It used to be simple. Really easy, as in 1+1=2, or 1400 members equaled a profitable club. But, the industry (and even the math) has changed. We are not talking about a “four-leg iron condor spread” or “a cross-sectional ratio analysis” – although the business and accounting aspect is still present. We are, of course, referring to the fact that “membership only” club models are on the way out…fast! The grand-and-glorious fitness business is still there for the taking, the rules, however, have changed.
Put your thinking cap on and apply the following rules of Physics to your club’s success. (Yes, we gym owners need to know something about Physics!) In Physics, work is defined as “a force acting upon a mass to cause movement.” Remember this: mass tends to resist movement and once it is set in motion, it resists change. For the rest of this article, let’s pretend your local market is a “mass” and your club is a “mass.” (Now you may be starting to get the drift!)
A MECHANICAL ADVANTAGE MAKES MOVING THINGS EASIER
Consider the following:
• The Ideal Mechanical Advantage (IMA), or Your Business Plan.
The IMA is the mechanical advantage of an ideal machine. It’s like your business plan – theoretical (i.e. every penny accounted for, happy members, controlled expenses, etc).
IMA can be expressed with the following formula: DE (the effort distance) divided by DR (the resistance distance).
Does such a wondrous machine, or does the perfect, Ideal Business Plan exist? In a word, no. So, you have to examine what actually exists, or the Actual Mechanical Advantage.
• The Actual Mechanical Advantage (AMA), or Your Business
Operation.
The AMA is the mechanical advantage of a real machine. It takes into consideration real-world factors, such as energy lost in friction. (Or, bad accounts, new competition, shrinkage, etc.) In this way, it differs from the plan, which is a sort of “theoretical limit” to the efficiency of the Mechanical Advantage.
The AMA is calculated with the following: R is the resistance force (anything in the way of your plan), divided by the Eactual which is the actual effort force (the execution of your plan).
The intention of this article is to get you to use one of the oldest principles of Physics in order to turn your club into the high-profit machine that it should be.
THE PRINCIPLE OF LEVERAGE
“Give me a lever and I will move the world,” was basically what the venerable Greek Scientist Archimedes said. The Principle of Leverage allows your club to be most effective. You probably already know that from a marketing perspective, it costs more than three times the amount of money to bring in a new member than to get a current member to purchase an additional product. A proper leverage system lets you maximize both methods.
If you have club space that isn’t booked every hour of the day, or a trainer who has down-time, or equipment that isn’t earning its costs, then you need to learn how to gain leverage! Get the most from your club by optimizing: existing equipment (not new, over-priced stuff that is only new until you use it once); space, and the knowledge potential of your entire staff, and by strategically offering the appropriate products and services which will result in new income accounts from both future and existing club members.
Are you selling anything that you and your prospects can really get excited about? Are you really priced properly? Do your programs have a proven track record that will turn prospects into real clients, fast? Your marketplace is sick of gimmicks, bogus specials, and pseudo-sense-of-urgency methods that were burned out years ago.
Put the right program in front of anyone and a real sense of urgency will exist, immediately! Sell the truth with energy!
Five Tips on Effectively Leveraging your Club:
1. Have something valuable to offer the whole family.
2. Don’t buy new equipment, unless you can easily quantify the return.
3. Get your entire staff trained in a consultative sales approach.
4. Immediately fire any staff member that doesn’t support your club’s AMA (Actual Mechanical Advantage), or your business operation).
5. Kill your old club belief system before it kills you.
I believe that a select few are entering the “Golden Age” of fitness profits. If you are not pleased with the direction of your club, be prepared to change the way you think. For example, you as a club owner know that you need drive-by exposure to attract your walkin clients. Conventional wisdom would dictate an immediate call to your local sign company for more of the same. The trouble is, signage can be very costly. So, instead try this: If you have a quickfoot ladder or a set of mini-hurdles, and the weather permits, take your athletes outside for their speed and agility drills. Watch your walk-in traffic shoot through the roof by using your own members as leverage for increased business!
Corey Miceli is the Founder and Owner of d1 Performance. To see if you club qualifies for an athlete performance department, visit www.d1usa.com, or call 800.806.2107.
