Pricing is a big topic that can feel pretty complex.
When discussing rates with our gym owner clients we are often met with a LOT of questions:
Am I priced too high? Too low? Should I raise my rates? If I raise my rates, will I lose clients? If I raise my rates, should I only raise rates for new clients or for existing clients too? How often should I raise rates? How much?
And you may have even more questions than that on the topic.
Often we find that the DECISION to actually raise your rates has less to do with the answers to those questions and more to do with your beliefs surrounding the value of the service that you deliver and that your clients perceive.
Who better to ask than actual certified Fitness Business Coaches?
So we asked a few of our Success Coaches what they’re telling our fitness business coaching clients about this exact topic right now.
They shared ways to overcome your own beliefs about pricing and give you tangible strategies to raise prices, start charging what you’re worth so that you can make more money now.
Asa: Let me start off by being bold enough to state that if you haven’t raised your rates in over 3 years…you’re overdue. Trust me, I get it, raising your rates comes with a whole lot of trepidation. I’ve had many conversations with my gym owner clients regarding this topic and more often than not, business owners’ mindsets are overcome with a lot of anxiety and even guilt.
A lot of us have had clients that have been with us through the pandemic and the thought of raising our rates with those loyal individuals and potentially losing them makes us very hesitant.
But I would challenge you to consider the flip side of the coin. Think of all the supplies that you are ordering to maintain the quality of service clients are used to…those prices have increased. Inflation is real and it is impacting everything, why should we be any different?
I would also encourage you to look at this from yet another angle. A minimal price increase (even a tiny 3%) could buy you another precious commodity…TIME. If you are a fitness business owner that is bogged down with training sessions in an effort to not have to increase your expenses in order to have a trainer cover those, a small price increase could help you offload some of those hours, pay a trainer to assume them, and free you up to work ON the business rather than IN it for the majority of your day. (This is what our successful gym owners do.) Think about it:)
Pamela: I understand the level of fear that can come with raising your rates. What if no new sales commit? What if long time clients leave? What if…?
If we think about all the decisions made as a business owner, “what if?” should be a part of the decision making process, but it should not hold you back from taking action.
As we alluded to, there are so many questions, and so many scenarios. It’s less about that and more about making sure your decisions are providing for the fiscal health of your business. Assuming you are a person who consistently seeks out professional development in training, a business owner who replaces equipment when it’s either broken or looking old, a business that employs other quality humans, it’s fair to say that you are worth increasing your rates.
I believe you should stay competitive with your local market for similar services. You can raise your rates for new clients at any time, this is typically the most comfortable change to make. Raising rates for current clients should also happen on a regular basis. The cost of business increases year over year with rent and utilities alone. Not to mention a quality, culture-driven staff needs to be compensated as their length of employment with your company increases.
Since there are a variety of ways to make the price increase, consider what aligns best with your business and your values, then work with your coach to create the action steps to make it happen.
Kelly: Pricing your services can be a difficult and intimidating task. It’s easy to let limiting beliefs about what your services are worth or how they are perceived hold you back from achieving your business goals. Overcoming these limiting beliefs is crucial to pricing your services correctly and ultimately growing your business.
One common limiting belief that gym owners often hold is that their services are not worth what they charge. This can lead to underpricing, which in turn can lead to financial struggles and an inability to invest in your business. To overcome this belief, it’s important to recognize the value that you provide to your clients.
You’re not just selling access to equipment, but rather a comprehensive experience that includes, among other things, expert coaching and a supportive community. By valuing these elements of your service, you can set prices that reflect that value.
Another limiting belief that we see is the fear of pricing themselves out of the market. It’s natural to worry that if you charge too much, you’ll lose customers to cheaper competitors. However, it’s important to remember that pricing is not the only factor that determines a customer’s decision to choose your gym. If you’re providing excellent service and creating a supportive environment, customers will be willing to pay a premium.
Additionally, consider your unique selling proposition, such as specialty classes, personal training, or high-end equipment, and use these to differentiate yourself from competitors.
You may also feel uncomfortable discussing money with clients or worry about being perceived as greedy. It’s so important to reframe this mindset and recognize that you’re running a business, and pricing is a necessary aspect of that. Be confident in the value of your services and don’t be afraid to negotiate or stand firm on your prices when necessary.
Overcoming limiting beliefs is essential to setting the right prices for your gym. By recognizing the value you provide, differentiating yourself from competitors, and being confident in your pricing strategy, you can ensure that your fitness business is sustainable and successful.
Similar Coaches’ Corner topics:
- What’s Wrong With My Gym’s Leads? How Can I Get My Gym’s Leads to Respond and Convert to Clients?
- How do Gym Owners Recognize, Deal With, and Prevent Fatigue and Burnout?
- What Happens When Gym Owners Let Emotions (Like Fear, Hope) Guide Decisions?
- How Many Lead Sources Should My Gym Have? I only have one, is that ok?
Have something specific you’d like to hear from our Fitness Business Coaches about?
Want to see how our certified Fitness Business Coaches handle more questions? Check out our Ask a certified Fitness Business Coach Guide.