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Session #020 - How to Increase Your Prices Without Losing Half Your Clients



Show notes:

So one great thing about personal training, especially as a freelancer is that if you need a pay raise, you can go out and get a new client or you can even increase your prices.


Well, it isn’t quite as simple as that, but it is easy to do when you have the right reasons.


So to get started with thinking about increasing your prices, you’ll need to think a little about how you will justify the price increase to your current clients.


New clients won't know any difference, so you need to focus on your current clients because it is a lot easier to retain them than it is to find new clients.


A few good reasons for increasing your price might be firstly, that you haven’t done it in a long time.


The price of everything goes up year on year and if you are still earning the same amount while everything else is getting more expensive then you are going to feel that pinch in the pocket soon enough.


Another good reason is when you have been on a course or workshop which has in some way helped you to develop into a better coach.


Not only have you gained new skills, knowledge and experience which will help you provide a better service, but you have invested in yourself and your career. Both of these things really are worth something extra to your clients.


So it fully justifies an increase in your rates.


You do, however, need to make sure that you start to take action with the new things you have learned on that course. A client that starts to pay more will want to see some kind of change. And If you just keep doing the same things as before with no noticeable change in your system, training or approach, then they will wonder what they are paying the extra for.


One more really good reason for increasing your prices is that you are fully busy! Your calendar is totally full and you can’t take on any more clients. So this is basic supply and demand, but it is also a great way to grow your business since adding more clients isn’t an option anymore.


Now, when you decide that you are going to increase your prices there are a couple of things you’ll need to consider.


First off, you will need to accept that very real probability that some clients will stop training with you.


If that is the case and a couple do drop off, then I suggest you work with them and recommend a trainer that they are willing to pay for so they can keep up with their training.


This is great service on your part. You are taking care of your people in the best way possible.


It is also an opportunity to make a deal with the new trainers so you can get some kind of benefit for sending new clients their way.


Now I was always told to expect around 30% of your clients to leave when you increase your rates, so, if you have 10 clients, then 3 will likely stop training with you.


But honestly, I would say that overall, the amount of clients that have done this is less. With trainers that are generally busy, with around 12-15 clients training 3 times a week, on average only one or two clients might stop.


But there is generally at least one so just be prepared for that.


The next thing is that whatever new price you are charging, it can not be soooo much more than what you are charging right now.


Remember, that you will need to justify the increase in the eyes of your current clients, and if there is a big jump in price then that becomes really difficult.


The bigger the jump, then the number of clients leaving will also be higher.


What new price you do charge is totally up to you so long as there are no controls or structures in place that might come from the gym or the set up you’re working in.


Remember, the market decides if you are worth it or not.


But in terms of what you charge, first off, like I mentioned before, you will need to justify it.


Next, you also have to be happy with it. And you also have to have confidence in what you charge. Without those 2 things, you will either resent the work you are doing and make the whole process pointless. Or you will feel uncomfortable when you mention your price.


People will pick up on that awkwardness and it will turn them away. So you need to have that confidence and you need to feel you are still worth more than what you are charging.


Now, once all this is set and decided on, the idea is that whatever you lose in terms of revenue from clients leaving, you will make up with the extra that the remaining clients will pay.


The slots that are now available can then be filled with new clients that are only aware of your new price.


So, how do you put all of this into action?


Once you have all your details worked out like what your new price is and why you are increasing it, you need to set a date.


This date is when your new price will take effect. And to be honest, you don’t even need to wait. It can be tomorrow.


Just make sure that if you have your prices written anywhere such as on a profile in the gym where you work or on your website or social media pages, that they are all updated.


So from this date onwards, any new clients are paying the new rates.


Next you need to let your existing clients know of the changes and why. And make sure you do this face to face at the end of a great session. Not over WhatsApp or email or anything like that.


Remember, this is an industry built on relationships and it is personal, so do it in a personal way….In person!


Now, this is important. When you inform your existing clients about the changes, offer them the chance to renew their package one more time at the old rates.


This is the main thing that we do that really helps to retain your clients. You show them you are taking good care of your loyal clients, hopefully making them feel special with this offer.


But more importantly, you are softening the blow from the news and giving them plenty of time to get used to it and adjust to it before they have to make higher payment for your services.


When the time comes around to making the higher payment you have hopefully had time to show them why they are paying more. Especially if you are increasing pricing due to your investment in a new course or workshop.


Yes, you may have to earn at your current rate for a little longer, but if it means that you don’t just keep your clients, but you are keeping your best clients then that is worth it if you ask me.


It can be so much harder to find new clients than retain clients and even if you do there is no guarantee that your new client will be as fun to work with.


Now, as a bonus.


If you are a trainer that is super busy, and you’re increasing your fees due to supply and demand, you have a great opportunity.


Instead of just finding a new trainer for people that can’t continue with you like I mentioned before, you have the chance to keep them in your world.


How do you do that?


Well, you start to build a team around you. You start to have trainers working under you, that you pay to work with these clients and any other new clients that come your way.


This way you will also start to earn some income that is more passive and you are not trading time for money. Your potential ceiling on what you can earn just went up dramatically, without you having to do anywhere near as much work.


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