Why don’t fitness owners charge more for their services or their memberships?
It’s like they are “RACING 🏎 to the bottom” to be the cheapest and it’s likely killing their business.
Let me give you an example.
A gym chain came in the town a couple of years ago and they offered memberships at $9.99 a month.
While this may have been perceived as a good strategy at this low price point it is extremely difficult to turn a profit.
With the cost of building and maintenance, with the cost of employee salaries, and all other overhead fees it becomes very stressful to try and maintain the business.
The chain gym is no longer in business 🚫.
The small business owned gyms that are charging a premium price for membership are still in business and still thriving.
In talking with a client recently, he was very frustrated because he knew he wanted to increase his prices but felt in doing so he would struggle to get clients.
Because of this, he felt that clients do not care about quality… only price.
I expressed to him that this is not the correct mindset to have as a business owner.
I explained that people are willing to pay for quality service as long as they feel the perceived value they are receiving in return is equivalent.
I went on to explain to him that this is where MARKETING comes into play.
MARKETING, when done right by an experienced professional, will position that perceived value high enough to be able to attract clients that are willing to pay the premium for your services.
The problem is that my client’s marketing efforts were all done by him, not by a trained and experienced marketing professional.
Once I helped him past this mindset block, he started to envision fantastic new ideas to re-image his company to portray his service in a more positive and higher valued way for his clients.
Many small business owners struggle with the same exact issue all the time.
They think lowering their prices will save their business…
…but truth is, it’s a fast way to put themselves OUT OF BUSINESS.
So what can an owner do at this point?
✅Well, first you make sure you do not overreact and raise your prices to the point of scaring all of your business away.
✅Take the time to estimate the perceived value of what you have to offer.
✅Do a little market analysis to understand the price points of your competitors vs the value they offer.
Once you establish a well-thought-out premium price point, work closely with a MARKETING PROFESSIONAL.
🎯Let them help you position your offer and perceived value as higher than your price.
🎯They will also bring you enough leads and new members to both SUSTAIN your business and INCREASE your profitability!
Do not allow this to overwhelm you!
Instead, get EXCITED for your members on the value they will receive as a result of these efforts!
Have questions? Let me know!