Pricing Strategies for the Economy

When speaking with Mr. Marek about what they have done to fight the downturn in the economy he did not mention lowering prices, but rather, working to show the quality of the product they are offering.

Mr. Marek has held prices per session of personal training at a constant for the typical contract, or agreement for sessions. He has been able to do so by proving the value of his product. The value has been created through ABS's sales team utilizing client testimonials both written and video, before and after pictures, and demonstrations. ABS offers a free session with a personal trainer after a thorough fitness assessment to design the workout for your body. This session is intended to show the potential client the value of having a professional not only motivate you and keep you moving, but also to show you what you should be doing and how to do it appropriately. Although there is competition for ABS with Professional Fitness, another personal training company in the area, they have been able to fight their lower prices through word of mouth. Typically when a potential client has heard of Professional Fitness from another person, it tends to be from a negative stand point. Also, if that client meets with both Professional Fitness and ABS they can see the difference in the quality of the product from their initial session. ABS works hard to add customer perks, such as making contacting the trainer for additional help or questions convenient, keeping their personalized workout program in the workout facility and providing access to it with or without an ABS employee, measurements and tracking of progress as well as weekly flyers about nutrition. These are all examples of how ABS has worked to fight the damaged economy by building up their product rather than lowering their prices.

If, however, ABS is having exceptional difficulty getting a new client purely from a lack of certainty about the economy from the clients end, they will add in a clause in the agreement that if the client or clients spouse is laid off the contract can be temporarily paused or can be cancelled. Since ABS tries to sell only one year agreements, rather than month to month or by individual sessions, job uncertainty has caused a dilemma. By offering this clause, ABS has again found a way to satisfy the consumer without cutting back on their price or length of contract.