As fitness studios reopen, one of the most hotly debated topics is how to set prices. We’re here to help you sort through all the noise, and create a pricing structure for your gym, yoga or dance studio that will help you engage lapsed clients, attract new students and keep everyone happy and healthy.
Accurately Gauge Your Ability to Meet Demand with Limited Capacity
While auto-renewing memberships are one of the best ways to create predictable, long-term revenue for your fitness or yoga studio, you’ve got to be honest about your business’s ability to serve your members. During COVID-19 reopening, health and safety guidelines may require you to limit your class size – sometimes drastically. If your customers are paying monthly but can’t get into a class because they’re chronically sold out, you’re going to have problems.
One way to alleviate the capacity issue is to increase the number of classes you’re offering per day. Be sure to allow extra time in between sessions for cleaning and handling student’s socially distanced check in and check out procedures.
Otherwise, you may want to consider changing your pricing structure to a per-class drop in model. Any class passes you sell, you may want to offer without an expiration date to avoid frustration.
Sell Hybrid Memberships for Hybrid Class Schedules
Many fitness businesses are reopening with hybrid class schedules. If you plan to offer livestream, online classes in conjunction with your smaller sized in-studio classes, consider the following options for membership pricing:
- One monthly auto-pay at your pre-COVID rate that includes unlimited access to in-person, livestream classes and your pre-recorded online content. Consider giving a bonus pre-recorded online workshop or special program to add value.
- A monthly autopay membership that gives customers unlimited access to in-person and livestream, online classes, plus discounted access to your pre-recorded online content.
- Offer an “online only” monthly membership that gives access just to the livestream and pre-recorded classes. This is a popular option with Punchpass customers right now.
Dan Kanney, co-owner of Elevate Moment and Fitness in Coldwater, Ohio said, “We haven’t really changed prices, but we have added some different kinds of passes for our members to use. For instance, a monthly “online content” pass can be purchased so members that only want to access the content library or live online workouts can workout without having to commit to joining us at our building.”
At Central Yoga in New South Wales, Australia, “members stay on (their current) online membership rate, but extra (charges are) added if they come to an in-person class,” said James Hasemer, the studio’s owner.
Offer a Special Re-Intro Deal
To build excitement and momentum as you reopen, you may want to consider offering students who’ve cancelled or indefinitely paused their memberships a way to come back at a discounted rate. Consider offering them a discounted month (which you can set up in Punchpass as a one-month-unlimited pass) before their membership reactivates at its regularly priced rate.
Some fitness and yoga studios are offering brand new students a super-discounted first month of classes.
Pro Tip: Offer a friends and family referral bonus, and give members a discount code to share. This can be for a free first class, or a percent discount off the purchase of a class pass or membership. If you want to get really fancy with it, give those members who refer in new business a discount off their next pass or membership payment. Here’s how to set up and use discount codes in your Punchpass studio management software.
Set Up and Enforce Strict No-Show and Cancellation Policies and Charges
With high demand and limited capacity, now is the time to make it clear to your customers that anyone who bails out of a class at the last minute is going to still pay for that class.
Studios are requiring students to cancel anywhere for 24 to 2 hours prior to the class start time, before enforcing these charges.
Add Private Lessons to Boost Revenue and Offer “Safer” Options
One-on-one sessions are popular right now as a way for students and teachers to meet in person and still feel safe. Online training is also still a great way to stay connected and help your most loyal and dedicated clients stay fit and healthy.
The great thing about private training sessions is that you can charge $100 or more per hour and get your more hesitant customers back in action.
Consider offering your full client base a special discount code to use towards a private session or package of private sessions.
Most studios that are reopening are paying the teachers who come in to lead in-person classes more than the teachers who are teaching live or pre-recorded classes at home. Some studios are allowing the teachers who offer pre-recorded class content to use the classes on their own personal websites and social media channels.
If you do this, it’s a great perk for your teachers, just be sure that they mention your business and continue to direct students to your studio if they’re building up an online clientele.