Pricing your services is a sticky subject. There is no doubt about it.
Whether you are pricing a single session, a package or a membership option for appointments or classes. It can be tricky.
And what happens when you offer all different kinds of services?!
Argh! It’s enough to make your head spin!
Recently, we’ve seen the boutique fitness market evolve when it comes to pricing.
When boutique studios really started to take off around 9 years ago, a major selling point was the no commitment price model. Studios sold packages of 1, 5, 10 or 20 plus sessions or classes.
And clients loved it.
At that time, there was a big shift away from big box gym memberships that seriously lacked the community and support of a smaller studio. These were usually long term commitments but didn’t necessarily encourage regular attendance
So when studios opened offering amazing classes without a long-term financial commitment, clients were happy to pay (and often a little more) for something that bought the results.
Buying classes and booking in advance put an end to that little last-minute voice saying: “bail!”
Knowing that you’d already paid for a session was motivation enough to get off the couch!
And, everyone was excited about being part of a tribe and seeing friendly faces.
However, over the past 3-5 years, boutique studios across the board have increasingly begun to offer a monthly membership model which both the studio owners and clients seem ok with.
Kinda interesting since that is what folks wanted to get away from in the early days!
So… why does this make sense now?
For studio owners a membership price model is actually a good thing. Those gym chains were onto something! Regular stable revenue is good for business longevity. You can plan and budget with more certainty - because your cashflow is more consistent.
It is super helpful from an admin perspective as you are not chasing clients to purchase a new package or ask for monies owed. Once you have made that initial sale, the payments are automated and so the admin hassle decreases.
For clients, there are some overlap to the benefits. They too appreciate less admin time - they can schedule as they like online and especially enjoy the freedom and flexibility of unlimited memberships.
The membership model is also more conducive to helping the client actually get results - in most cases a class or session once per week is just not enough to get the benefits most are looking for. TIP: check out your attendance analysis report and see how frequently your clients visit - you might be surprised!
That said, most studios continue to offer an option to purchase a package although the price point is usually less appealing to the client than a membership price point. Packages are usually priced higher per class than a membership option.
Of course, there is a lot of work that goes into running a studio with a membership pricing model - think sales processes, marketing etc. And, just like everything, it won’t be the right fit for everyone. But, perhaps, it is something to consider?
I’d love to hear YOUR thoughts - email me at firstname.lastname@example.org and let me know if you’ve tried this or are interested!
P.S. Has it been a while since you reviewed your pricing or even longer since you raised your pricing? In Empowered Branding I cover this as part of setting yourself up for success when it comes to building a thriving studio business. What you learn in this program will help you navigate the path of what works and what doesn’t when it comes to pricing. If you want to find out more, let’s set up a times to speak. Click here to schedule a time!