High-ticket premium pricing is a good business strategy. A good strategy is evaluated based on how well it serves all constituents of the business: the client, employees, and ownership.
Let’s talk about the first beneficiary, the client. If you have a big problem in your life, affecting other areas of your life, what are you going to put your faith in a $47 online trainer or online video? A $10 or $20 boot camp? A $499 challenge?
What if you invested in a $6000 complete program?
If I spend that kind of money, then I genuinely believe it’s going to work and get me the outcomes I want and need. I’m also a lot more committed because I’ve got more to lose. It’s too easy to drive past the gym if I’m only paying $20/month.
How about the employee?
If you have more committed clients who come in 3-4 times a week, then you have a training team training more sessions, making more money, and more satisfied because they can have an impact on the clients. We see studios and gyms routinely with a client frequency rate below 1.5/ per week! How can a client get results working out less than twice a week, and how many more clients do you need to keep your staff busy?
You see, this all starts up front with establishing the right level of commitment from the client and attracting the right type of client to your business through your marketing message.
How about the business owner?
If you are a newer studio and your goal is to be at least $20,000/month studio, and your average ticket sale is $5000, then you only need 4 of the right kind of clients. This is only one new client a week for a month…that’s not that difficult. This isn’t even including building reoccurring revenue streams and renewals.
However, how many $150-250/month memberships do I need to add the same amount of new revenue each month? At least twice as many new clients.
Additionally, when you attract this type of client, you often have a high rate of churn and burn in the business. It’s why so many large group businesses are struggling right now…not to mention how commoditized the market has become. It’s why we help many of them add high-ticket personal training to their model, so they are not one dimensional and can more easily hit their revenue goals.
Lastly, to be a constant $50,000+ studio, you build a base where you are starting each month at least $30,000 with reoccurring revenue and 3-5 $5000 client renewals. Then we continue to ad 4-5 new clients at an average ticket sale of $5000.
Premium high-ticket pricing works and is a crucial strategy for building long-term success.
The more people dive into the "boutique fitness" trend, studios, gyms, and Crossfit facilities, the tougher it is to compete for clients. And if you're using the same pricing strategies and marketing tactics as everyone else, then attracting and retaining high-quality clients can become a nightmare.
Contrary to what you've been told, YouTubing, tweeting, content marketing, 14-day trials, 21-day trials, challenges, low-price boot camps, and trying to build your social media following is what the 99% of personal training studios who are failing are doing.
Meanwhile, our clients are dominating their markets. They're creating programs that sell for $3,000-$16,000 and building reoccurring revenue at the same time. They're creating a self-sustaining systems-based business that provides the income, freedom, and impact they dreamed about when starting their business, but just could figure out on their own. AND they're doing this while creating transformational results for their clients.
If you want to get more detail on how to do this and the EXACT 4-step strategy our clients are using to differentiate their business and command high-ticket fees while creating amazing levels of success and freedom and get better results for their clients than ever before.
Join me for a Breakthrough Strategy Session where we'll discuss your business, goals, and how we can help you get there faster and easier!