FR3 Minutes #3 | The Mindset of Pricing Your Services in Your Fitness Business
Last weekend I did an amazing job of bluntening – is that even a word – my dad’s chainsaw blade. I took it to the local dealer to get the blade sharpened.
I asked the guy, “Can you sharpen this blade for me?”
“I sure can. Just not right now.”
“When?”
“Not sure”
Footnote: this is about pricing not about service! I think you’d get the idea around improving service by now!
“Oh, why”
“My sharpener is buggered. Not sure when it will be fixed.”
“Oh. Are there any other options?”
“Well, you could go to another store.”
“Ok thanks.”
Pause
“Wait I could replace the blade for you.”
“How much is that?”
“I’m sorry but it would be around 30 bucks.”
“So how much is sharpening the blade then?”
“Around 20 bucks.”
“Give me a new blade. How long do you need me to leave the chainsaw to get it fitted?”
“Walk to your car and back.”
OMG . . . what would you do if this conversation occurred in your business today? I bet to some degree it does and does every day.
Here are 3 tips:
- Don’t EVER be apologetic about what you charge for anything! If you hire towels for $5, don’t apologise. If water is $5 a bottle, don’t apologise. If personal training is 50 bucks a half hour, don’t apologise. The price is the price so believe it.
- Don’t EVER put your definition of value or expensive on the customer. We are all different and we all have different definitions of what we consider expensive. Expensive for a millionaire is very different to expensive for a homeless person.
- And when your customer is in pain, recognise that pain and make the sale! Tell them the solution to solve their pain. For me, returning the chainsaw blunt to my dad would be more painful than having my fingernails removed with plyers! I probably would have paid 60 bucks for the chain. Build a conversation, ask more questions and I guarantee the yield of your sale will increase!
I have heard the tone in personal trainer’s voices when they say how much they charge. I have heard a tremor in a sales person’s voice when they mention the weekly fees. Both of these indicate to me an internal value proposition challenge.
You and your team have to realise that what you deliver is awesome value. Perhaps even too cheap! Your staff training may need to focus on changing or improving the mindset of your Team on your product.
If you don’t believe your product or service is massive value – either as a price or as a product – then you won’t sell it. Indeed you can’t sell it.
Justin is the Managing Director of Active Management, which he began January 2004. He offers coaching to businesses worldwide in everything from start up and design to marketing and sales systems. Justin also facilitates four Australian and New Zealand ‘fitness industry roundtables’ events, which allows him to see a huge cross section of business models.