Do not raise prices because another studio charges more.
Do not avoid raising prices because one vocal member might complain.
Instead:
The goal is not to get zero complaints.
The goal is to create a pricing structure that supports a healthy business without damaging the trust that made members stay in the first place.
Imagine this illustrative scenario.
A studio opened years ago at:
$129 per month
New membership eventually became:
$179 per month
But longtime members were never moved.
Now you have:
40 members paying $129.
55 paying $149.
80 paying $179.
All receiving essentially the same core service.
This creates what I call:
pricing archaeology.
Every time you dig into the membership list, you discover another historical rate.
$119.
$129.
$137.
$149.
$159.
Nobody remembers why half of them exist.
That's not necessarily a reason to eliminate every legacy price.
But it is a reason to understand them.
Before changing anything, export or review active memberships.
Create columns for:
Membership type.
Current monthly rate.
Join date.
Contract status.
Billing frequency.
Discount.
Legacy status.
Usage.
Relevant service access.
Then group members by price.
You need to answer:
How many active members are actually paying each rate?
You may be surprised.
A simple starting metric:
Average Membership Revenue = Recurring Membership Revenue ÷ Active Paying Members
Illustrative example:
Recurring monthly membership revenue:
$42,500
Active paying members:
250
Average:
$170 per member
But averages hide problems.
Maybe:
New members average $210.
Longtime members average $135.
That's why cohort analysis matters.
Suppose your comparable current membership is:
$189.
A legacy member pays:
$149.
Difference:
$40 monthly.
For 50 members:
50 × $40
= $2,000 monthly difference
Annualized:
$2,000 × 12
= $24,000
That does not automatically mean you should raise all 50 members by $40.
It tells you the size of the pricing gap.
Decision comes next.
Weak reason:
Everything is getting expensive.
Maybe true.
But not useful enough.
Get specific internally.
Are you trying to:
Maintain coaching quality?
Support higher payroll?
Correct years of underpricing?
Improve margins?
Reduce dependence on new member acquisition?
Fund facility improvements?
Simplify legacy rates?
Keep a small group model financially viable?
Protect service quality?
You need a business reason even if members do not receive your entire financial analysis.
Competitor:
$249.
You:
$179.
Owner:
We're obviously $70 too cheap.
Not necessarily.
Maybe they provide:
More sessions.
Different coaching.
Better facility.
Different market.
Different positioning.
Different capacity.
Different economics.
Or maybe they really are priced better.
Competitive research provides context.
It does not determine your price.
Your pricing has to work inside your economics, not somebody else's Instagram feed.
Ask:
When did we establish this rate?
What did the membership include then?
What does it include now?
What changed operationally?
For example:
More coaching coverage.
Better equipment.
Facility expansion.
Additional classes.
Improved programming.
New technology.
More individualized support.
None of those automatically justify a specific increase.
But they help you understand whether:
The price stayed frozen while the service evolved.
If your prime time classes are:
Constantly full.
Waitlisted.
Operationally constrained.
You may have a different pricing problem than a studio running at:
45% utilization.
A price increase will not magically fix weak demand.
Do not use pricing to solve:
Poor lead generation.
Weak sales.
Bad retention.
Bad programming.
Empty classes.
Pricing is one lever.
Not medicine for every business problem.
Suppose:
Current rate:
$159.
Proposed:
$169.
Dollar increase:
$10
Percentage increase:
$10 ÷ $159 × 100
≈ 6.3%
Always look at both.
Another example:
$79 → $89
Only $10.
But:
≈ 12.7%
Same dollar amount.
Very different percentage change.
Suppose:
150 affected members.
Current:
$159.
New:
$169.
Increase:
$10.
If every member stays:
150 × $10
= $1,500 additional monthly recurring revenue
Annualized:
$18,000.
But:
Everyone will not necessarily stay.
So model retention sensitivity.
Current revenue from affected members:
150 × $159
= $23,850
New rate:
$169.
How many members are required to produce the same revenue?
$23,850 ÷ $169
≈ 141.1
Since you cannot have 0.1 member, you need at least 142 members to exceed the old recurring revenue in this simplified example.
That means losing eight members would leave:
142 × $169
= $23,998
Slightly above the previous revenue.
Losing nine:
141 × $169
= $23,829
Slightly below.
This is not permission to casually lose eight members.
It is a decision tool.
Losing eight members affects:
Community.
Referrals.
Class utilization.
Coach relationships.
Future revenue.
Reputation.
Acquisition cost to replace them.
So do not say:
We can afford to lose eight people.
Say:
Here's the simplified revenue sensitivity. Now let's evaluate the broader consequences.
