Picking your pricing when starting can be super tricky
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You check out what the competition is doing & pick something similar right?
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Over the years, I have listened to mentors & copied the competition
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๐ & both of those times, I was costing my business big time
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My first mentor told me to charge ยฃ350pm, which I really struggled to sell
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Then when we opened the studio, I dropped to ยฃ50, because I, wellโฆ I HAVE NO IDEA WHY ๐ซฃ
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It wasnโt until the bank balance really struggled to stay in the positive & many arguments with Holly
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That something had to change & change fast
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So here is how we changed everything over the course of 3 monthsโฆ
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1๏ธโฃ I finally looked at the P&L statement, this was like a punch in the face & a clear as day reason we didnโt make money
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2๏ธโฃ We worked out the average outgoing from the last 6 months = roughly ยฃ12kpm
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3๏ธโฃ Next we got the calculator out & started playing with a load of numbers
- How much does VAT & Tax eat into the price
- How many clients could we max coach
- What would be the smallest number of clients we could handle
And a few other ones
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It worked out that if we charged ยฃ120 a month for 3 sessions a week, then we would need 100 minimum to maintain a very small profit
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Now we had the pricing sorted, here is what we did next
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4๏ธโฃ We took the FEO up by ยฃ79 from ยฃ150 for the 6 weeks to ยฃ229
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5๏ธโฃ We then changed the price for new people who joined after the 6 weeks
- ยฃ120 for 3 sessions a week
- ยฃ149 for unlimited sessions
๐ฉ Next was the worst partโฆ
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Telling our current clients things were changing a LOT ๐ซฃ
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But before we did, we made a few big changes in the gym
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We got MyZone
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We got 2 SkiErgs, 2 Rowing Machines on interest-free finance
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We installed 4 more rigs with benches, bars & plates
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Then sent out the email to each individual client
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Explaining we have invested a lot into new equipment, brought a brand new structure & accountability to the training
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Plus that your memberships were going up in 3 months’ time, and not by a little, by almost double ๐ซฃ
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We did cave a littleโฆ
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We said their price would be going up to ยฃ97, letting them know that new people would be paying more
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And also, at that rate, they would also have access to unlimited sessions
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The emails went out ๐ถ
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And as you can guessโฆ
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About 70% all
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Agreed ๐
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Some said it should have gone up ages ago
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Others said they would see what the 3 months would turn into
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And 2 canceled their memberships the next day ๐คทโโ๏ธ
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This is one of the things we get you to do right away when you join us inside The Incubator coaching programme
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To really fine-tune your memberships & pricing to ensure you are actually making a profit & growing your fitness business
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You can learn more here โ>> https://fitproincubator.com/
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You got this ๐ช
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David ๐