Personal Training Pricing

How to get your old clients back

How to get your old clients back

Published by on June 7, 2010 | Leave a response

After over 19 years in the fitness industry personally I’ve had somewhere around 3000 one-on-one personal training clients. Sadly you will learn as I have that for most of your clients, even the ones that are really successful with the best of intentions, they will one day need you again. Now if you’ve provided a great experience they may remember you again, that is if a savy marketer doesn’t get to them first.

Your current and previous clients are what are known in sales as your “lowest hanging fruit.” Whether it’s now or in the past you have earned their trust and hopefully have a much stronger rapport than you would a complete stranger. Because of that rapport they are twice as likely to repeat buy from you than a brand new customer will be.

If you want a sure fire high conversion method of filling your training schedule today, call your old clients. However you need to have a solid high value offer to go with your call.

This is just one of many strategies my elite coaching clients use. Could a mentor help your business?

This is just one of many strategies my elite coaching clients use. Could a mentor help your business?

Here’s what we did that netted us a 75-85% conversion bringing our old clients back.

Our three year anniversary at One-to-1 Fitness was May 27; we used the idea of this celebratory day to encourage our old clients to come see us again. Rather than the normal celebratory drivel that costs you lot’s of money and gets you nothing we decided to instead invest in great people. I had my sales manager go through our old client files and pick out a whole pile of people he remembered, the ones he had the strongest rapport with. After looking at their previous goals we called them to “check up” on how they were doing maintaining their goals. Since most people slowly slip back we offered a solution, we gave them 2 weeks of training on us in our spiffy new small group training program. What’s important is we showed we genuinely cared because we contacted them and took the time to see what was important to them, we offered them something of high value, and created the appeal of a different experience than they previously had with us.

All of these people only previously knew us for our great one-on-one services. Now they had a select and limited opportunity to be part of a program that was a pile of fun in a small group setting and totally obligation free, they couldn’t lose; why not come and see some familiar faces? Of course we hyped all the new renos and such to, that never hurts. The best part is if you just provide the same killer service all the time, this program sells itself!

Bonus: The Insurance Policy

As always marketing is really about customer value, how you can provide over the top value and still find a way to make a little profit. For our conversion of this program we just sweetened the deal, gave everyone a nice short term price break (call it a signing bonus) and we used all the value adds from our partner businesses. (Each client received something like $500 in free bonuses, so much so it becomes a no brainer.)

Provide value, everyone wins! In summary remember these components:

  1. Always genuinely care, call and see how people are doing.
  2. Offer them something high value and have a reason for you offer, ours was our anniversary.
  3. Make the offer limited and provide scarcity, in our case we only had so many spots to fill and they were starting on a certain date. Push people to take immediate action.
  4. Don’t blow it by trying to convert too soon, provide real value.
  5. Have a high value conversion offer, make it a no brainer.
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How to get everything you want as a personal trainer

Published by on June 4, 2010 | 1 Response

I’d like to share a couple little tidbits of success from this week if you don’t mind. If you were at the Business Ignition Workshop you heard all about how to use a free weight loss program to rapidly launch your fitness business. Well this week two of my coaching clients nailed it big time. One of them explained how they recruited 40 new people for their results bootcamp and the other had over 65 training inquiries within 48 hours leaving their job to pursue their fitness business full time.

Given this is a free weight loss program you may not be impressed you might think it is easy to recruit people if you are willing to train them for free, and in a sense you would be right. Now on the other side of this equation I have had some people from the workshop contact me with questions as to why their programs weren’t working, in every single case they had try to cut corners somehow whether it was shortening the program, eliminating components of the offer or some other element, you can’t cut corners, but do you understand why?

Times are tough; people are tighter with their money than ever. The only way you are going to get them to give you their precious dollars is to make them feel like they would be silly not to and to make them feel as though they owe it to you, it’s this second point that my coaching clients really understand.

You see most personal trainers are starving, broke and barely hanging on so every new client is a must sell situation. Clients pick up on this, they can detect desperation like a dog can smell fear, it’s a sure fire way to go broke in no time.

Now the smart trainer understands the Law of Reciprocity. You must always go with a giving hand and be willing to give in a way none of your competitors are. When it comes to a free weight loss program pull out all the stops, always give them all your best stuff and never worry about anything in return. If you execute this fully then it’s a simple conversion process. How much does it cost will become how do I make sure I get a spot? Seriously the higher the quality of service you give people in an extended trial program you will never have to worry about selling them anything, they will sell themselves.  Zig Zigler says, “Help enough people get what they want and you will get what you want.”

In an extended trial you earn massive amounts of trust because people get to see the value and experience it for themselves before they ever commit to anything, if they find value in what you do why wouldn’t they stay? Just think of this approach as an aggressive deferred payment plan.

