Improved Pricing Structure

hello everyone and welcome to module 4 improving pricing structure in this video we're just going to really discuss a sort of a cut and dry discussion on how to really present your prices how you should structure it how you should price your memberships in general and how to really sort of structure it and present it in the best way to get as many clients on the first appointment really just some nice pointers some nice tips um and just you know a sort of a plan of action this video isn't going to give you cut cut

and dry action to take like do this do that but this video is really just so that you can take in and really just use what you can use for your business if that makes sense so here's what we're going to cover we're going to cover never under any circumstance display your prices on your website or somewhere public I'm going to discuss why and I'm going to discuss that if you do this it's going to kill your business and it's going to ruin your show right and it just does a lot of bad things for

you and it doesn't really get you that much good another thing is we're going to discuss why having a $100 to $300 enrollment fee or even higher just for the purpose of waving it is amazing and why this works so well and why I've seen so much success with this um and why you should definitely implement this into your business then the next thing is how to discount your membership without actually discounting it so how do we present a sort of incentive for prospects to close them on the first appointment right because we do that

through sort of technically discounting right waving the enrollment fee you know giving them the sort of the cheaper month-to-month package but how do we do that without actually costing you any money how do we actually make more money than you're making right now per member but still using this strategy and then the other thing is you want to keep things logical you don't want to be romantic or emotional when it comes to presenting your prices okay and I'm going discuss that and dive further into it so never under any circumstance display your prices on your

website or somewhere public right so people will go to your website and will have an objection before even experiencing the workout and understanding the value you have to understand that people I just want you to think how many online sales do you really get a month I'm guessing it's not more than five and I'm probably even guessing it's probably not even two right the only reason people go onto your website if then if they've never been is to check everything out see if this is the spot for them and also to check out the membership

price to see if this is eventually even something that they might go for right and if you're charging a 100 or 200 bucks a month right that's going to be an objection a pretty tough objection to beat before they even walk into the door so if you're charging 30 40 50 bucks a month you know that's fine I would still recommend just getting prices out of that it doesn't really help you um but especially if you're charging a little bit more High ticket you want to get prices off there okay because it puts people in

the wrong State of Mind before even experiencing it we want to present prices only after the entire sales process okay because that's that's when people understand the problem that that that they have a problem that they need to fix they need to fix they need to get healthy right and they understand the value because they've experienced your work up and they understand why you charge $150 they won't understand it if you have it on your website and they haven't even showed up to the facility it's going to ruin showbread as well because people join a

10day trial some people just are looking for freebies and we can close those as well but a lot of people are just there to experience and see if this is right for them right but what they're going to do first is they're check out your website and see actually what you're charging and what's going to do them it's if they see the price and it's 150 200 250 bucks a month a lot of people are just going to say oh you know I would love to show up but this is just not going to be

for me I'm not going to waste my time here and that's why you do not want to have prices on your website because having pric on your website will have a massive effect on your show rate and I just discussed that it will it because trust me if you if you can test this if you want I would just recommend removing it right now and obviously if you do really do not have the option to do that because of franchise rules and stuff like that you know by all means you got to you know you

got to keep them on there sadly there's nothing you can do about it but if you do have the power to show prices or not get them off of your website okay you can show exactly what you offer exactly the memberships that you offer the value that's in there you know client results testimonials all that good stuff but just don't have any dollar dollar signs on your website the only moment you want to present price and actually tell prospects what the price is is after a sales process okay you don't want to answer it through

texts you don't want to answer it through emails okay you want to answer it once the sales conversation has ended right the pitch and what it also gives you it gives you freedom to experiment with pricing as much as you want right so maybe you have 100 members right now and you're charging them 100 bucks right sadly there's not a lot you can do to increase price on that you can you can obviously let them know hey we're increasing price with $5 and you can do that every six months or something like that um but

you can't massively increase prices right um but what you can do is if you have prices off your website is you can you have the freedom to price your membership at a whatever you want and really test this right you can test charging your membership at 150 for 10 people you can test test charging your membership at 180 you can test all different types of variations and play around with it as much as you want because that's what you want to do you really want to find sort of that golden price figure that puts a

lot of money in your bank and that is also sellable to your your your location right people that live there right and if you have priced on your website it kind of put you in a stock position because say people go on to your website and they see it's 140 a month right and then they enter the gym and you they love the workout you have the sales experience with they you know you do the sales with the sales script with them and then you pitch it and you say Hey you know normally we charge

