9 » Your Business
Business Trends to Help You Stay Competitive
Get on board with new models that can protect your business
BY BARB GORMLEY
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W
o stay competitive, owners need to network constantly and pay attention to their club’s place in the always-changing business landscape. Learn what’s hot, and then get ready to mix up your programming or even pivot to an
entirely new business model. Here are some of the current trends:
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DROP THE PRICE BUT CHARGE FOR THE BASICS
hile some business models con- tinue to rely heavily on revenue
from ancillary services—e.g., swim lessons, summer camps, juice bars, massage therapy and personal train- ing—some low-cost clubs have elimi- nated all of their ancillary services. And some have gone a step further even and charge for what most peo- ple consider the absolute basics. “McFit in Germany charges 50
cents to use the showers,” says Paul Brown, a member retention and membership growth expert.
NO GROUP EXERCISE M
any clubs are foregoing group ex- ercise and are sticking with the
core business of cardio and resistance training. “If you have a studio, you need to
keep it pumping,” says Brown. “It’s not profitable to have a room occupied for just a 9:30 and 5:30 class.” An excep- tion could be to offer Pilates classes, which can operate in a smaller space, he adds. A second option is to provide group
exercise but offer two membership rates. According to Brown, American chain Crunch charges $9.95 a month for access to strength and cardio equipment and $19.95 to include group exercise.
20 Fitness Business Canada November/December 2016 S 3 GO LOW AND MULTIPLY
ome clubs stay in business by of- fering rock bottom prices and
multiple locations. For example, Planet Fitness, the American mega- chain that expanded into Canada in 2015, charges just $10 per month for a 20,000 square foot club. According to IHRSA, some of its clubs were still signing up 1,000 new members a month during the 2009 recession. To keep its brand visible, each
Planet Fitness franchisee is expected to spend $10,000 a month on mar- keting, says Geoff Dyer, president of Crunch Fitness West Florida and Atlanta and founder of the Lifestyle Family Fitness chain.
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