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Health Club Management

Health Club Management

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UNITING THE WORLD OF FITNESS
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Health Club Management

Health Club Management

features

IHRSA Update: Know your customers

IHRSA’s Kristen Walsh shares highlights from The 2019 IHRSA Health Club Consumer Report into the US fitness market, as well as giving universal advice about how to stay relevant

By Kristen Walsh, IHRSA | Published in Health Club Management 2019 issue 11
As trends come and go, be alert and pivot your business creatively, says IHRSA / shutterstock
As trends come and go, be alert and pivot your business creatively, says IHRSA / shutterstock

In order to adequately recruit, serve, engage and retain health club customers and members, it’s crucial to understand everything about them – their needs, their wants and their behaviours.

IHRSA’s annual Health Club Consumer Report 2019 is based on a nationwide sample of more than 20,000 interviews and provides demographics and health, sports, and fitness participation data on US health club consumers.

Review your business model
At this moment in time, fitness facility operators, especially those in the fitness-only category, find themselves competing in an industry segment that’s dominated by discount operators (75 per cent charge less than US$25, and 32 per cent charge less than US$10 a month).

If your present business model is fitness-only (equipment, group exercise studios and locker rooms), then chances are most of your competitors will be in the low-price game, and your existing and future members will frame their buying decision around the lowest price.

Stay in the game
Consequently, if you plan to continue to operate a fitness-only model in your business, your options include:

• Lower your price and add a little extra. Rather than go head-to-head at $10, try $15 to $18, and then offer a few classes, some virtual classes, and possibly offer fee-based small group training.

• Continue to operate at your present price point, eg, $30 to $40, but differentiate your offering. Create a speciality, such as a genre of group classes, small group training or coaching, that none of your competitors is offering.

• Move up the chain. Add physical and programming amenities known to denote value and a higher price point. For example, you could add a court for POP tennis and pickleball; add a speciality studio and theme it; create more tribal programming, or partner with another small business to incorporate a custom bundle of services with higher perceived value into your offering.

Pursue ‘odd’ and ‘weird’
Dr Seuss notably quipped: “You have to be odd to be number one.” What he meant was that reaching the top and, equally importantly, remaining at the top, requires a penchant for being a little different from the rest.

“Odd” refers to your business’ value proposition and whether it offers consumers and members something unique, innovative, and relevant – rather than the same old same old.

Dr Seuss also said: “We’re all a little weird and life is a little weird, and when we find someone whose weirdness is compatible with ours, we join up with them and fall in mutual weirdness…”

What the doctor ordered speaks to building a value proposition that appeals to one or a few weird audiences. Many successful boutique studios have taken this approach to crafting their value proposition. Gym Box in the UK is a premium operator that has taken a different approach and, in so doing, carved out a distinctive position for itself in the marketplace.

Just remember, being ‘odd’ also requires innovation and – importantly –having relevance to the audience you pursue.

So, what does it take to foster a value proposition and culture takes you to number one and enables you to leverage ‘weird’?

Find your tribe
Consider selecting single or multiple niche audiences to serve, and craft your value proposition and culture to be relevant to them. Study your marketplace, talk to your existing members and, most importantly, search for un-served/under-served groups.

• Deliver your offering differently. No one says you have to operate in the same way as your competitors.

Maybe offer club access via bundled packages instead of monthly subscriptions.

How about investing more in technology and becoming the most tech-savvy fitness business in the market?

• Be a 2.5 percenter. Two-and-a-half percent refers to the percentage of businesses that are real innovators. These are businesses that pursue innovation or are willing to adopt business practices and technology early on, typically way ahead of the competition. For example, why not try a ‘freemium’ approach to your business model, similar to that used in the gaming industry, in which you offer the basics for free and then charge extra for upgrades and add-ons.

• Go back in time or shift into the future. CrossFit, possibly without even knowing it, built a business proposition around some of the clubs of the mid-1800s, in which gymnastics and calisthenics were the core of the programme. There are other models from olden times that would still work today.

Conversely, you could go the opposite route and create a high-tech virtual experience (ie virtual reality, streaming mobile content, virtual check-in, etc) supplemented by human contact.

