Talking to my friend Jeff the other day the topic of generosity came up. Jeff coaches CEO’s, businesses and multi-million dollar app creators on mindset.
He asked me why generosity was so important in my business. What was I hoping to achieve by being generous?
My response was simple:
‘I want to help people and I want to make an impact.’
Then he caught me off guard with this question:
‘So what’s more important to you, being generous or helping people and making an impact?’
It was then I realised that being generous does not actually equal helping people and making an impact. In fact being generous can be kind of a terrible way to help people.
Why generosity does not always equal help and impact
Take these two examples:
1. You are starting a new bootcamp. You want to be affordable so you price your classes at $5 per drop in or $40 for a 10 pass.
2. You are starting a new bootcamp. You notice a lot of low cost sessions in the area so you decide to charge more. You don’t offer a drop in and instead ask people pay your $199 a month to come to as many sessions as they like.
OK now looking at these examples let’s ask ourselves some questions.
Which example would have more attendees? Probably number 1 right? At least at first.
Which example would have more reliable attendees? Number 2. If you know you are being billed $199 per month you are going to go to your sessions to get your value back.
Which example would make more money? Assuming most people train 3 times a week with you, example 1 would need 3 times as many members (consistently) to make as much as example 2. If three times as many doesn’t seem like much, this is the difference between 40 members and 120 members. I think it’s save to say number 2 would make more money.
Which example will make a bigger impact? Charging more and on a regular basis puts more skin in the game for your clients. Their regular attendence will help them achieve what they want. Their regular interaction with fitness role models will have a bigger impact on their long term health. It may be a smaller group of people then example 1 but that just allows the impact to be that much deeper.
What are you trying to achieve in your group fitness business?
If you’re struggling and things aren’t working out, take a good look at what methods you are using to reach that goal. You may find out that, like me, your methods aren’t actually helping you achieve your big goals.
I’d love to hear your answer to the question above in the comments below.
P.S. I’m not saying generosity is bad or that you should not be generous. I’m saying that too much focus on generosity may not be the best way to achieve what you really desire.