PRICE RISE

IT ISN'T AS BAD YOU THINK

It’s normal to feel a little apprehensive about a price rise, but it’s important to see the bigger picture. This is a positive step for the gym and a necessary part of creating a sustainable, high-quality space for our members.

You might hear things like “All the members are talking about it” or “Everyone is cancelling,” but the reality is usually far different. A small number of cancellations is normal, and the additional revenue generated from the price rise more than makes up for it. The focus is on maintaining the quality and improvements that make the gym a great place to train.

Every rate adjustment allows the gym to invest in better equipment, improved cleanliness, and more support for members. This ensures the club remains a space that people value and want to be a part of. There’s no need to worry. This is a necessary step forward that benefits both the gym and its members, ensuring a strong, sustainable future for the club. Stay focused, stay motivated, and remember the positive impact this has on what we’re building together.

When discussing the price rise with members, it’s important to keep things in perspective—not just for them, but for yourself as well. Here’s how to frame it in a way that helps both you and the member understand that it’s not as overwhelming as it might seem:

• Break Down the Numbers: The actual increase might sound larger when stated as a weekly amount, but when you break it down into daily terms, it’s often less than the cost of a coffee or a snack. This comparison can make the increase feel more manageable to discuss.

• Keep Perspective on Feedback: You might hear things like, “All the members are talking about it,” or “Everyone is cancelling.” In reality, you may have had only 20 or so cancellations. While those voices may seem louder, it’s important to focus on the majority of members who choose to stay. The extra revenue from the price rise often far outweighs the small percentage of cancellations. This helps keep the gym sustainable and allows for continuous improvements.

• Highlight the Value: Remind yourself that the price rise isn’t just about collecting more revenue—it’s about ensuring the club can continue to offer the best experience for members. Whether that’s through better equipment, increased cleaning, or additional staff to support their fitness journeys, the increase has a direct, positive impact on what members receive.

• Accept That Some Loss is Okay: It’s natural to lose some members during a price rise, and that’s okay. Those members may no longer find the gym a fit for their budget, but their departure allows space for new members at the new rate who see the value in what we offer. Remember, it’s not about holding onto everyone—it’s about maintaining the overall quality and success of the gym.

• Stay Positive: Members will often reflect the tone and confidence you bring to the conversation. By focusing on the value they’re receiving and the improvements being made, you can guide the discussion in a way that leaves them feeling reassured. A positive attitude from staff can go a long way in ensuring members understand and support the change.

Keeping these points in mind will help you feel more confident when discussing the price rise with members, showing them (and reminding yourself) that while there may be some challenges, the long-term benefits for the club and its members make it all worthwhile.

Why is a price rise necessary and important?

In order to perform well during a price rise, it is important you have a deep understanding on why it is necessary. As we all know everything increases each year and with that so does the expenses to run all our gyms. Because of this, if we want to keep our clubs performing at the top we need to increase prices to stay on track with cost of living. 

To show you the difference a price rise can make, here is a quick breakdown. You may have an average of 40 sales a month, so over the last two years, you have signed up approximately 960 members. They joined on a rate of $25.95, but with the new rate of $28.95 per week, the financial impact is significant. Prior to the price rise, those 960 members were generating $99,648 per month. After the price rise, they will generate $111,168 per month. That’s an additional $11,520 per month or $138,240 per year that can be reinvested into the club to ensure it stays the cleanest, most convenient, and friendliest gym in the area!

POLICY FOR REDUCING RATES

When handling requests to reduce membership rates, follow these steps to ensure consistency and fairness while addressing member concerns

1. 1st Option: Address Concerns and Retain at the Current Rate
   Start by having a detailed conversation with the member about the benefits of their current membership. Explain the reasons for the price increase, highlighting the value they receive and the improvements made. Many members may be satisfied with the explanation and choose to remain at their current rate once they understand the context.

2. 2nd Option: Offer an 18-Month Lock-In
   If the member is still hesitant, offer them the option to lock in their rate for 18 months at a slightly reduced price. Emphasise the value of this option as it provides long-term savings while ensuring continued access to the club’s benefits and facilities.

3. 3rd Option: Reduce Rate Without Lock-In (approved by Manager no more than $2 off)

If the member prefers more flexibility, you can offer a one-time reduction in their rate without locking them into a new agreement. This option should be used judiciously and only if necessary to retain the member while maintaining goodwill. Make sure its not done on the spot. they need to be told that we will need to seek approval but we really want to help them. Let them know of the outcome of reduction no more than 24 hours later.

4. 4th Option: Seek Support for Further Adjustments
   If the member is still dissatisfied and is considering cancelling, contact your support team (Natasha, Anna or Sammi)  for approval before offering any further reductions. This ensures consistency in pricing policies and prevents over-discounting. Only after receiving approval should you proceed with additional adjustments to retain the member. If retention is not possible, and the member insists on cancelling, proceed professionally and document the interaction.

By following this process, you can address member concerns while balancing the needs of the business and maintaining the integrity of the pricing structure.

Price rise Complaints

With any price rise you will get some members who are not too happy about having their price increase. The below scripts are there to make sure you have every tool possible to help that member not only understand why the rise was necessary but also make sure they are happy to pay the increased rate. All of these scripts have been personalised for each price rise we have had as they can be different (renovation or no renovation etc). 

EMAIL SCRIPTS:

when you get an email come through regarding the price rise, please make sure you attempt to call the member TWICE before sending these scripted email replies.  Even though its more confronting talking over the phone, it is resolved much faster and many members appreciate being spoke to over the phone rather than receiving an email reply. 

PHONE SCRIPTS:

Please role play these scripts with your team prior to the price rise. It may also be beneficial to have these printed out ready to go next to any phones in club, as when the price notification goes out most people will call to ask about it so it will make your like much easier having it ready to go. 

KEEPING TRACK OF A MEMBER DURING THE PRICE RISE

During a price rise, you will receive an Excel sheet listing all the members expected to have a rate increase. This sheet is a critical tool for tracking not just rate changes but also cancellations, complaints, and member feedback. It ensures we have a comprehensive view of how the price rise impacts the club and provides valuable insights for making improvements in future campaigns.

It’s essential to update the sheet with any changes, including:

• Members who cancel their membership.

• Members who express complaints or concerns.

• Any rate adjustments that are agreed upon (as long as the new rate is not below the minimum).

When it comes to rate changes, remember that updates to members' fees in ClubWise can only be made on specific dates provided by ClubWise via email. If you agree to adjust a member’s rate, record the change in the Excel sheet but DO NOT update the member's actual rate in ClubWise until you have been instructed to do so. This ensures consistency and avoids errors in the transition process.

If someone does cancel due to the price rise, Please make sure to make their leaving reason "rate rise".

By using this sheet effectively, we can monitor the overall impact of the price rise, track trends, and maintain a clear record of member interactions and adjustments.