Competing on Price and NOT Charging What You’re Worth!

I believe in free enterprise. I believe in charging a premium for products, services, and expertise.  I believe in natural selection in all things… and in business that means society will always vote with their money by purchasing the products and services that deliver the most value to their lives.  That’s the beauty of a free-market. Build a better mousetrap, and the market will gladly pay you more for it, buy more of it, and tell others about it.  Lakeside Fitness Center is a “better mousetrap!”

Lakeside Fitness Center is an amazing facility, at least I believe that and most who I talk to do as well.  People always ask if we are going to “have a special like XYZ GYM” or something like that, and at Lakeside we will always say no, no because we do not compete on price, why should we care about what other gyms are charging for their membership and services?  First off, we don’t sell memberships, people here buy a membership; they buy results. It makes no sense to compete on price.  Lately it seems that the trend in our industry is to keep cutting prices in hopes to get more members and clients with a lower price or to make more money on volume.  To me it shows panic, panic that your value isn’t where it should be to sustain your market share; listen I know the economy has changed, but as I will point out later the value you see for what you want hasn’t changed.

Whatever happened to delivering a premium service and charging a premium price for it?

I’m going to go get Premium gas, but I only want to pay at the lowest grade, sure fill me up!  Try that and see how much premium gas you get.  Fact is, if you’re competing on price, then you’re NOT good… and you’re probably even a worse entrepreneur.

In the fitness world we deliver a service, a service that saves lives and adds years of quality living to a person’s life. Don’t you think you deserve more for that than “low price”?  What we do has irrefutably shown to deliver improved mental health, productivity, and an overall better quality of life. That’s huge! We help folks look, feel, and function more athletically.  That’s priceless considering the state of obesity and inactivity in today’s society.  We have the know how to help folks lower stress levels, lower blood pressure, lower their cholesterol, and lower their risk of heart disease –ALL WITHOUT MEDICATION, but we still continue to compete on price?

There’s something fundamentally wrong with that logic.

Everyday folks pay for Starbucks coffee that’s 1600% more expensive than making coffee at home.  People will buy the Mercedes Benz, BMW, and Audi over Toyota, Honda, Ford, and Chevy all day long, because of what they see as “value”.  Is a Ruths Chris burger better than a McDonalds burger?  You are darn right it is!  We choose the iPhone over the Android, which costs a fraction of what the iPhone costs.  Why not just buy a flip phone…. We see value in “coolness” in the iPhone, in having features, and in being able to have access to what we want-when we want it… and that’s valuable to us, so we pay for it.

More than enough people pay $155/month for certain “high end” gym membership in the NYC and other areas, which is why they keep opening up more locations around the country.  Think about that… if other “high end” fitness centers can sell access to a gym for $155+ a month, what’s stopping us from charging that much or even ½ of that… and we know we deliver results as well.

In January, when we made changes here at Lakeside Fitness Center, it really didn’t matter what the other gyms, training studios, or boot camps places were charging and are currently charging. We have a facility and a staff that deliver results, our trainers hold our clients accountable, we keep them motivated and our facility creates a community everyone is proud to be a part of.  Lakeside Fitness Center is clean and has amenities that no other facility in the area has; along with the right trainers to deliver awesome results and that’s why Lakeside Fitness Center will consistently command more than other facilities around.

Here we understand why people buy fitness, we understand what it is they really want from a fitness center and a training program, we are not concerned with competition, economy or demographics, we are concerned with making our facility and our members better.  We are an awesome fitness center and what we do is changes lives… literally. We won’t under charge, we don’t compete on price, and don’t give a shit about what everyone else is saying or doing.  We want to be the best at what we do; delivering results, bringing energy to every member for their workout and providing VALUE. I guess when other facilities start talking about you and marketing around you, you are doing something good.  We are worth it and we have great members and a great staff to thank for our success!

Regards,

Greg

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