How a business charges for membership will be entirely up to ownership and/or management. There are many unique factors that must be evaluated, and there is no one national business model that fits all practices.
It is not within the scope of this, or any, article to tell someone how much they should charge for membership because this charge—as with any service or product you sell—is determined by each unique marketplace, treatment space, and staff abilities. There is no one correct formula that can be applied across all healthcare, massage and/or spa establishments. Expecting someone to determine your business’s price points and benefits without an evaluation would be like asking an appraiser to price a home without looking at the home or marketplace!
The author of this article does not offer or sell any type of business marketplace evaluations; in fact, we recommend owners evaluate their own business rather than hire someone to conduct an evaluation because a business owner—you— will understand your own business, marketplace and customer base best, more so than any expert who would have to do copious amounts of research to learn the same.
Different marketplaces and skill levels will command different price points. Some business markets are seasonal, some are saturated, and some are void of competition. The evaluation criteria are endless and must be considered for accurate business direction, especially with business offerings and price points.
As many as 95% of new start-ups do not make it past their first five years of business. Many times those failures are due to poor planning and improper evaluation of the business’s unique abilities and situation.
Also, a successful business model cannot always be copied and applied to a different or new business with hopes of similar success. Each business and marketplace will have its own unique criteria to consider when determining operations.
That Said, Consider These Pricing Models
That said, things to take into consideration when setting your membership pricing, as well as the member-only special fees for services and products you set, include competition pricing in your locality, as well as customer-perceived value for the services and products that will be included in the membership.
Customers should feel like they’re getting something extra when they’re paying extra, and it will be up to the business ledger and customer feedback to determine when an appropriate balance has been achieved.
The Price-Per-Session Model
One option to consider is the price-per-session model for a membership program. This is the model national massage franchises use.
This is how it works: You charge a certain price for a one-time appointment. For the customer who commits to receiving a set number of sessions per month as a benefit of your membership program, each per-session price is lower than the usual price.
For example, if a member pays $100 for a monthly membership that allows them to pay up-front for three massage sessions to be used within one month at a cost per session of $125 instead of the usual $150, they save $75 per month. Additional perks and benefits of membership will more than make up for the additional $25 paid for a monthly membership fee.
This model incentivizes a customer to join your membership program, which provides a reliable stream of income for your business, while the customer enjoys a discounted rate and benefits from regular body-care sessions.
The Annual Pricing Model
Consider providing a discount if a customer pays for membership for a year in advance versus paying a monthly membership fee.
Some customers might look at an annual membership payment as an excellent way to support your business while also saving money. A 15% savings is an appropriate amount for this discount.
This is how it works: Let’s say your membership program costs $75 per month. That equals $900 per year. 15% off $900 is $135, so a member who pays for an entire year of membership benefits upfront pays just $765.
To learn more, please register for live business training at our school where you share in questions and answers with a live instructor at: https://ceinstitute.com/
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