Operations

How to execute a price rate increase - Email templates included

Gym owners, it's time to raise your prices. Here's how to do it smoothly, and without losing customers.

March 20, 2018
TLDR;

Last week we posted best practices to determine if a price increase is the right move for your fitness business. If you've done your homework and decided to move forward then hopefully you've followed the steps we outlined:

  • established your new rate
  • when the rate increase will go into effect
  • dhow the rate increase will affect your bottom line

Once these have been completed it's time to write up your communication plan.

Below are 2 email templates you can use and edit if you're having writer's block, or if writing just isn't your thing. Each template serves a different type of rate increase and there is an explanation of why the statements in each were included.

When communicating your increase it's important to put yourself in the shoes of the consumer, and think through how you would act if you received this message. At CrossFit 913, we used our spreadsheet of members and divided the contact list amongst our leadership team according to personal relationship levels. Each of us emailed our list of members one at a time with a personalized version of the same email. We included our direct phone numbers to handle any questions the members had.

Email 1 - Increasing rates on those with grandfathered rates.

Subject: Rate increase

"2017 was an amazing year for {name of gym}. We had some amazing new members join, Coach Nick, and Coach Ben came on board full time, we expanded by taking down walls, made facility upgrades, added equipment to support our growing community, celebrated some beloved members moving on to chase big opportunities, were nominated for best fitness facility in Johnson County, started some game changing partnerships, and much more. Highlight the best of the past year as a reminder of why people choose your business

2018 is going to be our best year yet. We have some very ambitious plans for the next 12 months. One big goal for 2018 is to get closer to providing health benefits for our coaches so they can get the same piece of mind we all deserve with our health. We also are going to start funding our coach’s certifications to support their thirst for knowledge and improve the quality of coaching you receive. Adding new equipment is always in the plan, along with facility upgrades. If we renew the lease at our current location we plan to upgrade bathrooms and showers (yes plural). Two factors in deciding to stay at our current location or relocate is rent, and space availability

  • (Provide a glimpse into the future and the investments that will be made with the price increase BEFORE you state the increase is coming.)

If you feel there is a major disconnect between what members perceive your overhead is and what it really is then you can add a statement but do so carefully and don't come across as complaining.

Last year all new members started paying ${current rate} a month for their membership. In our 5 years of existence we have never done a rate increase on the members that have been with us for the longest time in an effort to reward your loyalty. 

  • (Explain that everyone else is already paying the new rate and have been for a while. Helps show that your services can command that value)

Starting {April 1} your rate will be increased to ${new rate} per month from ${old rate}

  • (Provide a one sentence statement as to what their rate will be and what it was)

I hope you’ll continue to trust us with your fitness journey and please let me know if you have any questions.

  • (Thank them for their business and for trusting you. There are countless fitness options and consumers want to go where they are appreciated.)

Email 2 - Increasing rates on everyone but grandfathering current members in for a ‘x’ number of months.

Subject: Rate increase

"So that we may continue to provide a high quality of service to all of our members; knowledgeable coaches, new equipment, and a clean facility we will be increasing our rates from {$old rate} to {$new rate} per month.

  • (One clear and concise statement of WHAT the increase is and WHY)

Because you have entrusted us with your health and fitness goals for the last {insert length of membership} years we will be grandfathering you in to the current rate until {insert date}.

  • (One statement thanking for their trust and loyalty. There are a lot of choices for fitness providers and they have put their faith in you.)

If you have any questions or concerns please contact me personally at {owner phone and email}"

  • (Provide a personal connection for any concerns.)


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