You’ve done your homework, and you’ve set your rates.
You’ve bracketed your CrossFit Group rates to give them context, setting your high rate and your bargain-basement rate at high and low ends of the spectrum. People understand WHY CrossFit Unlimited costs $200 per month, and they no longer ask, “Why?”
What’s better: to have 300 members pay $200 per month, or to have one member pay $60,000 per month?
Though the risk of serving only a single member is higher, the other benefits are huge: less required space. Less wear on equipment. Less time spent at the gym, working. Better progression for your client, and an easier time programming their workouts. If only we could meet that client…
The ideal level of clients is somewhere in the middle, of course…unless you remove the risk factor. If the $60,000 client would sign a lifetime contract, the decision would be easy. Fewer clients, paying more, creates better life for your equipment; more time for you; and more predictable cash flow. So why not raise your rates?
You already know the answer: paying $300 per month for CrossFit is a big lump to swallow. That’s a car payment, after all, and though we know it’s worth more than a car, CrossFit doesn’t fit into the normal “gym expense” line on the home budget spreadsheet. There’s also the family to consider: a client may be able to justify the cost to themself, but explaining to their spouse may be another issue.
The answer is something the retail, auto, and electronics industries have known for decades: sell accessories.
I’m not talking about products, like supplements, with low return; I’m suggesting that you broaden and improve the CrossFit service, in bite-sized increments.
For example, if I attended a gym where Unlimited CrossFit was available for $135, I’d be at one of the least expensive CrossFit gyms in North America. If I could add ‘Open Gym’ time – an hour before and after each class, available to Unlimited members only to practice skills, do mobility, or play, for another $35…that’s one of the cheapest gym memberships available anywhere, including GloboGym. If I can add individualized programming, with homework to do during these Open Gym times, for another $35 per week, that’s among the cheapest 30-minute Personal Training rates anywhere. Yes, I have to sign up for 10 weeks at a time, but that’s what a solid program requires for results anyway…
My rate, taking advantage of the above attractive options, is $310 per month. I’m not paying $310 per month for CrossFit classes; I’m just adding “a little more.” If you’ve read DontBuyAds.com, you’ll have heard of Lowenstein’s Gap Theory. This is how you apply that Theory to your pricing model.
This article was written by Chris Cooper, of Catalyst Fitness/CrossFit Catalyst. He has his own blog, Don’t buy Ads, where he shares relevant info for CrossFit boxes. Chris has also partnered with 321Go Project to offer affiliate business mentoring/coaching to affiliates who are either stuck or are ready to take it to the next level. Find out more about our affiliate business mentoring/coaching strategies >>