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In this lesson, you'll learn what the best models for online personal training are, the model you should avoid, with step by step instructions to creating your own online training packages!

Original Lesson: https://www.instituteofpersonaltraine...

Transcription

Understanding Pricing Models
To understand how to best package our services, we need to understand the basics of pricing models, how they work and why they work.

There are 7 industry standard common pricing models,  that work well for personal trainers and their various services:

The first one is Limited Functionality with Upgrade

Just a cut above a “sample” version of a product, this model relies on the customer wanting more features and voluntarily upgrading to the “Business” or “Professional” version of your product/service.

Works well with software or online services like a member portal. 

The second is Tiered Pricing

True tiered pricing is actually volume-based. “Order two, get one free” is one example. “Three sessions for £80 or £90 separately” is another. 

For example, a low end membership, a premium membership and a VIP membership. Each offering is suitable for different budgets.

The third is “Razor and Blade” Pricing

This strategy got its name from Gillette, the razor company that first came up with the idea of selling the shaver for almost nothing and making money off the replacement blades. Online companies such as Skype use this model, where they provide the free software and service, but you pay constantly for credits and other extras. 

The fourth is Freebie Marketing

Most personal trainers are only too familiar with this model: Offer a free session/product that is perceived as valuable to the target customer or client, and be presented with upsells and “OTO” (one- time-only) special offers.

A typical example would be a niche or topic-based Facebook Group, where the owner can use the ground-floor freebie level to pick up ideas, as well as establish oneself as a niche expert.

Works well with online information products and systems.

The fifth is Value-based pricing

You can price more than your competitors if you offer higher-value – especially if that includes a unique service or feature your competitors haven’t been able to provide. 

Works well with service-based businesses, as well as almost every other types.

The sixth is Flat Fee

This model is often adopted by service providers – especially in today’s economic climate where struggling clients badly need fixed prices in order to stay competitive and make a profit...