Using the same hypothetical $10 increase across 150 members:
150 × $169
= $25,350.
147 × $169
= $24,843.
Approximately 143 members × $169
= $24,167.
135 × $169
= $22,815.
Now the owner can see the risk.
Again:
These are illustrative scenarios.
Not predicted cancellation rates.
Member cancels two weeks later.
Owner:
The increase caused it!
Maybe.
Ask.
Could be:
Moving.
Schedule.
Injury.
Financial pressure.
Dissatisfaction.
Life change.
Price increase.
Track cancellation reasons.
Options may include:
New members only.
All existing members.
Only legacy members.
Only certain memberships.
Month-to-month members.
Members after contract renewal.
Some combination.
The correct approach depends on:
Agreements.
Local requirements.
Membership structure.
Business economics.
Your promises.
And member expectations.
Do not improvise this part.
This is operationally important.
Before changing an existing member's billing:
Review the signed agreement.
Review price modification language.
Review required notice.
Review cancellation rights.
Review applicable consumer protection and recurring billing requirements in the jurisdiction where you operate.
US and Canadian requirements can vary.
Do not copy another gym's process and assume it applies to you.
When uncertain:
Get qualified legal advice.
Grandfathering means allowing existing members to retain an older rate.
This can be useful.
But "forever" can create problems.
Suppose:
Founding member:
$99.
Current member:
$199.
Ten years later:
Both use the same service.
Permanent grandfathering can eventually create enormous pricing gaps.
Existing rate remains.
Best when:
You intentionally made that promise and can sustainably honor it.
Risk:
Growing pricing gap.
Legacy members increase but remain below current retail.
Example:
Legacy:
$139.
Retail:
$189.
New legacy rate:
$159.
They retain a loyalty advantage.
Increase occurs in stages.
This reduces immediate change but creates more administration.
Legacy member transitions to standard rate according to applicable agreements and requirements.
Simplest long-term structure.
Potentially hardest member conversation.
Loyalty pricing should reward loyalty without making loyalty financially unsustainable for the business.
Owner feels guilty.
New retail:
$199.
Legacy:
$149.
Owner decides:
We'll increase them to $159 and guarantee that forever.
You just created:
Legacy Pricing Problem 2.0.
Be careful making permanent promises.
Maybe:
Unlimited membership is underpriced.
Eight sessions monthly is fine.
Personal training needs a larger adjustment.
Youth membership remains unchanged.
Do not assume every membership needs:
+$10.
Look at economics individually.
Do not surprise people on their bank statement.
Provide notice consistent with:
Their agreement.
Applicable requirements.
Your billing setup.
And reasonable member expectations.
The exact required notice can vary.
Do not invent a universal:
30-day rule.
Instead:
Confirm what applies to your business.
Then communicate early enough that members understand:
Current price.
New price.
Effective date.
What action, if any, is required.
Bad email:
Exciting changes are coming to our membership experience!
Six paragraphs later:
Your investment will adjust slightly.
Member:
HOW MUCH?
Tell them.
Current:
$159.
New:
$169.
Effective:
[Date].
Clear.
Members are adults.
Say:
Membership rate.
Price.
Monthly membership.
Do not hide behind corporate language.
Clarity builds more trust than euphemisms.
Hormozi's Value Equation is useful here.
Value rises when:
Dream Outcome increases.
Perceived likelihood increases.
Time delay decreases.
Effort and sacrifice decrease.
Your price increase communication should reinforce:
What the membership helps the person accomplish and why the service remains worth keeping.
Not:
A giant list of everything your business pays for.
Due to inflation, rising rent, increased insurance premiums, utilities, payroll expenses, software costs, equipment maintenance...
Member hears:
Your problems are now my bill.
Those costs matter internally.
But that should not be the entire value argument.
Starting October 1, your monthly membership will change from $159 to $169. We've kept this rate unchanged since [date]. This adjustment helps us continue delivering the coaching, class availability, programming, and support included in your membership without reducing the quality of the service.
Clear.
No drama.
Then explain any relevant specifics.
A price increase email should not feel like:
A hostage negotiation.
The longer you defend yourself, the more insecure the decision can sound.
Cover:
What's changing.
When.
Why.
What remains included.
What the member needs to do.
Where to ask questions.
Done.
Hi [First Name],
I wanted to give you advance notice about a change to your membership.
Starting [effective date], your monthly rate will change from $[current] to $[new].
We've kept your current rate at $[current] since [date or relevant context].
This adjustment allows us to continue providing [two or three specific elements members actually value] while maintaining the level of coaching and service we want members to receive.
