Imagine your favorite service provider. Pick one that is especially good at what they do. Maybe we’re talking about your dentist, your accountant, or even your mechanic.
Now I want you to imagine that you were to receive the following email from this business:
Hi _____,
I’d like to notify you that we’ll be introducing an incremental price increase at the start of the New Year. This adjustment is a reflection of our ambitious objectives for continuing to educate our team to stay at the leading edge of our field, and our commitment to continuously improving your client experience by investing in the most current and appropriate technology available.
We appreciate your business, and hope that you continue to value our unique services moving forward!
Sincerely,
Your Favorite Business, LLC
I’ll bet very few of you, if any, imagined walking away from this service provider as you envisioned this scenario. They’re on your “favorite” list for a reason, and it isn’t solely because of how affordable they are.
Your gym can and should be one of your clients’ favorite service providers. It should also make a habit of periodically increasing prices.
The pricing structure we offered at CSP in 2007 on the day we opened is different from the one we employ today. A quick look at inflation during the past decade will give you a pretty good understanding why an increase in the cost of training has been necessary:
Source: www.OfficialData.org
Now that you know your clients will understand…
Rolling out a price increase isn’t a task to be taken lightly. A quick and hasty change is likely to frustrate clients. There are dozens of potential rules to live by here, but these are the four that I personally like to stick with:
- Emphasize a commitment to adding value. If you’re explanation for the change is “I just need to make more money,” you’re already headed in the wrong direction.
- Explain without apologizing. Articulate your objectives clearly and with conviction, and pushback will be minimized.
- Embrace honesty. It would be difficult to argue with me if I told you my health insurance coverage has increased on a per-employee basis by 283% in the past decade. This is one of the many reasons our prices have gone up over time, and I haven’t been bashful about explaining why.
- Always end with a “Thank You.” Always.
Stop selling yourself short. If you’ve been in business for more than a year or two and haven’t entertained the idea of a modest price increase, it’s time to consider doing so. Your clients wont hate you for it, and your bottom line is sure to look nicer in time.