of 50%, thereby leaving employees to cover just 30% of the cost. This represents a substantial saving for employees and usually results in the recruitment of a high volume of ca- sual members, those who use the facilities sparingly (sev- eral times per month). This win-win situation explains why the strategy is effective, even when a substantial reduction (40%) is applied. Most fitness clubs refuse to discount their monthly dues by more than 10% and wonder why the num- ber of corporate accounts is so low. We truly feel that once a large business is convinced, most employees want to work out at the same club with their fellow co-workers. Hence, employee morale, health and fitness are all enhanced. The business also understands this phenomenon, but the key is to find the right price point. One last word of advice: The key meeting which typical-
ly succeeds in opening a corporate account is between the president or CEO of a business and the general manager or president of your club. The details of an agreement may be resolved at a lower level, but, as owner and vice-president, I have always initiated the first contact directly with the company’s CEO.
Larry Greene, co-owner and vice president La Sporthèque de Hull, Hull, Que.
A A
Understanding who is moving in and out of your mar-
ketplace is very important, but even more important is us- ing your existing and new members to create relationships and open doors to a corporate account. We have relation- ships with about 170 companies, and the majority resulted from a member who joined our club as an individual which opened up a corporate opportunity. Have your sales teams study where your members work,
and reach out to these members to help start these corpo- rate accounts. Our sales teams do this on a monthly basis. Your members are your best asset!
Dean Brown, COO, Cambridge Group of Clubs general manager, Cambridge Club, Toronto, Ont.
Growing your corporate membership takes on many fac-
tors, here are a few key strategies to keep in mind: • Obtain a list of companies in your area, and find out
their employee demographics and company culture. • What is their wellness initiative? Do they even have
one? Do they have a wellness/fitness culture? Is there sup- port at the top? • Know who to talk to. Be sure you talk to the decision
maker. • Come up with a plan before your first meeting. What
programs do you offer? What is your price point, and are you willing to discount? Are you able to deliver what they want such as lunch-and-learns, wellness programs, employ- ee tracking, etc.? Knowing what you are able to deliver will allow you to know if it is a fit or not. • Going beyond the discount and being able to offer com-
panies a return on their investment should be the reason for working with companies. Seeing a savings on health care costs, an increase in productivity, higher employee morale,
January/February 2013 Fitness Business Canada 17 ®
Some portions reprinted with permission from IHRSA. For more information visit:
www.ihrsa.org/industryleader
along with other benefits will determine a company’s interest. While it may seem easy to simply offer a discount and
then reap the rewards, here are a few additional things to consider: • HR directors are busy, and getting the word out about
joining your club to their employees may not be a priority for them. Make the process easy. Perhaps work with their assistants to keep the communication going between you and their employees. • If the company will be subsidizing the membership
dues, this takes time. For example, national companies may have to get approval from the corporate office. • Companies may want you to provide reports on atten-
dance, fitness tracking, current verses cancelled members, etc. Are you set up to do so? • Another club may give the company a bigger discount
than you are able to give. What separates you from your competitors?
Vaughn Marxhausen, area director Houstonian Lite Health Clubs, Houston, TX
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