Want to know the fastest way to grow your revenue?
It's easy, put up your prices. Actually it's not that easy at all, it's complicated.
At Training Tilt we started with a really low price. I justified that low price because we were new and didn't have any history for people to see and go "these guys are worth it, sign me up". But actually the real reason was that I lacked confidence in the product and in myself. Sound familiar?
At Training Tilt our prices are low but the value of the product is extremely high. You get a website, an on-line store, a membership platform with paid membership options, training and nutrition plan builders and to top it all off branded mobile apps for clients to login to. All for $49 a month. We have customers generating more than 100x that amount of revenue selling plans and memberships to their platforms. That's not one-on-one coaching revenue it's on-line membership and digital products only. On top of that we typically spend at least a few hours helping our clients getting setup, chatting about goals, importing data for them. We love that by the way and it's super valuable to us getting an insight into our clients businesses. Now that's value.
But to bring back the complexity to the situation a low price cannot be described as $X, a low price is determined by $X vs X value. If $ matches value then you're all good, keep doing what you are doing.
If you are already signed up with us don't worry your current price is locked in, our prices are only going up for new signups and they will kick in early January.
Here's how it breaks down. All our pricing is in $US per month
Standard $49 - going up to $67
Growth $99 - going up to $147
And we will be introducing a new plan for the larger businesses with up to 1000 members which will be $249/month including white labelled web app.
If you aren't signup up yet but have been thinking about it now's the time to make the move. Remember that there is no "Ready" there is only "Now".
Enough about us how about you?
Here's some things I've learned about pricing for fitness businesses:
If you don't value yourself, your product or your services, don't expect anyone else to.
In general a lower price is perceived as lower quality and value.
Low prices for a high value product won't make you any money and is not sustainable.
You should always compete on value not on price.
Low prices won't attract high quality clients.
Over time you may start to resent your clients as you continue to give more than you get. If that happens you're in real trouble.
If you want to grow your business you absolutely need to avoid competing on price.
Some golden rules when competing on value not on price:
- Be awesome. always.
- Know your product or service and understand how your clients will use it
- Make a promise to your clients that is benefit driven (how it helps them)
- Deliver what you promise. and if you can't, fix it.
- Be awesome.
This will be hard, but the hard work will be rewarded over time. You might as well get started.
But be warned, putting up your prices will attract criticism and jealously from your peers and from your competition. That criticism will probably come from those with low prices and low value, you won't need to worry about them any more.
I'll post about how to deal with that sort of criticism soon.
PS. Just a reminder, if you don't get results for your clients putting up your prices won't work. Hard work and results. Value + higher prices = profit.
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