Decide on pricing.

To complete this step take in consideration the following 5 things:

1. Median income,
2. What you are charging for the club,
3. What is Weight Watchers charging,
4. What is Old Navy (or a dept store paying their people, and who is going to be doing the
selling?
5. The culture/philosophy of the club

For example: An area that has a 30K median income, a club that is charging 19 a month on
average, Wt Watchers is charging $11 bucks a week, Old Navy pays 7.50 an hour and the sales
people are employees who are not invested then the following is what we would suggest:
Pre Grand Opening: (1st 3 income streams)
• 99 down and 69 a month for 12 months and 49 a month for 24 months
Grand Opening (4th income stream)
• 149.50 down and 75 a month for 12 months and 55 a month for 24 months
Normal (once GO is over)
• 299 down and 79 a month for 12 months and 59 a month for 24 months
Once we are out of GO we will discount the down payment but the dues stay the same.

For example: An area that has a 80K median income, a club that is charging 45 a month on
average, Wt Watchers is charging $15 bucks a week, Old Navy pays 9.00 an hour and seasoned
sales people will be selling then the following is what we would suggest:
Pre Grand Opening: (1st 3 income streams)
• 99 down and 89 a month for 12 months and 69 a month for 24 months
Grand Opening (4th income stream)
• 149.50 down and 95 a month for 12 months and 75 a month for 24 months
Normal (once GO is over)
• 299 down and 99 a month for 12 months and 79 a month for 24 months
• Once we are out of GO we will discount the down payment but the dues stay the same.

Decide on pay including commission structure. Once you have decided on your price then it’s easy
to come up with a pay structure.

• Price needs to be decided first in order to figure payroll. To see highest profit margins,
then payroll percentage needs to be less than 25% (29% at the highest.) Payroll percentage
is figured: Base + Commission/ Gross.
• Remember pay your team members where you want them to focus! Typical club sales are a
order taking situations. Pay less for club memberships and more for any ancillary
programs. It takes effort to learn the new skills of a higher ticketed sale.

The following examples are based on the club price of $41.00 a month:

Option 1: A base plus commission:

Pre Grand Opening

12 months 24 months
Non club member Charge 89 69
Club member charge the difference (41) 48 28
Commission for Non club member 69 89
Commission for Converting club memb to TH 28 48

Grand Opening
12 months 24 months
Non club member Charge 95 75
Club member charge the difference (41) 53 33
Commission for Non club member 75 95
Commission for Converting club memb to TH 33 53

Normal
12 months 24 months
Non club member Charge 99 79
Club member charge the difference (41) 58 38
Commission for Non club member 79 99
Commission for Converting club memb to TH 38 58

Option 2: Base + commission:

Escalating scale: point system: For every 12 month sold 1 point is earned and for every 24 months sold 2
points are earned.

Our business models are based on 3 sales a week (13 for the month), 5 sales a week (22) for the month,
10 sales a week (40 sales a month.)

Example Point System:

0-26 points: 50 bucks

27 – 44 points: 60 bucks
45 – 68 points: 70 bucks
69-80 points: 80 bucks
80 points +: 90 bucks

This scale starts over monthly and allows for more commission when you work harder!

Option 3: Straight Commission:

1-5 Sales a week: 119.00
Once 6 sales are hit for the week: 145.00 and it’s retroactive back to the first sales.

This scale starts over weekly, allows for more commission when you work harder and is fulfilled by
seasoned/owner minded team members!
Culture/Philosophy of the Club: It is understandable that price and pay needs to fall in line with the
culture/philosophy of the club.

Example Pricing: If the club sits in a median income of 50K, Wt Watchers charges $12.00, Old Navy
pays $8.00 an hour and yet your club due is an average of $99.00 a month because it’s an upscale culture,
then the pricing for TS needs to fall in line. The normal pricing may be 169 for 12 month
commitment/149 for 24 month commitment.

Cash Culture: If the club typically collects cash, then pricing and pay needs to fall in line with the
culture.

High Bases Culture: If the club’s culture/philosophy typically pays high bases, then it’s understandable
that pay will fall in line with that. We do not recommend high bases for this business model. We believe
in high pay structures with lower bases. This position has a great opportunity for someone to run their
own business without risk. Money motivates, therefore we put the potential of money as a result of more
sales. If there is a high base and low commission (or zero commission), then expect a low number of
enrollments.

Example Pay based on Culture/Philosophy

Option A: Order Takers: The club manager set 50 corporate accounts in the area. Most were set up
where the company pays for the employees. The company’s employees come to the club and lay down
$30.00. The club generates about 300 club sales a month due to the manager’s efforts. The club pays a
low commission.

Option B: The sales people generate their leads, appointments and sales. Sales are generated 50/50
club/sales person. This calls for a high pay structure made up of low bases (or zero base) and high
commission structure.

• Note: All fore mentioned examples are meant to be guidelines to help the licensee decide how to price and pay
for their situation.