#15: Discounting – Yay or Nay?
It’s very tempting to offer discounts to incentivize potential members to join your gym. However, there are some serious hidden costs associated with discounting that can actually harm your brand more than the revenue those new members bring.
Discounting: The Good
- Helps to grow your gym if you’re starting from scratch.
- Provides incentive for people who are on the fence about joining.
- Can provide a quick increase in cash.
Discounting: The Bad
- People come in “blind” on what you do.
- Strain on your coaches and their in-class resources, which takes away from current members.
- Zippy emotional attachment to your brand.
- People coming in JUST for discounts are less coachable, typically worse members.
- Creates a membership bubble which will burst.
- Churn rates will increase.
- Goals are based on “what” and not “why”.
Discounting: The Ugly
- Devalues your brand.
- Bad margins and revenue economics.
- Ultimately creates no brand loyalty.
Discounting can work in times of need for a specific outcome, however the long term damage created by offering discounts can be irreparable.
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