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HIIT & Group

3 Step Guide to Cutting Costs for Your Fitness Business

By Fitness Business Management Archives & News, Gym & Studios, HIIT & Group, Pilates, Yoga

As a fitness or wellness professional, you’re probably already feeling the squeeze of rising costs and the impacts this will have on your business. Looking at your financial health and planning for the months ahead will prove an invaluable exercise.

And although there are some critical costs or expenses that can’t be avoided, there are others that can easily be reduced and get you to start saving money, fast.

We wanted to share a guide that might help you save money and get your business into better financial health by cutting common costs or expenses without jeopardizing your business’ potential to grow. This isn’t about cutting corners – this is about making sure that every penny you spend is well spent. Here’s a practical guide to cutting costs and improving business in three As.

1. Audit

What are you spending, on what and why? Are there alternatives to any item of expenditure, are there items that you can eradicate by changing your internal processes?  On revenue, what are your attendance and cancellation rates, and how are your products and services performing?

Write down every process or cost associated with your business. Don’t restrict yourself to the obvious things. This is every expense, policy process. Think about cancellation policies, waitlist, communications, marketing, the operations of your business, the time you spend on different elements, your training and development. This is a deep dive into everything in your professional life.

Break down every detail of your business, no matter how small or no matter how long that expense has been in your business. Take nothing for granted and don’t pass off small costs. The accumulation of marginal gains goes straight to your bottom line.

2. Analyse

What are the little changes you can make to improve your profitability? These might all be small changes individually, but when you add them up, they can really make a difference.

The SCAMPER method will help you find the best and most innovative solution. SCAMPER is the acronym for (substitute, combine, adapt, modify, put, eliminate and reverse) and encourages you to improve existing processes.

Take your list of expenses and process and say for each of those and apply the SCAMPER options to each of them. Is there a substitute, can you adapt or modify it?

Is there something you use but you could use something less expensive? Do you use something which doesn’t actually pay for itself? Are you doing work that you could push back on your clients?

This table gives you an example of how to analyse the operations of your business:

3. Action

Now that you have worked out what savings you can make, is time to get stuck in with planning and work out how you will operationally manage your business so that your costs remain low, you reinvest where you need to, and simultaneously your efficiency runs high.

See this as a new opportunity to reinvent some of the things you do and bring added value to your customers. By connecting with your most loyal customers, they will be feeding you tons of great insight. Use this information to improve the way you communicate with your audience to truly connect with them and grow your community. Adding value will help you figure your niche and stay one step ahead of everyone else.

 

These are our top 5 tips for creating value for your customers:

  1. Make it easy for your customers to book and pay. Everyone dislikes a painful buying experience. Make this easy for them, and yourself and automate this. They will love getting notified and being able to have control over their class or appointment booking schedule.
  2. Leverage the power of customer testimonials. Make sure you reward your loyal few and fill their inboxes with discount codes and other incentives they can use to encourage them to invite friends and family.
  3. Make sure your customers hear from you, and often. Staying top of mind is an artform and you want to make sure your name pops to mind even at the dinner party. Give them access to free resources such as healthy tips guides, helpful facts and reminders, or an inspirational story.
  4. Create a VIP room. You can use Facebook to bring your most loyal customers together in a place where they can feel inspired and motivated, and hear the most up to date news from you. Add them to a priority list in your booking system too so that they get access to booking ahead of anyone else and can secure their spot!
  5. Do what you love. When you do the things you love you become more productive and motivated. Automating and delegating some of the boring admin tasks with software will enable you to do more of what you love and gain more time to engage more with your customers.

 

Once you have audited your expenses or costs and know the actions you need to take to make some savings, you’ll want to make sure your booking and customer management software is affordable and easy to use for you and your customers. That’s where Gymcatch can help you, get in contact with us today.

In-person fitness class

How to price your in-person fitness classes

By Fitness Business Management Archives & News, HIIT & Group

Pricing your in-person fitness classes is probably one of the most difficult decisions you have had to make for your business. Here, personal trainer, Anna Martin shares her top tips on setting your prices right.