Now the second aspect of getting everything you want as a personal trainer is a little different. Let me ask you, have you asked your clients to write out their goals for you? Probably, but now let me ask you, why have you not written out your own goals? Very few people actually write down their goals. As a trainer if you have not written your own goals for this year, month and week then I can guarantee you are not holding your clients accountable fully to theirs. This accountability is one of your primary roles as a trainer, trust me it’s not to count reps. A funny thing happens when you write down your goals, believe it or not they will come true whether you think you are actively pursuing them or not you simply will. Trust me.

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Your Personal ‘Stick Rate’ and 5 Critical Elements You NEED to Track

Published by on February 15, 2010 | 1 Response

First and most importantly, happy Family Day everyone!

sticky2If you’ve never heard the term ‘Stick Rate’ it’s one that you should become familiar with, even if you are a brand new trainer. Stick Rate is something I learned a great deal about from internet information marketers. Most of the most profitable info marketers sell products, or have their affiliates sell their products, but these products then lead to subscription based services that generate recurring revenue. (I would advise you to read that last sentence over and over until you have burned that idea in your mind so strong that you will never forget it. It’s critically important for us all to continue to work toward having multiple income streams of recurring revenue. Anyways, that is not the focus of this article.)

Over time the info marketers learn how long the typical customer maintains their subscription to their services, this average subscription length becomes their personal ‘Stick Rate’. As a personal trainer for many years, long before I even knew what ‘Stick Rate’ was all about I noted my average client stayed with me for 9 months. I knew this was an important somehow but because I didn’t know about the idea of ‘Stick Rate’ planning I had no idea how important it was for my business, or how to use it to grow my business. Now since the opening of One-to-1 Fitness our Stick Rate has increased drastically, the question is why? Simply answered, we now understood how to use Stick Rate to tweak our services (environment and customer experience) to keep our customers longer.

This is very important for the new and experienced trainer. In one of my last columns we discussed differentiation. I believe to be continually successful in this industry and generate the business that will give you the lifestyle you desire; your service as a whole, from day one and ongoing, must maintain strong differentiation from your competitors. A bench mark for this is your Stick Rate.

By now you might be getting the idea of what Stick Rate is all about. Even if you don’t by following the instructions below and tracking these 5 critical elements of your business you will soon, not only understand your personal stick rate but, have a comprehensive platform for planning and evaluating many aspects of your business. Keep the following as a simple spreadsheet each month.

Day

 # of leads # of new clients Total sales # of cancelled clients Total program duration

1

  3  1  $3000  1  5 months

2

  8  6  $16000  2  3, 14

etc

          

 A few important details can be determined from tracking these five elements in your business right from day one.

# of leads – This will help you determine how effective your lead attraction and marketing elements are. Over time you will even be able to identify what your cost per lead is with any given marketing promotion.

# of new clients – This will help you understand and track what percentage of leads become clients (close ratio) and allow for planning of presentations, marketing and services to improve conversion.

Total sales – This will allow you to determine you average sale, the average sales associated with a batch of leads, and of course total sales for budgeting and future goals.

# of cancelled clients – This is very important as over time it will help you plan with razor focus how many leads you need to generate each month to replace clients and grow to achieve or maintain your sales targets.

Total program duration – Track this for your cancelled clients, this will identify your personal stick rate. If you know how long your typical client stays with you it gives you a measurable method of implementing changes to improve or maintain your service. At some point your stick rate will stay pretty constant, at this point you can now fine tune your service to optimize costs generate the best service for your customer while providing the most margin for you.

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Starting a Personal Training Business

Starting a Personal Training Business

Published by on February 8, 2010 | 1 Response

Special Guest post by: Andrea Thatcher

andreaThe personal training industry is booming!  The demand for Personal Trainers is exceeding the number of available trainers!! I am a very busy girl teaching and certifying new trainers here in Calgary to keep up with the demand. With that in mind, many new trainers are eager to get started right away, and would rather work on their own vs. work for a gym. There is no right or wrong choice here. One must decide what works best for them when embarking in this amazing profession.

For those of you who do decide to start your own business and want to work from home, there is more to consider than you may be aware.  Incorporation, Registration, Licence, Permit, Insurance, Banking, Accounting, Legalities, Waivers, Policies/procedures, Services and Fees, Marketing and Promotion, Tracking, Website, Administration…the list is endless.  With so much to consider, you may think, “I’ll just do it part time, and train a few clients out of my basement”.  BEWARE….

Firstly, the City of Calgary requires a permit to run a business from your home. This will require you to register your business name and register your business (as a Sole Proprietorship or Incorporation) before you apply for the Permit with the city.

Secondly, if your business is identified as requiring a business licence, you should take steps to ensure the licence is in place before operating your business.  If you are found operating your business before the licence is issued, you could be subject to charges.

Liability Insurance also needs to be considered when running a home based business of any kind.  This insurance can only be obtained once you have completed your certification.  I suggest you have this in place before you begin training to avoid hassles, complications or worse…lawsuits without insurance!

Now that you’ve got your home based gym, you’re certified, insured and permitted by the city…What’s next??

