Why it’s a mistake to set prices based on your competitors…

1September 2020

Why it’s a mistake to set prices based on your competitors…

…yet so many fall into this trap!

In talking with many fitness professionals and gyms, I see many of them keep falling for this strategy.

This is more of a lack of business/sales knowledge than poor decision making.

There’s one basic concept that should always be kept in mind in offering anything to the public…

…two simple words, yet VERY powerful!

🎯“PERCEIVED VALUE” 🎯

Let me put it in a better perspective for you.

Ask any female… 

…your wife, your sister, your mother, your neighbor… 

“Would you rather buy a purse 👜 at the Dollar Tree or a Coach store?”

I’m sure the majority of responses would lean towards the Coach store.

Why??

🎯“PERCEIVED VALUE”🎯

While the price is drastically less at Dollar Tree, the perceived value is also DRASTICALLY less than the Coach store.

DO YOU GET IT NOW?

Let me relate it to fitness.

If a fitness trainer sets his prices at $30 per session while a prestigious training outfit in town charges $100 per session, it POSITIONS that trainer as a “cheap” or “low-end” value. 

Whereas the $100 per session trainer has a much higher “perceived value” just on price alone.

Of course, there is MUCH more to it than this. The customer experience is the most critical piece of this. 

Current customers must PERCEIVE what they are getting is equal or greater in VALUE than the price they are paying.

In the case of the $100 per session trainer, if he/she does nothing different than the $30 per session trainer, the customers will likely not stick around.

However, if the high-end trainer does home visits or includes physical therapy techniques or massage or nutrition plans… etc, then his/her “PERCEIVED VALUE” skyrockets. 

If you’re a business owner, then I encourage you to change your mindset.

🚫DON’T BE AVERAGE
🚫DON’T BE A BARGAIN

Instead… 

✅BE DIFFERENT
✅BE UNIQUE
✅OFFER MORE VALUE
✅MAKE CUSTOMERS FEEL SPECIAL

Don’t SETTLE for being average…

…offer a lot of value and charge a fair high-end rate for your services.

You can thank me later!

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