If you haven’t already read three ways to make more revenue without increasing prices or three ways to increase your profit without increasing your prices, they are both great resources to get you started with our LEARN series. 

Increasing the price of your memberships and how it is perceived will come down to one simple fact, communication. Communicating clearly with your members is vitally important for obvious reasons. You want to maintain good rapport with your customers and ensure they feel their money is put to good use. 

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How do I communicate?

The simple answer to this is, to do it in every way you currently communicate with your members so that they all see it. There’s nothing worse than feeling out of the loop when other people are telling you the news. Not everyone checks their email daily but they might get notifications for Facebook and vice versa. The best way for your members to hear it is from you. I suggest covering your bases by sending an email, putting a self-recorded video into your Facebook group and even broadcasting the message on LegitFit. It’s clear and invites questions to those that may have some (be ready).

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What should I say?

Honesty is always best. The messaging should highlight that the business, staff and high level of services cannot grow any further as a result of the limited capacity and membership prices. The explanation of this can be detailed under the following headings:

1- A brief overview of the issue.

“As I’m sure you have noticed, our community has been growing rapidly over the last year. Growth is a great thing for small businesses such as ours but it has put us under some pressure so I’m writing this to be fully transparent with you all. The increase in members has left us with new unforeseen difficulties to face. We will of course do our best to make sure you have the same great experience as always.”

2- Highlight member benefits (Top coaches, equipment, flexible bookings etc...)

“Currently, we can offer you all top quality staff who are regularly upskilling and attending training days. We have [X HOURS] of class/session options for you each week and accountability sessions available upon request. We’re lucky to be able to add/update equipment every other month as you all deserve the best. [ADD ALL BENEFITS OF MEMBERSHIP]”

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3- Show the further value you can add with the increase (Coach CPD, equipment, etc...)

“Despite all of this, we want to provide even more value to you and level up the gym. We want to add [ADDITIONS TO FACILITY] (events, new services, more session times etc...) over the next number of months and right now this just isn’t possible. [DETAIL BENEFITS TO CUSTOMER]”

4- Explain the core values that are aligned with optimal service and how the change is a must for keeping standards at their highest level

“One of our core values at [FACILITY NAME] has always been to maintain the highest level of service and feel we can no longer do so without making these changes. We can’t stand here and tell you we’re the best if we don’t do everything in our power to increase the value we offer you, our customers.” 

5- Provide clarity of changes occurring

“Already having considered alternatives, we concluded that the only way we can make these positive changes and maintain our promise to you of high standards is by having a corresponding price increase. What this will look like is an increase to all memberships of [€ per week/month] from [DATE] onwards.”

6- Leave a “happy to chat further” at the end

“Thank you all for your continued support, your custom and your trust. Together we can ensure that our community will continue to thrive and create healthier, happier humans.”

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Should you apply it to everybody?

There are two approaches to this question and as per usual, it depends. It depends on your financial circumstances and whether the business is at immediate risk without applying the change to everyone. If there is no immediate risk and you simply want to increase profit like in our example then a secondary approach might be worth considering.

Option one is a one for all approach whereby everybody is subject to the price increase (careful exceptions where necessary) and communication goes out as previously explained. 

Option two is that you apply the new pricing structure to all new or returning customers and keep your current membership at the same loyalty/legacy rates. Note: if they cancel for any period, new rates apply upon return. 

This will do several things for your business. 

It keeps your members happy, consistent revenue for the business, improved retention (nobody wants to come back on higher prices) and an increase in profit margins over time with new members.

What if people cancel their membership?

No matter how well you communicate, members will cancel. The thing is, you can’t please everybody and shouldn’t try to. You want to work with people who value your business enough to continue investing in it and themselves. So let’s test the math... 

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€100 membership X 100 members = €10,000 (20% cancel due to €20 increase)

= €10,000 - 20% = €8,000

= €8,000 + €1,600 (€20 X 80 members on the new rate) = €9,600

€120 X 20 members = €2400 + €9,600 = €12,000

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Yes, your revenue is down €400 but you now can grow at a higher price point and make an additional €2,000 per month.

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As a result, your business can now continue to grow or you can simply increase your profit margins.

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[Communication Template]

Hi everyone, 

As I’m sure you have noticed, our community has been growing rapidly over the last year. Growth is a great thing for small businesses such as ours but it has put us under some pressure so I’m writing this to be fully transparent with you all. The increase in members has left us with new unforeseen difficulties to face. We will of course do our best to make sure you have the same great experience as always.

Currently, we can offer you all top quality staff who are regularly upskilling and attending training days. We have [X HOURS] of class/session options for you each week and accountability sessions available upon request. We’re lucky to be able to add/update equipment every other month as you all deserve the best. [ADD ALL BENEFITS OF MEMBERSHIP]

Despite all of this, we want to provide even more value to you and level up the gym. We want to add [ADDITIONS TO FACILITY] (events, new services, more session times etc...) over the next number of months and right now this just isn’t possible. [DETAIL BENEFITS TO CUSTOMER]

One of our core values at [FACILITY NAME] has always been to maintain the highest level of service and feel we can no longer do so without making these changes. We can’t stand here and tell you we’re the best if we don’t do everything in our power to increase the value we offer you, our customers. 

Already having considered alternatives, we concluded that the only way we can make these positive changes and maintain our promise to you of high standards is by having a corresponding price increase. What this will look like is an increase to all memberships of [€ per week] from [DATE] onwards.

Thank you all for your continued support, your custom and your trust. Together we can ensure that our community will continue to thrive and create healthier, happier humans.

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We hope you found this blog helpful if you have any questions feel free to contact me at Shane@legitfit.com or you can book a free product walkthrough with one of our amazing staff! 

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