Why are lattes six bucks and Land Rovers $80,000? It comes down to what the product does for that person. How does it make them feel? What do they get out of it? Is it worth it? (in their mind). For some, a six dollar latte with whip cream on top is worth spending $1,878 a year on (that is six bucks a day, six days a week, for one year). The latte makes them feel good, quenches their thirst and they look trendy holding their Starbucks cup. Hey, I do not get it, but for some people it is a better feeling then $150 a month ($1,800 a year) for unlimited coaching, nutrition, fitness advice, and a close knit community of friends.
Let’s break it down. Number one is disposable income. Belonging to a gym is a luxury and for some people they do not have that luxury. The majority of your clients will be “on the fence.” It is doable, but would take a sacrifice. Your job is to make people understand the value of your service. Then it becomes irresistible not doable. You do not tell them what habits they need to kick to free up some money or give them a sleazy sales pitch. You show them the value by giving them an irresistible offer to get started.
Everyone has a conversation in their head before they make a big purchase. Oh don’t tell me you don’t talk to yourself, we all do it. “Is it worth it?” Some can justify this decision quickly, I know this first hand from my fiance’. Others take days or weeks to decide if they really want to spend their hard earned money. What goes into this decision? It boils down to what the prospective client thinks it is worth. Here is an example, Paleo Pete’s is more expensive but you choose it over Burger King because of quality, experience and service, right? The same applies to your gym. Do you have quality coaches, create and excellent experience, and provide awesome results? If those are all lined up you will not have an issue with the cost of your membership.
Below I have highlighted a few gyms that have an above average price tag, but are constantly growing. They each do something a little different to keep new people joining. They are all based on educating the client so they know and understand what they are paying for. That is the paleo cookie right there. If you have systems in place to educate people on the difference between CrossFit and 24 Hour Fitness you will be successful. People pay for quality. That is why Ruth Chris, Mercedes Benz, and the Ritz Carlton are all still in business.
CrossFit Windy City is located in Chicago and costs $175 a month. One thing I love about their site is the “getting started page.” A person who is new to CrossFit always wants to know how to get started form the comfort of their couch. Well, CF Windy City put together an awesome video showing a newer athlete taking the first step and overcoming her fear of stepping into the gym- check it out here. They carefully, motivate and educate people to take the first intimidating step, actually walking into a Crossfit gym.
CrossFit Advanced actually posts the answer in their commonly asked questions. This is brilliant why not just answer the question you are going to get on the phone. They list bullet points and break down exactly why they are worth more then a drone filled, over crowded, mirror filled globo gym.
CrossFit NYC-charges $199 per month. Their blog is a plethora of information for people to feed off of. Always filled with links that involve CrossFit, nutrition and humor. The online community is directly tied to the website and it is the best I have seen in any CrossFit. There are 51 comments on one WOD post. For someone who is looking at a new gym they can see the community right their on the blog.
CrossFit 757- is moderately priced at $125 per month. They answer the price question right on their website also. They use a tab that reads “Why does it cost so much?” The picture below will take you to the link on their website if you want to check it out.
CrossFit Valor is on the higher end at $200 a month. They are located in Austin and I am sure they have a demographic that can afford that. Their site is highly informative and filled with video demos. From the pictures on the site you can see the community is very close. They have a great “About Us” section and very nice write ups about their coaches. Remember this: the About Us section will be one of the most visited places on your website so it should contain valuable information.
In the end you need to find the price point that is right for your facility. You do that by starting on the lower end and raising the price as interest and membership increases. Stop at a point that is sufficient to pay rent, yourself, trainers and reinvest. The most important take away here is education. College is worth your parents life savings because you know the benefits, risk and reward right? Every single person who lands on your website or walks through your doors should learn exactly why it costs a little more to be member of your community, and get your unlimited coaching, nutrition and fitness advice.
Leave a comment below and let me know your strategy.