How can you increase your business revenue stream?
As we move into the last quarter of the year, we can look back on 2020 and reflect. It’s been a year filled with previously unimaginable difficulties, and while many facilities have now reopened, we are all still adjusting to what’s eye-rollingly (but pretty accurately) being referred to as ‘the new normal.’
For you, that could mean new hygiene rules and social distancing measures in place. It could mean encouraging members to join your classes via video call, or it could have meant taking your classes outside over the summer months.
What has become increasingly clear is that the wounds left by lockdown and facility closures are taking longer than expected to heal. Frozen or canceled memberships have taken longer than expected to pick back up, and if you’re like most managers within the fitness space, you might be wondering how you can drive that revenue back up.
In this article, we’ll unpack just that. We’ll look at how to increase revenue growth and even help you understand which pricing strategy is best right now.
So, how do you generate revenue (and extra revenues) in times like those we’re currently faced with?
Increase the price per member
It might seem an unlikely time to start charging for extra services. Especially if your gym is operating at a lower capacity and unable to give your usual range of classes in the facility. But by increasing the value of your memberships, you can increase your price per member too.
This is one of the most effective ways to increase your revenue growth, by encouraging each of your existing members to contribute more.
How do you increase the value of memberships?
With a program like Stronger Together you can give your members a service worth charging for. Stronger Together is a digital subscription program that you can run alongside your regular memberships.
The program is a complete health, fitness and wellness program for your members and includes workout plans, fitness and wellness challenges, food and exercise tracking, exercises with a 3D personal trainer to ensure correct form AND wellness guidance including meditations and relaxing audio tracks.
A program like this is easy to use at home alongside your in-facility training and guarantees you a safety net if lockdown restrictions are reinstated and your facility is forced to close. You can upsell this as a PRO feature and charge your members for use of the services.
They’ll be happy to when they learn that they can access heaps of ready-to-go content and also bespoke content from their favorite gym, club or studio (that’s you) as well!
Invest in digital options
You don’t need us to tell you that taking businesses online has saved many companies throughout the course of this pandemic. There’s more and more uncertainty about what the future holds for the fitness industry, which is why it’s ever-more crucial that you ensure your business can keep operating online if it needs to.
In the fitness industry, a huge switch to a more hybrid way of working out is taking place. By operating your business in-person, but also alongside an all-in-one digital app that offers home workouts and a total solution for online health and wellness, you’ll have a business model that is flexible enough to withstand the future.
No matter what situation transpires with the coronavirus pandemic or other unforeseen reasons for closure, you will be able to service your members. Caps on capacity and regulations on safety don’t have to be show-stoppers when it comes to running your fitness business.
Improve your pricing strategy
Finally, making sure that you know exactly how to improve your pricing strategy will give you simple ways to generate growth in revenue for your business.
If you’re not already upselling – now is the time. Capitalize on the switch to digital and ensure that your website or app is complete with a webshop where members can make purchases that will enhance their experience with you.
You could upsell bespoke training sessions live-streamed via your personalized app (like the one made possible by Virtugym) or you could add value to your memberships and sell them as PRO memberships.
Memberships and the industry as a whole is a state of flux right now, that’s why it’s the perfect time to address your pricing strategy and negotiate what works for you and your business as we work towards the new normal.
Ultimately, if you want to drive growth and an increase in revenue for your business – a hybrid digital model will be the transformation you need.
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