they spend their time. Knowing this is essential to pricing your business.
- Is your product off the charts amazing?: If you know your client, and that your product is outstanding for that specific person, you don’t need to worry about price or membership type. You simply tell them your system and they will pay. You could have only ONE membership option and they will make it work. The trick is to REALLY know if you’re that good. So, ask. Find the living version of your ideal “A” client and ask them. Find out what is amazing about what you do, and what needs work. Feedback is key!
- Prescribe a path: Your client will tell you exactly why they came in and what they are looking for if you just ask. If you can understand their goals and what brought them in the door you can prescribe a path to success. Often that means attending classes 2 or more times per week. You are the expert, so tell them that! Then, design your pricing to make 2+ times per week financially feasible in an autopay membership model. Lock them in!
- Limit the options: The more choices you give, the less likely your client is to lean toward a high commitment option. There is a general rule in fitness/yoga pricing that I live by: NO MORE THAN SIX CHOICES! In fact, I’d like to see 5 or less. Design the options so it is an absolute no brainer to pick the price path you want your client to choose. Train them to see the benefits of membership. Make it easy to get there with an upsell offer to get started.
It’s up to you to guide your clients in the direction you want them to go. I have seen studios be wildly successful with completely outside the box pricing and membership models because they believe in them and commit to it. It takes a well-trained sales staff to communicate them, but ultimately it will work if you know your client and your product rocks. So go forth and re-price. Change it up. See what happens when you ask your client to follow the membership path that makes sense for them AND for your business. I’d love to hear what happens! If you are interested in how to dive into the numbers and really make pricing successful, schedule your free consult with me!