Personal training is more than likely one of the top revenue streams for your business. It is a great way for your Coaches and your business to bring in a little extra money. However, determining a price point for your private sessions is where the water can become murky.
At Solace New York in Manhattan, co-owner Tristan Keeffe explained it was difficult early on to determine the worth of a Coach’s time. Some were more experienced in certain areas and deserved to be paid more.
“We have a diversity in our coaching caliber — from guys at the top of the industry down to people new to coaching,” said Keeffe. “So when it came down to private training sessions, initially we sold by the training directly then had a split system on the backend to pay it out. Private training in New York is roughly around $150 to start out with. We would pay about $85 to the Coach.”
After the owners realized they were spending a lot of time managing and splitting up the pay structure for personal training, they decided a change to the system was necessary. In their new set up for private sessions, Solace gives the Coaches the ability to set their price points after paying the owners a fee for using the space.
“We sort of switched up our method and said, ‘You know what? Let’s simplify to incentivize the Coach themselves,’” said Keeffe. “We settled on a flat $30 fee that the Coach pays Solace and then they can charge whatever they want. That allows the flexibility for someone to charge a little less or give out bulk discounting. Or they can say their rate is $200 an hour, and it allows a lot more flexibility for them to determine who they want to coach and what they want to charge without us getting in the way of that or trying to get in their pocket.”
With a living wage rate of around $100,000 dollars in New York City, trying to pay their staff a decent rate is difficult for Solace. Allowing the Coaches to set their own price points for private sessions is a great incentive for the Coaches and is another incentive for them to stay at Solace.
“That was one of the challenges we faced as a new gym, was being able to afford talent and then being able to pay them a wage that makes them happy,” said Keeffe. “The way we tried to combat that really was we paid an hourly wage as much as we could when it came to classes, but the way we attempted to make up the rest of that salary came around by providing them exposure to other revenue streams: private training and events. That was a really critical piece to their compensation packages that we put together for our Coaches.”