FBC
UPFRONT» Q&A
Corporate Memberships at your Club: More than Offering a Good Deal
the same cycle. Payments can be arranged on a monthly, quarterly, bi-annual or annual basis. We can also provide the company with employee ac- tivity reports, if their subsidy is based on usage. Discounted rates apply.
Partial Company Subsidy The company pays for part of the employee’s
membership and the employee pays the difference. Percentages are up to the company and employee negotiations. We bill the company for its percent- age, and we bill the employee separately for the balance. We could also bill the company directly for the entire membership, and the company could make payroll deductions. Discounted rates apply.
Q
“We are trying to grow the number of corporate memberships at our club. What suggestions do you have?”
A We go out into the community to meet new business-
es. Within our buildings, the landlords notify us of new tenants. In approaching a business we try to meet with the deci-
sion makers such as the human resource manager, general manager or even the president or owner. We also look to see if the company has a health and wellness committee since they are always looking for fitness resource partners to help educate their employees. We arrange lunch-and-learns where we speak with em-
ployees about a healthy, balanced lifestyle and how regular exercise can help them in so many aspects of their lives. In our discussions we always emphasize the key benefits
of a corporate wellness program, including increased em- ployee loyalty plus reductions in absenteeism and disability time, workplace stress and employee turnover.
We have found success offering corporate plans structured as follows:
Corporate Capitation This is ideal for companies with a large number of em-
ployees or constant turnover. In this kind of membership, we charge for a certain number of memberships for which the company pays our club, but all employees automatically have access to the facility.
Direct Company Subsidy The company pays our club for each membership. Arrangements can be made to ensure that all billing is on
16 Fitness Business Canada January/February 2013
Other Subsidies The employee pays our club directly, and the
company reimburses the employee for whole or part of that amount. Some companies prefer to pay a percentage, while others
prefer to provide a dollar amount per year to each employee as part of the company benefit plan. Discounted rates apply.
Steve Roest, president and owner Fitness Institute, Willowdale, Ont.
A Our business, Sporthèque de Hull, has actively solicited
corporate accounts since 1986. Today we have about 1,000 corporate members, representing close to 20% of our total 5,400 club members. We offer a three-tier program that is defined according to
the degree of involvement of the corporation. Tier level 1 and 2 offer year memberships only with no
initiation fee, and a 10% or 20% reduction respectively on monthly dues (applies to all family members). Employees join on their own and must present proper identification. At least 10 (tier 1) or 25 (tier 2) employees must maintain mem- berships to carry on the program in subsequent years. Tier level 3 offers no initiation fee and a 40% reduction
on monthly dues. The business provides a list of interested employees (at least 40 to remain eligible for the program) and collects monthly dues, and Sportheque submits a single monthly invoice to the company. The Affaires Santé, or Healthy Business Proposition, has
been our most successful corporate strategy, for several rea- sons. Larger businesses usually have the financial means to subsidize club memberships for their employees, and they use this strategy to entice new employees or to retain exist- ing ones. They also believe strongly that fit and healthy em- ployees are the most productive employees. By reducing the membership rate by 40%, Sporthèque has been able to con- vince many large businesses to come on board. The average percentage that most businesses subsidize is in the range
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