TLDR – skip to the very bottom
Good Morning,
The common struggle is awakes price.
A fear of charging too much…
A fear of charging too little…
A fear of daring to increase whatever prices being in some clients…
Being a PT tends to be a minefield when it comes to business.
We’ve covered the topic of how much to charge several times, and while I’m happy to give more guidance I’ve got a question first.
Why do you always resist the advice given?
Honestly…
I appreciate people reaching out and asking for help.
Yet it seems whatever is suggested as a viable avenue to take in boosting revenue it’s rejected.
There’s always an excuse as to why more can’t be charged.
Why even increasing by £1 would send people running.
Barriers are at every turn and yet still so many PT’s ask about pricing.
I understand the fear behind being seen to be too expensive.
There’s one thing to remember with PT though – It’s a LUXURY, not a commodity.
Basically PT isn’t for everyone.
Now not a lot of people will agree with this statement.
Some will say PT shouldn’t be a super exclusive club only for those that can afford it.
I’d counter that and say – why can’t it be a super exclusive club?
Despite the fact a lot of people in fitness deeply want to help others, merely the want to be a good/useful person doesn’t pay bills and is a disaster for being self employed in business.
Might not be nice to hear.
It’s the truth though.
You’ll have read in previous posts that if truly helping people is what drives you.
Then you’ve got an easy answer for your fitness career.
Run it as a CHARITY and do it all for free.
As you can imagine that doesn’t go down well, although this is where we reach the the crux of it all.
How much do you charge that not only keeps your head above water but also is affordable to all.
From a basic standpoint you’ll need to know how much you NEED to earn to survive.
And from this it’s worth planning out how much you WANT to earn.
With this info you can establish what your average unit price (package) will need to be based on your available working hour.
Just to throw out some random numbers…
Need 20k per year
Want 35k per year
Hours available to work per week 30 – 6 hours a day based on 5 working days per week (average – may vary due to holidays etc).
Using a 4 weeks holiday for yourself that leaves you with 48 weeks, so 1440 hours per year.
For 20k per year the per hour price would be £14 per session (£13.80)
The 35k per year works out at £25 per session (£24.30)
Now you’re aware I’m not a fan of selling individual sessions because it’s just not worth the effort.
However since some people still like that approach I thought I’d share the numbers.
Keeping the above numbers in mind though you’ll be able to work out how much your minimum unit price per package will be and how many you’ll need to sell per year.
Selling packages or ‘offers’ that have the following stipulation – entitled to X-amount of sessions per week –will help you keep people from taking the Michael.
You’ll also be able to add in extras to sweeten your offers and give more value to people.
What those are is up to you though.
To earn 20k per year selling packages at £300 you’d have to shift 70 across the year (7 a month).
For the £35k you’ll want to shift 117 of your offers (12 a month).
Now that’s not a great amount of units to sell and even at £300 per month reoccurring it’s viable.
This is where having a few different options can be useful to appeal to a slightly wider audience.
These might be as follows:
BUDGET offer £200
STANDARD offer – £300
PREMIUM offer – £600
Or however you want to label them – silver/gold/platinum, charmander/charmeleon/charizard etc
Such prices are affordable to the larger audience.
Personally I like only having two options, however that’s not for everyone.
Additionally having three can trigger the ‘decoy effect’ which is a neuro-marketing tactic.
Here’s some ideas for making PT within the above budget ranges that won’t have you losing revenue.
PT without the price tag:
- PT – Standard pricing per person
- Semi Private PT – 2-4 people split the cost of the premium package
- Group Training – 6-10 people all paying the budget rice
- Online Coaching – Priced at the budget offer
- Challenges – Priced at the premium per person however the winner of the challenge gets a cash price (say double or triple what they paid)
From here you can set out how much of what you want to sell to your potential clients by setting out specific amount of each that you’ll have up for grabs.
This triggers the scarcity principle.
In addition to this you can also have an application form and waiting list to give more exclusivity to your service.
Now to grab random numbers from the above regarding hitting £35k with the above offers.
PT – 5 consistent clients is £1500 per month
Semi Private PT – 2 groups of 4 people is £1200 per month
Online Coaching – 10 consistent clients is £2000 per month
All of these together comes in at £47,000 for the year and that’s be fore the challenges too…
The challenge could be 12 weeks for £600 with a £1800 price and you want 20 people before you run it and you’ll do this only TWICE per year and people have to pay a 50% upfront fee that isn’t refundable to secure a spot.
You’d also do well you have a couple of extra bits in the challenge for people that do well.
Such as hoodies for hitting certain levels of leanness, dress/jean size or weight loss etc because it all helps.
Even with a 50% drop off of if people didn’t stay for the full year you’re still likely to clear £20k.
Yes it all seems easy on paper.
In practice you’ll need to be consistently speaking to people.
Showing your audience the results you get for your clients.
Sharing their stories, struggles and how together you’ve overcome them.
Plus asking for the business because it won’t just magically come to you.
That’s where PT’s fall down – they’re terrible at sales…
However that’s a topic for another day.
In fact if Iw as to run a sales ZOOM who’d come along to it? – comment below.
So what does all the above have to do with nailing your prices?
First you NEED to know what you’re looking to earn, then you can work backwards
Second, have an option or two (most like three, I like two however that’s my bias)
Finally… ASK FOR THE BUSINESS
Pop your questions in the comments below regarding the above.
Enjoy,
Ross
Bonus Tip – Ask your target market what their problems they have or pain they’re experiencing.
With this info you can offer the RIGHT solutions and pain relief based on their needs/wants.