As a fitness business owner, one of the many things you have to think about it what kind of membership to sell. At one end of the spectrum, you have the high-cost, VIP-style membership. At the other end, low-cost (some might say cheap) packages.
At first glance, it’s easy to see the pros and cons. High-cost might be harder to sell, but you don’t need to sell as many. Low-cost may be easier to sell, but you need to sell lots more.
But the high vs low cost debate goes much deeper than this. Here’s why it’s more than a numbers game. Let’s talk about all the pros and cons of designing, marketing, selling, and maintaining high-cost fitness offers.
5 great reasons to offer high-cost fitness memberships
Improve your space and amenities
Selling high cost memberships can fund better quality facilities, expanded space, better equipment, and extras like bio-feedback and other data that high-level clients love. It can become a positive cycle of income, investment, improved services, and elite-level client experience.
Desirable fitness clients
Yes, higher pricing may your client pool but it is likely to attract people who don’t object to paying good money for a good service. The higher investment can mean more skin in the game, leaving you with clients who are committed, consistent, and less prone to “gym hopping”. And remember that ‘expensive’ is relative!
Financial stability
High-cost memberships often means you don’t have to sell big numbers to be profitable. This removes some of the pressure, leaving you more time to develop your service and expand the business. Or you can use that saved time to pursue other areas of income, add value to your offer, or push for visibility in the wider fitness industry.
More time for clients
With a small pool of high-paying clients, you have more time to connect with each client. This makes the client experience better and adds value to the offer, justifying the price point. And this might lead to more word of mouth referrals. It may be easier to sell something cheap, but you have to sell a lot of them – and retain them too.
Boost your career
It’s not just facility owners who can benefit from selling higher-cost memberships. Personal Trainers working in high-cost gyms or selling higher-cost packages get to level up their career and spend time in a different calibre of network, which can be the start of a top-level PT career.
4 potential pitfalls of offering high-cost fitness memberships
Limited market reach
Depending on the demographics of your local area, selling high-cost memberships could exclude a large portion of potential clients. You must be conscious of your demographic when setting prices. High-cost can work almost everywhere, but it’s definitely better suited to some areas.
Increased expectations
Clients paying premium prices have very high expectations – and rightly so. This extends to your facility, branding, support, and even to things like your changing rooms and lighting. Failing to meet these expectations can impact retention and recommendations, missing the point of being a high-value operator.
Economic sensitivity
Whilst current research shows that the luxury end of the market is actually the most stable, it makes sense to think about how you’d cope in an economic downturn. High-cost memberships are more vulnerable to financial changes for individual clients and for the wider economy.
Competitive market
There’s a lot of competition in the luxury fitness market. If you decide to make the leap, you’ll need to make continuous investment in branding, facilities, staff training, and services to stay competitive and justify your fees. That said, there’s competition in the budget and mid-range market too. Choose your challenge and do it well.
