industry
You get what you pay for Lesley Aitken explains how to increase your membership prices without compromising on sales. I propose is the Extraordinary Results membership [explanation of price and 12-month contract] or alternatively the Extraordinary Flexible membership [explanation of price and flexible direct debit]. Both options include quarterly training sessions with your personal trainer to help you reach your long-term goals.” Go through each of the benefits that the high-end bundles have to offer and then ask, “Which option do you prefer?” If the high-end bundle exceeds their budget, then offer the Results or Flexible membership at the lower price, without the extras. Presenting memberships this way increases your chances of selling a higher-priced membership.
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f you have been wanting to increase your prices but are worried about an adverse effect on sales, then fear not. While most buyers may make changes to how they spend their money in a tough economy, they will still splurge on what they really want. And they don’t take kindly to being offered the cheapest deal quickly, just to get the sale. We only have to look at Greens Health & Fitness who, having introduced a more expensive membership option, are selling well despite having budget gyms on their doorsteps. So it’s time to stop fearing the economy, and the competition. Here are some suggestions to help boost your sales and make you more money.
Increase your prices
Don’t let fear stop you from raising your prices. Test new price options – if you sell online, try two different price offerings on your website, e.g., basic membership verses premium membership. Offer a minimum of two premium packages with extras, which cost more than your current membership. The customer can choose between the two premium memberships – one could be more expensive than the other and include more add-ons, such as an extra PT session or massage. By bundling up and adding more, you make more money and it sweetens the deal for the customer by saving them money in the long run. 26 | FitproBusiness
Don’t reduce value
Create a one-month membership offering for customers to purchase as a gift at certain times of the year, such as Christmas. This should be almost double the price of your average monthly offering including the add-ons. Measure how many you sell and aim to convert the recipients into full premium members.
Sell down
A tried and tested approach that gets results is selling down, i.e., offering two higher-priced options before offering the lower-priced ones. When selling the higher-priced options first, you may want to start by saying, “The first package
Avoid using words and phrases such as “affordable”, “good value for money” or “lowest price around” because they give customers the impression that they are forfeiting something. Customers will question what real value you are offering and it will focus their mind on price as opposed to what you can do for them. Explaining why you are offering a more expensive membership option than your competitors is much more effective. Clearly state what they will get for their money and include results-oriented words that they will see or feel, and tap into what they hope to achieve. Instead of saying, “It’s an affordable option” say, “It’s an incredible option because … .” You’ll soon notice the difference this will make to your sales. fpb
Lesley Aitken is an international trainer in sales, service and management. She will be presenting Step Up Your Customer Service, Sales Skills For Success and How To Get Referrals And Increase Your Sales at FitPro Spring Convention 2011.