Fitness center owners are waking up to the fact that there is big money to be made by selling energy drinks. But, truly capitalizing on this opportunity means more than putting some Red Bulls in your cooler. It means adopting a targeted energy strategy that meets the needs of all your members and makes your cash register ring.
WHAT IS AN ENERGY STRATEGY?
An energy strategy is an overall plan for maximizing the revenue potential of energy drinks that covers: product selection; product placement; product knowledge, and promotion.
1. Product Selection
Gym members are like snowflakes – no two are alike. Each has a different workout regimen, different energy needs, and different perceptions of what energy is and how it feels. An energy drink for a bulky, male weightlifter may not be right for a slender, female runner. So, how do you choose energy drinks that meet various needs? Do what other retailers do – listen to your customers. Ask them which energy drinks they use now – what they like and dislike about them – and what their ideal energy drink would do for them. Use this intelligence to choose your product line. Offer a wide variety at first; then narrow your product line to just a few best-sellers to save space and maximize profits.
2. Product Placement
The old real estate mantra: “Location- Location-Location,” is just as important in the retail world. Where you place energy drinks in your fitness center can make them sell – or, collect dust. The two moneymaking hotspots in your fitness center are the cooler and the counter.
Next time you go shopping, take a look around. Coolers full of beverages occupy nearly every checkout lane. If people expect easy access to cold drinks while shopping, why not at the gym? So, if you don’t have a cooler, get one. Stocked with the energy drinks your members want, a cooler is an investment that will pay for itself over and over again.
Another lesson to learn from retail stores is the importance of the counter. As mentioned in a previous article, the counter is the ultimate impulse-buying area. Products placed on the counter draw the eye like presents under a Christmas tree. This makes it an ideal location for energy drinks designed to take advantage of counter space. Certain energy drink products are small in size and require no refrigeration – two features that may make them the most profitable drinks in your gym. Why? You’ll be able to cram more products into a smaller space, and avoid the cost of refrigeration.
3. Product Knowledge
Nothing gets people to buy like a personal recommendation. By becoming the energy drink expert, your members will buy products based on your recommendations. The top questions will be: “Which one do you like best?” and “Which one is best for my workout?”
That’s why becoming the energy expert requires personal experience with all the drinks you carry. So, try them all in various situations – before and after working out – during strength training and cardio. Notice how each makes you feel. Take notes on how long it lasts and how you feel after it wears off.
Some members will have questions about specific ingredients. So, arm yourself with plenty of product literature. Most manufacturers and suppliers are happy to provide this. Read everything you can, and be sure to get enough brochures to hand out to interested members.
4. Promotion
Once you have the right products strategically merchandised throughout your facility, and your head is packed with product knowledge, you’ll be ready to make money by selling energy drinks. And, that means promotion, such as:
• Advertising: Ask your suppliers to get you all the posters, stickers and other promotional items you can get your hands on. Hang them in locker rooms and in other highly visible areas of your facility.
• Price Specials: Many suppliers will give you a temporary price reduction if you feature their product for a period of time. Promote that product and its sale price heavily.
• Sampling: Some suppliers will provide a small quantity of free samples for you to distribute in your facility. Some will even arrange a sampling event and send a company representative to talk to your members.
• Talking it Up: Proactively selling energy drinks will be the most effective tool you use. Start by noticing people as they check-in. Do they look tired? Do they mention motivation problems? Are they trying to go the next level in their regimen? This is opportunity knocking. Use your product knowledge to recommend an energy drink that may work for them.
Selling energy drinks is a great way to increase revenues. Implementing an energy strategy that incorporates: careful selection of products; deep knowledge; product placement, and promotion will insure continued profits for years to come.
Carl Sperber is the Marketing Director for Living Essentials. To inquire about 5-Hour Energy, contact Brandon Bohland at 1.888.960.9495, or by email at brandon@chaserplus.com.
