pcIt's perhaps one of the most common questions fitness club owners hear: "What's your fitness center price point?"
According to a recent survey in Shape magazine, pricing is among one of the top factors individuals consider when selecting new studio. However, consumers care about price as well as quality.
If you set your fitness studio pricing too low, you risk changing the initial perception of value to future members. On the other hand, setting your membership prices too high can also be detrimental. When prices are too high, you could be at risk of losing potential or current members to the next best-priced fitness center.
While studio pricing is an essential factor when it comes time to sign up for a new fitness center, one question remains. As an owner, when it comes to fitness studio pricing, how do you determine the perfect balance between value and retention?
Just like your potential client, fitness studio pricing is not a one-size-fits-all mold. Your studio pricing needs to reflect potential client behaviors. For example, how often will a potential client use your studio? How competitive is your pricing compared to other market competitors?
Your fitness studio pricing also should consider the specific needs of your client base. For example do they prefer pay-as-they-go or a structured membership model?
Does your studio offers small group training classes or personal training (such as barre, yoga or Pilates)? If so, should your pricing model allow for unlimited access to these classes or would you be better off extending limited access memberships (i.e. six classes per month)?
When determining your fitness studio pricing, all of the above mentioned are great considerations when it comes time to establish your fitness center price points.
Not only is it important to know what your competitors are charging, but also it's also equally important to know what their clients are receiving for their fitness studio pricing. When you know what your competitors are charging in correlation to what they offer, it provides a great framework for your pricing models.
If your studio offers small group training classes or personal training (such as barre, yoga or Pilates), you need to account for these added services into your price plan. Even if they are not included in general membership, they offer added value to your client.
If your studio offers a higher quality experience than your competitors, then your pricing should reflect the value of an upgraded experience. It’s beneficial to build your pricing around the great experience you provide your client.
The best way to create a great fitness experience is to start with the end result. Consider the outcome your potential client wants from their visit. For most fitness clients, their goal is to pay for an exceptional studio and staff they simply can’t live without. So, they end up signing up for a membership. Your fitness studio pricing should reflect client usage and goals.
Now more than ever, it’s not only the amount your client pays, but also how they pay that matters. In today's digital environment, clients want to pay their fitness studio pricing automatically. They want a hassle free membership experience.
The right fitness software connects your members, tracks their goals and progress and handles all of their autopay needs. A fitness mobile app allows your clients to book, pay, connect, communicate and stay informed through their mobile apps. It’s easy and functional. They are connected to not only your fitness center but also their fitness community. Your fitness studio pricing should incorporate important details that will fit client needs.
Your fitness center app also adds value to your fitness studio pricing. This digital platform allows them to access your studio even when they are not physically on site. Incentives capitalizing on this desire can help you achieve the appropriate fitness studio pricing.
Ultimately, only you can determine how high or low you’re prepared to go with your fitness studio pricing. While it's important to keep an eye on your competitors’ pricing, don't over-analyze what they’re charging when you're determining your pricing packages.
Consider lowering your price points if you’re at low capacity and not filling your classes or appointment slots. You also may need to lower pricing if competition in your area is high. Compensating with volume to achieve a lower fitness studio pricing point will encourage client demand.
On the other hand, you should consider increasing your prices if you’re at maximum capacity (70 to 80 percent), have full classes, or low market competition.
Whether your goal is to entice new clients or to encourage existing members to stay, it's essential that you find your pricing "hotspot". Regardless of whether your studio appeals to newbies or regulars, your studio pricing should always be geared towards retention.
Are you interested in learning how strong business management and fitness tracking software can help to streamline your organizational processes, boost revenues and build your fitness community? Contact the experts at OneFitStop to learn more. We look forward to hearing from you.