Beat the low-cost threats

Many clubs worldwide are being hurt by low-budget competitors and as a result are resorting to lowering their membership prices as a way to attract and retain more members. But, at the same time there are clubs out there that are charging a premium and their numbers are booming.

People who choose to join the low-cost clubs do so to purchase a narrower experience at a reduced price. The low-budget clubs achieve this by simply targeting one or two demographics, reducing their budget accordingly and focus on delivering the best they can for these people. By cutting costs the variable expenses such as training and services are often the first things to go. This ultimately generates negativity, the club becomes less appealing, the members’ experience decreases and they eventually leave.

However, we know people out there are joining premium clubs because they want better quality experiences, more control and more choice over their leisure time. These clubs are providing fun places to be and people are willing to pay to be a part of this. To achieve this these clubs don’t focus on selling memberships, but focus on selling the benefits, encourage participation and foster social interaction to achieve results for their members – which ultimately results in memberships.

It is important to consider the price of your fees so you are not charging too much that people cannot afford to pay, and not too little, that you are undervaluing your activities. We can do this by understanding and adapting to the needs of our members and our community.

Top tips to help your club review your membership options and pricing

• Clarify your club’s purpose and who you want to attract
• Identify the value (benefits and services) you can provide
• Be so good they can’t ignore you
• Keep up with changing demographic needs and trends