As a fitness business owner, you’re on a constant quest to increase gym revenue. And if your core offering is memberships, it’s all about finding the balance between acquiring new clients and retaining current ones. The key is to not overlook a significant potential revenue source that you gain when you raise membership prices.

It’s incredibly common in the fitness industry for business owners to offer a discount when they’re first opening a gym. It’s enticing for leads and helps to establish a bigger community early on. But moving forward, as you look to improve important fitness business KPIs like average revenue per member (ARM), that discount can prove to be a hurdle.

The good news is that with the right strategy, you can raise membership prices without losing members. Here’s how.

5 Steps to Raise Membership Prices the Right Way

The decision to raise membership prices should never be knee-jerk, or hastily rolled out just to get the revenue coming in quickly. Block some time for the steps below so you can launch your increase the right way.

1. Do Your Homework

The first step in a successful price increase rollout is to run the numbers thoroughly. Be sure to research things like:

  • How many clients will be affected?
  • What is the exact adjustment they should be ready for?
  • How many clients could 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 actually less wear on your equipment, fewer accounts for your staff to manage, and potentially less stress overall.

Pro Tip: Need help with the research? Not sure if it’s time to raise membership prices? Just Ask Wodify! Ask Wodify is your trusted AI partner that knows every data point about your business and gives you fast, reliable answers to help you make smarter decisions.

2. Create a Communication Plan

Once you decide to move forward with a price 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 the decision to raise membership price) without blindsiding people.

Develop a consistent communication plan so clients aren’t blindsided by a price increase email.

You don’t need to spend weeks developing an overwhelming communication plan strategy. Instead, start with these two things:

  • A list of the most natural communication opportunities in your business: Emails, texts, flyers, in-class announcements, etc.
  • Important news you’d want to share with clients: Upcoming events or challenges, apparel orders, tips for getting better results, etc.

When clients are used to hearing from you consistently, an email about the decision to raise membership prices won’t come from left field.

3. Communicate Effectively

Next, let’s look at your announcement email. The way you communicate a price increase can significantly affect how well it’s received.

The two most important parts of the email are personalization and value. First, personalization ensures people feel like you’re speaking directly to them. Even if you use a template, start with a merge tag or something that keeps the email from sounding like mass communication.

Second, a price increase should lead with increased value clients are getting, instead of how much more they’re giving. Explain that the goal is to continue reinvesting in the business (updated equipment, expanded schedules, continued education for your team, etc.), and how this benefits clients. Ultimately, people just need to understand the “why,” and that they’re not just paying more for the sake of paying more.

A few other tips for an effective announcement when you raise membership prices:

  • Keep it to the point. Don’t send a 10-minute read about the history of the gym and everything that went in to your decision.
  • Be empathetic. Even if the price increase only amounts to the cost of a cup of coffee, acknowledge the financial impact on each individual.
  • Specify the exact price change for each person. If clients are all paying various rates, this may mean you have to take the time to email each individually.
  • Be clear about dates and next steps. Tell them when the increase will go into effect, and if there’s any action needed on their part.
  • Make yourself available. Include your contact information and open the door for questions.
  • Add one more layer. Consider sending a one-time text after the email goes out, telling members to check their email for an important announcement.

Get the free template you can use for this email.

​4. Stand Firm in Your Decision to Raise Membership Prices

​You made the decision to raise membership prices only after fully understanding your revenue opportunity, customer impact, and break-even point. Your confidence in that decision will be critical as you receive questions and feedback from your community. And that confidence comes from knowing and understanding the financial implications of your decision.

So, once you’ve clearly communicated the announcement to your clients, stand firm in your decision. Make a commitment ahead of time to not negotiate with clients who may push back. Some people will be upset, and that’s okay. Talk face-to-face (or by phone), stay consistent with your POV, and reiterate your key points. Try saying things like, “I’ve chosen to do this for [reason], and I want you here long-term—how do we make that happen?”

Have face-to-face conversations about the “why” behind raising membership prices.

If it helps, practice hard conversations with coaches or trusted members. The more conviction you have in your decision, the less clients will feel like they can challenge your decision.

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

5. Expect the “Completely Unaware” Members

Months after you decide to raise membership prices and make the announcement, you’ll inevitably get a client or two that will “notice” the increase for the first time. You know the ones. They deleted your email and missed your reminder text(s).

Instead of making them feel bad or getting defensive, simply pull up your email and walk them through it calmly. Just like in the initial communication, explain how this change was communicated and why it had to happen. Remember, people are happy to pay for the things they value.

It’s Time to Raise Membership Prices the Right Way

Even though the decision to raise membership prices can feel uncertain at first, you deserve to charge what your business is worth. Chances are, you’ve built a strong gym community that sees the value in what you’re providing.

Once you’ve done your research, develop an effective communication plan and communicate the price increase effectively. Then, stand firm in your decision and expect the few “completely unaware” members that will come out of the woodwork months later.

In the long run, raising your prices will not only provide more value for your clients, but reinforce your bottom line and help you run a successful fitness business for years to come.

—

Need help? The Wodify team loves helping fitness business owners save time, run more efficiently, and grow. Book a demo today!

More reading: More revenue and retention for studios? YES. Here’s how to build a tiered membership structure that increases income and keeps clients longer.