The single, most significant change that fitness club operators could do today that would help them transform the financial performance of their site is this…
Stop being a slave to Membership!
Fitness businesses do not have to be run with a subscription model underpinning them.
In the early days sessional visits were the way that the whole industry was run.
Under certain conditions, membership is no longer the most effective revenue model. We’ve reached that point.
Over the last decade, the rise of the low-cost sector and the predominance of online administration has led to a reduction in membership rates across the board.
At the same time, the cost of employing exercise teachers has gone up but also so has the value that people are prepared to pay to take a class either on a per session basis or by buying a bundle of classes in advance and calling them off as they need.
Imagine your own club, trading at say £30 per month with all classes included.
Within that group of group exercise fanatics, you will have some who are attending maybe 2 classes back to back, 2 or 3 days per week. 24 classes per month. Their spend per class is about £1.20.
The biggest user group will be taking about 10 classes per month averaging £3 per visit.
Outside these clubs, the fitness world is paying anything from £5 – £25 per class depending on where and what so you can see that however you cut and slice this, regardless of your own member usage analysis results, it’s not in your financial interest to carry on like you have been.
The best news for operators is that the potential market for group exercise is about 4 times that of conventional fitness memberships so why wouldn’t you want to go after that market?
Exponentially more people wanting to buy to attend a class at fees 4-10 times more than you are getting at the moment. Do the maths and smell the roses fitness world.
I would go further and say that it’s not even in your customers best interest to maintain this current obsession with membership.
Along came Netflix and who needed Blockbuster anymore?
Online, exercise class streaming services, they’re all starting to gang up to take your members off you!
So, what’s the 8-step solution.
So, go ahead and try out these steps. Good luck!