You do not need to take any action. The updated rate will begin on [billing date], subject to the terms of your membership.
If you have questions about your membership, reply to this email or speak with [person].
Thank you for being part of [Studio].
[Owner]
Imagine:
Email sent at 9 AM.
Member arrives at 10 AM.
Why is my membership increasing?
Coach:
What increase?
Terrible.
Before announcement day, staff should know:
Who's affected.
New rates.
Effective date.
Basic reason.
What they can answer.
What gets escalated.
What exceptions exist.
What they should never promise.
Yes, the membership rate is changing from $159 to $169 beginning October 1. Sebastian sent the details by email. If you'd like to talk through anything specific about your membership, I can connect you with [manager/owner].
Do not make every coach defend company economics.
You will likely get some version of:
Makes sense.
Great.
I don't love it, but okay.
Acknowledge.
Why is this happening?
Explain clearly.
I can't afford this.
Now you have an individual conversation.
Do not treat all four as crises.
Member:
I saw the email about the increase.
Owner panics:
BUT WE CAN KEEP YOU AT THE OLD PRICE!
They didn't object yet.
Listen first.
Totally fair question. What part of the change concerns you most?
Then stop talking.
Maybe:
Budget.
Principle.
Confusion.
Comparison.
Service dissatisfaction.
Different objections require different responses.
Member:
I genuinely can't make another $20 work right now.
Do not immediately discount the same membership.
Review whether another legitimate option fits.
Example:
I understand. Rather than changing the price of the same membership, let's look at whether our [lower frequency option] would still give you enough training to keep progressing while fitting your budget better.
If such an option actually exists.
Protect:
Outcome.
Lower:
Sacrifice.
Member:
I don't think it's worth $189.
Do not argue.
Ask:
That's useful for me to hear. What feels like it's missing right now?
Maybe the real issue is:
Coaching.
Class availability.
Cleanliness.
Programming.
Progress.
Communication.
Now you have operational feedback.
Planet Fitness is $X.
Do not insult the competitor.
Different business model.
Say:
If price is the main deciding factor, there are absolutely lower cost options. Our membership is built around [specific coaching/service differences]. The question is whether those are still valuable enough for what you're trying to accomplish.
Then let the member decide.
Confidence without arrogance.
Owner increases:
$169 → $189.
Then announces:
NEW VALUE:
Free water!
Monthly motivational email!
Member:
Wasn't that already included?
Do not manufacture value theater.
If meaningful service improvements exist:
Explain them.
If not:
Do not invent them.
This is important.
Your service may already be worth more than you charge.
Price and cost are not permanently frozen.
A restaurant does not owe you 20% more food every time menu prices change.
Neither does your fitness studio necessarily owe additional services every time rates change.
The business still needs sustainable economics.
If:
Bathrooms dirty.
Equipment broken.
Classes constantly canceled.
Coaches inconsistent.
Members cannot book prime times.
Owner absent.
Communication poor.
Then:
A price increase may expose existing dissatisfaction.
Fix obvious experience failures first when possible.
Not:
Who complains the loudest?
Instead:
Which members have been here longest?
Who uses the service?
Which cohorts are paying what?
What promises were made?
How would this feel from their side?
You do not have to avoid the increase.
But good operators evaluate both sides of the transaction.
Create categories:
Positive.
Neutral.
Question.
Affordability concern.
Value concern.
Cancellation request.
Other.
Now:
10 emails do not feel like:
EVERYONE IS FURIOUS.
Maybe:
10 people emailed.
Out of:
Data protects owners from emotional overreaction.
Suppose:
200 members affected.
Eight cancel and explicitly identify price as the primary reason.
Price-related cancellation rate for affected cohort:
8 ÷ 200 × 100
= 4%
Illustrative only.
Now compare:
Revenue before.
Revenue after.
Members before.
Members after.
Example:
Before:
200 × $149
= $29,800
After increase:
Rate:
$159.
Suppose 194 remain.
194 × $159
= $30,846
Monthly recurring revenue change:
$30,846 minus $29,800
= +$1,046
Again:
This is a simplified example.
You should also consider:
Lost ancillary revenue.
Replacement acquisition.
Capacity.
Member lifetime value.
Other impacts.
Announcement day:
Seven emails.
Two angry conversations.
Owner:
THIS WAS A DISASTER.
Wait.
Track.
Members may initially dislike paying more.
That is not identical to:
Leaving.
Review the actual business outcome over an appropriate period.
If you changed retail pricing as well:
Track:
Leads.
Appointments.
Close rate.
New member revenue.
Objections.
Membership mix.
A price that improves revenue per member but destroys conversion could create another problem.
