A Lesson in Perseverance
Scott Gillespie’s Saco Sport & Fitness in Saco, Maine, is living proof that mid-sized clubs can co-exist next to low-cost varieties with results-oriented member programs and razor sharp reporting systems. A veteran of the industry, Gillespie has been involved in fitness since he began working as a personal trainer in college. In 1994, after working for over 10 years in the northeast as a club manager for Healthtrax Fitness & Wellness, he found himself in a position to buy a club in Saco and decided to take the leap.
The road hasn’t always been an easy one, however; just one year after assuming ownership of the club it was destroyed by a fire. Gillespie suddenly found himself battling uncooperative tactics from his insurance company, deadlines from the bank, and anxious vendors. “We had to lay off our entire staff, manage contractors, and try to keep in touch with members going to competitors, all while not taking a paycheck for almost a year,” he says. “This was not what I had signed up for, but I realized that I had a choice to make; I could roll over, allow it to die and move on, or I could picture the end I wanted to create and fight for it. It took a year, a month and a day, but we were able to rebuild the club even better than it was before the fire!” Looking back, Gillespie sees the experience as incredibly valuable and insists it made him an even better entrepreneur. “It was very liberating in the end – it helped put into proper perspective what really mattered to me,” he says.
In 2005, Rudy Fabiano, AIA, and president of Fabiano Designs and David Phillips, Fabiano’s lead interior designer, were brought in to handle a major renovation of the club, and Gillespie says their main goal was to connect all areas in the facility. This made it easier to move around and also created an audible connection between the various areas of the club – bouncing basketballs on the court mingles with the music and activity in the cardio and strength training areas to energize members and encourage interaction. They also found room to increase the size of the group exercise studio by reducing the number of racquetball courts from three to two, and decided to increase the number of cardio machines, since Gillespie felt strongly that making members wait to use a machine was simply not an option. Finally, they added an Easy Fit area for new members who are uncomfortable in a fitness club environment, and created a social space in the form of a café and lounge near the entrance. “We wanted to make our members more comfortable and we created spaces that would encourage them to interact, because the more contact people have with one another in the club, the better. It’s ultimately all about connections,” he says.
Working the Plan
Today, Saco Sport & Fitness is firmly rooted in the fabric of the local community; Gillespie has carved out a niche that caters to clients who want a supportive environment that is focused on getting results. “We start with the end in mind,” he says. “We can’t just rent equipment anymore because there are low-cost competitors out there who are doing that really well now. Clubs like mine need to find ways to deliver on the promises they infer when people decide to join – whether it’s weight loss, increased energy, etc. ”
To accomplish this, Gillespie knew the club needed to do more than just a one-time orientation for members, so he began by asking the question, “How can we support our members’ goals?” To do this effectively, the staff at Saco Sport & Fitness has to actively find new ways to overcome the obstacles members face. A lack of time, motivation or education, along with a fear of being “on display” in a club, are the most common barriers Gillespie encounters, and he says the best way to combat these potential roadblocks is to provide extra support for new members that will turn them into content long-time clients. To do this, Saco Sport & Fitness created the Easy Fit area, which is essentially a fitness center within a fitness center, and consists of a simple strength circuit and 16 cardio machines. This area is away from the hustle and bustle of the main club, providing a more comfortable environment for new members who are uneasy thinking of themselves in a fitness club. “When we show our ‘fragile eggs’ the Easy Fit area, you can visibly see their shoulders relax; they stand up a little taller, and breathe a sigh of relief,” says Gillespie.
All new members also receive four free half-hour sessions with a personal trainer, giving them the opportunity to absorb the information they are given. “We strive to make sure all new members have something to attach to in the club before turning them loose – whether it is group exercise, personal training or racquetball, we recognize the importance of fully integrating members when they join,” Gillespie says. He points out that the booking and scheduling feature of his club’s software is instrumental in keeping track of this information, as it allows for bookings to be updated quickly, easily and in all systems at once. Gillespie also says he could not do this effectively without actively choosing not to serve the entire market. Instead, Saco Sport & Fitness focuses on attracting members who value the variety of services and the level of support they provide – a strategy that has allowed the club to build a strong membership base and to experience steady revenue growth for 15 years, despite multiple new competitors coming to town.
