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How we helped LadiesGym achieve 35% revenue growth through pricing optimization?

by
Krzysztof (Kris) Szyszkiewicz
in
Partner & Co-founder

Client

LadiesGym is a fitness center network dedicated exclusively to women. Women who want to prioritize their health, appearance and achieve personal physical goals. The brand emphasizes individualized approaches and motivation to ensure regular training, while creating a comfortable environment.  

Gyms are located in Warsaw and they offer a wide range of fitness services. In this community, members can feel valued, supported and empowered.

We independently developed pricing tiers for our services, and over time, we noticed our fitness centers were reaching full capacity. However, despite offering extensive services, our revenue wasn’t aligning with the expectations. Our initial goal was to increase profitability by 20 percentage points. To achieve it, we have decided to reach out to the Valueships team for assistance with growth. We wouldn't have managed it so well without Damian Foks and his team. They conducted a thorough analysis and redesigned our packages with professional precision. Damian’s approach was to focus on maximizing our brand’s revenue while delivering more comprehensive services to our clients. The results went well beyond our expectations. Profitability increased by close to 30 p.p. It was a bull's-eye!

Martyna Miciukiewicz, Managing Director

Situation

Our collaboration began when LadiesGym’s leadership team recognized that their current pricing model was not reflecting the true value of their services. Despite high occupancy rates, the gym was not fully capitalizing on its potential revenue.

Goal

They sought to align their service offerings more by enhancing profitability through optimized pricing, along with in-depth market exploration.

Approach

In this case, we started with the focus on external market data to precisely define an optimal pricing strategy and service differentiation. Our approach involved:

  • research, including PSM (Van Westendorp Price Sensitivity Meter) to determine the acceptable price range for a product by asking customers four several questions.
  • conjoint analysis-statistical technique used to understand how customers value different features that make up a product or service
  • concept testing-a market research method (surveys, interviews etc.) used to evaluate customer reactions to a product idea before it is introduced to the market

These methods allowed us to identify key price points and understand consumer preferences, while at the same time test the appeal of new service concepts. We were able to refine the pricing structure and develop service differentiation.

Van Westendorp Price Sensitivity Meter

One of our major accomplishment was establishing expanded pricing tiers from 3 to 4 which led to differentiate services and capture premium and basic segments. Our goal was to boost sales of complex packages and it reflected in growth of 20%.  

We also implemented 12-month memberships for the first time, and due to their success, we have consequently increased their number.

After just one month we were able to observed first huge results. Our strategy reflected in Monthly Recurring Revenue (MRR) growth by 30% while. What's more, the conversion remained at a similar level.

As our partnership deepened, Valueships transitioned from a pricing advisor to a fundamental strategic partner. We noticed that the client had untapped potential in business measurement, with manual calculations and untracked metrics that hindered quick decision-making. At Valueships, we identified key areas where analytics could add value and proposed developing internal analytics. After creating a process map, we uncovered opportunities for quick wins and cost-saving optimizations, which will streamline operations and reduce tool usage.  

Through regular monthly meetings, we fine-tuned the pricing strategy and addressed emerging challenges, ensuring that the gym remained on track with its goals and continued to optimize its business model. For instance we have implemented new professional services such as group classes or physiotherapist consultations to boost client’s satisfaction.

Results

As the result of our collaboration, taking into consideration just few months, Ladies Gym brand reflected in:

  • 30% growth in MRR (Monthly Recurring Revenue) .
  • Implementation of 12-month memberships reflected in huge customer commitment and it’s share of 40% after few months  
  • Conversion remains almost the same
  • Increase share of higher packages from 40% to even 75% resulting in higher ARPU
  • Expanded pricing tiers from 3 to 4 to differentiate services  
  • Increased monetization of the services such as group classes & physiotherapist consultations

If you’ve made it to the end of this study, you’re either interested in pricing or your business is struggling with proper pricing. Did we guess right? Don’t wait – schedule a free consultation with one of our Partners to gain deeper insights into the world of pricing. If not for your own curiosity, do it for your brand!

Quick summary

30% growth in MRR

Increase share of higher packages from 40% to even 75% resulting in higher ARPU

Conversion remains almost the same

Interested in creating a lasting impact for your company, too?

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