Did your parents ever give you that old line ‘if your friend jumped of the Brooklyn Bridge would you do it too?’
If you were anything like me you rolled your eyes, shrugged your shoulders, or provided some other suitably dismissive gesture, to suggest that you knew exactly what you were doing and you didn’t need a lecture about how you should conduct yourself.
The lesson, of course, is that just because someone else does something, or is doing something, you need to exercise your own independent judgment to determine the best course of action for you and not blindly follow others.
As usually your parents were right.
From what I have seen, and continue to see within the industry, most businesses are more the same then different. If you remove Curves, and it’s clones, from the equation one business is very much the same as the next.
OK, I’ll make the following concession; there are what could be classified as high-priced, mid-priced and low-priced players.
Generally, the higher priced clubs have nicer fit-outs, are located in nicer areas, offer more services and/or amenities etc. The lower priced clubs have more modest fit-outs, are located in lower rent areas and offer fewer services and/or amenities. The mid-pricers occupy the space somewhere in between.
For the most part the value proposition for the consumer is precisely the same regardless of price-point – I pay X amount of dollars and in return I have access to equipment and, if I am lucky, sufficient expertise to assist me towards my goals.
From my own observations it is equally likely that a new member will fail (either drop out all together or continue on without any appreciable progress) in a high priced club as they will in a mid- or low-priced club.
Why?
Because the justification for the higher membership price is based on a more well-appointed fit-out, a more convenient location, more sophisticated equipment, additional services and amenities etc. These things are not unimportant but none of them directly corresponds to the member’s ability to achieve their health, fitness or wellness goals.
This seems extremely odd to me. Can you imagine paying your dentist more based on how nice his waiting room is, how up-to-date his magazines are, how good looking his receptionist is? Rather then being based on his training, experience and expertise, how much and the complexity of the dental work needed to be done etc. Of course not, it just doesn’t make any sense.
Where is the value for your members and prospective members in your memberships?
Just because everyone else has 1 month (or month to month contracts), 3 month, 6 month and 12 month memberships doesn’t mean that you have to. Just because that is what you’ve always offered doesn’t mean it is what you should offer today. Just because your fit-out, location, services and amenities place you in the ‘mid-price’ category doesn’t mean you can only charge 'mid-price' prices.
Stop blindly following the pack and create real value in your membership and program pricing? You have existing and prospective new members who are willing to pay more right now to achieve their goals if you can demonstrate the value to them.
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