As a fitness business owner, one of the hardest things you’ll have to do is set your prices. It sounds easy, but when you get down to the details, it can be a pretty tricky thing. You don’t want to set your prices too low or you won’t make enough profit to keep your business afloat. You don’t want to set your prices too high where you can’t attract enough clients. It’s a fine line that you need to walk between offering a valuable service at a respectable and affordable price. We here at FitnessTexter have decided to write up an article about the three steps you need to follow to properly set your prices. Enjoy the read! If you ever need help getting more gym members, take a look at FitnessTexter. If you’re curious about how setting prices can effect your business, check out: ‘Setting the Table’ on Amazon. It talks about food, but it works for fitness just as well.

Break Your Fitness Offerings into Different Levels

Unless you’re a mega gym that offers the same price to every single member, you’re going to have to figure out different prices for different services. What if someone only wants to come in 3 days per week? They don’t want to pay the unlimited membership pass since they know beforehand that they’re not going to be utilizing it to the fullest extent. Sit down with your business partners (or managers) and figure out what types of service breakdowns you can create. Maybe you’ll have a 3-day pass, a weekly pass, a weekly pass with personal training, etc. It’s up to you and your team how you break down your pricing, but you’ll want to make sure that every possible members has a membership bracket that fits their needs. Look at how Equinox breaks down their services. You’ll also want to do a financial analysis of your different price points to make sure that you’re going to be able to turn a profit. If you’re charing $35/month, are you going to be able to pay the bills? These are things you’ll need to think about before opening your doors.

Do Price Research on Your Local Fitness Competition

Before you set any fixed price, you’ll want to do a bit of research and see what your competition charges. If the box across town is charging $150 per month, you’re not going to want to charge $75 a month. Firstly, you’re going to be doing a disservice to the business community in general. No one likes when a business opens in town and undercuts the prices of all the already-established businesses. Secondly, if the business across town is charging $150/month and still making a profit, why would you want to charge half their price. If they’re making profit at that price point, you can do the same. Look into the group fitness model as well, it pays!

Be Willing to Negotiate Different Prices for Groups

Make sure you’re willing to negotiate different prices for different groups. If you charge $75/month and a large business in your city comes in asking for a discount for their employees, it’s in your best interests to give them a discount to get their business. You don’t want to be too stuck in your ways that you’re not willing to give a discount if it means getting a large number of new clients. We’re not talking about gouging your bottom line, but offering a sizable discount (if it means getting 10+ new members), is something that you should think about. Most large corporation offer fitness benefits to their employees. It’s in your best interest to get these deep-pocket clients in your doors.