Planning your class pass structure – how to price PAYG and class packs
If you run a fitness facility or offer mobile classes, you've probably wondered how to work out the best way of pricing class passes vs PAYG sessions.
It’s a tricky task that’s crucial to the financial success of your business, but it’s got to be right for your clients, too.
Did you know that we offer real-human-person (not AI) support when you set up your Striive account? Hop on a call with one of our team and we’ll happily show you how the system works, get you set up, and even advise on things like planning your class pass structure.
Why incentivise class passes vs PAYG
PAYG allows clients the flexibility of dropping in on classes whenever it suits, but package pricing encourages them to buy a bundle of classes upfront. If you’re not sure how to incentivise class passes when they appear to be the pricier option for clients, here’s what to think about.
Offer a smart discount on class passes
Whilst class passes are more expensive than a single PAYG pass, you can promote the fact that a class bundle comes with a nice little discount per class. This discount should be enticing enough to incentivise clients to opt for class passes, but sensible enough that you still make a profit.
The business benefits of class passes
It might seem easier to sell PAYG and give clients the flexibility of drop-in sessions, but remember that class passes have benefits for you as a business owner. The upfront injection of money helps with your cashflow and forecasting (no more peaks and troughs), and class pass attendance can strengthen relationships, which helps with client retention.
How many class pass packages should you offer
Opinions vary on this, but we think it’s smart to offer a range of class pass options (rather than PAYG or unlimited memberships). But too many choices can lead to overwhelm. Make it clear and simple by choosing a class pass structure that caters to your clients’ needs – perhaps 4, 8, and 12-class passes. Beyond this, you can introduce subscription or unlimited options.
Class pass pricing vs. membership pricing
Do you want to incentivise regular income (memberships) or allow clients to buy class passes on a more ad-hoc basis? Membership prices should be more cost-effective than PAYG and class passes, to encourage long-term commitment.
Want to learn more about memberships? Have a quick read of our blog Using A Membership To Create Reliable Hassle Free Income.
Cancellation periods for memberships or subscriptions
The issue of cancellation policies can impact a client's decision to sign up for memberships or subscriptions. Avoid making these options off-putting by offering reasonable cancellation periods, and consider an “open door” policy for unusual cases. Flexibility builds trust and can encourage clients to commit without fear of being locked in.
Handling expiry dates for class pass packages
Pass duration. Open-ended class passes are a business nightmare. Don’t be shy about the idea of putting an expiry date against passes – consumers generally expect things to expire.
Backstop expiry dates. Make sure the expiry dates are tied to the purchase or activation date. This will help remove the pressure on clients to use their classes before they're ready (a significant barrier to purchase).
Unlimited passes vs. Usage timelines
Consider whether to offer unlimited passes with a set expiration date or passes with a longer limit. Unlimited passes may be appealing for people who come to class frequently, while usage limits might suit those with unpredictable schedules.
We hope this has been helpful for class passes, how's the rest of your onboarding process? Could do with a polish? Check out our quick but comprehensive guide to Client Onboarding.
Striive can help you plan and price up your class passes
The right class pass structure is crucial for the health and growth of your fitness business. Striive can help you set up these options and create a flexible structure that works for you and your clients.
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