Lesson 9: Pricing for Profit
In Lesson 5 we set initial prices for FitSite plans. Now we refine the pricing strategy with techniques that increase revenue, encourage upgrades, and reduce churn.
Where We Left Off
FitSite has plans, templates, checkout, branding, and onboarding in place. The initial pricing was $49/$99/$199 per month. Now we make that pricing work harder.
Pricing Principles for Niche Platforms
Price on Value, Not Cost
Your hosting costs might be $5-$15 per customer site. That does not mean your price should be $20. You are not selling hosting. You are selling:
- A professional fitness website that would cost $2,000-$5,000 to build custom
- Ongoing maintenance, updates, and security they do not have to think about
- Niche-specific features that generic builders do not offer
- The credibility of a platform built for their industry
Price based on the value you deliver, not the cost to deliver it.
Anchor to Alternatives
When a fitness studio owner evaluates FitSite, they compare it to:
- Hiring a web developer: $2,000-$5,000 upfront + $50-$100/month maintenance
- Wix/Squarespace: $16-$45/month but no fitness-specific features, they build it themselves
- Doing nothing: Lost members who cannot find them online
At $49-$199/month, FitSite is cheaper than a developer, more capable than generic builders, and infinitely better than no website.
Implementing Price Variations
Annual pricing encourages commitment and reduces churn. Navigate to each plan's Price Variations tab and add annual options:
| Plan | Monthly | Annual (per month) | Annual Total | Savings |
|---|---|---|---|---|
| Starter | $49/mo | $39/mo | $468/year | 20% off |
| Growth | $99/mo | $79/mo | $948/year | 20% off |
| Pro | $199/mo | $159/mo | $1,908/year | 20% off |
Add a Period Selection field to your checkout form so customers can toggle between monthly and annual billing. See Checkout Forms.
Why Annual Pricing Works
- For you: Upfront cash, lower churn (customers who pay annually are less likely to cancel mid-term)
- For them: Real savings, budget predictability
Setup Fees
Consider a one-time setup fee for plans that include hands-on configuration:
- Starter: No setup fee (remove barriers to entry)
- Growth: $99 setup fee (covers custom domain configuration and initial consultation)
- Pro: $299 setup fee (covers multi-location setup and onboarding call)
Configure setup fees on each plan's pricing section. See Creating Your First Subscription Product for details.
Trial Periods
Offering a trial reduces signup friction but introduces the risk of non-conversion. For FitSite:
- 7-day free trial on Starter plan only
- No trial on Growth and Pro (these customers are more committed and expect to pay)
Configure the trial on the Starter plan's pricing section by enabling the Offer Trial toggle and setting the duration to 7 days.
Making Trials Convert
A trial only works if the customer experiences value during the trial period. Your onboarding sequence (Lesson 8) is critical here -- the welcome emails should be timed to drive engagement within the 7-day window.
Discount Codes
Create strategic discount codes for specific purposes:
- FITLAUNCH -- 30% off first 3 months (for launch promotion)
- ANNUAL20 -- 20% off annual plans (if not already discounted)
- REFERRAL -- 1 month free (for customer referrals)
Navigate to Ultimate Multisite > Discount Codes to create these. See Creating Discount Codes for the full guide.
Discounts should be strategic tools, not permanent fixtures. If everyone gets a discount, it is not a discount -- it is your real price. Use them for specific campaigns, referrals, and time-limited promotions.
Tax Handling
If you operate in a jurisdiction that requires tax collection:
- Configure tax rates in Ultimate Multisite > Settings > Taxes
- Apply tax categories to your plans
- Ensure invoices display tax correctly
See Tax Handling for detailed configuration. If you serve customers internationally, consider the VAT addon for EU compliance.
Reviewing Your Pricing
After launch, revisit pricing quarterly. Look at:
- Conversion rate by plan: If Starter converts well but Growth does not, the gap between them may be too large
- Upgrade rate: If few customers upgrade from Starter to Growth, the Growth plan may not offer enough additional value
- Churn by plan: If annual customers churn less, push annual pricing harder
- Competitor pricing: What are alternatives charging? Are you positioned correctly?
The FitSite Network So Far
FitSite Network
├── WordPress Multisite (subdomain mode)
├── Ultimate Multisite (configured + branded)
├── Platform Domain (fitsite.com + wildcard SSL)
├── Site Templates (Studio Essential, Gym Pro, Fitness Chain)
├── Products
│ ├── FitSite Starter ($49/mo or $468/yr) + 7-day trial
│ ├── FitSite Growth ($99/mo or $948/yr) + $99 setup fee
│ ├── FitSite Pro ($199/mo or $1,908/yr) + $299 setup fee
│ └── Order Bumps + Discount Codes
├── Checkout Flow (with period selection toggle)
├── Branding (login, dashboard, emails, invoices, marketing site)
├── Customer Onboarding (Quick Start, emails, help resources)
├── Pricing Strategy
│ ├── Annual discounts (20% off)
│ ├── Strategic setup fees
│ ├── 7-day trial on Starter
│ ├── Discount codes for campaigns and referrals
│ └── Tax configuration
└── Ready for launch (next lesson)
What We Built This Lesson
- Annual pricing with 20% discount to encourage commitment
- Setup fees on higher tiers to cover onboarding effort
- A trial period on the entry-level plan to reduce signup friction
- Strategic discount codes for launch, referrals, and campaigns
- Tax configuration for compliant billing
- A pricing review framework for ongoing optimization
Next: Lesson 10: Launch Day -- the pre-launch checklist and going live.