160 a month and now it's only 150 they're going to sit like sit there like what the hell I saw on the website it's 140 or I saw this like it doesn't give you any freedom to really just kind of mess around with your pricing and see what really works right and that's why you want to get that off there as well and you really want to present um you want to present on your website what you offer the value of that offer and what's included in that offer right unlimited Group Training nutritional support all

that sort of good stuff but never show pricing so a new rule for you to keep in mind after this video is only present pricing to prospects after the workout and after the sales process never before and it's going to massively increase your show rate it's going to massively increase your sales uh your sales conversion rate as people are basically forced to experience what you offer before you know saying no they have to try it out because they've got no clue how much they Char how much charging right okay so why having a100 to2 $300

enrollment free just for the purpose of waving it is amazing so we use this as the incentive to really get people on the first appointment right if you've been through the other sales videos you know you know we're going to present it we want to sign people up for six and 12 in packages to really increase lifetime value and actually grow something here you know month to month is great but it kind of puts you in an in a in a scary position where you can lose 30 people in one month because you know they

have the option to right and the way we get people to sign up for these big packages right these packages that are worth, $1,500 $2,000 is by waving our enrollment fee so if you have an enrollment free enrollment fee and you really can't wave it I recommend increasing your prices okay increasing your prices so you're able to uh wave the enrollment free so say you're charging a $100 um enrollment free and your membership is 80 bucks right what I would do is I would raise your prices to $100 and being able to rate that enrollment

free so what you can do is you have an $100 enrollment fee up that the $200 increase your membership in increase your membership prices just for the purpose of this as this is the massive sort of this is the this is sort of the deal maker uh to get people to really sign up because they understand the massive amounts of savings that they're going to get right by just waving this massive enrollment fee if you don't have an enrollment fee that's awesome add one don't put it on your website right don't put it on your

website only for the sales conversation but add one just for the purpose of waving it okay and you're going to get some people signing up for the enrollment free as well uh you know just some random traffic and that's nice that put some extra cash in your bank but we we really use this enrollment free just for the purpose of waving it because it works so well as you know you've discussed all these problems with people they know they have something to fix they love your facility right and it kind of just puts the cherry

on top and hey you know if you sign up right now you're going to get we're going to wave the $200 enrollment fee and you're going to get $20 off your membership per month so you're looking at you know $300 or $400 worth of savings that you can put in your bank um and keep right and you really want to kind of structure this in a right way so if your business you know isn't really you know if you've got problems with this just let us know and we'll help you out just to figure out

what is you know how we can structure this for the right incentive but if this is very cut and dry for you and very easy to do do it okay um and then we go into this and this kind of connects to what I just discussed so how to discount your membership without actually discounting it right because we want a discount on membership just to get them to sign up right to kind of get that incentive there to to for them to understand how amazing deal it is and to get them to sign up on

the first appointment but what we don't want to do is actually uh have you lose money because you're discounting memberships right so how do we structure it that we're actually making more money but in the eyes of the market it looks like we're discounting so I'm just going to give you a pretty cut and dry explanation on this on this uh on this drawing board um like I said this isn't like a stepbystep video like some of the others but this is kind of just for you to understand you know how does this really work

so what I what what we've tested and what we've seen work so well in the market is I'm just going to use an example purpose and you just want to use your own prices for this so say you're charging your month-to month unlimited membership is $150 a month right that's what you're charging and that's that's that's sort of the price that you'd love to get another 50 or another 100 people on right that's sort of your sweet spot right and that's month to month and we want to sign people up for six and 12 mon

packages so you say your six month say your 6 month is 130 right you know that's nice and they sign up for 6 months so that's great it's still cash in the bank and still you know a lot of guaranteed money but it's not that 150 right it's not that 150 and you know you'd love to get them to that 150 so what do we do that's actually a lot simpler than I might you know might that I might have that I might have talked about but so you just want to keep in mind you

have to say this $200 enrollment free as well just for the purpose of waving it in the meetings right I like I like the $200 um this is kind of up to you you know you kind of want to make it realistic you can do you don't want to do a $1,000 enrollment fee because it's just not going to make sense and it's just going to sound like you know just Ju Just That kind of just um sort of scam them so say you're charging $130 a month for the six month and that's what we

really want to get people on right we want to get people for those six and those also those 12 mon packages a very simple strategy here if you want to get people on that 150 but you want to also get them on the six month it's very simple because we've removed prices of the website we have the freedom to do whatever we want with our prices obviously not for our current members but for the new members coming in right and what we do is very simply we increase prices on our month to month we increase

