As a gym owner, you’re always trying to find ways to close more sales. And if you’ve ever offered a lifetime discount to get the job done, you’re not alone. But as common as this tactic is, the data shows us that these lifetime discounts are hurting you more than they’re helping. Increasing your average revenue per customer or member (ARM) is a critical part of your success—and yes, that probably means rethinking and removing that discount from existing memberships to help move your business forward. If it sounds scary, don’t worry—let us walk you through how to raise membership pricing without losing your client base. 

Step 1: Do your homework

Run the numbers thoroughly. How many clients will be affected? What’s the exact adjustment they should be ready for? How many can you lose and still break even? Remember, even though increased revenue is the ultimate goal, flat revenue with less members can be considered a win; it’s less wear on your equipment, fewer accounts for your staff to manage and fewer headaches overall.

Confidence is critical here and confidence comes from knowing and understanding the financial implications of your decision inside and out. Build the spreadsheet. Understand your revenue opportunity, customer impact and break-even point before you move forward with raising membership pricing.

Step 2: Create a communication cadence before the announcement

If you decided to move forward with the pricing increase, the easiest way to soften tough conversations is to build a consistent communication rhythm with your clients. If you don’t already have one, start now. Regular updates give you natural openings to share changes—like a price increase—without blindsiding people. If you haven’t had this open line of communication before, now is a good time to start because this likely isn’t the last time you’ll have to share this kind of news with your community. 

The best time to plant a tree was thirty years ago. The second best time to plant a tree is right now. Develop this habit now and your life will get easier down the road. 

Annual messages are a start, but bi-annual messages are better. Think of it as your “state of the company,” where you share highlights, challenges and upcoming plans. Keep it honest and transparent. Your clients care about you and your success—leverage that trust.

  • Humanize your business
  • Share both wins and struggles
  • Never complain
  • Forecast changes in a way that’s relevant

Step 3: Have a POV and practice communicating it

Avoid projecting any ambiguity or randomness; you need to be clear about why you’re raising membership pricing. In this case, you are adjusting membership prices across the board to retire discounts and be more consistent and fair to your entire client base. The goal is to continue reinvesting in the business (updated equipment, expanded schedules, continued education for your team, etc)—a reinvestment into the business is beneficial for your clients—make that clear. You never want to mess with people’s finances without justification.

Finally, stand firm in your decision. Confidence is critical. As a coach, you know this already. The more conviction you have when you’re coaching an athlete, the easier it is to get the point across. 

  • Be clear and concise.
  • Be honest.
  • Practice with coaches or trusted members.
  • Speak with conviction, like you would as a coach.

Step 4: Send out communication

When it comes time to share the news. I suggest one email that goes out individually to your affected members. No mass emails here. It can be the same email template, but should be sent to one recipient at a time and specify the exact change in price that the member can expect and when it will go into effect. Remember, even if the price increase only adds up to the cost of a cup of coffee, you should still acknowledge the financial impact for each individual. With that said, take the time to draft a genuine message in your own words and in your own voice using direct, but empathetic language.

  • Write your own message, in your voice.
  • Keep it short.
  • Don’t mix topics.
  • Share effective dates and next steps.
  • Offer a direct line to you.

Get the free template you can use for this email.

Expect Pushback

Some people will be upset and that’s okay and to be expected. Don’t get defensive. Talk face-to-face (or by phone), stay consistent with your POV and reiterate your key points. Communicating and facilitating these discussions is part of the job. Prepare yourself for these conversations now.

  • Never avoid a conversation. 
  • Always aim to have the conversation face to face, or at least by phone (people are much more comfortable being difficult and unruly from behind a screen. Even though it feels harder, looking a frustrated member in the eye during this discussion will save you down the road.) 
  • Remember: it’s not their fault and they’re not wrong for being mad. 
  • Be consistent with your messaging. People need to hear things up to 10 times before they actually hear it for the first time. Be diplomatic and stick to your talking points.
  • Use language like this: “I have to do this for [reason], and I want you here long-term—how do we make that happen?”

Get the free template you can reference for any ongoing conversations. 

Expect Obliviousness

Months later, a handful of members will “notice” their price increased for the first time. These are the people who deleted your email without opening it and who check their credit card statements once per year. No problem—pull up your original email and walk them through it calmly. Explain how this change was communicated and why it had to happen.

Do It Now

Dragging your feet only doubles the pain. Like tackling Fran, the anticipation is worse than the workout. Grip, rip, and get through it—you’ll be better on the other side.

If you want more insights and help tackling initiatives to help make your gym more profitable and easier to run, book a demo with the Wodify team.