Effective pricing will go a long way in the profitability of your fitness club. You will face many decisions as a club owner, but this crucial one in particular is something you will have to make upon opening your gym. As you know, if you price your gym too low, you will miss out on profits and potentially overfill your gym. However, if you price your gym too high, you may miss out on more members and increased profits. So, what’s a gym owner to do? What are the different factors to consider when determining your price structure? The following are a few of the most effective ways to set your gym membership so you make a profit and keep members rolling in.
Analyze the Market
As you’ve probably already been doing from the get-go, take a look at the other gyms in your area. Yes, even if they are a completely different facility they can give you an idea about pricing schemes for your fitness studio. Take special note of specials and sales, and their frequency. By doing this, you’ll be able to determine where you stand among your competitors. There are typically four categories: high price/ high quality, high price/low quality, low price/high quality, low price/low quality. From here you should easily determine a good price for your club while staying competitive.
As a new gym, you will want to do whatever you can to separate yourself from the competition and position your brand from all the other gyms in your area. For example, if you have positioned yourself as a high-end gym, this will need to be reflected in everything from the quality of your equipment to the décor and membership perks. By doing so, you ensure that your clientele is also high-end and value what your gym has to offer. As a high-end gym, you will need to ensure that you are thoroughly building your brand in such a way that your clients feel as though being a member is a status symbol and mark of quality.
Similarly, if you are positioning your gym as a low-end gym, you will want to emphasize quantity over quality. For example if you own a large gym, you are able to charge your members less despite the fact the equipment may not always be state-of-the-art and peak times may be more crowded than at other gyms.
Speaking of peak times, crowded gyms are often a deal breaker for members. Most people want to get their workout in without dealing with crowds, waiting for equipment and congestion. Keep in mind that the more your gym memberships costs, the less crowded and more convenient it will be for your members. And, of course, vice versa. You can balance traffic while running a smooth and efficient gym with a good gym management software system. There are many different types and all are effective at managing traffic and marketing your fitness center.
Packages and Add-Ons
One common practice that many gyms use is including package offers. This is especially true for small fitness clubs and personal training studios. These packages typically vary from discounts on long-term memberships, personal training sessions and even membership perks (such as discounts on apparel, protein shakes, guest policies, etc.). Before you determine package pricing, take a look at the incentives your competitors offer to make sure you are staying competitive with the gyms in your area. Consider what you want to include for basic members and what you want to include for VIP/higher paying members. One great way to boost income is to have packages that include personal training sessions. Typically when someone gets hooked with a trainer they really like, they will keep renewing their package – the key is to get them hooked! Additionally, a reoccurring billing cycle is one of the best ways to retain members. If you do offer a month-to-month option, you’ll want to charge higher for that rate to deter potential members from purchasing that option. Members that go month-to-month usually do not stick around very long.
Once you have your gym pricing in place, your job is not over. You’ll want to find ways to keep your members motivated and engaged in your club (LINK TO ATTENDANCE BLOG) so they create a habit and become active members of the club. The better perceived value for your club, the better your membership attendance will be!