prices by 25 to 40 bucks so let's just do 30 we increase our month to month for all new members and this is just you know this is just the way you're going to just increase prices and your month-to month in instead of being at 150 it's going to be 180 and that's that's that's the cost and you're not going to go down that you're not going to go below that no and what we do what what why this gives us the why this is so great is because you know we you know this is

the month of month and if we get people on 180 that's nice and that's great but we want to get people on that 150 you know and we just want to get them for a long time right so what we do here is because we raise prices on this and you know the six-month package is always you know it's the standard discounted package and we want to give F you know we want to kind of get that incentive you know wave the enrollment fee plus you know $30 $20 savings a month what we do is

we raise prices as well for the six month to 150 right and I just want you to think about this because what we're doing now is we technically are discounting prices right because from from 180 to 150 but technically we're also not because you want to sell those people at 150 you want to get them for as long as possible right and 150 is really your sweet spot so we just increase our main price to 180 so we can make the discounted membership our sweet spot and 150 is our sweet spall and this is how

you want to structure it and why this is so great and why you know you need the freedom to kind of change prices is because you can use this strategy basically every couple months to increase prices and see you know see how far you can go with this okay because what we see a lot in the market is that people usually charge half of what they're worth if you're charging 100 bucks right now you're probably worth 200 00 and probably even 250 right so you have to look at it from this because now you're just

going to tell them the sales conversation it's 180 month to month which is true because you've increased prices but for the six-month package you know for that firsttime visitor only special deal they get a $30 discount $30 discount plus a two plus that we wave the $200 enrollment free so they're looking at $380 if my math is correct there um 30 * 6 yeah my ma correct that $380 worth of savings by signing up to the discounted you know in quote discounted membership which it really isn't because we're selling at The Sweet Spot and we're

getting in for six months so you know we're going to that this is this is really how you want to structure and we can do this because we don't have pric on the website and what I mean with this is and you can do this with 12 month as well if your six month if your one month is 180 or 150 you want to sell everyone at 150 you're going to just increase your prices to 200 that's what you're going to do you're going to make your 6 month 180 and you're going to make your

12 month 150 right and this is this is super cut and dry and it might be you know it might be this is actually very simple but this is really what works incredibly well right because how you can structure this and how you can constantly improve prices say you're charging you know your sweet spot 150 a month every single time your main month to Monon on limited package is 180 but you know you'd love to get people for 6 months on the 180 as well you know increased prices so what we do is our 180s

are month to month it's our most expensive membership we're going to increase that again say 3 months from now and we've had massive success with the you know the 156 month and 180 um unlimited right and the unenrollment free so what we're going to do now again is we're going to raise prices to 210 for a month a month and that's our most expensive package right and I know this is kind of all over the place and it looks very disorganized but you know just kind of follow with me yet so we're going to raise

price to 210 because we now we kind of just want to get people on that 180 it's time to increase and we know the values there so what we do is we make our month to month 210 and we make our 6 month 180 so now we're technically discounting it right because you know 210 is the month a month so we're charging 180 for this and we've got the $200 enrollment fee that we're waving but really in reality we've increased prices by $50 by $50 than what it was when you were starting right and this

is how you want to constantly do it so say you do this and you you've charged price you've raised price twice now your me your highest package is 210 your six-month package which we want to sell people on is 180 but you'd love to get people on the 6 month to 210 right we're going to increase prices again your prices now is going to be two let me just kind of get rid of this stuff here this is kind of just uh uh you know it's just a lot of a lot of crap here but

so 210 and you'd love to get people on the month package the month to month package but you love to get them on the 210 right we've already increased it so much you know was 130 when you starting out then was 150 now it's 180 but you kind of want to get them on the 210 so again we do the same thing we make our most expensive package the unlimited month a month 250 and we make our six month 210 and our 12 month 190 right and this is how you want to do it constantly

until you feel resistance okay you can't do this you know you can't do this forever you can't eventually raise price to 700 a month without offering any you know without offering meal prep and all di from tips extra values but this is how you can increase prices and this is how you can technically discount your memberships without discounting it because you have to look at it from this we were charging 130 when you were starting out right you want to get people on that 150 and by using this strategy constantly we've made that 130 210