The Importance of Operations
Never underestimate the power of technology to boost your club’s bottom line! Gillespie says the ability to create in-depth budgeting and reporting systems, so he always knows where they stand compared to the business plan, is just as essential as the service he provides for members. The club’s software is provided by Twin Oaks, and Gillespie says it allows him to quickly and easily determine what is behind each and every line item on the budget, which gives him more control over each expenditure. “Every department is responsible for their revenue and expenses on a monthly basis, and the software is essential for us to be able to track all income sources and to separate them by department and type of sale,” he shares. In addition, he says the club management software allows them to easily export information, like a Point of Sale Analysis or a Monthly Dues Comparison, to Microsoft Excel. This feature makes it easy for Gillespie to analyze how the club’s income is faring relative to the budget as often as he wants to, making it much easier to adjust their plan accordingly.
Gillespie says they have looked at other software providers, but have chosen to stay with the same company for almost 15 years because they have never found a comparable product at a comparable price with no hidden fees. Also, Gillespie mentioned that the software company was founded by club operators, which he believes gives them an insider’s perspective of what clubs need. “They have put in the time and effort to make their product great – they take it very seriously and I appreciate that. I think it’s important when you call tech support for them to be able to help you get any report you need, and for software companies to try to integrate features clients have requested when they design upgrades,” he shares. Carole Oat, national sales manager for Twin Oaks, says the company is very motivated to be flexible and to regularly come up with more capabilities because clients lease the software instead of buying it. “This keeps the pressure on us to keep making it better,” she says.
According to Gillespie, one of the most critical aspects of running his club day to day is the ability to bill members on a systematic basis. He says 80% of the club’s income is now recurring and is billed automatically once a month. “This is key, because members have to go through a different psychological process in order to choose to continually purchase a service every month than they do to decide to cancel a service that is billed automatically,” he shares. Also, this keeps members motivated to come in for their personal training sessions, which ultimately means more members will reach their fitness goals and keep coming to the club.
Gillespie also points out that his software company, Twin Oaks, has been PCI Compliant for four years – a designation that means the company is doing everything it can to prevent credit card fraud. “Especially during these tough economic times, it is so important to know that my members’ credit card information is kept safe,” he says. (See the sidebar on page 24 for more information on PCI Compliance and why it is important for your club.)
Streamlining your club’s operations can also cut down on payroll costs since it will take less time to complete essential tasks like managing inventory and calculating the number of new memberships sold in any given time period. “We used to have to count them from a log book, but now we basically have no manual systems for any of our operational tasks,” says Gillespie. This also allows him to spot trends early enough to take action before a real problem develops. For example, they know to expect a 20% drop in the number of members coming into the club the week after daylight savings begins, which gives them the opportunity to rework their group training schedule accordingly. “Software like this that allows you to run reports from any time period from one year to the next is essential for club owners who want to quickly and frequently try to spot these types of trends,” he says.
At the end of the day, Scott Gillespie is like most club owners – he enjoys the positive energy that seems to be almost tangible in fitness facilities, and he has the drive it takes to be successful. “The combination of a caring, professional staff and members motivated to improve is a proven recipe for a great feeling,” he shares. And when it comes to Saco Sport & Fitness, Gillespie says he plans to remain focused on improving club operations while continuing to learn even more about the industry we all love.
Keys to Success:
NEVER give up. Even when the going gets tough, don’t accept defeat. Instead, figure out ways to improve your weakest points and become stronger than ever.
COMBAT key inhibitors to success like low motivation, a lack of education and shyness by figuring out ways to make the member experience as comfortable as possible.
ESTABLISH a strong connection between new members and at least one aspect of your club before they embark on their fitness journey.
KNOW who you are. Don’t try to be everything to everyone – instead, carve out a niche for your club and perfect the service you offer these members.
LEARN how to use your club’s software to the fullest extent of its capabilities and choose a provider that is economical and has ongoing customer service built in to the scheduled fees.
