PUBLISHED FRIDAY JULY 30, 2021
What pricing model is right for your fitness boutique business?
Having a great fitness business idea is amazing. However, you need to have a good pricing model that best suits your mode of business operations. This is important both for smooth business operations and sustainability.
There are several pricing models that you can use as a fitness business owner and we shall be highlighting the major ones in this article. It is noteworthy to mention here that it is essential to understand what works best for you and your client before selecting a pricing model.
Pay As You Go Model and Class – based packages
Payment under this category is made based on visits or defined packages. For instance, you can have packages, say basic, standard, and premium, and attach prices to each of the packages. The basic package may go for $100, the standard package for $250, and the premium package for $350 for 20 classes.
Under the Pay as You Go arrangement, payments are attached to class attendance, say $20 per visit. If your clients are regular class attendants, you should have a class-based package. In cases where clients seldomly visit, pay as you go pricing model could be a better option. However, this pricing model leaves a business with an inconsistent income flow, financial planning could be difficult.
Monthly or Membership Payment Models
This pricing model is quite common in the fitness industry. Many fitness studios receive payments every month. Some even make it an annual payment structure. For instance, you can fix your service charge for, say $200 per month. In most cases, these monthly service charges are fixed and leaves little or no room for flexibility. As a result, it is a useful pricing model to adopt if accurate financial planning is one of your business focuses.
A key strategy to optimize this pricing model is to fix the monthly subscription at a cheaper rate relative to a Pay as You Go pricing model. You can set your monthly subscription for $300 a month and the class package could be $150 for 20 classes. Clients will more likely opt for the membership payment as it is cheaper to purchase a membership plan. In that way, customer loyalty and long-term commitment are promoted.
As a business owner, you can develop a dynamic payment model based on some pricing factors. You can assess the classes you offer and assign higher prices to the classes with greater demands while lowering prices for classes with low patronage.
Other factors to consider could be the skills of the tutor, timing, etc. For example, you can charge $30 for a weekend class with a well-experienced tutor and charge $20 for a class coordinated by a regular tutor on a weekday. This pricing model is often adopted by fitness studios in major cities.
The membership (monthly) pricing model and the class-based packages are the commonly used pricing models in the fitness industry and they have advantages over one another. Unlike the class-based packages, the membership pricing model encourages financial planning and proper budgeting. Meanwhile, class-based packages or the Pay as You Go pricing model promotes customer attraction – they do not have to register for a full month before joining your class. In that way, many clients will be more willing to join your fitness class.
Developing an efficient class schedule and pricing plan that works well for your business can be tasking and time-consuming. However, OClass CRM has a special pricing feature that helps you achieve this easily and effectively. OClass CRM also provides you with essential pricing templates that you can choose from and customize in alignment with your business model and client needs.