Know your area and your target market
Every area has a price ceiling. This is going to differ depending on where you are and your local demographics. So it’s important to benchmark your price against other local fitness providers. The closer the service the better the comparison.

For example, while you can compare the price of small group training at a gym to the price of a dance fitness class, you have acknowledged that it’s a different experience and market and the client’s willingness to pay will differ. It’s important to understand what’s driving fitness consumers’ decisions to buy your services.

Most of us want to charge a fair price: provide a great service that offers the client value, but which also makes us feel valued, appreciated, and attributing a price to your own effort, skills and experience.

Within reason, price is not among the primary factors when clients are buying fitness. Don’t make the mistake of thinking that as long as you’re cheap, you’ll get full classes.

Value your skills, education and experience
If you’ve been teaching for a while, you have accumulated a set of skills. Those skills are a combination of the education earned as well as the experience you’ve gained from all the days in the trenches helping different bodies stay fit and well.

This should be considered when setting up your prices. Just because someone locally is charging less than you, don’t feel you need to price match. If you’re offering something better, charge more!

Likewise, if you are supplying quality equipment to do the class you should charge for that (and make sure your clients know they are getting the best kit). Similarly, if you are providing a service that is capacity-constrained, and therefore are restricted on numbers, that will probably also mean that you will need to increase the class price.

Don’t be embarrassed at increasing your pricing for your fitness classes. You’re not ripping-off customers: if you’re providing a quality product your client base will have no problem paying a proper price for it.

Keep a close eye on your overheads
Work out what you need to make from that class in order to make it worth you doing it (after all you have bills to pay too) and then calculate any per head or per hour cost that you may need to charge in order to make it profitable.

Include all your overheads too. Your travel, your admin time, your client support outside of the class, marketing, insurance, licenses etc.: it’s not just the hire of the venue and the time spent at the front of the class which your clients need to pay for.

One of the worst things you can do is to go in too low because you’re scared to ask for more. It breeds resentment and it’s also self-defeating. And that is the LAST emotion you want to have walking into a room full of people who are there waiting for you to bring the magic.

Your prices will go up, this is a fact of life. You can’t make yourself immune from inflation.

From experience, most price increases in group exercise happen when we need to, not because we would like to. It is unlikely that your price increase isn’t fair, one of the few drawbacks in this industry is that we tend to undersell ourselves when we should value ourselves more.

Increasing your prices is just a matter of good communication. Let them know face to face that it’s going to happen and then email them, giving them plenty of notice (as in weeks or even 1-2 months rather than days). But don’t make a big deal of it.

Make sure everyone knows in a thorough way, let them know when the prices will increase and to what, then move on. What you don’t want or need is spending months or weeks talking about your prices.

It’s a distraction and it’s boring and it’s not what your clients are paying for. You might lose the odd client. But it’s far better to lose the odd client at your new price than hang on to those clients charging an unsustainable amount.

Keep things simple
A common mistake that fitness instructors make is to create overly complicated pricing structures, often to try and be all things to all people. This is often self-defeating.

While lots of us are creatures of habit and show a bit of reluctance to change, you should not tie yourself to running your business in a way you don’t want to, just because you are worried about changing things up for certain clients.

Communicate clearly, explain why you need to change the way you run your business and your clients will understand and change. Spare yourself, bespoke pricing, making bookings for people, bank transfers etc. Advertise a fair, simple, and transparent price structure and ask clients to get onboard.

If you don’t give them a choice they will. If you are timid and do give them a choice, people will instinctively want to stick to what they know. That’s not because the way they do it is better, it’s just because it’s what they are used to and they don’t like change!

Lastly, now that you have worked out the right pricing for your fitness classes is time to think about your lead generation strategy and how to get more customers through the door.

For more information on Gymcatch and how it can help your yogapilatesdance or personal training business. Get in contact to book a demo or start a free month.