interview


Local authorities priced themselves out of the reach of communities. Budget gyms will encourage mass participation, providing what local authorities provided 20 years ago


Meanwhile Bradley bemoans the size


of the manager’s office, which is needlessly huge for one person, as well as a couple of other offices tucked away in other corners of the club. I try to get in on the act and point out an area of sofas which appears a bit under-used.


“Yes, that’ll probably go and be filled with more equipment,” agrees Bradley. All of these efficiency measures are


what lead to the clubs’ incredibly good value – an annual off-peak membership at Fitness4Less costs just £105 – but, stresses the management team, in no way impacts on the customer experience. “When we opened the Southwark club in April, our members couldn’t believe what they were getting for £14.99 a month,” says Bradley.


MEMBER PROFILES There are currently no specific processes in place to intervene and prevent members from lapsing. “At the moment the business model requires there to be regular leavers and joiners,” says Emma.


“People are joining two, three, sometimes even four times a year. The pricing is clear, there are no contracts, it’s very transparent, so people think


‘great, I can join for a month’.” Another advantage of the Fitness4Less


concept, again removing a key barrier to joining, is that – as members effectively do their own administration online – they can join and leave in private, thereby avoiding the embarrassment of admitting that this is the sixth time they’ve joined a gym, or that they want to leave because


The Birmingham club is one of Fitness4Less’ ‘home-grown’ sites


they haven’t been for three months. Saying that, although


it’s great value to be a member, people are not simply joining just because it’s cheap and then not using it. The membership is more active than the general trend in the market, according to Emma, with daily usage at 30 per cent of total club members. The member profile cuts across the


demographic groups: the unemployed and students as well as wealthy people. Some use Fitness4Less as a second club because it’s convenient for work.


GOING FORWARD Fitness4Less clubs are meeting break- even targets within the first three months of operation, but the team is now looking at how the concept can be tweaked to drive further profits. “We looked at speedy boarding on the treadmill,” jokes Neil. The first push will be to sell items via the website, such as workout essentials, while linking up with other lifestyle brands that match the customer profile is also a possibility. The franchise business will also be a key


The success at Bristol inspired the roll-out of the Fitness4Less brand


34


focus for the next few years. A full franchise package – providing a ready-to- open club, a three-week training programme, and a business plan and financial projections from which to work – costs £350,000. Fitness4Less is planning to develop a bank of sites that are ready for an approved franchisee to take over, and the company is also serious about targeting owner-operators who might want to convert their club to a Fitness4Less site. Approved franchisees


Read Health Club Management online at healthclubmanagement.co.uk/digital


are also bringing potential sites to the table for them to review. “For owner- operators, the franchise is significantly cheaper at around £60,000,” says Emma. Although this side of the business is in


its infancy, franchising will be one of the main drivers going forward. There are plans to open three or four franchise sites this year, to create a solid base, with a more aggressive roll-out after this.


“We’re very excited about its potential,” says Emma. “We see this as an important focus for the future of the business.” Looking at the fitness industry generally,


the team predicts that things are will get tougher all round. “The middle market and some independents are going to get squeezed an awful lot,” says Bradley.


“Businesses that exist simply because they were the first now need to raise their game and deliver the service people want.” “I think the budget market will also get


tougher,” says Emma, while Neil believes even the premiums will feel the pinch:


“Operators such as David Lloyd may feel the pressure, with some members only just affording their membership.” When asked if they think budget clubs


will go out of fashion when the economic climate perks up, it’s an emphatic ‘no’. Indeed, Neil believes budget gyms will take over the local authorities’ role of providing genuinely affordable fitness.


“Local authorities priced themselves out of the reach of communities,” he says. “I think budget gyms will encourage mass participation: we’re providing what local authorities were providing 20 years ago.”


healthclub@leisuremedia.com kath hudson


june 2011 © cybertrek 2011


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