What is value?
Or stated differently, how do we know how much something is “worth?”
Related, how do you decide what to charge at your gym?
There’s a lot to consider.
But here are a few things to appreciate.
1) No matter what you charge, it will always be too expensive for some.
So don’t try to be affordable enough for everyone. That will never happen.
Marketing legend Seth Godin says your pricing should offend 1 out of 5 people.
This is a good rule of thumb.
2) Selling from your wallet is normal, but a mistake.
Too often we price based on what WE would pay.
There are two problems with this.
For one, you may not be very successful (yet). And if you’re broke, you’re not a qualified prospect.
Second, you undervalue your services because you already know how to eat and train. So it feels less valuable to you.
Your clients are not you. They have different financial situations and different needs.
3) The cost to make or deliver is different from the value to the end user.
Too many gym owners set their pricing by figuring out how much they need to pay the coach, then charging a bit more.
This is unwise.
First of all, most gym owners underestimate the other overhead costs of running a gym. They tend to have too skinny of a gross margin for their business to work. Even at unrealistically high volumes of clients.
But leaving this aside, pricing is about the value to the person making the purchase, NOT the cost to the business to provide it.
In other words, what’s the cost to your clients of NOT hiring you?
What’s the cost in healthcare expenses?
What’s the cost in lack of energy and physical vitality?
What’s the impact of poor health on their relationships? Or professional pursuits?
So what’s it worth to solve those problems?
4) Price is sometimes a circumstance, and not just a sales objection.
Even IF everyone truly valued what you do, not everyone will be able to afford it.
That’s the way the world works.
After all, you can’t be the best and be the cheapest.
You’ll have to accept that not every single person can afford what you have to offer if you’re offering something that has real value.
And if you hate that some people truly can’t afford it?
I feel ya. This bugs me, too.
So consider this…
They may not be able to afford your highest level of service…
But you can share content and information for no marginal cost. It gives you leverage.
So if you’re committed to making the biggest possible impact on the world?
If you want to serve those who can’t afford to work with you?
Commit to world-class content. Provide actionable solutions to the challenges your avatar faces.
Remember, your marketing may change more lives than your paid offerings ever will.
And as a bonus?
Some percentage of those who consume your content will eventually hire you for more support, which means it’s a virtuous cycle.
Money is weird but weird stuff is cool stuff and YOU’re cool,
Mark
PS: Want more BFU in your life?
3 Free Resources:
- Follow BFU on Instagram HERE.
- Follow the BFU podcast HERE.
- Subscribe to Mark’s YouTube channel HERE.
2 Low Cost Resources
- Pick up a copy of Mark’s book HERE.
- Get our Time Management course HERE.
PPS: If you’re a gym owner doing $15k/mo+ looking to grow your gym in the next 90 days, we’d love to help.
Comment with the word “GROW” and I’ll get you more details.