Many gyms are “racing to the bottom” with lower and lower prices that destroy their value.
This happens because of commoditization: When clients can’t differentiate between options, they choose the cheapest one, so many gym owners feel pressure to compete on price.
But this approach shrinks the profit margin until the gym is forced to go out of business.
In this episode of “Run a Profitable Gym,” host Mike Warkentin discusses how to battle commoditization with Chris Cooper, Two-Brain founder and CEO.
Chris shares how gym owners can use the Prescriptive Model with constant refinements to build more value for clients. He also supplies listeners with a strategy for finding out exactly what their clients value—and it’s usually not what you think.
You don’t have to compete on price if you aren’t trying to be the cheapest gym in town. Instead, “be a five-star steakhouse” and charge rates that reflect your value.
Links
The Prescriptive Model
Gym Owners United
Book a Call
0:30 - Racing to the bottom
3:13 - First-to-market challenges
10:10 - Value and the client’s perception
17:30 - Establish value and retain value
26:59 - Client focus
