Personal Training Pricing Strategy – Using Anchoring To Increase Revenue
The right personal training pricing strategy doesn’t just boost revenue. It makes it much easier to convert inquiries into paying clients too.
Most trainers don’t put much thought into how much to charge – they simply set their prices in line with their competitors. But smart pricing is crucial to successful selling. Get it wrong, and you’ll be facing an uphill battle to get more clients. But get it right and the entire sales process will be so much simpler.
In this 3min video we talk about a personal training pricing strategy called anchoring. It’s especially effective for both fitness professionals and wellness-related businesses (you can also read the transcript below).
Personal Training Pricing Strategy – Video Transcript
“The first personal training pricing strategy I want to talk to you about is anchoring. Anchoring is an especially effective strategy when it comes to selling big ticket items, like personal training packages or annual memberships.
And it’s based on the premise that nothing is cheap, or expensive, when considered on its own, only when compared to other things. And anchoring provides this comparison.
So think about a $200 training program – that might be considered expensive on its own or without any context. But if it’s next to a $500 training package, then all of a sudden it seems better value.
So the best way to implement an anchoring strategy, is to offer 3 price options. And the middle option should be the one that you really want to sell.
And this has been tested extensively. In one test they had 2 beers, a regular priced beer, and a more expensive premium one. And in this case where there were only two choices, 80% of people chose the premium beer.
Then they introduced a third ‘bargain’ beer, which was at the cheap end of the spectrum. So they had a cheap, regular, and premium option. And what they saw was that the ‘regular’ option became the best seller, also with 80% of sales. So the majority went for the middle options, but interestingly, no-one bought the cheapest beer.
And then they tested this theory even further. The took away the cheapest option, and introduced a super-high priced beer that was even more expensive than the premium one. So now they had a regular beer, an expensive premium beer, and a seriously expensive beer. And in this case the expensive premium beer that was now the middle option, got 85% of the sales.
This test demonstrates that how much something costs, or the ticket price, often isn’t the deciding factor. It’s whether someone thinks it’s good value that determines how much a product or service sells. And you can increase its perceived value, simply by providing a cheaper and more expensive option for comparison.
This approach is really popular online. You’ll often see websites that offer three different pricing options, and highlight the middle one as being the best value or most popular.
You can also use colours and callout badges to draw attention to the middle option. Although as we saw in the testing, that middle option is likely to be your best seller no matter what, so long as you’re offering real value in return.
And you can even offer two of the options at the same price, as shown in this example, but differentiate the value in some other way such as a pay-as-you-go versus weekly commitment.
Now you might be wondering how different your prices should be and if there’s an ideal ratio. Well based on extensive testing, your middle option should be priced at 2.5 times that of your basic one. And your premium option should be priced at 5 times more than your basis one.
So in this example… if your basic option is $100, then ideally the middle option would be around $250, and the premium option would be about $500.”
Our online course on How To Sell Personal Training contains an entire module dedicated to pricing.
It expands on the most common mistake people make when using anchoring, how to use the reframing strategy, and create a price guide. Learn more about the course here.