March
09
2017

How To Charge What You’re Worth

By Chris 0

Gym owners are STUCK.
They need more money to live a healthy lifestyle; run a sustainable gym; and keep their members healthy for the next 30 years.

On the other hand, they’re worried about what clients will pay for their service. This is usually unfounded. But if a coach underprices her value, she won’t be teaching the air squat for long.

Here’s how to charge what you’re worth:

1. Be worth it.

This sounds a bit backhanded, but the top reason many coaches can’t charge more is because they’re not worth more.
Your value to a client doesn’t come from what you know; it comes from how you make them feel.
Give every client 1:1 attention at every class. You’re coaching a room full of individuals, not one entity with multiple parts.

Review their goals in person several times per year. If you don’t know where they’re going, you can’t lead them anywhere.

Look like a professional. Dress better than your clients are dressed. Wear a “staff” shirt. Don’t sip coffee while coaching. Run to fetch equipment. Smile, whether you feel like it or not.

Give them your undivided attention. Stay off your phone. Don’t carry on a conversation with others while coaching a 1:1 client. Don’t coach “the room”, but each person within the room.

Establish your expertise…but don’t barf all over them.
Give them a taste of future knowledge every session. Use 1-2 technical terms every class…no more, but no less. Teach them to know more than any other coach in town, and they won’t have a reason to leave.

2. Don’t give discounts or “sales”.
Price fluctuations erode trust and encourage price-shopping.
Consistency is more important than anything else.
Your current clients are more important than any future clients.
Everyone deserves the same excellent service; they should pay the same rate for it.

3. Base your rate off your service…not your competition.
After over 1000 one-on-one gym evaluations, I can promise you this: the other guy probably had no idea how to price his membership. Why place YOUR business on the same shaky foundation by copying–or worse, pricing yourself cheaper? The TwoBrain Family is FULL of stories of gyms who are the most expensive in their area.
Read “Twofer Night At The Discount Steakhouse” in the CrossFit Journal.

4. Know who your clients are.
You are probably not your best client.
Your best clients come from the top 10% of professionals in your area. They make more than you do, but have different constraints (schedule, family, stress.)
Your best clients have different goals (fat loss, stress reduction, “turn off my brain”) than you do.
The “average” household income in your area is irrelevant.
To determine who your BEST clients are, and what THEY want, use the “Pumpkin Plan” formula outlined in this podcast.

5. Stop projecting your own budget onto your clients.
They make more than you do (for now).
They will pay more than you would (for now).

6. Know what establishes value and what erodes value.
Price anchors establish value.
Classes starting on time establishes value.
Professional coaches establish value.
Clear, attractive branding establishes value.
A good website establishes value.
Shiny equipment and floors establish value.
Dirty bathrooms erode value. But they don’t CREATE value: they’re just essential. No one looks for the gym with the cleanest bathrooms, but they’ll quit the gym with the dirty bathrooms.
The same goes for not answering the phone or returning emails. These aren’t bonuses; they’re foundations.

7. Set a limit.
The law of supply and demand applies to your business.
You have limited supplies of attention, time and space.
Know your limit. Don’t chase infinity.
Build your prices, staff needs, and purchases with that limit in mind.
Recruit and reject clients and staff with that limit in mind, too.

8. Live up to it every second.
A client’s experience is only as good as their last exposure.
You’re not married. You probably won’t enforce the contract they signed (if you’re still using contracts.) They’re not trapped.
What you know doesn’t matter. How you make them feel DOES.
Fifteen minutes before an appointment or class, you’re on stage.
Put down the shaker bottle.
Put your Coach shirt on.
Smile.

We mathematically determine your optimal rate in our Incubator. Most of the time, it’s a higher number than the owner has been charging. Visit our FREE HELP Center to watch some free videos and learn what to charge; how to charge it; and how to fix it if you made a mistake.

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