The number of U.S. health clubs has grown at double digit rates over the past few years. For the six years ending 1/1/06, 89% growth was realized, to 29,061 units. Together with non-profits (YMCA’s, JCC’s, hospitals, universities), the total number exceeds 40,000 health club units. Yet, the average number of members per unit has gone down. According to IHRSA, total membership equaled 32.8 million in 2000, and 41.3 million in 2005, a 26% gain, and less than a third of an increase was seen in the number of clubs. No membership growth was exhibited in 2005. Of course, if this does not concern you, I assume you own your market and no competition will be coming into your area, and you can stop reading this article. For the rest of us, read on.
What should a club owner do to combat this supply/demand imbalance? Maximize your most lucrative profit center with real differentiation! What do you want your club to be known for? What do you want to be great at? You need to ask yourself these questions. Money-makers are ahead of trends; money-losers trail them. Some clubs believe they differentiate their businesses with their training department; for years, the industry buzz has been functional training. Experienced trainers are utilizing equipment like FreeMotion and performing exercises that mimic real life. The better trainers coach their clients more for “go” than “show.” Well, if you are just realizing this, you are trailing a big trend in the fitness industry.
The next big trend sweeping the fitness industry is performance-based training for the youth market. This market has been documented at over $4.1 billion and growing rapidly. 25% of the US population is under 18 years of age and the second fastest growing segment right behind the baby boomers. This market is primed for club owners to tap into. Kids are just one aspect of this market; experienced adult gym-goers are ready to train like athletes as well. Members get bored of just moving iron around. They want to feel like a kid again and have fun when they workout.
Key to creating a sports performance-based program in your club is to designate some open floor space for that purpose. Clear about 900 square feet, preferably a 15′ by 60′ space. This allows trainers to perform a host of different calisthenics, form running movements, sled pulls, ladder drills and light plyometrics. Start with everything you need, from education to equipment. Those really serious about sports performance should lay down a 14-millimeter track surface and engage with experienced and seasoned operators to learn how to make this strategy a big-time revenue generator. This is how I built my entire business, from a 2,500-square-foot club in 1993, to a fiveclub company owned and national franchise program today ranging from 24,500 to 32,000 square feet. Sports performance training was the differentiator for my fitness business, and remains so today.
Open space in a gym becomes very valuable to a member if it is positioned as a benefit that either they, or their children, can utilize. Your sales staff needs to educate prospects and current members on how your sports performance-based training can rejuvenate their workout routines and enhance their lifestyle. And for the many weekend warriors, this program will certainly improve their play on the field or court. When speaking to parents of sedentary kids, explain how your club makes fitness fun – how your program is the first step toward a child’s increased self confidence and self esteem, and how it is the path toward lifelong fitness at your club. When speaking to adults who either participate or are interested in sporting activities, this program becomes an instant benefit to them, and it helps with member retention.
Sports performance-based classes with adults and kids are a great way to crank up monthly personal training revenue in your club. The last time I did the math, I would much rather have a trainer work with three people per hour, paying $25 each, compared to one person paying $50. The greatest thing about sports performance training is that it opens a whole new opportunity to a whole new segment of the market – and more of a market than you presently address. With the personal training penetration rate for health clubs at just 3% nationally, exceeding the standard is easy with an exciting sports performance program. The secret is to execute at a consistently high level. And, with all the competition coming, you need to be much better than average.
For more information contact Chris Poirier at 800.556.7464 or by email at chris.poirier@performbetter.com.
Bill Parisi is the Founder and Managing Partner of the Parisi Speed School, Parisi Sports Clubs USA, and Parisi Franchise Systems LLC. He can be contacted at 888.GET.FAST, or visit www.parisischool.com, or by email at bparisi@parisiusa.com.
