I’m Launching My Fitness Studio – How Should I Structure My Pricing? | Marketing Q&A

Entrepreneur Question:

After years of being a highly sought-after personal trainer at a well-known fitness chain, I'm finally launching my own fitness studio. My experience so far has been pretty straightforward – clients at the chain were charged a set rate per session.

But as I delve into the nitty-gritty of entrepreneurship, I'm realizing this model might not cut it. Rent, equipment, not to mention my salary... it's a lot, and even if clients bought enough sessions to max my hours, it still might not be enough income.

I was considering sticking to personal training sessions but I'm not sure it's sustainable. I'm aiming for an exclusive, high-discipline gym but I'm at a crossroads with my pricing strategy.

How do I structure my pricing to cover costs and still turn a profit without compromising the exclusivity of my services?

Alex

Expert Answer:

As entrepreneurs, we’re often captivated by the innovation and quality of our offerings, and many entrepreneurs stop there and never go the next step of figuring the reality of that pricing into an annual projected budget.

I know you were working on the annual budget piece as part of an overall business plan and related marketing plan, since that’s what we have initially been working with you on.

You’ve realized an important thing that too many entrepreneurs miss when they’re just starting out: strategic pricing.

Just because the pricing everyone else is doing is working for them, doesn’t mean that it will for you, and it’s great that you’re recognized this before you even open the doors; this means we can help you get it right from the beginning.

Tailoring Your Pricing Strategy

In guiding the entrepreneur, we focused on several key areas to help pivot his thinking around the pricing he was used to, versus the pricing that might work best for his new gym:

Group Fitness Sessions: To leverage time and resources, we considered group sessions as the primary pricing structure instead of one-on-one personal training. This would allow serving more clients simultaneously, enhancing the gym’s community feel and increasing revenue potential for every hour, rather than being limited by one person paying for one hour. This would be the base, lowest level service, and would be a great way to get new prospects in the door to experience the owner’s personal style.
Premium Services: Next, as a way to increase Average Order Value as well as Average Lifetime Value, we suggested that the personal training sessions be an upgrade. This would cater to the most focused clients who are willing to pay a premium for ongoing personalized attention. They could still be available as a stand-alone purchase for the most committed clients. This would be the highest level premium service.
Value-Added Services: For both the group session participants and the personal training clients, considering several value-added services can also be a key way to increase the ongoing value of each client. looked into adding services like nutritional guidance and specialized coaching. Having a couple of options here could be key. One example would be those who wanted to purchase group sessions and then add-on one personal session per month, where he could discuss weight, form, and other customizations. This would be a step up from the base service. Other add-ons down the road could include nutritional counseling, mindset mentoring, and carrying a line of nutritional supplements, such as protein powder, available for purchase through the gym.
Exclusivity and Premium Offering: We emphasized the importance of maintaining the gym’s exclusivity to attract serious clients, ensuring the pricing strategy reflects the high-quality, personalized service being offered

The Universal Relevance of Strategic Pricing

Strategic pricing is crucial for all entrepreneurs, not just those in fitness. It’s about setting prices that reflect the value and uniqueness of your business, going beyond mere numbers to showcase your commitment to quality and customer satisfaction. This approach ensures your pricing speaks to the tailored, customer-focused solutions you provide.

Starting your business with a well-thought-out pricing strategy is essential. It involves making sure your prices truly reflect the value your business offers, appealing directly to what your audience seeks and values. Drawing inspiration from our discussion, it’s about crafting a pricing model that fosters growth and mirrors the unique, client-focused services that set your business apart.

Vicky

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