Every year, Zen Planner releases the Annual Benchmark Reports, which include a comprehensive collection and analysis of business data in your industry to help you build a successful business. As 2020 draws closer, we wanted to share three best practices that validate the success of industry leaders. Compare your business against the leaders to see where you can make improvements for the new year.
#1 – Charge What You’re Worth
The most successful gyms don’t attract members with a lower unlimited membership. In fact, they price themselves higher than their competition. Why is that?
An effective pricing strategy considers how it affects a gym’s brand, as well as the experience for members and staff.
By making your prices lower than the market price, consumers may perceive your service and brand as being lower quality. In some instances, members will accept a lower-quality gym; however, it can be a slippery slope when you compete on price. Lowering your price can lead to a lack of profitability, which in turn, can reduce your ability to invest in your facility, member experience and staff.
Pro Tip: Don’t skimp on pricing as an effort to grow your membership base. Instead, charge what you are worth!
#2 – Be Smart About Discounting
With over half of the most successful brands in the industry providing discounts, you might be leery to do the same.
While offering price discounts usually doesn’t align with profitability, there are some situations where it doesn’t negatively impact the bottom line or your brand. Trends have shown that the most profitable fitness businesses do offer discounts, but they offer them with the right intentions.
For example, price discounting has the ability to encourage a desired behavior from members and prospects, like referral discounts and incentive programs. So, just like industry leaders charge what they’re worth, successful brands also discount in a way that expands vs. cheapens their brand.
#3 – Autopay Works
With nearly 90% of industry leaders’ members on autopay, it’s obvious that autopay is here to stay in 2020 as a standard for successful businesses. In order to make this a standard practice for your business, using the right tools and payment processor is paramount.
Zen Planner provides an intuitive autopay system that makes it easy to process payments monthly, as well as the benefit of proactive athlete communication to overcome obstacles like expired cards. Consider adding this feature to your business in 2020 to improve the experience for your customers and to make it easier for you to accept payments.
Make Improvements in 2020
So, how do you stack up? Are you ready to take strides towards improving your business in 2020? By following these best practices, you’ll be on your way to becoming one of the leaders.
Download the Third Annual Benchmark Reports to dive deeper into our findings and see what leading studios, schools and gyms are doing to be financially successful.