Are you discounting services?
You are doing yourself and your business a disservice. Here’s why discounting services is a bad idea for personal trainers…
Discounting services is common – but where’s the commonsense in it?
Discounting services is a common theme that stands out with people who are don’t have business qualifications but are trying to run a business.
Let’s have a look at discounting…
Research provides some interesting statistics with regards to discounts. Some of these statistics are bound to shock you!
Just a 1% discount in your normal fee means an 8% discount in your profits. If you want to increase your profits, stop discounting your services. This means that as a personal trainer you can increase your profits by $200-500 per week by being more strategic. You don’t have to work harder; you need to work smarter.
In any service industry, your time is exchanged for income. This applies whether you are a solo personal trainer or have other trainers working for you.
Offering a discount is great for potential clients, but not great for your business. Remember that discounting services for clients is the equivalent to giving yourself a pay cut. You go into business to make more money and have a better lifestyle. Offering discounts can mean that you are earning less but working harder.
There is no business logic in offering a discount for your personal training services.
If a client can see the value of your services, they will more than likely be prepared to pay full price for your time. The big message is that you mustn’t assume that prospective clients expect or need a discount. They should be able to see the worth of your sessions, that the results are a fair exchange for your fees. Even if a prospective client does ask for a discount, you have every right to say no. Discounting your sessions simply cheapens your services. If you don’t value your services, then your clients won’t either.
The answer to increasing your profits lies in sales and marketing.
Focus on the value and quality of your services. Strive to be the best in your area.
HOWEVER, there is a way to use discounting to encourage people to make a buying decision immediately. And it will protect your income! Read our next post to find out more!