The 2026 Guide to Membership Pricing Strategy

There’s a fine line between pricing for profit and pricing for value, and every membership-based business walks it daily. Price too low, and you risk undervaluing your services (and overworking your team). Price too high, and you scare off potential members.

For gyms, martial arts schools, and other membership-driven organizations, your pricing strategy is as much a psychological decision as a financial one. It influences how people perceive your brand, how long they stay, and whether they tell their friends about you.

With 30 years in the game, we’ve seen a thing or two and have helped hundreds of membership-based businesses find their ideal balance between growth and retention. In this guide, we’ll break down what goes into an effective membership pricing strategy, how to test and evolve it, and the biggest mistakes to avoid along the way.

The Psychology Behind Membership Pricing

Your price tag does more than cover your overhead costs, it shapes your member’s overall perception of you. In behavioral economics, this is called “perceived value.”

When potential members see your pricing, they’re making a split-second decision:

“Is this worth it?”

And we want them to say: “Heck yes!”

However, that judgment depends on more than the number, it’s actually more about how your pricing is presented in the first place.

Clear as mud so far? We get it. Let’s dig a bit deeper into the perceived value versus the actual cost.

Perceived Value vs. Actual Cost

In this economy, you might be surprised to hear that in the case of membership pricing, people these days rarely choose the cheapest option; they choose the one that feels like the best value.

A $139/month gym membership might seem expensive until you frame it as access to something like unlimited classes, personalized coaching, and a supportive community. Suddenly, it’s not a price it’s a lifestyle upgrade that folks are excited to throw their money at.

Here’s an example:
A yoga studio could float the idea of two descriptions for its unlimited membership.

• Version A: “$139/month unlimited classes.”
• Version B: “Join unlimited classes for less than $5 a day.”

Version B would be more likely to increase conversions, simply by reframing the value. $139 sounds like a lot, but $5 a day for a yoga class? That’s less than a standard take-out coffee.

Anchoring and the Power of Tiers

Comparing and contrasting is human nature. When faced with multiple options, people don’t evaluate prices in isolation, they compare them. This is known as the anchoring effect.

When you offer multiple tiers (e.g., Basic, Plus, Premium), the higher-priced option anchors perception. Even if most people choose the middle tier, your overall average revenue rises because you’ve set context for what “premium” looks like.

For example, a martial arts academy might offer:

• Basic Plan – $99/month (2 classes per week)
• Pro Plan – $149/month (Unlimited classes + open mat)
• Elite Plan – $199/month (All access + private session/month)

Even if 60% of the time your members choose the Pro Plan, the Elite option increases the perceived value of all tiers and provides an easy upsell opportunity in the future.

Related read: Tiered Pricing: How to Build Packages That Sell Themselves

Transparency Builds Trust

Hidden fees, confusing add-ons, or fine print drive members away faster than a newbie realizing burpees are part of the warm-up. Studies show that consumers are more likely to trust and commit to a recurring payment when pricing is clearly explained upfront (Entrepreneur).

So, what does this mean? It means keep things simple. Name your plans clearly, explain what’s included, and show side-by-side comparisons so members can make quick, confident decisions.

Choosing the Right Membership Pricing Model

We’re going to be honest with you, there’s no one-size-fits-all approach when it comes to choosing the right membership pricing model for your gym, studio or club. The best pricing strategy depends on your audience, your offerings, and your business goals. Here are a few proven models we see working with our clients:

1. Tiered Pricing (Good, Better, Best)

Tiered pricing remains the gold standard for gyms and studios. It gives people choice, supports better upsells, and naturally splits up your audience into clean, easy to manage segments. Let’s analyze this concept through an example.

Let’s pretend a pilates studio introduced three tiers: “Starter,” “Commit,” and “Transform.” Their mid-tier (Commit) became the most popular, but the top-tier option drove 25% higher average revenue per client than before.

Why did they drive 25% more revenue per client? It could be because of a few things.

Some Clients Will Always Choose the Best

There’s a segment of every audience that wants the highest level of access, service, or prestige even if they don’t strictly need it. When you offer a “Transform” tier, those “premium buyers” finally have an outlet for that motivation.

So while fewer people may choose the top tier, those who do spend significantly more can raise your average revenue per client overall.

