How do you set your prices?
Are you charging too much or too little?
Could you be earning MORE for the same amount of time and work you are doing now?
The answer is: YES.
A BIG percentage of Independent Personal Trainers decide what their rates should be based on the worst possible information: They research the local area, see what their competitors are charging and then they charge what everybody else is charging (or lower!).
That’s crazy. And in this article I’m going to breakdown why, and explain how to charge more; while building the case for you to raise your rates immediately. But first, let’s review why so many Personal Trainers don't charge enough...
The answer is they’re scared.
They’re scared of rejection. They’re scared of someone saying "NO."
They have limiting belief systems around money.
And they struggle with belief in themselves.
Overcoming these fears all comes down to self-confidence.
You MUST believe in yourself. And keep working at it until you do!
Limiting Beliefs Holding You Back
Here are “limiting beliefs” that you MUST let go of if you want to grow your income:
“I want to help everyone, even if they can’t afford it.”
“I’m not good enough. I need to do _______ to be better first.”“I need to get more experience and earn my ‘wings’ to charge higher fees.”
Let’s go through these arguments and examine why they’re holding you back:
Limiting belief #1: “I want to help everyone, even if they can’t afford it.”
When you charge fees that are too low, you attract the worst type of clientele. They turn up late, cancel without notification, skip payments, don’t give you referrals, shy away from testimonials, often don't follow the nutritional guidance, and don't get results.
This is because they don't value you or your service. They don’t have enough skin in the game, and they are treating you like a commodity service.
But when you have higher fees you attract a better type of clientele that are a pleasure to train, turn up on time, pay on time, give referrals, happily give testimonials, and get RESULTS!
Limiting belief #2: “I’m not good enough. I need to do _______ to be better first”
I’m sure you’ve invested thousands in your education already. In fact, you’ve probably been doing this for years. So… you are in fact “smarter” now than when you started.
But, when was the last time you raised your training fees to be in alignment with the additional knowledge and experience you bring to the table over those that haven’t made that investment in themselves?
We speak to far too many well-educated Personal Trainers from around the world who have spent thousands on education (often tens of thousands!) but haven’t raised their training fees in 2, 5, 10 years plus.
Maybe that’s you?
Anyway, the results of not charging enough or charging the same as your competitors means that over time things get difficult financially.
You need profit.
You need profit to make continued investments in your professional growth AND your personal growth.
What type of investments am I referring to?
- Investments in your continued professional and business education
- Investments in equipment to better serve your clients
- Investments in your marketing to attract more people you can help
- Investments in opening your own facility
- Investments in additional staff to support your business and serve more people
- Investments in your personal goals like purchasing a home, car, etc.
When you’re charging minimum for your service, there is less profit, and as a result… less investments you’re able to make.
Lack of investments over time… means you don't grow.
Pricing Strategy and Communicating Value
Alright, so I’ve got you on board with an “investor mindset” in terms of your growth. We’re in agreement you need to charge more.
But how do you do it?
Well, the process starts with reviewing your goals and pricing strategy, then transitions into learning how to better sell/communicate your value to prospective clients.
Let’s start with goals. Let’s imagine (and make this easy) that you want to earn $10,000 per month. So let’s break this down and see how many clients you need to hit this target.
You have a few options...
You could get 100 clients paying you $100 (which equals $10,000) or you could get 10 clients paying you $1,000 (which again equals $10,000), or you could get 20 clients paying you $500 (which, you guessed it, also equals $10,000).
Now, it’s been proven around the world by NPE trainers that it’s easier to get fewer clients paying you MORE money, than to get more clients paying you LESS money.
Not everyone is looking for the cheapest Personal Trainer. There are plenty of them around already and if you’re looking to make a greater impact in the fitness industry you MUST be charging a higher fee. (So you can pay yourself a decent wage, invest in further education and marketing.)
We have NPE trainers that are charging a minimum of $80, ranging up to $250+ for a one hour, one-to-one Personal Training session.
But the most profitable model and system you should be incorporating into your business is semi-private training. Which is one coach to two, three, four clients. The clients either all follow the same program, or they have individual programs each. Trainers who have this model in their business can bring in anything form $200 - $500 an hour.
Packaging Your Services For Success
After you’ve got pricing right, next up is packaging.
Packaging I like to think of as the plate of food we put on the table in front of our customers at a restaurant.
That meal better:
- look amazing
- get them excited
- serve the goal of both solving their problems and achieving their goals
Without that, you haven’t done your job.
Could you imagine sitting down at a restaurant and the waiter brings out raw ingredients, puts them on the table, and says, “ok dinner is served!”
