Your business’s introductory offer has a big impact how you improve gym revenue. We’ve found that it’s one of the biggest factors in whether your business is successful or struggling.
Many gym owners start by just doing what their competitors are doing. To be honest, you might be unsure what a good offer is all together. But don’t worry, that’s why we’ve collected the data, run the numbers and figured out the best introductory offer for your new members.
We’ve looked at the trends from all the fitness businesses we’ve worked with over a period of 7 years, and this is what we found.
The ‘Free Class’ and the ‘Introductory Week Offer’ are killing your conversion rates and stagnating your ability to improve gym revenue.
In fact, we’ve seen practically every promotional introductory offer possible, from “Free Class” to “Free Week” and even “$20 Week” or “30 Days for $30”. The data is in. New member conversion rates from a discounted month are much higher than those from ”free” introductory offers. The discounted month like a 30 Day Introductory Offer is the ideal promotional introductory offer because it has a perfect balance of price and length of time.
A 30 Day Intro offer:
- Gives the new member enough time to attend various classes, and experience different instructor styles, allowing them to see if they really like the vibe.
- Allows enough time for the new member to develop a healthy habit in their daily routine.
- Provides enough time for the new member to become a part of the community.
- Gives your new prospect a scan card, system login, or ID to make them feel like a member from the beginning.
- Adds revenue to your studio. Instead of giving away free trials, your studio or gym will be generating revenue right away. This resulted in $36,000-$72,000 in additional annual revenues at locations we’ve consulted with.
Are you concerned about new members being deterred by having to pay to try your fitness concept? We compared the numbers. Fitness Businesses who switched to the 30 Day Introductory offer sold nearly as many paid 30 Day Introductory offers as when the introductory offer was being given away for free. That’s how you improve gym revenue!
We recommend you don’t sweat those few members who don’t buy the 30 Day Introductory offer and monetize your introductory offer as soon as possible. Those members who don’t buy are never going to be paying members no matter what you do. Trust us, your team’s efforts are better focused on customers who understand the value of what you offer. So how should you price your discounted introductory offer? A rough rule of thumb for pricing is 1/3 of your monthly membership price, or about 1.5-2x your full priced drop in rate.