Looking to change from punch cards to EFT monthly fees and prepaid packages? Need help on pricing.
Hi Emily. Decisions on your ‘pricing and packages’ unfortunately should/must come from you. In my opinion, only you have the intimate knowledge of the factors affecting your pricing (e.g. your costs to provide services; your required or desired Return on Investment; the local pricing of your competitors etc.). By taking a look at this now, you still have enough time to create these packages and pricing, but you need to hurry to be ready to roll this out before the New Year. I use Quickbooks as well and love it. The program is great for the financial reporting/recording function BUT it is you that will need to decide on your pricing.
As an aside I must say that one thing that really jumped off the screen at me was the SUBSTANTIAL discount that you give on your existing individual class pricing! The difference between the $8 single class price and the average of $5 per class for the package is a WHOPPING 37.5% discount. To my mind, that’s pretty high.
I hope that this helps.
LaRue, CSCS
www.lecfitness.com
[email protected]
Hi Emily,
I do agree with LaRoue that only you really know what your price should be. With that said, I can give you some insight as to what I do.
I am a gym owner and my independent PT’s have two types of sessions: 1/2 hour and full hour.
We have three packaging options either half or full hour for discounted prices: 5, 10, 20 sessions
For Full Session Package Amounts, the prices are as follows:
5 ($50 per session) total = $250.00
10 ($47 per session) total = $470.00
20 ($45 per session) total = $900.00
For Half Session Package Amounts, the prices are as follows:
5 ($33 per session) total = $165.00
10 ($30 per session) total = $300.00
20 ($27 per session) total = $540.00
I have given my gym members an option of financing these packages based on a weekly commitment (I have developed a payment processing software that gives the client the ability to be billed weekly for such a package like this – I also offer this software to the public which includes great financial analysis such as retention, attrition, commissions, sales, etc,,, and I digress). So lets say the member wants to commit to PT 1x per week for a month. That is the total package of 5 for $165 for 1/2 hour or $250 per full hour. Well, forking over that amount of cash is hard all at once for a lot of people. They still make the commitment, but based on my program and option at my facility, they now can make a weekly payment towards that package option and still get the package price. They do, however, have to use that PT session each week or they do lose it (no roll overs). Now, to get started and to get the discounted package, they do have to sign a contract reflecting their month commitment, but only have to pay for that 1 week’s PT session at either $33 or $50. The member will then be billed each week for the PT sessions that they committed themselves to.
I hope this helps.
Hi Emily,
I was surprised that you state the fact that you begin to use Quickbooks as a rationale for changing your pricing structure. A program should never determine the way you do business, and the pricing is an entirely different entity.
What you charge is dependent on your market. I am aware of the pricing structure of some clubs here in Raleigh, NC. It is Buy 10, get one free, at a rate of $10 per class.
Karin Singleton
www.meltnc.com
