Choosing the right pricing strategy for your gym can be a big challenge. Before you establish which is best for your gym, you need to ensure that you have all the right data and information to make the right pricing call.
Have you got your finger on the pulse of your local community? Because there are three sources of information you need to know to make your pricing competitive, unique or just standout.
- Customer demographics
- Competitor gym pricing
- Market positioning
These three key components of your Gym Membership Prices will answer some of the core pricing questions you have, like:
- Is my pricing competitive?
- Can I attract the right customer?
- How many members do I need to break even?
- Will my pricing produce an optimum profit?
1. What Are Your Gym Customers Demographics?
Who are your customers? Where are they coming from; are they local or do they travel far to your facility? Your customer demographics are important. Appealing to the right ones will help them visit frequently while ensuring they recommend you to others too.
Here are a few significant categories you should be exploring when looking at your gym demographics;
Population: Are there enough people in your area to support a gym of your size? Can you attract the minimum number you need to support your financial projections?
Income: What level of income does that population earn? Are they likely to earn the minimum required to recognise your facility as an attractive and beneficial outlet to spend their income on?
Disposable Income: This is the key finding of the first two categories. What is your demographic spending money on in your area; what other entertainment, health outlets or fitness products and services are they paying for?
Age: What age demographics are represented in your area, are they young or old and can you offer packages that cater to both young and old? What about professionals or those that have kids?
Gender: There is a wealth of data that suggests women are more likely to be members of fitness clubs than men, the IHRSA report that less than 40% of health club members are men.
There are also other demographics that you should be identifying within your consumer research such as marital status, education, ethnicity and occupation.
Your Gym Membership Pricing strategy is going to take into account these varying factors and your offering will aim to target them.
2. What Is Your Competition’s Price Point?
Analyse your market and have a good look at the other gyms in your immediate area. Even if they are a leisure facility, fitness club or another kind of sports club. Find out what they are offering and what their membership schemes are.
The most important aspect of pricing your gym memberships is looking at the competition in your area. The PTDC agrees and asks three essential questions when considering opening up a new fitness facility:
- Is there competition?
- What makes you different from your competition?
- What are they offering?
3. Positioning Your Gym in Your Market
Positioning is the aspect of your pricing strategy that looks at differentiating your brand with that of your competitors.
At either side of the spectrum is either high-end gym or a low-end gym; the high-end gym has the best decor, the best machinery and equipment, the most personal trainers and a complete array of services and facilities; the low-end gym looks at quantity over quality, more feet through the door and lower prices. Choose Meridian-Fitness that is a high-end gym equipped with best machinery & equipment and the most personal trainers.