The True Cost of Your Club
What is the cost of joining your club? Is it $10, $25, $70, $125 — or is it $200 a month?
And if you charge a high price, is it a problem when closing sales? Then maybe you need to build a sales process around the “true cost” of joining your club. And more importantly, focus on what price specialists call the “non-monetary” cost of getting in shape at your club.
Let me explain. When you ask a potential member to sign on the dotted line, you are asking for more than just money. You are asking for time, long-term commitment and a lot of hard work.
If a prospect believes they need to get to your club four to five nights a week to get in shape, that is a far bigger cost than asking for $100 a month. Yet sales people worry far more about the $100 price tag than the time commitment they are asking for.
And what about other non-monetary costs? Remember, you are also asking prospects to risk being embarrassed and exposed in front of experienced gym-goers — a far bigger cost than $200 a month.
Finally, you are also asking them to trust you will get them in shape. Just because you say you will get them in shape does not mean they believe you. Yet most times, these non-monetary costs are actually the No. 1 reason potential members do not buy your membership.
The problem for untrained sales staff is these non-verbalized cost objections are rarely brought up in the sales process, and as a result, are never dealt with by the sales person. The sales person thinks the prospect did not buy because of price, when in fact it was the other non-monetary costs that stopped them from buying.
The secret to selling more memberships is to bring up the non-monetary costs and address them, just like when you pre-empt the price objection.
“Mr. Prospect, could you make it to the club twice a week for about 40 minutes a session?”
“Mr. Prospect, we have a full team of personal trainers and free programs to help you get in shape. Is that something you would be interested in?”
Learn to deal with the non-monetary costs and selling will be a thousand times easier.
Alan Leach is the group general manager and director of sales and marketing at West Wood Clubs.