Generating New Revenue Streams in 2021
Generating new revenue streams is top-of-mind for all health clubs. Here, Frank Ancharski shares four revenue streams clubs can implement.
The coronavirus pandemic has caused a plethora of problems for health clubs. Between month-long shutdowns and some members not in a hurry to return to gyms, many facilities are generating new revenue streams to help them bounce back.
Below, Frank J. Ancharski, M.S., the founder and chief coaching officer for Club Coach Services, shares — in his own words — four revenue streams clubs can look to implement in 2021.
- Health Care. Our ability to connect with health care has been limited at best. Some are doing it very well like Chris Craytor from ACAC in Virginia and Kevin McHugh from The Atlantic Club in New Jersey. As a collective industry, our lack of progress on being included in the continuum of care is not widespread, mostly because we are still not viewed as essential to health by the medical profession. Until that formula gets unified, I suspect we will continue to fight the good fight with minimal results.
We are learning how to create state alliances and that will be key for political efforts to help with our essentialness. We could also do well by closer affiliations with the Medical Fitness Alliance and the American Medical Association, for example. Locally, it could be as simple as creating a medical advisory board of members and starting the “PREP program” that both ACAC and The Atlantic Club have figured out.
- Nutrition. We are what we eat and drink, and the industry has not learned how to monetize this component of our offerings. I also believe CPT codes that registered dietitians (RDs) can bring for billing could be an avenue for new revenue once we work locally with our medical advisory board we create.
I bet everyone who reads this article can think of at least five people off the top of their heads who are diligent exercisers, whose bodies have not changed a bit. Likely, they are healthier and less likely to fall or develop high blood pressure, but are not eating correctly. This is a huge business and Noom, Fresh and Nutri-Systems among others know it. We need to tap into this revenue stream going forward. This topic is new revenue territory for us.
- Meeting Space. Once the COVID-19 vaccines are proven successful and people feel safer to return to work and clubs in person, renting meeting space might be of value to bring traffic into the club. Research hotel meeting space rates, including food, and value add the room rental with exercise breaks for meetings, and healthy eating choices with an RD conducting a “Lunch and Learn.” Give one-month memberships with 30 minutes with a trainer for those who visit for the meeting. Be aggressive — we’ll need the traffic.
- Third-Party Partnerships. I do believe that progressive thinking toward partnerships with health insurance companies is an opportunity to find new revenue sources. The staple of Tivity’s program for Silver Sneakers and Silver and Fit is a start. Companies like United Healthcare, Renew Active, Gym Pass, and a new player in the space, Concierge Health, have developed creative programs to incentivize corporate employees and insurance subscribers to exercise, which have become increasingly easier to administer in our clubs.