When it comes to operating a fitness business, finding the right pricing model and strategy will go a long way to satisfy and attract customers. The fitness world is evolving, and so are fitness pricing models.
Fitness clubs have more pricing options than ever before. In the past, fitness pricing models were basic and simple, like monthly memberships. The growth of technology in fitness has led to the creation of innovative pricing models. In this article, we’ll look at multiple popular pricing models in the fitness world. We’ll also focus on newer, more modern models.
What are the different types of fitness pricing models?
The traditional pricing models are memberships, pay-as-you-use, or a bundle of the two. The newer, more unique pricing models are dynamic pricing, hybrids, and subscription services.
Membership Pricing Model
The membership approach is well suited for fitness studios. The consistent revenue provided by this fitness pricing model is comforting to business owners. The one-time fee also encourages greater involvement from customers wanting to make sure they get as much as they can for their payment.
While memberships do lock in a customer for an extended period of time, they still offer flexibility, as the prices can be modified with promotions and discounts to established returners. Upper Hand’s membership management software simplifies this process and allows customers to create an unlimited amount of memberships that can include a variety of benefits. These may include access to member-only programs, discounts on programs or retail items, and credit-based memberships, which apply a number of credits to members’ accounts on a recurring basis they can use for certain programs.
Pay-as-you-use Pricing Model
Under this fitness pricing model, clients only pay for what they use. To master this model, fitness owners make use of top level payment hardware. Instead of pre-paying for classes they don’t attend or amenities they never need, customers pay on demand. Some prefer this model because of the freedom and fiscal responsibility it gives to customers.
This pricing model is generally not advisable as a stand-alone plan, as it provides no consistent revenue stream. This model is typically bundled with memberships to provide variety and balance to customers.
Bundling Pricing Model
Perhaps the most common pricing model, bundling combines the best of memberships and pay-per-visit. Customers pay a base membership fee, but also have the opportunity to pay for add-ons. Bundling benefits studios because it garners commitment and revenue stream. Customers prefer bundling so they don’t have to pay for things they never use.
The three models above are more traditional, but there are new models being introduced that may appeal to today’s modern consumer.
Dynamic Pricing Model
Dynamic pricing allows for a club owner to vary the price of a class based on demand. A class at 6 pm or 7 am (see why you should have a 7 am class) may be priced higher than a class at 1 pm because more people are available to attend. Alternatively, classes could be offered at discounted prices when bought in bunches; instead of separately paying for two $50 classes, they could pay $90 all at once for both classes.
Studio operators are granted full control in this fitness pricing model, but they need to have the correct software to organize their different offerings. Upper Hand’s intuitive software allows for this customizable dynamic pricing.
Digital and Physical Hybrids
It is often challenging to encourage people to leave their homes to get a good workout in, especially with the growing popularity of streaming exercise classes. In this hybrid pricing model, customers pay for access to both the studio and a digital product. This means fitness studios can still profit when people don’t make time to leave their home.
Third Party Subscriptions
This model has already achieved success. A large reason why is the growing popularity of ClassPass, an app for customers to view hundreds of classes in specific areas. Users get to browse their area for classes in a variety of activities. Studios partner with ClassPass to post classes on the app.
While the app helps lessen costs for customers while giving smaller fitness boutiques more exposure, many studios that utilize ClassPass dislike that clients get their programs at a discount. Structuring pricing models around the newest trends in the industry will become more imperative as customers continue to favor subscription services like ClassPass.
So What’s the Best Fitness Pricing Model?
There is not a one-size-fits-all fitness pricing model. Some models will be better suited for certain business more than others. These models can also be mixed and matched to cater to the many different styles growing the fitness craze. In the end, fitness studios must choose the pricing model that satisfies both the studio and the customers.