FBC UPFRONT


the club’s offering. On the other hand, if you operate a large facility, you might find that it is not as advantageous to do so because of consumer expectations and possible facility constraints or class room capacity issues. My recommendation to you is to evalu-


ate the options by creating a cost/ben- efit analysis (weighing the total expected costs against the total expected benefits of one or more actions in order to choose the best or most profitable option). Once you’ve completed the analysis (with the assumption you have a good understand- ing of your business model) you will be able to determine what, if any, combina- tion would best suit your business model and give you a competitive advantage.


Brad Wilkins, Vice President & General Mgr. Cooper Fitness Center Dallas, TX


Profit Centres Brad Wilkins, Barry Klein, Keith Callahan and Clive Caldwell discuss whether to add value to member- ships or create profit centres:


Q:


business sense to add amenities like TRX, Group exercise, BOSU, etc., as value additions (included in the gym monthly pricing for a nominal charge) rather than add profit centres with separate pricing?


Does it make more 16 Fitness Business Canada March/April 2011


amenities to the general member- ship offering as an added value proposition. In others it may not. If you are a small club opera-


A:


tor it may make sense, both finan- cially and competitively, to have these types of classes as part of


Value Additions Vs.


is, “Why don’t people want what we’re selling?” So, you might consider loading up your regular membership with every service possible in order to increase its perceived value, even if that means in- creasing its price. In a highly sophisticated market with an affluent population (e.g., big cities)


A:


This is an excellent question that reflects the frustration felt by many in our industry, which


For some businesses it may make perfect sense to add these types of


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