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Home News

Recession Proof Your Business With Weight-Loss Management Programming

Contributing Author by Contributing Author
June 10, 2009
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The current economic climate poses challenges that our industry has never before encountered. With 89 percent of economists believing we are in a recession, how you evaluate and execute your business strategy could make or break your short-term success and long-term sustainability.  Many health club owners believe the prevailing wisdom, that by scaling back and cutting costs, they will be able to “weather the storm.”  While reducing overhead is a credible approach, a proven “best practice” to drive sales, even in a down economy, is the proper integration of weight management programming. The clubs that effectively manage this approach will not only be able to grow their business, but lay the foundation for tremendous success long after the recession abates.

In order to accomplish this, weight management should be a driving force within your club’s service offerings. Every point of contact, from the initial tour and presentation of membership options, to the new member fitness assessment, to the trainer-client dialogue within each personal training session, the weight management component must be addressed, especially related to proper nutrition.  Simply selling a membership or getting them scheduled for a new member orientation is not enough. In many cases, personal training alone is not enough, as it focuses on movement patterns and does not specifically address the weight management component. For this, both nutrition and dietary support (nutritional products) must be integrated into a client’s personal training program and be administered by highly competent, professional staff to assist the client in controlling the variables necessary to achieve his or her desired goal.

From a business perspective, addressing a client’s nutritional needs accomplishes a number of things.  First, it gives members the best chance to succeed by managing the component that is 60 percent to 80 percent of their success (nutrition). Second, coaching a client on nutrition opens the door to nutritional product sales, thus serving as a recurring revenue source. Next, as clients progress toward their goals, they are inclined to participate for a longer period of time, which drives residual business through client retention. Finally, clients who get results faster and more effectively refer more friends due to a heightened level of customer satisfaction. Thus, properly integrating weight management programming creates a compounding effect leading to sustainable business growth.

To create this positive feedback loop of driving non-dues revenue, weight management programming should be included at a nominal fee, if any.  The rationale for this is similar to that of national brands such as Weight Watchers® or NutriSystem®. These companies understand that nominal upfront costs serve to overcome entry barriers and that revenue generation occurs incrementally from recurring product sales and professional fees. Within the health club setting, this approach enhances the value of personal training programs by ensuring the client is given all the tools necessary to achieve his or her desired goal in the least amount of time with the least amount of effort.  While your business may choose to offer weight management as a separate option for members who do not want personal training, it is important to offer weight management with personal training. Why? Historically, personal trainers defer to what they know best – movement – and the weight management component is either not given the focus it needs or is lost altogether.

Today, most health clubs offer credible weight management programs but fail to utilize them effectively to yield the desired business results. The critical success factor lies in positioning weight management programs as “loss leaders,” whereby the club is willing to lose a little money (or break even) to get members fully integrated and help them expedite the achievement of their fitness goals. This approach maximizes non-dues revenue generation through retained personal training clients, nutritional product sales and new member referrals. Using this approach, making it a priority and working the process every day with your team members will position your business to not only survive but thrive in tumultuous economic times.

Dr. Edward M. Slover has 11 years of diversified experience within the commercial health and fitness industry and holds a doctor of management in organizational leadership. Presently, he works as the director of sales and account management for apex fitness group, a division of 24 Hour Fitness, Inc. he can be reached at ed@apexfitness.com

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