Q1.Should gyms take a price or non- price competition focus? Justify your answer. 1
Q2.Outline two internal (company) and external (market) that would impact on pricing gym membership in your location 2
Q3. How would you as a gym manager overcome the problem of high membership churn?. 3
Non price competition focus is a pricing scheme that determines the cost of goods and services using the demand of the market. Suppliers do not have much control of the market due to the presence of various competitors. Quality is not a major factor when it comes to pricing in that the consumers opt to choose the lowest services provided. The aim in this type pricing competition is to receive the highest amount of sales so as to improve profits. Suppliers thus price their goods in accordance to the amount of profit they would like to make. These prices are compared to other competitors so as to derive the appropriate cost of the commodities (Ascola, 2011).
Price competition focus on the other hand controls the cost of the goods and services provided in the market. The market is made up of leaders and followers. Market leaders have the ability to determine the cost of goods depending on the quality of their products. These goods however have to meet some standards so as to be received positively by the market. This form of pricing considers the amount of money put into the production of the final product (Hooley, Piercy &Nicoulaud, 2008).
The analysis of the two factors displays that each price competition focus is designed for a particular service. A gym is essential to the modern market due to the demand for a healthy lifestyle. The demand for gyms continues to rise due to the demand for a healthier lifestyle in society. This places pressure on the market suppliers to have competitive prices so as to increase the number of consumers. Most communities have in place several gyms that provide the same type of services. This creates a market environment that prices its services according to that of their competitors. This means that prices are similar in different establishments due to the need to maintain customers. The use of price competition is not recommended because of the nature of the service provided. The use of non price competition is thus ideal for determining the price of a gym (Hackett, 2011).
One of the internal factors that would impact on the pricing of the gym membership in my location would be the qualification of the staff. Employees are an essential aspect of any company. Their contribution is ideal for the success the company due to the provision of services that attend the gym. Employees impact significantly on the pricing of the gym due to their relationship with the clients. Staffs that place priority on the needs of the clients generate the inflow of more clients which reflects on the inflow of the clients. The increased inflow of the clients determines the pricing dynamics of the gym (Eekhoff, 2003).
Another internal factor that impacts on the pricing of the gym is the management of the establishment. Proper management entails the smooth running of the gym programs in relation to the financial aspect that comes with the trade. Managers create an environment suitable for both the employees and clients making both parties benefit from the company. Management ensures that the prices are reflective of the type of services provided by the company. Proper management calls for the increased cost of services due to the quality of the services provided (Symeonidis, 2002).
One of the external factors that would impact on the pricing of the gym pricing is the prices of the competitors. Competition is a major determining factor of any market. Companies come up with prices through the analysis of the pricing of their competitors. If neighboring gyms pose as a threat to the success of the gym, the company is forced to compete through the reduction of some of the costs (Besanko, 2010).
Another external factor that would impact on determining the cost of the services is the influence of the legal and local authorities. All communities have rules and regulations that should be followed in all aspects of life. One of the areas of concern is the opening and management of business. Companies should ensure that all their activities are reflective of the prices determined by the government. This includes adhering to subsidized prices of goods and services in the market. Local authorities therefore play a significant role in the pricing of the gym prices (Fifield, 2007).
High membership involves the registration of more than the required number of customers in a company. The overage of members attending a gym would seem like an advantage to the owners of the establishment due to the increased sale of the services. This however is not the case in that overcrowding of customers reduces the quality and productivity of goods and services. As a gym manager I would look for alternative ideas of solving these issues so as to maintain the required standards. One of the ways that I would overcome this problem is by monitoring the rate of registration on a monthly basis. This can be done by limiting the amount of registrations when the rate of interested consumers increases. One of the ways of limiting the registration is by increasing the charges for new entrants. This should be done carefully so as not to chase away future business (Drury, 2008).
High membership can also be controlled by ensuring that the space provided by the gym fits the number of members registered. The gym can accommodate a certain number of people during each session of the workout. If the space of the customers begins to become compromised managers are forced to observe the visiting patens of the customers. Establishing the peak hours is essential for the organization of the population of the gym. This can be done by studying the time that members are most active and looking for ways of controlling the inflow. The opposite should be done for the hours that are not competitive so as to gear some of the clients in the peak hours to change their schedule. This will ensure the proper regulation of the inflow and outflow of the members of the gym creating the proper management of gym membership.
In order to monitor the influx of new and repeat customers, the management can choose to partner with another gym so as to accommodate their extra customers at a commission. This would reduce the congestion in the gyms and the profit margins of the company (Gwartney, 2009).
Ascola, Drexl, J. (2011). More common ground for international competition law?. Cheltenham: Edward Elgar.
Besanko, D. (2010). Economics of strategy. Hoboken, NJ: John Wiley & Sons.
Drury, C. (2008). Management and cost accounting. London: Cengage Learning EMEA.
Eekhoff, J. (2003). Competition policy in Europe. New York: Springer.
Fifield, P. (2007). Marketing strategy: The difference between marketing and markets. Amsterdam [u.a.: Butterworth-Heinemann.
Gwartney, J. D. (2009). Economics: Private and public choice. Australia: South-Western Cengage Learning.
Hackett, S. C. (2011). Environmental and natural resources economics: Theory, policy, and the sustainable society. Armonk, NY: M.E. Sharpe.
Hooley, G. J., Piercy, N. F., &Nicoulaud, B. (2008).Marketing strategy and competitive positioning. London: Prentice Hall/Financial Times.
Symeonidis, G. (2002). The effects of competition. Cambridge (Mass.: MIT Press.
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
There is a very low likelihood that you won’t like the paper.
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more