and we're getting a $80 extra on this membership and this is this strategy right here is what allows us to wave an enrollment fee if you have one right because if you have an enrollment free and that enrollment free really makes you extra money you want to use this strategy increase prices so it fits right so you can wave the enrollment fee if you don't have an enrollment fee that's even better because then you can just add one for the purpose of waving it and also increase prices okay and this is the strategy that works

incredibly well and you obviously want to you kind of uh use this with your own prices um and if you need help with that just let us know how kind of structureal prices and that's really the next thing that we're going to discuss here so you want to keep things logical and don't you don't want to be romantic or emotional so this is just kind of things you know how you should really look at your prices you want to know your competitors how you how your know how your competitors are pricing and more importantly what

they actually offer because you know a lot of the times we hear competitors are usually undercharging and you kind of just you want to make sure that you never follow your competitors's pricing if they offer less than you and if their experience is worse than yours right because you know your business the best and you know if it's worth $50 $200 $300 a month you know that so don't let your competitor pricings change that and you always want to have your profit margin in mind with pricing you know you don't want to be romantic about

it you don't want to make this you know this nice looking number have your profit margin in mind and what makes sense and what will grow you and what will get you the most money right and you want to test this and that's why we remove prices of the website so we can test different types of prices and see what works the best and you want a price based on value so how much is this truly Worth to the Prospect and I've said this a lot most most gym owners they charge about half of what

they're really worth a month right because we're usually we're giving out you know a ton of value here and you're only charging 100 or $120 a month well you're usually worth $ 250 or 300 so you want to charge based on value okay never under charge you also do not do not and I stress this so much have too many membership term options you would don't want to have a 10day membership you don't want to have a 20-day and then a a two month and a one month and a six month and a you know

a twoyear and all that sort of stuff you want to have three max membership term options and I like the month-to month the six month and the 12th month you do not want to have too many offers because it's going to confuse a client and it's not going to give you any gain okay it's just going to give you a bunch of other stuff that you don't you know a bunch of other annoying stuff that you don't want to deal with here you want to have three terms and this is up to you but don't

sell pack don't sell class packages and all that sort of stuff month to Monon terms only and you want to make that cut and dry you want to make that a fat a rule and you will stick by that rule forever okay three terms Max and I I like the month to month the six month and the 12 month and you don't want to have too many accent options access options right you don't want to have you can have two classes per week one class per week you can have two classes in a personal training

session you can have unlimited you can have four you know you don't want 20 different access options it's going to confuse the client it's going to you know let them think think about this this unnecessary thing too much if you have two or three or even one cut and dry option it makes it very simple for the client okay that's what that's what's possible and that's the only thing I can get if you give them 10 different access access options it's just going to confuse them it's going to make them think about things that they

shouldn't think about and it's just going to add an extra objection to your sales process and I honestly honestly recommend just having one or two and I I've I've seen the B most success from just having the unlimited option right just so un limited for the three 6 or 12 months right but you can also have the four four uh four per you know four sessions per month or the eight sessions per month right but you just you want to simplify this as much as possible as you know if you have 30 different types of

offers it's just going to it's it's really going to ruin your business in a lot of things you want to focus on a couple offers that you offer and you want to sell on that every single time it's not only going to make you a lot better in the sales process if you're only selling a couple things right it's going to make the objection handling so much easier and then the last thing is do not and I repeat do not offer class packages they ruin your retention if you're selling five classes or 10 classes or

15 classes packages get that out of that it it the only thing it does it just gets you know because yes class packages are more expensive so you know you'll probably say to the client hey but you know you should probably sign up to a membership you're saving a lot more money but they won't do that because they want the freedom to to do whatever the hell they want right and that's not what we want we want them for the long time so if you offer class packages that's just a nice Escape for any client

who isn't sure yet 100% if this is going to be their long-term facility right and that's why we want to just cut the entire class packages out of the equation because if you don't even offer it and if you if they ask for it and you say no we don't offer that and you just offer the month to month or the sixth or the 12 month that's the only type of client you're going to get you don't want to have 10 or 15 people on class packages because you've got no clue what they're going to

be doing the next month in the next month and it's just going to make you incredibly it's going to let you it's going it's going to let you worry too much about those 10 or 15 class packages that might be you know generating you a lot of Revenue but you've got no clue if they're going to stick around for another couple months or if they're going to leave right and that's why you don't want to offer class packages okay and that was really this video um if you have any questions about this you kind of

want to understand how to structure this just let us know in the Facebook group or the coaching calls and um I'll see you in the next video goodbye