You’ve crossed a number of things off of your to-do list.
You finalized your business plan, sketched out a logo, and decided what you want your training sessions to look like. But now, the dreaded decision about how you’re going to price your offerings.
Where do you even begin?
You know the value you can provide your athletes in training. So, how do you effectively convey that value through your pricing?
There’s no one-size-fits-all solution when it comes to pricing for your sports lessons. But, here are a few tips that will keep you competitive without discounting the value of your expertise.
A good first step when determining your sports lesson pricing is outlining a basic budget. Most importantly, you should make a list of all of your monthly operating expenses. Once you know how much money you’re spending each month, you’ll be able to calculate how much you need to be making in order to pay your bills, your staff, and yourself.
Using a budget template designed specifically for sports businesses will help you break down your operating expenses, so you can gain a better understanding of the revenue you should be working to bring in. Of course, this also provides a great opportunity to reflect on where you may be able to cut costs or lower spending to grow your bottom line.
It’s critical that you conduct market research to gain an understanding of the people you intend to serve. There are a number of factors that can influence your sports lesson pricing decisions. One of these factors: location. For example, what pricing works in Indianapolis, Indiana is very different from what works in Los Angeles, California. By conducting market research in your area, you’ll have a more accurate picture of your target demographic, and consequently, how you should price your sports lessons.
Demographics that you may consider looking into include age, gender, household income and hobbies. The insights this information can provide will help you determine who may be willing and able to train with your business, who you should target your offerings towards, and of course, the ballpark price range of your offerings to entice that target market.
Understanding competition is a key component of any business plan. But, it’s especially impactful when it comes to setting your sports lesson pricing. You don’t want to be priced too low, where people don’t value you and your brand. Conversely, you don’t want to be priced too high, where your target demographic can’t afford to train with you.
A good rule of thumb is to model your pricing in the same ballpark as local competitors. This doesn’t mean you must price your offerings the exact same as other businesses. But, it should affect how you will position yourself in the market, which we will discuss next.
Once you’ve done your research to understand your market and your competition, it’s critical that you define how you want to position yourself in the market. Why should athletes train with you, not them?
If you are going to price your training sessions higher than other businesses in your area, what do you provide that is worth the extra investment? Do you have access to exclusive equipment or state of the art technology? Do you provide deeper insights into athlete data to help accelerate their development?
If your sports lesson pricing is higher than other businesses in your area, be sure to highlight your unique selling points in your marketing, and be sure to share with prospective clients what sets your business apart from others in the area.
Similarly, if you choose to price your offerings the same as competitors in your area, why should athletes choose to train with you over other businesses? Just because your prices are comparable to other sports training academies doesn’t mean that athletes will automatically flock to your website to schedule a lesson. You still need to prioritize your marketing strategy to showcase your value proposition. Similar to if your sports lesson pricing is higher than your competitors, be sure to highlight why your business is different, and what athletes will gain from training with you and your staff.
You may also decide to price your offerings below competitor rates; perhaps you’re newer to the industry, or are still looking to build credibility in the community. You may believe that by lowering your prices, you’ll become more competitive in your industry. While this is an okay strategy to implement, just be mindful of the expertise you bring to the table, and be careful not to undercut the value you are able to provide to athletes.
There are multiple ways you may choose to “package” your offerings, from a single session purchase to a multi-session package or monthly membership. By offering opportunities to purchase packages or enroll in a monthly membership, you are encouraging repeat business and client retention.
Let’s say your business model primarily revolves around private lessons. Once you set your price for your individual lesson, for example $60, you’ll be able to make decisions about other pricing tiers. Maybe you decide to offer a 4-pack of lessons for $200 (saving $10 per lesson if you buy 4 lessons up front).
Or, if you find that you are having a lot of repeat customers who consistently buy packages or single sessions, you may want to consider implementing an auto-renewing membership. Think through how many sessions your clients typically purchase each month or what products or services they consistently buy. Then, package those offerings into a membership that will introduce recurring revenue to your business.
While you may offer a few different types of sessions or price points, be careful not to have too many options. This can be overwhelming for clients, making it harder to find the program that is right for them. As the saying goes, K.I.S.S. (keep it simple, stupid). This same concept applies to your sports lesson pricing.
Bonus Tip: There are other ways that you can provide flexibility to your customers. For example, you can offer payment plans that allow clients to pay down a larger balance over time. Or, you may choose to offer a discount code or promotion for new or longtime clients, or around a particular holiday.
Related: 3 holiday promotion ideas you can steal today
Again, there’s no right or wrong answer as to how you set your prices. Nor is there a “magic number” we can give you. But, by doing research, planning your budget, and determining your positioning in the market, you’ll be well-equipped to make these decisions. Once you’ve decided on those prices, stay firm in your decision. This doesn’t mean you can’t make adjustments to your sports lesson pricing. But, it does mean that you need to believe in your prices, yourself, and the research you’ve done.
Looking for an easier way to manage your sports lessons? Upper Hand can help. Schedule a demo today to see how you can grow your business with lesson scheduling software.
The training you provide athletes is a pivotal aspect of their development. How can you show them, not just tell them, that they are improving? It all comes down to tracking athlete progress. Results keep people coming back. Being able to show proof of progress motivates your clients to stay committed to their goals. One of the biggest reasons for athlete progression tracking is to show that improvement over time.
If you’re in a situation where you’re not necessarily unhappy with your current sports facility management software, but you’re hesitant to explore new options, it’s critical that you recognize that comfort can be the enemy of growth. Partnering with a software provider that is constantly innovating and improving can help you achieve your business goals, no matter where you’re at today. Let’s discuss the importance of continuous growth and the value of partnering with an innovative software provider like Upper Hand to support growth for years to come.