Blog #130's sales metrics framework can help here.
For every member who says price caused cancellation, ask:
Was it genuinely affordability?
Value?
Competitor?
Life change?
Already disengaged?
Using price as a convenient reason?
You are looking for patterns.
Not trying to talk everybody out of leaving.
Blog #136 becomes important.
If the rate increase works:
Average revenue per member should change.
But evaluate it alongside:
Retention.
Acquisition.
Capacity.
Member satisfaction.
Profitability.
One number is never the whole business.
You do not necessarily need to raise rates annually.
But you should review them regularly.
Different concept.
A pricing review asks:
Are our memberships economically healthy?
How have costs changed?
How has service changed?
What do competitors provide?
How has demand changed?
What is capacity?
What are new members paying?
How large are legacy gaps?
Do we need to act?
Sometimes the conclusion is:
No increase.
That's still a successful review.
At least periodically, evaluate:
Membership prices.
Personal training.
Small group.
Specialty programs.
Retail.
Nutrition.
Youth programs.
Other recurring services.
Do not let prices remain unchanged merely because:
Nobody remembered to review them.
If you discover:
17 active membership rates,
ask why.
Complexity increases:
Billing errors.
Sales confusion.
Staff confusion.
Reporting difficulty.
Member comparison.
Simplification has operational value.
But do not recklessly force every member into one rate overnight.
Create a transition plan.
This matters.
Price optimization is not:
How much can we squeeze out of members before they leave?
That's short-term thinking.
The better question:
What price supports the service quality, economics, positioning, and member outcome we intend to deliver?
That may be:
Higher.
Lower.
Or unchanged.
The answer comes from the business.
Not bravado.
| Common Approach | Better Pricing Process |
|---|---|
| Avoid increases for years | Review pricing periodically |
| Copy competitor pricing | Use your own economics |
| Raise everyone by the same amount | Analyze membership types |
| Grandfather everyone forever | Evaluate legacy pricing intentionally |
| Hide the new price in a long email | State it clearly |
| Overexplain operating expenses | Reconnect price to service value |
| Announce before training staff | Prepare staff first |
| Panic after one complaint | Track response data |
| Immediately offer discounts | Diagnose the objection |
| Invent bonuses to justify price | Communicate actual value |
| Measure revenue only | Measure revenue and retention |
| Assume every cancellation is price related | Track cancellation reasons |
| Wait years to review pricing | Make pricing part of planning |
Illustrative example.
Studio:
180 affected members.
Current:
$169.
Proposed:
$189.
Potential additional MRR with full retention:
180 × $20
= $3,600
Current cohort revenue:
180 × $169
= $30,420
Members needed at $189 to approximately maintain the same recurring revenue:
$30,420 ÷ $189
≈ 161
That does not mean:
We can lose 19 members!
It means:
The owner now understands the revenue sensitivity.
Then they evaluate:
Member relationships.
Capacity.
Acquisition cost.
Referrals.
Lifetime value.
Profitability.
The spreadsheet informs the decision.
It does not make it.
Founding member:
$99.
Current retail:
$189.
Member has been loyal:
Eight years.
Owner feels:
I either keep $99 forever or betray them.
False binary.
Potential alternative:
Move founding members to:
$129.
Current retail remains:
$189.
The member still receives:
$60 monthly loyalty advantage.
Whether that is the right decision depends on the original agreement, promises, applicable requirements, and economics.
But there are more than two options.
Member:
I'm not paying another $15 when I can barely get into the 5:30 class.
That's not primarily a price objection.
That's:
Capacity and member experience feedback.
Do not answer:
But our coaches are amazing.
Solve the booking problem? No.
This is why your operating systems connect.
Member:
Unlimited.
New price:
$199.
They train:
Once weekly.
They object.
Maybe:
Unlimited is no longer the right product.
If your eight-session or lower frequency membership fits their usage and goals:
Recommend it.
That can reduce monthly revenue.
But preserve:
Trust.
Membership.
Outcome.
Long-term relationship.
Sometimes the right sales recommendation is:
Spend less.
Use five pieces:
Your monthly membership will change from $159 to $169.
Beginning October 1.
Your current rate has remained unchanged since [relevant date/context].
This allows us to continue providing [specific service].
No action is required. Questions can be directed to [person].
That's enough.
If appropriate for your communication workflow:
Hi Sarah, we sent you an important membership update by email today. Your monthly rate will change from $159 to $169 beginning October 1. Please review the email for the full details, and reply here if you have any questions.
Do not attempt to explain an entire pricing decision in a 500-word text.
Hi Sarah,
Thanks for reaching out.
