When customers prefer the lower price of two options, it’s usually because they believe the cheaper item is of better value. To compete, you need to get the customer to value your product more than the competition’s, regardless of the price.
It doesn’t matter whether you are the low-price competitor in your community or if you are the premium offering. All that really matters is that you deliver value that matches or exceeds the cost of the membership.
Don’t be fooled into thinking everyone is after the cheapest price right now. Customers will pay more if they’re convinced that what you have to offer is demonstrably better than the competition. Determine what it is that sets you apart from the competition and make sure you tell the world about it.
If you don’t have a niche and are trying to be all things to all people, that should be your first order of business. Prospects and even current members need to understand why they should be willing to spend more on a membership at your club.
It could be the fact that you guarantee results, have the friendliest staff, have the best location, have the most amenities included in the membership, have 24-hour access, etc. Whatever it is that is your unique selling proposition (USP), charge accordingly.
You can compete with the $10 and $20 per month clubs in your market, but you have to be willing to offer more value than they do. If all they offer is a big building full of equipment, then your job is easy. There are many people in your community that are more interested in results, a friendly staff or a place closer to home.
Don’t feel that you have to compete on price; but you must always be competing on value. If the value you provide at your cost is more value than your competitors’ offering and at a lower cost, there will be many people willing to pay more to get more.
Curtis Mock is the host of www.FitnessBusinessTelevision.com the TV show for fitness entrepreneurs. He is also the executive director of gymsuccess.com. Curtis can be reached at curtis@clubsolutionsmagazine.com.