Better Framing Unlocks Perceived Value

The tier names (“Starter,” “Commit,” “Transform”) imply a journey of growth. That creates emotional buy-in. Members who choose “Transform” may feel like they’re making a statement: I’m serious about this. I’m ready to invest in change.

That emotional framing turns pricing into identity and identity-based purchases tend to be stickier and higher-value.

Upsell Opportunities Naturally Increase

Top-tier members usually receive perks like personal sessions, early booking, or exclusive access. Once someone’s in that tier, they’re more likely to:

• Stay longer (lower churn)
• Add on extra services or products
• Refer like-minded high-value clients

All of which increases revenue even if only a small percentage choose the top tier.

Pro Tip: Design tiers that feel aspirational but attainable. The last thing you want is to make anyone feel excluded.

2. Usage-Based Memberships

Some members prefer flexibility over unlimited access. Offering a limited-use plan (e.g., 8 classes/month or pay-per-session credits) can capture those hesitant to commit without devaluing your reputation.

This is especially effective for martial arts schools or group training gyms that see seasonal or casual attendance.

Did you know? You can use automated reminders like those found in our Member Management Software to encourage members to use their remaining sessions. You’d be surprised how much a little nudge can increase member satisfaction and renewal rates.

3. Premium and All-Inclusive Tiers

Adding a premium membership tier can be used for more than just increasing overall revenue, it’s extremely effective at deepening relationships with your members. These tiers often include perks like private sessions, exclusive events, or branded merchandise. Give the people what they ask for.

Example: A fitness studio could launch a “Platinum” tier that includes a quarterly 1:1 session, a branded hoodie and water bottle, and exclusive early booking access to all classes, events and equipment rentals.

Related read: Membership Business Ideas for Sustainable Growth

How to Test and Adjust Pricing Over Time

Pricing shouldn’t be a “set it and forget it” decision. The strongest brands test, learn, and refine their approach regularly to keep things new, fresh, and most of all, relevant to their members’ needs. Here’s how to test and adjust your pricing over time more effectively:

1. Track Member Behavior and Retention

Use your membership platform’s analytics to see how different pricing options affect churn, upgrades, and renewals.

Example metrics to monitor include:

• Average revenue per member (ARPM)
• Churn rate (member cancellations)
• Upgrade/downgrade rate between tiers

Here’s an important tip, if members consistently downgrade, it might mean your top tier isn’t delivering enough perceived value or that your middle tier is priced too close to it.

2. Ask for Feedback

Your members are your best data source. Short surveys or in-person conversations can uncover valuable insights:

“If we added X, would that be worth an extra $10 a month to you?”

You’ll be surprised how often members are willing to pay more as long as they understand what they’re getting.

3. Experiment with Promotions

Try short-term tests like a limited-time 10% discount or “Founding Member” pricing for new launches. From there, measure not just sign-ups, but retention over the following months. Sometimes a small discount upfront leads to much greater lifetime value (LTV).

Related read: Subscription vs. Membership: Which Model Builds More Loyalty

Avoiding Common Pricing Mistakes

Even experienced business owners can get tripped up by pricing pitfalls. Here are three to watch out for:

1. Overcomplicating Your Tiers

If potential members need a spreadsheet to compare your plans, they’ll leave, and leave in droves. Keep it to three tiers maximum, and highlight the most popular option in the most visually appealing way as possible.

2. Undervaluing Your Services

Don’t compete solely on price. Compete on value, community, and outcomes. A $50 difference means little when the experience feels like it is worth ten times more.

3. Ignoring Renewal Incentives

Retention is where profitability lives. That’s why it is important to regularly offer renewal perks like a free upgrade month or loyalty discounts to keep members invested and coming back.

Find the Perfect Pricing Sweet Spot with Member Solutions

At Member Solutions, we know that finding your perfect membership pricing strategy takes a mix of data, intuition, and the right tools.

Our all-in-one membership management platform helps you:

• Track and analyze membership data in real-time
• Monitor tier performance
• Automate billing, renewals, and communication
• Reduce churn and boost member satisfaction

Take the guesswork out of pricing so you can focus on growth, not spreadsheets with Member Solutions. Let’s find that balance together.