Here are three things that the team at Big Vanilla will be focusing on, as part of our yearlong profit plan:
Staying consistent: successful clubs have a plan. There is no need to deviate that much; it’s about improving percentage points ahead of the previous years. Look at each department, look at what you did, tweak a few things, set your financial goals a little higher, look at expenses, look at how you can reduce your costs, and work on sales incentives for the public and for your sales team. All of these factors will contribute to your consistency. If you are a winning football team, you don’t change your offense or defense right before the playoffs; you just tweak a few things and follow your philosophy that has proven to work.
Growing EFT dues: Look at your last calendar year, and dues collected electronically through checking or credit cards. How are you going to grow your dues? You can grow your dues by increasing sales and reducing cancellation.
If your electronic funds dues in January of 2012 were $300,000 and in January of 2013 they were $320,000, than in one year you grew your electronic funds dues by $20,000 dollars! That equates to $240,000 in increased cash flow for 2013 that didn’t project for January of 2012. That’s a substantial increase. Pay attention each month to all of your numbers.
Retention: Clubs that have high retention will always be successful. First, the fact that your members don’t leave means that you are doing something right. Members who are happy bring referrals. Non-members don’t bring referrals. More member usage always leads to greater ancillary income. When we get new members and we keep them they are more likely to use other amenities in the club. Families will buy pool memberships, get swim lessons, use personal training or purchase at the café or pro shop.
Build your programming and you will build your retention. The more active your members are, the more likely they will stick on your member rosters.
There are so many factors to watch, but if you are consistent, grow EFT, and increase retention, I can guarantee you a better year this year, than last year.
Chuck Hall is the executive director at Big Vanilla Athletic Clubs.
