pricing strategy
EUROPE EUROPE
FOCUS PRICE UN-FIXING
OFFERING FLEXIBLE PRICING DOES NOT NECESSARILY UNDERMINE A CLUB’S BOTTOM LINE – IT CAN ACTUALLY ENHANCE IT. KATE CRACKNELL REPORTS
T
he fitness market is changing, and price lies at the very heart of this. With the internet boosting consumer
choice across the board, today’s members expect to be in control of the way they consume a gym’s offering – and that includes being in charge of their own wallets. For some that might mean choosing a budget club; others will opt for the ‘pay as you go’ flexibility embodied by concepts such as payasUgym. But whatever their route to market, increasingly consumers are expecting to pay only for what they want – and in some cases, only when they want it. Gone are the days when a fl exible
pricing strategy simply meant peak versus off-peak versus OAP/student membership packages. Savvy operators are radically rethinking their pricing structures to ensure that their offering remains an indispensable part of life for today’s empowered, value-driven consumers. We take a look at some of the more innovative pricing structures being implemented by operators.
TRAINMORE – NETHERLANDS TrainMore’s mission is to encourage people to work out more regularly at its four clubs – and it offers a strong incentive. Members who work out more often are rewarded with membership discounts; some will even train for free. Membership starts on the fi rst day
of the month, with everyone paying the base tariff for the fi rst quarter – 9.95 a week. After three months, the club checks how many times each individual has attended. Membership fees for the next quarter are calculated as follows: 0–25 visits means the member continues paying the base tariff; 26–38 visits (at least two visits a week) and they receive a 50 per cent discount; and if they’ve attended 39 times or more, they get the next quarter for free.
40 Read Health Club Management online at
healthclubmanagement.co.uk/digital This calculation takes place every
quarter and only applies to the core offering (unlimited use of the gym and classes). Specially designed software counts down the remaining visits each member must make to receive their discount in the next quarter. Founder Han Doorenbosch explains:
“Business models are constantly changing. Everyone can get information for free via Google. And with Ryanair you can fl y for 15. ‘Free’ in 2012 means something different from ‘free’ a few years ago. Now, a large group of people pays for a smaller group – or vice versa.”
Based on a philosophy of transparency,
extra services are then offered for an additional cost. “To come back to the Ryanair example, although you can fl y for 15, you then add extras: priority boarding 6, checked luggage for 20 and so on. Our members can also add extra services to their package: More Sun (unlimited usage of sunbeds), More Slim (weight control package), Health Drinks (unlimited drinks), and a range of personal training packages. Because they’re paying less for their basic membership, we fi nd they’re more likely to spend on these optional extras.”
“WITH OUR MODEL, MEMBERS CAN ONLY BLAME THEMSELVES IF THEY PAY TOO MUCH – NOT THE CLUB”
Members who train more, save more may 2012 © cybertrek 2012
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