How To Increase Your Gym's Pricing (Without Losing Members)
Increasing your prices is a part of business nearly every gym owner will go through at some point. It’s the number one way to improve your margins, and it’s standard practice for any business — but even though the benefits are obvious you need to do it right.
This article will guide you through some points to consider when raising your membership prices, making the process easier for both you and your members.
1. Correctly time your increase.
The first, and arguably the most important step is to time your price increase right. The best time to raise your prices is when you’re confident that your current paying members are satisfied with your gym’s service and facilities.
If you’re planning on increasing your prices, make sure you’ve recently (or plan to) add value around the gym a few months before you do it. Have a chat with your members about what changes they might like to see, then act on their feedback.
2. Upgrade your gym.
Once you know what features, equipment, services and products your members want, start implementing them. Upgrading your facility helps to easily justify a price increase.
New or upgraded machines are always appreciated by members, but if you don’t have that sort of budget it could be something as simple as updating your floor mats, installing some fans or getting some new skipping ropes. Every gym is different, so do what makes sense to you.
By adding value first, they are more likely to accept the new rate (they might even be expecting it).
The key here is to add upgrades that also allow you to increase margins. Meaning, increasing prices by 20% but having costs increase by 20% or more doesn’t make financial sense. After all, the goal is to increase your margins so you can keep more money.
Add upgrades that don’t cost more than your price increase.
3. Communicate!
Make sure you communicate clearly with your members clearly and frequently. Start by asking for their feedback, what you’re working on, checking in with them to see if they like it, and any upgrades you’ve made.
Make sure they know why your gym is great, how your value/service has increased over time and what they are paying for. Then when it comes time for a price increase, let them know well ahead of time so they aren’t shocked.
This step is simple but absolutely critical. The worst thing you can do is slap them with a price increase they didn’t know about. That’s a quick way to annoy (or lose) members!
4. Offer long-term customers an extended rate.
If you have long-term customers that have been with you for a long time (or even just all current members), give them extended access to the original rate.
For example, let’s say all new gym members will pay $30 per week starting on November 21st. All current members can stay on $25 a week until January 1st, 2022.
If you combine this with gym upgrades and plenty of communication, you should be able to keep most of your current members.
Communicate! The worst thing you can do is slap members with a price increase they didn’t know about.
5. If members do leave, ask them why.
Naturally, some members may leave. But don’t just let them walk out the door without saying anything, make sure you get feedback! Whether it’s positive or negative, getting feedback is always important and helps you improve for the future.
6. Bundle your services.
A price increase is simply about charging more for what you’re already doing. But another great way to increase your sales and margins is by bundling your service (or ‘upselling’). E.g you can offer discounted personal training sessions if they buy multiple sessions at a time.
Or you could offer discounts at the cafe/supplement store for members that they didn’t previously have access to. This way, members still feel like they are getting a good deal, even though their base membership price has increased.
7. Plan ahead.
Ultimately, planning your price increase is all about managing your relationship and communication with your members. Before raising your prices, make sure you’ve considered not only your current costs but also any cost increases that are likely to happen in the next year or two.
You don’t want to go through the process of raising prices, only to find four months later that you need to do it all over again. Time your price increases strategically, and make sure you’re managing your finances appropriately.
Raising prices might seem daunting, but these tactics will make it as painless as possible for you and your members. And once you pull it off, getting paid what you are worth is one of the best feelings in the world.
If you want help reducing costs and improving your margins, check out our payment solutions for gyms and fitness businesses on the button below!