Recap: Ideas for Increasing Profits and Revenues
On August 18, Club Solutions Magazine presented the eighth installment of a monthly virtual roundtable series on thought leadership, surrounding increasing profits and revenues.
Panelists included: Robert Brewster, the CEO of The Alaska Club; Shawn Stewart, the founder/CEO of Fuel Fitness; Amita Balla, the regional director of sales, West Coast, at Crunch Fitness – Signature; and Cassie Gallagher, the owner of Avenue Fitness. The discussion was led and moderated by Rachel Zabonick-Chonko, the editor-in-chief of Club Solutions Magazine. Sponsored by Digital Revenue Systems.
The following is a summary of top takeaways from the discussion, centered on increasing profits and revenues.
Profit and Revenue Post-COVID
- Was a surge, but have had challenges recently due to the delta variant.
- Fewer cancelations and more membership growth. Slow progression back.
- There has been a cost control struggle.
- Not everyone is thriving again, you’re not alone.
- Lost trainers who didn’t want to teach virtually.
- Use virtual to bring people into the club, not keep them at home.
- Virtual is a great complement to in-club options.
- We are a people-to-people business and going away from that is risky.
- A lot of facilities are still in recovery but trending up.
Profit Centers Post-COVID
- Have had a lot of success with personal training.
- Small group training and Group X classes haven’t been bouncing back as quickly.
- Keeping small group classes even smaller at two to four members.
- Youth programming has been very strong since reopening.
- Significant demand for youth programs and swim lessons.
- Seeing a lot younger people in clubs.
Getting Members Back
- Hard time to reconnect with canceled members. Having an easier time with new members.
- Be in contact with your members on freeze. Use data to drive your decisions with them.
- Provide trials to members on freeze.
- Categorize your members and contact them when they are comfortable coming in.
- Have a weekly schedule instead of monthly.
- Offer a referral promo.
- Consider having member appreciation parties.
- Men and single people are returning quicker than women and family memberships.
- Personal contact is more successful than an email or marketing post.
Tips for Driving Revenue
- Outdoor fitness is an important thing to offer your community.
- Meet your members where they are. Write a workout plan for a family workout while they are on vacation or recipes for people to try.
- The pandemic has thrown the industry off its game. Don’t get lost in the weeds or get discouraged.
- Be aware of all the government aide and tools available.
- You may have to wear a few hats for awhile.
- Keep your price integrity. Now is the time to raise membership prices.
- Focus on member experience now more than ever.
- Your marketing matters. People are tired of hearing about COVID-19.
- Invest in the right people for your staff. Build up your employees from within.
- Lean in. Leaders must lead. Talk to your staff and members. Do what you do best.
- Invest in your team and community. Be there when they need you.
- Be a COVID-19 excuse-free business. Deliver to your members.
- Be present like you were before.
- Be bold. Be a sales and marketing machine.
- Gyms have been a safe environment.
- Contact your senators and representatives about the GYMS act.
Love learning new insights from other owners and operators in this format? If so, consider joining a Club Solutions Mastermind Group. We offer four different types of peer-to-peer groups for every level of health club management. Email Bob Surface at firstname.lastname@example.org for additional details while spots last.
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