You’d be like, “WHAT!? I didn’t come here for that! I could’ve just walked around the aisles of the grocery store myself for THAT!"
When you go out to a restaurant for dinner you want to be served a great meal that satisfies your hunger, and gives you a great experience in dining out for the evening.
So many miss this mark in presenting their services for sale (and consumption) in an easy and enticing manner to their prospective buyer.
They talk about “sessions” or “lengths of time of workouts” and all those kinds of things.
Nobody REALLY wants anything of the sort.
They want RESULTS!
They want SOLUTIONS!
So you better start presenting your services in a way that your prospect clearly understands it to meet both their needs AND desires.
Here is the “control” that I first introduced back in April 2010 (that has yet to be beat!). It’s been tested and proven through literally MILLIONS of transactions around the world.
Follow it for success. Here is what it looks like:
This approach works for four important reasons:
- Program Names: You can use whatever names you want, but the top programs should frame the desires or characteristics of your target market. No one wants to be “Kinda Serious.”
- Commitment: This is a big (and important) word that has been tested a LOT. And it appropriately frames what we’re really asking our clients to do; which is to COMMIT to the length of time required for them to invest in solving their problem or achieving their goal.
- Frequency of workouts: This is based on your recommendations for your client, and can include things like their budget or travel schedule that may impact your recommendation. I should also note this is the frequency options recommended for presenting PRIVATE or SEMI-PRIVATE training services. In group training sales, we recommend you adjust this to either have just: A) 2x or 4x week options, B) 2x or unlimited, or C) 3x, 4x, and 5x week options.
- Monthly investment: This is the best way to present price because it: A) eliminates sticker shock, and B) is how our brains are trained to make quick assessments on whether we can afford something and make a quick buying decision or not. Everyone kind of inherently knows how much they make a month, what they spend, and what’s left over in disposable income to invest in other things. It’s also how our brains are trained to think of price and how we have been trained to purchase the majority of goods and services in the world today - like our house or mortgage payment, our car payment, mobile phone bill, utilities, etc.
What Do People REALLY Pay For?
Alright, we’ve covered the mechanics of pricing and packaging, but it’s important for you to fully understand what your clients are really buying.
They’re not paying for you or your time.
They’re not paying for your equipment.
They’re not paying for your brand.
Or your qualification, or location, or any of that stuff.
They are paying for VALUE!
VALUE is defined by the Client Experience, Relationship, and Results you deliver.
When you are delivering MORE value than people expect for the money you are asking them to invest in working with you, well, you then have a great VALUE PROPOSITION.
And THAT is everything in sales.
When you do this… you will leave any competitor out there in the dust because you are consistently serving people and delivering so much value that they LOVE doing business with you and couldn’t possibly imagine going anywhere else!
Get Clear on Your WHY
If you thought this would be an article on how you could simply make more money quickly and easily you were wrong. In fact, there is nothing easy about it!
Making changes in your pricing, learning how to better package your service offerings, and raising the rates with your current clients will force you to examine, reflect on, and work through some tough stuff.
WHY on Earth would you want to go through all that work?
Well ,if you’re an entrepreneur, then you’re crazy enough to LOVE challenges. You LOVE personal growth… even when it requires you to go through some (at times intense) pain and suffering. And you LOVE the amazing FREEDOM and opportunities it creates in both your life and the lives of others who end up working for you, being your client, or a member of your extended community.
ALL of those things are had only by a few. But it’s those few that truly lead and change the world around them.
And that’s what it’s all about!
Most fitness professionals are undercharging for their services, and they are unable to make the investments required in their continued personal and professional goals as a result.
You can fix that by following these steps to success:
- Become aware and let go of limiting beliefs you’re holding around money or the value you to deliver to clients. These limiting beliefs will hold you prisoner until you let them go.
- Decide how much you want to earn per month, review your pricing strategy, and determine how many clients you’ll need to hit your goals.
- Raise your rates. Don’t be afraid to charge what you’re worth, and be the most expensive in your city. Not everyone wants the cheapest.
- For coaching average adults with typical fitness/fat loss protocols, consider introducing semi-private training into your service offerings. It’s consistently the most profitable model around to serve clients and your business in a win-win relationship.
- Don’t spend your new profits like a drunken sailor. Commit to consistent investments that move you forward with your personal and professional goals.
Keep an eye out for Parts 2 & 3 of this article series when I will dive into the top two (2) fitness sales objections, how to overcome them before you ever sit down and speak with anyone, AND when you do sit down face-to-face… 7.5 step sales process to communicating value and inspiring your prospective client to make a commitment to their health and fitness goals through the programs you offer.