Charging Different Rates For New & Existing Members

 

Right now at my gym, I offer 2 services.

An initial coaching offer for new members.

A core coaching offer for existing members.

 

Initial Coaching Offer (ICO)

My ICO is 3 month group program specifically for members new to my gym.

I sell it for $352/month and it includes: weekly email/texting support, strength & cardio classes led by a coach, monthly nutrition & skills workshops and quarterly fitness & body composition feedback.

 Core Coaching Offer (CCO)

My CCO is a 6 month group program specifically for members who have completed the ICO or existing members.

I sell it for $252/month and it includes: weekly email/texting support, strength & cardio classes led by a coach, monthly nutrition & skills workshops and quarterly fitness & body composition feedback.

Wait, Why Are The Prices Different?  

This is a common question I get from gym owners who are inside my program, Factory Forged Momentum.

 

Why do you charge different rates for new members vs existing members?

2 reasons

Reason #1: It costs more to acquire a new client than to keep a new client

Reason #2:  New clients need more support & service as they’re starting

 

Building In Cost Of Acquisition

My cost of acquiring a new client is around: $200 – $300

 

I build my pricing based on $300, which means that I need to charge a new client an extra $300 in order to cover the cost of acquisition.

 

So if my base rate is $252/month for my existing, long term clients.

Then I need to charge $300 or $100+/month for new members.

$352/month for 3 months.

 

This allows me to not just get paid for servicing the client. But also cover the expenses of the acquiring the new client.

Keeping your offers simple allows you to get better at selling them. First, consistently. Then, at higher prices. 

In Conclusion

My CCO is $252/month and this rate covers my operating expenses, payroll ( owner, admin, coaching team & payroll taxes), profit & taxes.

 

My ICO is $353/month and this rate covers all of the above and the cost of acquiring a new client.

 

Selling just these 2 offers keeps my expenses low & helps me get really good at selling this offer. 

 

 

Want to calculate what to charge to be profitable?