The VoicE Q3
Let’s dive in.
First, we have to understand that if
we don’t create the ideal opportunity
to promote your club using specialized
pricing levers, we may miss opportu-
nities to nurture prospects into signing
on for memberships.
Second, we must stop thinking of
ourselves as a “generalist” club and
focus on the unique strengths that
make Gold’s a “specialty” destination
for prospects and members. This is
what boutique studios are incredible
at doing.
To create the ideal opportunity to
show the club, take the idea of a
“paid trial” (which does not replace
a free pass) and reposition it as “the
amount of money due today.”
“Where have the
members gone?”
You are incredibly fortunate if you
work in the fitness industry and have
not yet faced the challenging trend
of polarizing price points. Whether
it’s the introduction of a low price/
high volume club, a high price/low
volume boutique - or potentially both
- to your area, many owners are left
scratching their heads, trying to
understand the same thing:
Without going too deep into the
psychology behind this idea, let me
offer an example of how this pricing
lever works: When a prospect is
ready to join based on an offer of “$0
enrollment,” they have the concept of
paying $0 in their head. The reality is
that once the first-month dues and
any other fees are calculated, it can
be confusing to them as to why they
are suddenly paying more than the
$0 they were expecting.
“Where have the members gone?”
This concept is nothing new. Warren
Buffett has been telling Berkshire
Hathaway investors for more than a
decade that “you only find out who is
swimming naked when the tide goes
out.”
Here’s the quagmire many club
owners feel they are facing; if you
change the pricing and/or service
offerings to accommodate this trend,
existing members will leave in a mass
exodus. If you stay the course and
don’t change anything, memberships
will slowly erode anyway.
This decision is genuinely a market-
er’s dilemma! How do you grab the
attention of prospective members
long enough to show the value of
a Gold’s Gym vs. other gyms in the
marketplace?
Fortunately, this is all based on an
incorrect assumption that the only
two options are adjusting the prices/
services or staying the course.
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On the other hand, if a prospect is
ready to join based on an offer of
“join today for $1,” and the rest of the
same dues/fees are due at a later
date, they have the concept of just
paying $1 in their head. Because
those fees are pushed to a later date,
that member is still paying the $1
they are expecting to pay. So, “$1 to
join” REALLY costs $1 that day.
This offer allows a club to demonstrate
its unique value proposition head-
on and show off all of the unique
features it has compared to the
competition.
The pricing concept above allows
us to grab prospects’ consideration
back from the low price competitors,
as well as revitalize interest from old
prospects and past members.
A second pricing lever option is
“Commitment vs. No Commitment.”
This is usually considered sacred
territory and is not to be tampered
with, but my experience is that using
this concept strategically during
specific times of the month/year
(when you need to increase conver-
sion rates) can be extremely useful.
As club operators, we need to stop
feeling the need to charge a premium
for our different pricing plans be-
cause most of us can’t withhold our
services - something our competition
has built their business on being able
to do.
So, how do you illustrate the unique
value proposition of Gold’s Gym to
prospects before they even walk
through the door?
We must turn the idiom that specificity
breeds credibility. We must high-
light each aspect of our clubs from
childcare to small group training and
target the individuals most likely to
need those services.
Imagine a new mother who is ready
to join a gym, but is worried about
all the arrangements she’ll have to
make in order to block off time away
from her child. She may eventually
feel she’s better off buying a Peloton
or other at-home exercise program
so that she can work out at home.
For that new mother, we must
illustrate that Gold’s Gym is the right
place with the best workout options
for her and comforting childcare
options for her new baby. Being able
to excel in multiple categories is a
“specialty,” and makes Gold’s Gym
stand out. Sure, Peloton is a specialist
with its unique equipment and
classes, and boutique studios are
“specialists” because of their class
offerings. However, Gold’s Gym is a
“specialist” too, precisely because
it offers so many amenities at such
high quality!
The fitness industry has shifted, with
members demanding more for their
money and prospects jumping at the
latest and greatest fitness trends.
Our goal should be to strategically
segment the market by communicat-
ing the right messages to the right
people, and changing what is “due
today” for new members.
That’s our “specialty.” Let’s use it
to maximize our marketing effective-
ness and regain our position as the
market leader..
http://www.sneeze-it.com