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.
Topics:
Discounting: The Good
(1) Helps to grow your gym
(2)Provides incentive for people who are on the fence about joining
(3) Can provide a quick increase in cash
Discounting: The Bad
(1) People don't look at your gym and what you do before they join
(2) Strain on your coaches and their in-class resources, which takes away from current members
(3) No emotional attachment to your brand
(4) People coming in off discounts are less coachable
(5) No loyalty to your brand
(6) Creates a membership bubble, which will burst
(7) Churn rates will increase
(8) Goals are based on "what" and not "why"
(9) Bad economics
(10) Devalues your brand |
Discounting can work in times of need for a specific outcome, however the long term damage created by offering discounts can be irreparable.