Your current membership is $159 per month. Beginning October 1, it will be $169.
Your membership will continue to include:
[Core benefit]
[Core benefit]
[Core benefit]
I understand that any price change matters, so I'm happy to answer questions about your specific membership.
If you'd rather talk, let me know and we can find a quick time.
[Owner]
Pricing decisions become much harder when:
Membership information is scattered.
Owners cannot easily see who is paying what.
Billing history is disconnected from member information.
Cancellation reasons are not recorded.
Revenue reporting is inconsistent.
FitHive brings core gym management functions such as member management, billing, CRM, communication, scheduling, and reporting into a more centralized workflow. That can give owners better information for evaluating membership structure and the results of operational decisions.
The technology should help answer:
How many active members do we have?
Which memberships are active?
What are members paying?
How is recurring revenue changing?
Who canceled?
What membership did they have?
What happened after the change?
The software does not decide:
Raise prices.
The owner does.
Better information simply makes that decision less dependent on fear and guesswork.
Identify:
Membership.
Rate.
Join date.
Discount.
Legacy status.
Contract status.
Group members by:
Membership and price.
Find:
Legacy rates.
Odd discounts.
Pricing gaps.
For example:
No increase.
Partial increase.
Full proposed increase.
Calculate revenue under several retention scenarios.
Confirm:
What can change.
Required notice.
Billing implications.
Relevant legal requirements.
Instead:
Review everything.
A price increase does not need to happen just because you analyzed one.
Make the decision when the numbers and strategy support it.
Export active memberships
Map current prices
Identify legacy rates
Calculate average membership revenue
Calculate pricing gaps
Understand reason for increase
Review service changes
Review capacity
Review current retail pricing
Research competitive context
Calculate dollar increase
Calculate percentage increase
Model full retention
Model retention sensitivity
Calculate simplified break even point
Review contracts
Review applicable requirements
Decide affected memberships
Decide legacy strategy
Determine effective date
Prepare member email
Prepare staff
Prepare objection responses
Define exception authority
Send notice
Track responses
Track cancellations
Record cancellation reasons
Measure recurring revenue change
Review sales conversion
Review revenue per member
Evaluate results
Schedule next pricing review
Review pricing before margins become an emergency.
Use competitors as context, not your calculator.
State the new rate clearly.
Provide enough context without writing an economic manifesto.
Track actual responses and behavior.
Understand the objection first.
Confirm contractual and applicable legal requirements before implementation.
Evaluate economics and relationships.
Understand what the pricing gap could become.
Build pricing review into normal business planning.
There is no universal schedule. Fitness businesses should review pricing periodically, but a review does not automatically require an increase. Demand, costs, service level, capacity, margins, member agreements, positioning, and market conditions all matter.
There is no responsible universal percentage. Calculate both the dollar and percentage change, evaluate your economics, and model the impact on affected members before deciding.
Sometimes. Grandfathering can reward loyalty, but permanent grandfathering can create large pricing gaps over time. Alternatives include partial increases or phased transitions, subject to agreements and applicable requirements.
Required notice can depend on the membership agreement and applicable laws or regulations. Review the requirements that apply to your business rather than assuming one universal notice period.
Some may. Do not assume a specific cancellation rate. Model several scenarios beforehand and track actual cancellation reasons afterward.
You can provide relevant context, but the communication should not become a list of the business's expenses. Clearly explain the new rate, effective date, and how the pricing supports the service members receive.
Not automatically. If genuine improvements exist, explain them. Do not create low-value bonuses merely to make the price increase look justified.
Listen first. If a lower frequency or different legitimate membership fits their goals and budget, it may be appropriate to discuss it rather than discounting the same service automatically.
The hardest part of raising membership prices is rarely:
Changing the number.
It is managing the tension between:
What the business needs
and
what longtime members expect.
Ignore the first, and you can build a popular business with unhealthy economics.
Ignore the second, and you can damage years of trust in one poorly handled announcement.
So do neither.
Start with the numbers.
Understand every rate.
Understand the gap.
Understand the economics.
Model the risk.
Review your agreements.
Then think about the human side.
Who has been with you for years?
What were they promised?
What will they pay?
What will they receive?
How will your staff explain it?
What happens when someone pushes back?
Then communicate simply.
No tricks.
No fake bonuses.
No corporate euphemisms.
No apology tour.
Just:
Here's what's changing.
Here's when.
Here's why.
Here's what it means for you.
And after implementation:
Measure what actually happened.
Because the goal is not to charge the highest price you can get away with.
The goal is to build pricing that allows the fitness business to continue delivering an experience members believe is worth paying for.