As business mentors, we are frequently asked about the prices that we charge in our gyms.
How much is your On Ramp? How much do you charge for CrossFit Kids, women’s only, etc. We get it; you’re trying to determine a good rate for your own programs or hoping to follow a proven system.
While our experience can give you one point of view on pricing, at the end of the day, our prices aren’t proven when it comes to your city, your gym, and your market offering. Ultimately, our prices shouldn’t matter, what should matter is our valuation process.
Every business owner should know how to price their own programs. If you don’t and simply rely on the experience of others to determine your member’s autopay, your bottom line could be unnecessarily suffering. While most gyms charge somewhere around their local market rate for general classes, many are left scratching their heads when it comes to introducing a new or supplemental programs.
How to Price a New Program
1) Supply – The first thing you should determine when adding a new program is how many people are going to be able to participate in your new classes. The max capacity of the group can be determined by the amount of space you have in your facility, class times, and coach availability.
2) Demand – Next, begin to run the idea by members of your gym community. Something like a Facebook post reading “Would you be interested in an 8 week Olympic Lifting cycle? If so, post below which time of day is best for you.” While not everyone who comments may participate, you should have a rough number in mind of how many are interested vs. how much space you have. With supply and demand understood, determine which one wins. Are more people interested than the space you have available? If so, you can charge a premium price. Not as much interest as you hoped for? Adjust the price down to improve demand.
3) Costs – Consider our 8 week Olympic Lifting cycle once again. What is the minimum amount your coach has to make from this programming and coaching cycle? Is it simply an hourly rate or hourly rate + bonus based on enrolled members or is their pay based on the 4/9 model? Once you know the minimum your coach needs to make from this program you can determine your break even amount of members needed for the program to be viable.
For example: Your working price is currently $85 for the 8 week cycle (based on supply and demand). You plan to pay your coach 4/9 of the total revenue from the cycle. Your coach would like to make a minimum of $300 for their work programming and coaching. At this cost you would need at least 8 people to enroll in your Olympic lifting cycle (coach makes $302, the gym makes $377). Is 8 a feasible number of people based on your supply & demand research?
4) Market Comparisons – Your final step before announcing an official price will be doing some market comparisons. If the program you are pricing is for CrossFit Kids, compare your expected program price with the price of comparable alternative options such as gymnastics or martial arts. For a women’s program look at women-only gyms or Zumba classes in your area. For an Olympic lifting clinic, compare personal training or barbell club rates.
With all these factors taken into consideration, you should be able to successfully price any new program your gym decides to introduce.
Post by:
Amy Duchene and her husband Marc own CrossFit 915 in El Paso, Texas. They also have their own kid’s fitness company, CuzImABeast, that offers informational articles, WODs, coaching videos, and cartoon learning aids for CrossFit Kids programs.