One of my VIP clients recently asked me about group discounts.
Actually, this question comes up a lot.
In my case, the only time I offered a group discount was during my career with the YMCA, a not-for-profit.
We gave the local SWAT team use of the facilities for free. This discount was something I inherited and very few members of the SWAT team took advantage of the membership, so it was low priority on my radar.
Fast forward to when I owned a Health Club and paying the bills, making payroll, improving the facility, and paying taxes were top priority. Group discounts were even less of a priority at that point.
I’ve always had an uneasy feeling about those noble discounts to first responders, police, the military, and other public servants.
The problem I had was where do you draw the line? What makes one group qualify for a discount more than another?
Then along came the Pandemic and a new label, essential worker, became commonplace.
The world quickly learned that essential workers, truck drivers, garbage collectors, DPW crews, teachers, and similar professions were very essential.
The problem with discounts is where do you draw the line?
How do you decide who is more important?
The best solution is to not offer group discounts at all, with one possible exception: the senior population.
A policy of no discounts is fair and consistent across the board. It’s an easy sell.
I don’t know of any gym owner who lost business after eliminating the group discounts.
The time and energy you save can be used to update your marketing allowing you to focus on providing greater value for your customers and getting more business that stays with you for longer.
Remember, you only get results when you take action on your ideas!
