At this year’s Club Industry Show, many fitness center owners told me they were there to look for additional sources of revenue. I think this is a great idea. After all, why rely solely on membership dues? A fitness center can, and should, act like the corner grocery store by selling products that its members can use every day. It’s called repeat sales, and it may be the best new revenue stream you can find.
Your corner grocery makes money by selling the products its customers need on a daily basis. These include everyday food items like milk, bread and produce. Apply this principal to your business. What are the everyday items your members could use before, during and after workouts?
Hydration: How many members walk into your club with bottled water in hand? That is a sale you could make to them – IF you sold water in your club. It’s easy to get started. Just a few cases of bottled water, a bag of ice, a glass punch bowl and you’re in business. Simply add the ice to the punch bowl, place the water bottles in ice, and display prominently. The eye-appeal of cold water on ice will make it a hot-seller, and increase your revenue. The same practice can be used on other drinks as well, including sports drinks. Your local beverage distributor can help you to select popular brands and flavors.
Energy: Another everyday need for your members is energy. Whether it’s before a workout or after, your members can always use some extra energy to get through their day. With the energy category expanding wildly, there are plenty of items for you to sell. Carbonated energy drinks, liquid energy shots, powders and pills are all excellent sellers at retail. Carefully chosen and prominently displayed in your facility, they can be great sellers for you, too. Distributors that cater to convenience stores or vitamin stores can help you choose products that will sell.
Food: Upon completing an early morning workout, your members will be prime customers for food sales. Offer a variety of fresh fruits such as apples, bananas, pears and oranges. Attractively displayed, fruit has a lot of eye appeal. Plus, your members will be in a health-minded mood and they will favor fruit over something from the fast food drive-through. An assortment of protein bars and meal replacement bars will also be an attractive option for your freshly exercised members. Again, local distributors can help you get started.
Other Stuff: Some products may not be everyday items but they can still prove useful to your members. Items they may forget to pack in their gym bags, such as socks and headbands, are good items to carry. Replacement items, such as shoe laces, and toiletry items, such as combs, will show your club’s thoughtful attentiveness to member needs.
Above All, Promote.
Carrying everyday items your members need is a great way to increase revenue. But, simply having items available for your members to buy isn’t enough. Promoting and displaying your merchandise is just as important. Once more, take a lesson from the corner grocery. Display your products in a neat, attractive manner. Food and beverage items should look appealing and appetizing. Keep products clean and dust-free.
Above all, promote these items. Distributors and manufacturers can often help you with merchandising displays. Handmade signs extolling the features and benefits of certain items can also be helpful. For instance, a sign over an attractive display of fruit may say, “Replenish with delicious, healthy fruit.” One in a display of energy drinks may say, “Avoid that afternoon lull.” Or, display a sign that says, “Forget anything? Ask at the front desk. We can help.”
Exceeding Expectations Equals Member Retention
Successful retailers know that exceeding customer expectations is the key to customer retention and repeat sales. The same is true for fitness centers. Not only will carrying items that meet the needs of your members generate additional revenue, it will foster overall member satisfaction. And, satisfied members (i.e. those who have had their expectations exceeded) will use your facility and renew their memberships at a higher rate than those who merely see your facility as a place to workout. They are also more likely to recommend your facility to their friends and acquaintances.
Just like the corner grocery, increasing revenues in your fitness center can be as easy as meeting the everyday needs of your members. By carrying and properly promoting a variety of items that your members can use before, during and after working out, you can not only increase revenue, but also enhance overall satisfaction with your facility.
Carl Sperber is the Marketing Director for Living Essentials / 5-Hour Energy. For more information contact Brandon Bohland at 1.888.960.9495, or by email at brandon@chaserplus.com.
