pricing strategy
Core membership at Waterlane is £25, but the average member pays £40
spa, multi-site (access to the council’s other fitness facilities), golf, kids’ play and squash. There is no contract and members are able to swap their activities for a £10 admin fee. “Since the refurbishment, Waterlane
offers a diverse range of health, leisure and fitness activities,” says Gregg Walker, operational support manager for Pulse. “When we were originally looking at the sales and pricing strategy, all-inclusive memberships were set to cost around £60 a month. We knew from market research that this wasn’t an affordable pricing structure for the community, so we had to come up with a more flexible approach. “The concept we developed allows
“WE’VE INCREASED AVERAGE YIELD PER
MEMBER PER MONTH AS WE’VE CREATED A NEW REVENUE STREAM – UPGRADES”
needs, not trying to pin them into a specific programme. “But it’s not just worked for the
member; it’s worked for the business too. We’ve increased our average yield per member per month as we have essentially created a new revenue stream – membership upgrades. Ultimately a member will end up spending more money with us. “Although it’s in its early stages
of implementation, we expect they will stay a member for longer too – satisfaction levels are higher, and the perceived value of our offering has also been enhanced. As we move towards a situation where we’re creating genuine fans, member referrals also increase. “In addition, we notice that the staff team now value their own expertise
42
more – it’s pushed their knowledge to the forefront of our business, where it should be. We see our industry as results and service provision, not just the provision of facilities.”
WATERLANE LEISURE CENTRE – UK Following a multi-million pound refurbishment at Waterlane Leisure Centre in Lowestoft, Suffolk, Pulse introduced a flexible pricing structure at the centre. Everyone pays £25 for a core membership that gives access to the facility and unlimited swimming. Members then purchase add-ons for each activity that they wish to participate in, at a monthly cost of £5 per activity: gym, group cycling, fitness classes, climbing, bouldering,
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members to choose and pay for activities that suit their lifestyle. We now have just over 1,800 members, each paying an average of £40 a month. Spending patterns don’t vary greatly from month to month. However, people view the £5 options as affordable amounts and as such spend more initially, and/or are willing to try out new activities because the amount is so small – less than 17 pence a day. Most members purchase a minimum of three activity add-ons.” He continues: “The greatest benefit of
the scheme is the sales approachability: you’re selling something that’s affordable and that suits people’s lifestyle. “There’s also never-ending scope to
engage with, and interact with, our members – whether that’s upselling, cross-selling to populate low-performing areas or offering specific trial promotions. These are all things we believe will be the key retention tools over the next few months.”
healthclub@leisuremedia.com kate cracknell
may 2012 © cybertrek 2012
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