Diploma presentation “Improvement of pricing policy” Written by Sidlyk Dmytro Oleksandrovich Scientific supervisor: Garmider L. D.

The purpose of the diploma research is to examine the system of pricing and how these pricing strategies are applied in the fitness center “Energy Fit”. According to the purpose, the following tasks were set in the diploma project: To define methodological aspects of pricing and pricing strategies; To find the most appropriate strategies for different market segments; To study the existent pricing strategy at the enterprise; To analyze the current pricing policy of the fitness center “Energy Fit”; To find new ways for pricing policy improvement; To develop new pricing policy for entering the new price segments.

General theoretic aspects

The main types of pricing strategy based on product characteristics New goods   Cream compilation Posh prices Following market leader Entering the market Costs recovery Modernized goods Variable decreasing prices Strategy for individual segments Saving price level with increasing consumer properties of goods Linked pricing Goods that sales as a traditional Flexible pricing The strategy of lowering prices for complementary goods Long prices strategy

Economical activity of fitness center “Energy Fit”

Fitness center structure Teaching staff Administration Service staff Technical staff Educational work with clients Householding Providing throughput abilities of fitness club Care about building, equipment, trainers The development of new effective programs Managment Information coordination Fixing Implementation of pedagogical control Marketing Tools for quality of service Technical care

Market shares on fitness in Dnipropetrovsk

SWOT analysis Strengths Weaknesses Opportunities Threats A lot of space Modern equipment Ability to do martial arts Parking zone Affordable prices Fitness experience High quality service Weaknesses Rooms does not meet fitness center standarts Expensive rent Strong competitors Weak creativity Not first lessons for free Opportunities Attraction of additional equipment for advanced features Esthetical creation Involvement of fitness experts Increasing professional level of staff Creation of new srvices according to customer requests Entering new market segments Threats Losing clients because of competitors Increasing rent Loss of population interest in sports Seasonality of demand Losing regular clients Decreasing of peoples ability to pay Changing needs and demands of buyers in the market

Energy Fit gym prices in comparison to other fitness centers in Novomoskovsk

20% price increase

Seasonal and daily dynamics of the demand for fitness services

CrossFit equipment Total Investments: $817 (9 793 UAH.) Producer Name Price Roguefitness. (USA) Rogue Power Bar $275.00 Rogue S-25 Fat Boy Sled $115.00 Dynamax Hoover Medicine Balls - 10" $42.00 Rogue Training LB Bumper Plates $126.90 Rogue "Kilo" Bells - American Made $40.95 Knotted Climbing Rope $133.05 Rogue Wood Plyoboxes $65.25 Rogue Gymnastic Wood Rings $60.00 Total Investments: $817 (9 793 UAH.) Value of potential clients: 30 Price: 400 UAH per month Income: 12 000 UAH per month

Price calculation for entering to new segment (Costs recovery) Average client pays: 300 UAH per month The total value of all costs for service: 300 000 UAH per year Average visiting: 500 people a day Murk-up: 30% Accordingly, the annual cost of cards per person: 300 000/500 = 600 UAH. The minimum annual cost of the card: 600 * 1.3 = 780 UAH.

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