this strategy could work well. Customers there might appreciate having a huge list of services for a fixed price. A good anal- ogy would be buyers of luxury cars – they expect almost everything to be “stan- dard” and they can afford that. Most markets, however, are not like


that. Value is in the eye of the beholder and most consumers think all gyms are created equal. They also are not knowl- edgeable enough to appreciate all of the value-added services that might be rolled up into a single, higher-priced member- ship. They would likely see it as an expen- sive membership bloated up with things they don’t care about. Alternatively, if those extra services


are paid for separately, the unsophisticat- ed consumer can join at your lower price. Then, as they become more sophisticat- ed, pay for more services over time.


Barry Klein, Owner Elevations Health Club East Stroud, PA


membership provider, (i.e., monthly dues below $40 per month), you will most like- ly not be able to fund these types of pro- grams out of your membership revenue. My experience is that clients who seek


A:


club memberships in this price range tend to be more price sensitive and are less likely to pay for additional services. That said, I have found that if you provide quality instructors and quality services, then the public will be willing to pay for these services. Your staff must believe in the price/


value equation and support the prices you charge or they will undermine your efforts. Operating both a very large club and a small club, we charge for all other services with the exception of “tradition- al” group exercise classes. Also – we do not offer the traditional group exercise classes in our smaller club for the simple reason of cost versus the price of the monthly dues. Short answer – charge for the


programs.


Keith Callahan, G.M. / Managing Partner Manchester Athletic Club Manchester, MA


www.atlantis-fit.com 1.877.454.2285


March/April 2011 Fitness Business Canada 17


One way or another, the ser- vices at your facility need to be paid for. If you are a low cost


Over 20 pieces to develop your abs.


Over 120 pieces to build a better upper body.


A:


You would be much better off increasing your fees a few dol- lars rather than charging per


use for TRX, BOSU and improved group exercise classes. The per use charges would be very dif-


ficult to manage. I think most of us in this business should always be thinking about constantly upgrading our facilities and services and raising the dues as a result. I also think your members would


prefer all-inclusive pricing rather than having to go into their pockets every time they use a different piece of equipment.


Clive Caldwell, President The Cambridge Club Toronto, ON


Reprinted from Club Business International with permission from IHRSA. For more information visit www.ihrsa.org/industryleader


“WHAT AN AWESOME WORKOUT! I FEEL ENERGIZED, I FEEL STRONG...”


Over 50 pieces to get great legs.


FEEL GOOD


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