Before clients will feel confident and safe training with you it’s imperative that you establish you policies and procedures. This not only keeps you safe, but your clients also.

For example,

Do you bill a client who missed a regularly scheduled appointment?  What if a client’s payment does not clear?  What forms do you have in place to not only collect information from your client, but to show a clear outline of your policies and procedures? Will a waiver really protect you if you are negligent and do you need a lawyer to draft it?

Marketing, Promoting, Building clientele….The list really does go on for days.

This is merely the tip of the iceberg of various questions you need to answer before you decide to begin training on your own.  I have always said that just because one is an amazing Personal Trainer, does not mean they are an amazing business person, and this IS a business. (A super duper fun one that is more rewarding than you can imagine!) 

Personal Training and Business are two entirely different professions. But with the right education and coaching you can excel in BOTH.

In a city of 1Million people and more personal trainers joining the ranks every day, it’s critical that you set yourself apart. If you’re starting out and want to become one of Calgary’s elite Personal Trainers it’s critical that you either hire a someone to help with the business start-up or you can simply attend the “Build Your Business” workshop and learn how to not just manage your business, but how to make it the SUCCESS YOU DREAM of!!

City of Calgary Permit Registration Link (click here).

Sports Insurance Link http://www.sportsfitnesscanada.com for more information on insurance

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Developing Your Pricing Structure as a Personal Trainer in Alberta

Developing Your Pricing Structure as a Personal Trainer in Alberta

Published by on January 11, 2010 | Leave a response

When starting out as a new personal trainer in Alberta, how much to charge is a common question. At least through central Alberta the average for personal training is around $1/minute. Many new solo trainers are charging somewhat less and many established trainers and studios like ours are charging significantly more. So the question now is what’s right for you?

price_is_rightTruth is how much you CAN charge is determined more by how you present it to the client. There are many factors of an initial appointment far before pricing that will determine whether they become your client or not but since this question was asked directly by email I wanted to try to answer it right away. Over the coming weeks you can expect numerous posts that will breakdown the aspects of meeting a new potential client and increasing your closing ratio. (The number that progress into your services versus those that don’t.)

When it comes to pricing there are two primary important factors.

1)      Can you build enough value? – Whether you are charging $20/hr or $100/hr the deciding factor will be can you create enough perceived value for your potential client? The higher your rate the more value you will need to provide, here are some examples of ways that I have used to create value for my training rates when I was a solo personal trainer:

  1. Explain the testing protocols and process that are involved in developing their program, and that it is in fact a process. Show them the steps and assign a value to this process but then include it in their programming as a no-charge benefit to create value.
  2. Provide more paper. At one time I had written and photographed all the primary foundation exercises. Even though my clients would never read or use these descriptions it was given to them as an additional value to reassure them that if they ever need to exercise on their own they could. It also created a solid tangible product that they were buying as opposed to an intangible service.
  3. Provide additional unique service or service variations. For instance it may be standard practice for all trainers to measure blood pressure, girth measures and a 12 min run/walk or 3 min step test. However you can bundle this and give it a unique name that set’s you apart such as: Dynamic Client Health Assessment. This bundled service also now has a value attached but when included in your programming creates extra value.

All of these additional services take up your valuable time so it is important to charge for them. From a business building standpoint, remember this is a service industry and what will set you apart from your competitors is not price but rather service and results.

2)      What structure you present. – Now many of you are no different than I was when I was a solo trainer. I performed only 1 hour training sessions and I sold them in small packs of 1, 5 or 10. Now I would never sell training like this again (which I will discuss in greater detail in a future post). It is more effective, especially for your businesses health and growth, to sell your service on reoccurring monthly billing but for this post let’s keep it simple and discuss an end or situation.

If you sell sessions I would recommend you build packages that include an assessment period that creates value and bundles your testing sessions together in a discounted format. This creates a large amount of value for the client to base their initial decision off of. After the assessment period I would suggest you bundle your sessions into packages of multiple of 4 to create a typical monthly cycle. (ie. 4, 8, 12, 16) Now for the tips:

i)        When you present these to your client I would only present the 8, 12 and maybe 16 packages as the 12 is what you will probably sell the most of.

ii)       Don’t show the monthly total but rather the cost per session, lower numbers are always better.

iii)     Use nice numbers such as $x5, $x7, or $x9/session.

iv)     Make your rate breaks at least +/- $5/session.

If you want to charge more and be price competitive in your market or simply offer a service that stands out to be unique to your competitors my final suggestion is to change the length of your sessions. Don’t offer a standard 60 minute sessions, offer a 50 min or a 45 min, explain you offer the same results in less time. Cost wise when you divide your hourly rate into the new session length you can now match your competitor or even appear cheaper while maintaining a greater margin for your time.

As for where to start if you are a personal trainer in Alberta I would never suggest you start below $50/session. And a good rule of thumb is that as you grow about 5-8% of your clients should complain about your prices, otherwise you are not charging as much as you could. As my coach used to always tell me go increase your rates by $8/session right now.

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