What strategies do you use to tell clients you are raising your fees?

I work for the YMCA of Greater Charlotte, North Carolina. Each branch of our association operates differently due to many factors, such as our geographic location, membership base and mission. When I took over the personal training and ?tness departments 4 years ago, the personal training department was struggling with its budget. When our strongest, most quali?ed trainers worked, we lost money. We were digging ourselves into a hole and I had to do something to make us at least break even. At about the same time, IDEA introduced the Personal Fitness Trainer Recognition System. I thought the system was brilliant and much-needed in our industry. I began requiring my trainers to join the system and see where they ranked. I then researched the job descriptions for YMCA trainers, matched up the four different grades of trainers the YMCA employs with the four levels in the IDEA system, and attached increasing rates to each level (i.e., Professional, $50; Advanced, $55; Elite, $60; and Master, $65). I just simply decided to charge more for the more experienced, more quali?ed trainers. I posted signs clarifying the system and listed IDEA's Web site for those members who wanted to do more research on their own. I typed a really nice letter about the system, explaining how each trainer would advance through the levels during his or her career. In the letter I congratulated the trainers on their achievements and explained the price increase along with the date it would go into effect. The reaction from the clients was great. Each one was happy for his or her trainer and felt good knowing that the trainer was knowledgeable and up on current trends. Every couple of years when trainers move to a new level, we inform clients that their trainers' rates are increasing, sending the same general letter explaining the increase. We have never had any negative issues arise from this system. It seems to be very well received.

I have been personal training since 1982, when my rates were $45 an hour for a single session and $35 a session for a package of seven. I've raised my prices only four or five times since 1982. I don't make rate changes very frequently so I don't have to go through this challenge often. I've handled it in a number of different ways. For example I have: oSent out brochure that included the new rates. oAllowed current clients to keep the old rate. oTold clients who paid the old rate what the new rate was, but offered to split the difference in price; or offered to let a couple pay the new price, but only charged them as a single. (An additional person is usually $15 more.) oInformed old clients about the rate increase when they paid me, but said that for a time they could pay me at the old rate. oSent out a letter like the excerpt below. (This letter was for the sister of a client who had Down's syndrome.) "Thank you again for the opportunity to work with your wonderful, challenging and very charming brother, Brad. I have enjoyed working with him and seeing the progress he has made since we started. As you are aware, I am continually taking classes as well as home study courses to update my education. These classes, along with the many life experiences I have had along the way, enable me to give my clients the best service possible. "As my costs increase, I am periodically forced to adjust my rates. Therefore I am increasing my rate to $80 per session. The new 10-session discount rate is $700. Of course this will not be effective until the current session package has been used up. "Please provide me with additional information when you can to help me better assist Brad. If possible I would also like to see his doctor's update of diagnoses and recommendations/restrictions. Thank you."

We inform our clients far in advance of the actual change. We let them know months in advance so that they can take advantage of 'stocking up' at current rates. That happens word-of-mouth from trainer to current clients.
Then one month out from change we let it be known via a letter to our current clients. Once they've received it we let all our contacts know that it's a great time to take advantage of getting started to train in 2012 for 2010 rates, for instance.

We did something similar in 2009 when we did not raise our rates based on the economy. Though we were due for the increase we did not do so in effort to keep our clients training and encourage others to get started during that time of high stress. We let them know about that decision.

We also find a way increase our value when we raise our rates. We increase our customer service and satisfaction level by adding a more user-friendly way for them to verify and book sessions; or offer perks to our personal training clients that other members don't have such as discounts on other services in the club, providing water and towel service during sessions, and invitations to informational seminars free of charge that others pay a fee to attend.

How I generally handle price increases is that I "reward" my existing/continuing clients by honoring whatever prices they originally received from me when they originally signed-up for my service -- so long as they remain a continuous client. When an existing client stops training with me, and later decides to return, it is with the understanding that they will pay the "then existing" rates (which may have increased by that time). New clients pay my prevailing rate at the time of their signing on. Although this system means that I have clients paying different rates, and therefore this may be a little more labor-intensive record-keeping, it also allows me to seamlessly increase my rates when necessary, while at the same time rewarding my existing clients for their loyalty by honoring their existing rate.

LaRue, CSCS
www.lecfitness.com
lecfitness@yahoo.com

Any existing client will get the rate that they signed up for until they don't renew then they will have to pay the increased rate if they want to come back. Everybody new starts out with the increased rate.

I had this happen recently. As part of ACE AARP program I had to let my AARP members know that ACE made a change and the hourly prices quoted on their site were no longer in effect. I informed them that they still would receive their 20% on my company's fees. Happy to say all went well.

The first strategy is the truth. Exactly why I am raising prices and what benefit they will receive because of it. (i.e. new eqipment, more training for me, more events sponsored etc.)

Hello Sandy,
I usually dont increase my fees with active clients. If they have not trained with me in some time (6 months or more) then I may raise my fees.

Sincerely,
Michael