A good pricing strategy can make all the difference to your boutique fitness business. For fitness entrepreneurs who are building your own fitness community, you may be thinking about how to develop and implement an effective and well considered pricing strategy. There are many types of pricing models that you could adopt, and we will examine those in closer detail in this article.
Generally, value-based pricing can help you stand out from the crowd. Determining the value of your services is important. Some factors that influence the value of your offerings may include location of your classes, for example a centralized location may justify a higher cost due to the higher convenience that it brings; luxurious facilities could also justify a premium pricing. In turn, you would also attract an audience that falls into the upper-middle class bracket. Premium pricing is usually associated with luxury and comfort. With the onset of COVID-19, and the changing operating guidelines for operators, the method of delivery could influence pricing plans as well. For example, clients would expect virtual class offerings to cost less than physical classes. Administering the right pricing strategy will ensure that you are able to sufficiently cover your costs, while maximizing the profit margins for your business.
An interesting strategy would be to enable membership packages that are shareable, which encourage clients to share the cost with their friends. This strategy has a referral effect and can help build client retention.
Let’s look at how some studios in Singapore have adopted different pricing strategies for their clients.
Session based Packages
A study by value champion insights stated that the average cost of yoga memberships in Singapore is S$237.50-350.00 per month for an average of 8-10 classes. Session-based memberships are common amongst yoga studios, a strategy that allows customers to book bundled session packages. Session based memberships are a growing trend providing flexibility to customers allowing for attendance according to the clients schedule eliminating wastage due to absence. Session based packages also give the customers freedom of choice, customers can select packages that best suit their needs without the hassle of monthly billing. Some examples of studios in Singapore that sell session-based packages are:
Yoga Inc offers class packages for Hatha, Flow, Core, Yon, Restorative and Prenatal. They also offer classes for the elderly and kids so that the whole family can join in the yogi journey.
Fitfoo focuses on creating feel good Pilates classes with a range of services offered such as Dynamic reformer, Pilates Mat Flex and Beginner reformer. Fitfoo focuses on session based packages allowing customers to choose their bundles to attend the various eligible classes. This gives customers the choice to attend various offerings under the same package.
Another form of pricing strategy would be recurring memberships. Such a pricing model encourages customer loyalty, as a commitment is formed between the client and the studio. An estimated average price of recurring monthly memberships is S$193.97 in Singapore for open gyms. This price is dependent on the amenities and services that are offered by the gym. Recurring memberships are also sold by gyms that offer functional training and HIIT training programs.
Ritual Gym offers 3 recurring packages that are billed either monthly, quarterly and annually with unlimited access for all members purchasing their packages. Some of their services include HIIT, a combination of strength training and cardio with their original 30 minutes workout sessions.
Personal training may warrant a different type of pricing strategy. According to DBS insights, “Personal trainers are typically paid around $60 an hour in Singapore. That’s about $240 a month for freelance trainers.” Personal training prices may vary according to the workout plan, dietary requirement and session hours booked in by the client. Often, we observe that pricing plans are highly customizable, depending on the desired fitness goals of clients. With the personalized attention, boutique fitness personal trainers tend to adopt a premium pricing approach due to the high level of customisation.
FITLUC offers personal training services which includes workout plans, nutrition, fitness advice and meal plans for their clients. Their pricing plans differ depending on whether clients opt for home-based or virtual sessions.
As highlighted earlier, shareable packages allow for customers to share their packages with other members. The main aim is to create a conversion from the referral into a client. This also allows the studio to increase their upfront cash flows.
Revolution offers spin classes that are aimed to keep you on your feet with their darkened club style acoustic studio and 45-minute workout sessions. To add to your value, they even throw in cycle shoes that accompany you during your workout sessions. One of the pricing strategies that they have successfully adopted are their standard shareable packages.
Choosing the right pricing strategy would require a well considered plan that takes into account rental costs, teacher to student ratio, level of personalisation and level of facilities and amenities provided. We summarize some common pricing strategies in Singapore in the table below for an easy comparison.
Developing an effective pricing strategy can be an intricate yet complex process for boutique studios. You’d want to stand out from your competition while ensuring that you have a sustainable profit margin. It is imperative that adequate research and thought goes into the design of your pricing strategy. Once you have decided on your pricing strategy, finding a partner software that can support your membership sales will be critical.
vibefam provides a payment and scheduling platform that allows for the flexibility and customization of membership plans. We facilitate payment by processing payments securely through a global payment gateway. This way, you can sell group, private and shareable packages that help you scale.