Some people have the goal of becoming a rock star. Others aspire to open their own business. For your heath club, your goal might just be growing your membership. But how do you know if you can handle that membership growth?
The first and foremost factor is finances. “Any company has to look at the financial perspective first and say, what do we need to do in order to be profitable and be able to operate, take care of our employees, take care of our shareholders, take care of our members, be able to reinvest in our clubs and all that — what do we have to do there first?” said Mark Miller, the vice president of Merritt Athletic Clubs in Baltimore, Maryland.
Additionally, you must decide what you are going to spend and what you are going to make. “Then from that, that gives you the profitability that you wanted,” said Miller. “As a business owner, I think you’ve got to back into it, and go okay, so in order to do that, I’ve got to grow my net membership base by 5 percent, and so in order to grow by 5 percent with cancellations and all that, I need to grow my sales by 10 percent. Then you lay it all together.”
Once the finances are taken care of, Miller said it is essential to look at what your current membership experience can handle. For instance, if you look to grow your membership numbers, will you need more cardio equipment or pool deck chairs? Will there be adequate parking or do you need to add more?
Especially in a high-end club where people are paying $90 a month or more for membership, the loss of one member can be painful, said Miller.
Miller noted several more factors, including staffing numbers and member safety that must also come into play when deciding if your club can handle your desired membership growth. Plus, if you have low usage he said it is key to understand its cause, addressing the issue and hopefully increasing current member use once again. “We have to look at a global perspective, a 360-degree view on everything to make sure that you’re keeping your facilities operational and the member experience very good,” he said.
Deciding if Merritt Athletic Clubs can handle growth also means Miller will look to a number of sources for information: what customers and employees are saying, what the industry is displaying, what does the data show, what are other professionals doing, etc.
“You have to have a 30,000-foot view where you’re up high and looking down,” said Miller. “But then sometimes you’ve got to get down to that 100-foot view and be in there with them and sometimes try to experience it from the consumer standpoint. Sometimes we might be our own worst enemy. I might think we need treadmills as an example, and all my members want ellipticals. I’ve got to keep in mind that I’m there to serve my members.”
By Heather Hartmann
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Rachel Zabonick-Chonko is the editor-in-chief of Club Solutions Magazine. She can be reached at rachel@peakemedia.com.
