Hey Team,
Hoping all is well. Today is another one of those emails I hate writing. I have been told repeatedly over the past couple of weeks that because “EVERYONE” already knows about this (refer here for info: https://round1fitness.com.au/round-1-update-march-2024-pricing-changes/) this should be an ‘easy’ email…it doesn’t feel easy.
As noted back in February, we have really been hit pretty hard by price rises over the past 12-months in particular – not least of which was a large rent increase (> $1000 per week) back in September 2023. As a result of that – and a review of our business by our accounting partners when we were told – “I really don’t understand how you continue to offer the level and variety of services you do at the current price point based on the other examples I have found in the market place. That said, based on the cost pressure you are currently experiencing if you want to continue investing in your gym and further improving your offering to members, you simply MUST increase your prices” – we came up with the following plan (which we published in February):
| Date | Details: Boxing | Details: Boxing and Strength |
| March 1st, 2024 | Move all “Mates Rates” clients to “2022 STANDARD” pricing: $30/week. | Move all “Mates Rates” clients to “2022 STANDARD” pricing: $37.50/week. |
| These prices have been paid by all NEW clients for 2-years now and whilst we are (of course) grateful for our long-term clients and in particular the way they rallied behind us during the COVID Shutdowns, returning to a model where all clients pay the same rate is the fairest method to price our services. | ||
| June 1st, 2024 | Price increase: All Clients
Boxing: $32.50/week |
Price increase: All Clients
Strength + Box: $40.00/week |
| September 1st, 2024 | Price increase: All Clients
Boxing: $35.00/week |
Price increase: All Clients
Strength + Box: $42.50/week |
* FIFO and Family package pricing will also be increasing by similar/equivalent amounts.
Obviously we proceeded with phase#1 of the plan back in March – and with June now looming, it is time for the second phase of these changes. The price changes will again be minimal to and I have tried to document them PRECISELY in the following table INCLUDING the EXACT details of what your new membership price will be (whether you are on a fortnightly or monthly package).
That said, please understand that I represent ALL Round 1 prices using a WEEKLY price base because this is the ‘industry norm’ in 2024 – some people want to compare pricing with other facilities hence showing the weekly price is important…further, the fortnightly and monthly prices are directly taken from the WEEKLY rate – there should be NO SURPRISES.
ALL prices are based on these:
– Fortnightly rate = [Weekly Rate] x 2
– Monthly rate = [(Weekly Rate x 52) / 12]
– Annual rate = [Weekly Rate x 52]
| Membership | Current Weekly | New Weekly | ACTUAL BILLING RATE | |
| Fortnightly | Monthly | |||
| Boxing | $30 | $32.50 | $65 | $140 |
| Boxing FIFO | $21.25 | $22.75 | $45.50 | $97.50 |
| Boxing Family | $57.50 | $61.50 | $123 | $262.50 |
| Strength | $37.50 | $40 | $80 | $172.50 |
| Strength FIFO | $26.25 | $27.75 | $55.50 | $120 |
| Strength Family | $70 | $74.00 | $145 | $310 |
Prices are essentially worked out as follows:
-Strength memberships are “approximately” 25% more than boxing memberships.
-FIFO memberships are “approximately” 70% of the equivalent ‘Standard’ membership.
-Family memberships are “approximately” a 10% saving on the cost of 2x adult memberships – but also give 2x u18 athletes resident at the same address the opportunity to train as well.
I’m not sure any of these metrics/mechanisms are perfect but hopefully the increases are transparent…remember as well, whilst the vast majority of this is genuinely ‘keep the lights on’ price changes, we are continuing to grow and improve. There will be 6x brand new rowers in the boxing gym soon – as well as the upgraded rubber floor – and the planning and prep for the recovery centre remains on-track…
I really hope that each of you will continue to trust us with your fitness journey and will reach out if you have any questions about any of this stuff (or the classes, programming etc)…I do hope you understand how much I appreciate each and every one of you and just remind you that if you ever need any help or assistance, well, all you need to do is reach out and ask!
See you in the gym,
Michael
