Here we go again.  It’s that time of year when fitness pros begin their membership drives.

And what’s the easiest “no-brainer” way to attract new members…?  Auggghhhh…!

DON’T DISCOUNT!

Listen, this is  some of the best marketing advice I ever received and once again, I’m passing it on to you.

It comes from an “old school ” retailer named Ray Scherring.  But it’s good advice that is even more relevant in today’s economy.  Here’s the golden nugget he shared with me:

“Discounting is for lazy people who can’t think of a better way. It’s a sign that the owner is creatively bankrupt!“

Just think about this.  How many fitness professionals, club owners, studio owners, trainers, etc are all about to discount their services and memberships as a marketing strategy!  Thousands…!

Here’s Why Discounting is
so Bad for Your Business.

The moment you discount your product or service …. you have immediately committed to a de-valuation. And, what’s worse, you’ll not regain it because in the consumer’s mind, this discount price is the new value from now on.

I see it all the time in fitness facilities. Every time I walk into a 24 Hour Fitness, I see supplements, clothing, everything on sale.. 50% off! What’s that mean? Have the supplements gone stale? Was the apparel never really worth the 100% price? Or how about their memberships? But 24 Hour Fitness is a commodity broker. Everything is based on volume. Just like Walmart. Just like EBay.

“You can still promote without
devaluing your products or services.”

 

Here’s a simple one:

• Let’s say you’re thinking of offering a 20% discount off your $100 dollar session package. That’s $20 right? Instead of devaluing your session, why not take that same $20 dollars and put it toward a branded polo shirt (or something else that costs you $20 but may have a higher perceived value).

• So now the value proposition is: Buy a $100 dollar session package and get a monogrammed polo shirt free. You’ve maintained valuation of your services, yet, provided a value-added element.

Ray also said, “You can always devalue a product from someone else, but never, ever devalue your own.”

At his men’s clothing store in NYC he worked trade-outs with all kinds of other merchants. He constantly devalued their products while maintaining full price on his own.

For example, he ran a promotion where every customer who bought an Armani Suit for full price $1,100 (plus tailoring) was given a complimentary dinner for two at a posh NYC restaurant (which of course he traded out for next to nothing). The perfect place to wear the suit! Ray worked deals from vacations and dinners to ball game tickets and even live monkeys (don’t ask!).

Here’s the point. Think. What types of promotions can you develop to protect your price points?

“Remember, as a best-of-breed fitness
professional you must maintain your
value proposition… at all times.”

As Ray would say, “Be promotionally savvy, not creatively bankrupt!”

I very much appreciate your comments….