Many failing gyms lose confidence in their business and adopt a discount strategy to entice potential customers. Though this strategy initially yields more clients, in the long run it can cause a dramatic fall in client retention and quality of service. So, what’s the solution?
“The bitterness of poor quality remains long after the sweetness of low price is forgotten.”
– Benjamin Franklin
The solution is simple: instead of discounting, put your effort behind providing a quality of service that justifies your price tag. Next, communicate the quality and value of your service through effective marketing. Remember to:
Think about it: when was the last time you saw companies like Apple and Lululemon provide 50% discounts on their products? Both of these companies enjoy a large share of their respective markets because of their quality products. Apple and Lululemon prove that people are always willing to pay premium prices for premium services providing they understand the quality of the product and the necessity of obtaining it.
This principle works just as much in fitness as it does in technology and apparel. Certainly, In our work with over 40 gyms around the world, we’ve discovered that quality, not discounts, is the key to building a thriving gym. However, it’s not the only element that gyms need to get right…