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Show Highlights

This year at the Float Conference, Derek hosted a marketing forum and took questions that he wanted to share with everyone here.

This episode focuses on how Float On handles memberships, including tiered memberships and how to gracefully transition from one type of membership to another.

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Greg: So I’ve been using the tiered membership style since I opened two and a half years ago.

Derek: Okay.

Greg: Since about two years ago I’ve been wanting to switch down to the single type of membership, and just wondering if you, especially Derek since you guys did it after six years, can provide ideas on how to do that? I think I have an email from you guys from when you did that.

Derek: Right.

Greg: Yeah, just ideas for switching that.

Derek: Anytime you have to bring news to people, and this wasn’t necessarily bad news. This was news of, you’re not gonna have to pay $110 a month, you’re now gonna have to pay $54 a month. If it was bad news like a price hike or anything like that, that’s different. If you’re raising your membership prices, you really wanna try to spin it into a celebration because you’re gonna get upgrades and stuff like that. But if you’re actually just going to laterally move from breaking down what your lowest package is, let’s say, or maybe picking a price point that benefits the center. We made sure, when we picked our price point, if anybody was going to be paying more at that, we grandfathered them in.

So that was one of the key things that when we did this, it’s like, “Hey, we’re switching up our memberships.” We added some things we never added before, so it created this newness, this excitement. We call it unlock and limited. So it you float six times that month at your membership rate of $54 per float, you can float the rest of the month for free.

And so that was a key thing that people like, it kind of gamified it almost. It kind of made that like, we have a dozen people every month floating unlimited, and they’re loving it, and those are your best floaters and they’re actively talking about it. So creating little extra things is what we did. Again, making sure all of your existing members never pay a cent more. So grandfather the old rates in. Like, there’s some people still paying $35 a float for their membership. But we wanna take care of those people ’cause they’ve taken care of us.

There is some growing pain in it. I’m not gonna lie. You’re gonna watch these numbers, and you’re gonna watch this monthly recurring revenue of X number of dollars, dramatically dropped to if they all floated once a month. And then you’ll watch that grow back up as they continue their habits they’ve already had. And you’re gonna have more people excited. So yeah, some people may float less, but it’s offset by more people floating, and more people floating at your center, as we all know, is great for word of mouth.

Gloria or Cindy, you wanna add anything to what you would do in a situation where you have to go from one structure to another?

Gloria: Yeah, we did, again, fairly early on but we did have a handful of members in each tier. I would just say rip the Band-Aid off and give them grandfathered pricing and really, figure out how many does it affect. Most of the members are probably in the first year anyway, which is gonna be in line with whatever you probably stick with. So does that affect 30 members, 20 members. I mean, if it’s under 50 people, you might want to call every one of them. But if it’s thousands, then yeah, do a mass email. Right? But yeah, I’d say rip the Band-Aid off. It’s so much easier.

Greg: So did you guys just send the same email to your entire mailing list? Or did you have an email towards just your members?

Derek: Right.

Greg: Did you make phone calls to every member?

Derek: Right. We segmented out. So you’re gonna have a different conversation with the people that their lives are changing more, and then those customers who aren’t members, you’re gonna have a new, exciting conversation. Floating’s even more accessible than ever before.

Greg: Okay.

Derek: Right? And again, We did another thing that was actually, If anybody knows Float On culture, it’s super loosey goosey, easy, yeah, you can get whatever you want with us. We actually added a three month commitment to our membership. We’ve never had commitments. And we did the numbers. We’re numbers people. We looked at everything and we looked at a lot of our churn when we were on the tiered memberships, is couples floating that just wanna get a cheaper price so they sign up and cancel like, after their float. Right? They’re just signing up for membership, get the better rate, ’cause there was no commitment, and then they were never coming back. So we had a lot of churn people wanting to save on two floats or on four floats if they’re having a party.

So when we dropped it down to that one price point, we asked for a little bit of commitment. So people did drop off, but they were probably gonna drop off anyways. And then when the three month came around, we’re like, “Oh no.” Those people stayed. It actually did what we wanted to do. We were happily surprised.

 

Recent Podcast Episodes

Pairing Psychotherapy and Floats – DSP 154

It’s easy to look at some of the research that comes from floating or look at special programs for veterans with PTSD and think about how float tanks should be paired with psychotherapy.

Graham and Ashkahn have met several therapists who use float tanks in conjunction with their sessions, sometimes exclusively. They also know that it’s important to recognize that they are trained professionals who are providing a treatment for difficult to treat psychological issues in some cases. Knowing when to leave the work to the experts is a valuable part of providing a service like this one with so many broad uses.

What is too small for a 4-tank float center? – DSP 153

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As with the best float center mistakes, Graham and Ashkahn can speak to their personal experience on this issue. They talk about opening a four tank center with less than 1,000 square feet and how much of a mistake it is. They also provide helpful planning tips so you can find out how much space you need at an absolute minimum for your float center.

How Do You Find Time for Hobbies? (Rise) – DSP 152

This is the last episode we recorded at Rise and it seemed fitting to close out the recordings with the organizers again, Jake and Kevin. In this episode they talk with Graham and Ashkahn to answer a question from Greg Griffin about how to manage your time after opening a float center to dedicate to hobbies. 

While the episode starts a little heavy, the conversation turns and begins discussing the value of work and how rewarding it is to be in this industry. 

Thank you to everyone who came and talked to us at Rise and shared your experiences. If we don’t see you at the Float Conference, hopefully we’ll see you next year. As always, float on.

What’s the Weirdest Post Float Experience You’ve Seen (Rise) – DSP 151

Another conversation that was captured at Rise was this little sit down between Graham and Ashkahn and a float center owner by the name of Jeremy out in San Antonio. They talk about a subject that I think comes up whenever float people get together. “What’s the weirdest thing you’ve seen after someone got out of a float?”

Sometimes people have a hard time coming back to Earth after a really good session in the tank and seeing how they interact with the rest of the world afterwards can be heartwarming and enlightening. It’s part of the reason we do what we do. 

Should Float Centers Tone Down Their Personality in Rural Areas? (Rise) – DSP 150

Another great conversation that came out of Rise. Graham and Ashkahn sat down with Russ, a local float center owner who is just about to open his doors. He wanted to talk to the guys about how best to present floating to a more rural and conservative area. Graham and Ashkahn have seen float centers from across the world in rural and metropolitan areas alike and share their take on how best to present floating to people who aren’t as exposed to other alternative wellness practices. 

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