I’m heading out to spend some on-site time with a client today.
I really like being on-site. The perspective is so different.
Before I finish packing up I want to share something I am very passionate about, pricing discounts.
Pricing discounts are the kiss of death in the fitness industry. Pure and simple.
Don’t get me wrong, business owners offer them all the time in this industry. But for a fitness business that focuses on fitness programming, rather than 24/7 open gym time, the pricing discount model is a total disaster, with one very important exception.
Pricing can, and should be, used as an incentive in the following scenario only:
The price discount is offered to any current member who brings in a new member and both receive a discount.
For example, member X brings in a friend who becomes member Y. The new member, Y, gets a discount of 10% for example, AND Member X gets the same 10% discount on their membership.
It’s a win-win-win for both the members and the business.
This kind of discount is fair to everyone and every member can participate.
In our case, we allowed and encouraged people to participate as many times as they wanted to. There simply is no downside to this incentive program.
You need to work out the details of what happens if someone cancels their membership, but this is easy to manage with your billing system. And all details like this should be spelled out clearly in your promotional material.
In my gym, we used to announce when the member and new member qualified for this incentive. The recognition was good for both members and a cause for celebration for everyone.
