As gym owners, we all know we could use a price increase. But how do actually we do that?
How do we strategically and effectively increase our rates…without having all our members walk out on us?
A lot of you guys out there have expressed to me that you want to do this. You know you need to do this.
You haven’t done this in years and you’ve also made so many adjustments to your membership. You’ve hired staff, invested in equipment, even expanded your space, but you membership rates have never changed.
You’ve made all these changes but there has been no return on your investment because your rates have not come up. You’ve improved your program, your business, your skill sets but your price doesn’t reflect that. And that’s costing you.
Jus think: whenever you buy new technology, a higher price point is expected. This isn’t anything new. Consumer are aware that prices increase over time.
Why I Did It
So why is it that we as gym owners have such a hard time increasing our rates? I think it’s because we have a tendency to put ourselves last for the sake of our community. We also have a unique position. We’re “friends” with our clients. So it feels “wrong” to increase prices for our friends. I get that. I workout with my members & continue to engage with the community.
But at the end of the day, I had to remember I am running a business. This is my livelihood & career.
I also started considering what I was losing. I was giving up time off, an income that would support my growing family, the lifestyle freedom I wanted to spend time with my daughter.
If you truly want to change the business to be a professional long-term career, there’s no way around this. You have to increase your prices.
How I Did It
So here’s what I did. I identified that my ideal clients wanted 3 thing. They want a fitness class. They want feedback & instruction. They want accountability. My ideal clients struggle to do this on their own.
They’ve tried, they failed. They recognize that they want and need someone to tell them what to do at the gym and make sure that they’re safe. You have to recognize that’s an actual need. That is something they value.
From there, we start to separate who needs us and those who don’t need us. Next I had to make sure my existing members understood I was more than just a class I had to add a couple key services that would benefit them. Accountability was huge.
I added automated check ins if they missed a class. A follow up text, a video message, a reminder of their goals & why. That’s a valuable service that they want and crave from us. A most gyms are not doing it.
The third thing we recognized is they wanted guidance. They legitimately were confused, had information overload on what exercises to do, how to organize a program. Am I lifting correctly? Am I doing enough? Am I not doing enough?
There is an information overload out there and they needed structure. They needed a program that would tell them exactly what to do so they could stay fit year round.
When we started organizing our service, it just became very clear that this is what our clients wanted from us. And when we packaged that up and understood the program we offer it became a lot easier to communicate that.
So I shot a video explaining how our program is moving forward, what’s included and what key changes we are making.
We emailed it out with the instructions on how to renew and when the membership increase would take effect. There’s a lot of ways to increase your rates, but we believe in giving people the opportunity to adjust to the change. I recommend no more than 90 days out.
The fear part of actually pushing “send” is nerve wracking. There’s always that thing in the back of your mind, right?
How many people am I going to lose? And you go down the list. You pull up all your members. You’re like, “alright, I’m going to lose him. I’m not going to lose them.” But most of the time we build this up in our minds too much.
I was having a discussion the other day with one of my clients and we did the math. We literally took the math of saying, “all right, I’m going to increase $50 per member. And we actually realized that we could lose up to 10 to 15% of that membership and still come out with net positive cashflow. That was my experience as well. I lost some clients but I was net positive overall.
The only thing holding you back is you. It’s the fear you’re creating. That fear then compounds with hesitation, uncertainty and the thoughts you created. I get it. The thought of losing everyone is sometimes too much to bear.
But that doesn’t happen. I’ve never seen it happen with all the price increased I’ve done personally and all the ones we’ve helped our clients with. The key is getting you to a place guys where you’re confident in what you’re offering and you can clearly communicate it and define it.
If you’re interested increasing your prices but you know you need to upgrade your program, creates systems that support a high quality service, then apply to work with us.
Our 12 week marketing & business coaching program helps systemize your gym so you can start earning a $5k take home income & $5k in business profit…every single month.
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