The secret of charging what you want and getting people to pay lies in your ability to make positive PROPOSITIONS.
Here are the 5 you really need to have mastered:
1. The Unique Sales Proposition (Your U.S.P)
“Why would I join you above every other fitness club in the market (Including doing nothing) and why would I do it now?”
One of the biggest mistakes is to try to be all things to all men. It’s perfectly fine to have a club that is founded on several defined tribes of people but it’s vital that when you promote, you promote exclusively and intentionally individually with a very compelling offer and story.
2. The Unique Value Benefit (Your UVB)
The more compelling the story, and the higher the stack of tangible benefits reduces the impact of price in the buying decision. In fact, the price should reflect the story and be congruent with it to work effectively. Consumers are confused when seeming premium products (with amazing benefits) are available at too low a cost. The price IS part of the story.
3. The Irresistible Offer
One of the new laws of fitness club marketing is that “there will always be an irresistible offer”.
This offer can be price driven (take out an Annual Gold Membership and save £100), bonus driven (take out an Annual Gold Membership and take advantage of our £150 Personal Training Voucher) or a premium version (Our 3-year Gold Membership Now Includes Classes if its Bought before the end of the month).
Whatever the tactic there must a “hurry up “clause (this can be time banded or linked to a volume of sales) Must end October 1st or limited to the first 25 new members only to get the buyer to act now.
This must also be supported by a “penalty” for missing the deadline. Once it’s gone its gone. On November 1st, our 3-year Gold Membership returns to its normal £1000 Price tag and the Classes are available only as an Extra supplement! So, Don’t Miss out!
4. The Unique “Safety” Proposition
Clubs can improve the chances of conversion by looking at reducing the risk for potential buyers and use techniques to lower the barrier to entry.
These buying risks include things like, will I use it regularly? Will I like it? Can I afford it and will it work for me?
The higher the ticket price the greater the consideration by the prospect of these areas of concern.
Operators would be well advised to test the impact of service innovations such as:
- Money Back Guarantees
- Transferable Memberships
- Cash Back Schemes
- Non-Contract membership options
- Term membership offers with restrictions
In addition to the financial decision, fitness club prospects may also have medical worries about their ability to get the most from membership. We have witnessed lots of relatively low-cost Medical Screening Services being deployed in clubs that have increased the likelihood of conversion from these types of prospects.
5. The Unique Experience Proposition (Your U.E.P)
In a crowded market this is possibly one of the most important propositions to get right. Clubs that stand out and make themselves “remarkable” can charge more and market less because members talk about them in a positive way thanks largely to the experience that differentiates them.
Barry’s Boot Camp is an experience. It’s a packed timetable of very hard H.I.T classes led by beautiful super toned instructors within a purpose-built studio with disco lights, and booming music.
The £25 class fee attracts London’s most affluent “fitties” who know that regardless of time and day the class is brutal in its intensity.
Successful completion of a class is followed up by the retail of protein shake revitalisers on the way out for a further £8 per pop. It’s an amazing cash cow of a business and needs to be visited to fully grasp the genius of the concept.
The point we need to get across to you, is that this boutique club phenomenon is taking place less than 400 yards from a well-known low-cost facility where virtual group classes are available 24/7 within the membership at a cost of less than £20 per calendar month.
Despite this price point and apparent value, for Barry’s followers, the experience is the story and the low-cost option is irrelevant.
This is exactly what can happen when clever operators take the time to master the “Proposition concept”.