Picking your pricing when starting can be super tricky
You check out what the competition is doing & pick something similar right?
Over the years, I have listened to mentors & copied the competition
👆 & both of those times, I was costing my business big time
My first mentor told me to charge £350pm, which I really struggled to sell
Then when we opened the studio, I dropped to £50, because I, well… I HAVE NO IDEA WHY 🫣
It wasn’t until the bank balance really struggled to stay in the positive & many arguments with Holly
That something had to change & change fast
So here is how we changed everything over the course of 3 months…
1️⃣ I finally looked at the P&L statement, this was like a punch in the face & a clear as day reason we didn’t make money
2️⃣ We worked out the average outgoing from the last 6 months = roughly £12kpm
3️⃣ 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
It worked out that if we charged £120 a month for 3 sessions a week, then we would need 100 minimum to maintain a very small profit
Now we had the pricing sorted, here is what we did next
4️⃣ We took the FEO up by £79 from £150 for the 6 weeks to £229
5️⃣ We then changed the price for new people who joined after the 6 weeks
- £120 for 3 sessions a week
- £149 for unlimited sessions
😩 Next was the worst part…
Telling our current clients things were changing a LOT 🫣
But before we did, we made a few big changes in the gym
✅ We got MyZone
✅ We got 2 SkiErgs, 2 Rowing Machines on interest-free finance
✅ We installed 4 more rigs with benches, bars & plates
Then sent out the email to each individual client
Explaining we have invested a lot into new equipment, brought a brand new structure & accountability to the training
Plus that your memberships were going up in 3 months’ time, and not by a little, by almost double 🫣
We did cave a little…
We said their price would be going up to £97, letting them know that new people would be paying more
And also, at that rate, they would also have access to unlimited sessions
The emails went out 😶
And as you can guess…
About 70% all
Agreed 😅
Some said it should have gone up ages ago
Others said they would see what the 3 months would turn into
And 2 canceled their memberships the next day 🤷♂️
This is one of the things we get you to do right away when you join us inside The Incubator coaching programme
To really fine-tune your memberships & pricing to ensure you are actually making a profit & growing your fitness business
You can learn more here —>> https://fitproincubator.com/
You got this 💪
David 🙂
