The PushPress Podcast #11 Why Grandfathered Rates Are Hurting Your Gym | How to Fix Outdated Pricing Models
Mar 5, 2025
Locked into those 'lifetime' rates from when you first opened your gym? Discover how these grandfathered rates might be undervaluing your services and making your business less profitable. Learn why built-in annual price increases can drive improvements and provide a financial safety net. The hosts delve into the tension between low-rate long-timers and new higher-paying members, highlighting the importance of community dynamics. Plus, hear about the need for sustainable pricing models in the face of rising inflation. Time to rethink your pricing strategy!
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Grandfathering Removes Growth Optionality
- Grandfathering locks your gym into old value and removes optionality for future improvements.
- Dan argues pricing should reflect growth, services, and better coaching over time.
Early 'For Life' Pitch Sank Margins
- Dan sold the first 100 memberships at $79 for life to hit a $7,900 break-even target before opening.
- Five years later that $79 rate left the gym with razor-thin margins and unsustainable costs.
Build Annual Price Increases In
- Bake a 3%–5% annual price increase into your product to create pressure to improve services.
- Regular raises force you to invest in better equipment, coaching, or amenities each year.