Find out more at: www.ihrsa.org/publications

Dr Seuss Photo:shutterstock
"You have to be odd to be number one" - Dr Seuss
Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Consider adding new amenities to your club, such as a pickleball court / shutterstock
Consider adding new amenities to your club, such as a pickleball court / shutterstock
Treadmills remain the most popular piece of equipment in the gym / shutterstock
Treadmills remain the most popular piece of equipment in the gym / shutterstock
Gym Box in the UK has carved out a distinctive position
Gym Box in the UK has carved out a distinctive position
Time shifting: CrossFit has built an enormous following by delivering traditional training methods in a new way
/ shutterstock
Time shifting: CrossFit has built an enormous following by delivering traditional training methods in a new way / shutterstock
http://www.leisureopportunities.com/images/imagesX/894719_58225.jpg
1 out of 5 Americans age six and older belongs to health club. Find out more key findings from the 2019 IHRSA Health Club Consumer Report...
IHRSA, Kristen Walsh,research, consumer report,
People
HCM people

Dan Bond

Owner, CrossFit Fort Ashton
We’d explained leading up to the lockdown that if everyone decided to freeze or cancel, then there would be a possibility of not having a gym to come back to
People
If you don’t have a hybrid digital/ physical model, you won’t survive
People
HCM people

Debra Wein

founder and CEO, Wellness Workdays
I’ve always felt that if individuals had more education and understanding of nutrition and healthy lifestyle principles, we could literally change lives
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Immunity
Finding the best ways to boost immunity using exercise has never been more important. Two fitness equipment developers have taken up the challenge, with protocols that assist in strengthening the body’s defences
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Statistics
IHRSA’s Kristen Walsh gets a briefing from Blair McHaney on how operators can use gym member insight to inform reopening decisions and practices
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Finance
Change is coming, with consolidation likely in the market – especially in the boutique sector. Nadim Meer advises operators how to position themselves for investment
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Editor's letter
The pandemic is stretching the industry to the limit and it’s a time none of us will ever forget. Moving forward, we need to make a plan to ensure we’re better prepared to represent ourselves in the corridors of power
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FIBO Awards
Although the show has been rescheduled, the six winners of the FIBO Innovation and Trend Awards 2020 have still been announced. We take a look at the companies whose developments help motivate people to live healthier lives
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Sport England has teamed up with 15 health and social care charities to find ways to support people living with 10 different health conditions to be physically active. Kath Hudson finds out more
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Supplier showcase
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Features
Latest News
Boutique operator Digme Fitness will open two new studios in London over the next two ...
Latest News
A government investment of £1.75bn – to pay 50 per cent of rents across the ...
Latest News
Health clubs and gyms in Catalonia have reopened their doors once for a second time, ...
Latest News
Health clubs, gyms, indoor pools and leisure centres have reopened in Wales – nearly five ...
Latest News
Today (10 August) is the last day for companies to enter the follow-up survey to ...
Latest News
A significant proportion of leisure facilities in England have not reopened since lockdown measures were ...
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Industry body, ukactive, has questioned the decision to close gyms and health clubs as part ...
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Prime Minister Boris Johnson has paid a surprise visit to a branch of The Gym ...
Opinion
promotion
Data-driven businesses are some of today’s greatest global success stories, providing blueprints for success.
Opinion: Up your ‘data game’ to successfully relaunch your fitness business
Opinion
promotion
Evidence suggests that over many years personal trainers have been forced to leave the fitness industry because employment patterns are erratic, earnings are inconsistent and it is difficult to build up value needed to secure an appropriate lifestyle.
Opinion: Personal trainers need support as employment opportunities diminish: FREE on-demand webinar
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Fitness expert and television host, Jessie Pavelka has collaborated with Fisikal, experts in digital management solutions, to create the new JP4 app, a premium 12-week personal health and fitness transformation programme that takes the user on a journey of change through four key elements of health.
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Featured supplier: Gympass partners with F45 Training to bring functional team training to world's largest corporate fitness platform
Gympass, the world’s largest corporate fitness platform, has announced a partnership with F45 Training, one of the world’s fastest-growing fitness franchisors that will give its corporate members access to their global network of workout facilities.
Video Gallery
THROWDOWN
Core Health & Fitness
Throwdown® creates opportunities to push boundaries by enabling everyone to reach their peak performance. Read more
More videos:
Company profiles
Company profile: Precor
For more than 35 years, Precor has driven fitness forward. We continue that heritage every ...
Company profiles
Company profile: TRIB3 International Ltd
First established in Sheffield in January 2016 TRIB3 is a bootcamp boutique studio designed to ...
Supplier Showcases
Supplier showcase - Speedflex
Catalogue Gallery
Click on a catalogue to view it online
Directory
Direct debit solutions
Harlands Group: Direct debit solutions
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Management software
Fisikal: Management software
Fitness equipment
Healthcheck Services Ltd: Fitness equipment
Software
Volution.fit: Software
Gym flooring
REGUPOL/Berleburger Schaumstoffwerk (BSW): Gym flooring
Exercise equipment
Matrix Fitness: Exercise equipment
Wearable technology solutions
MyZone: Wearable technology solutions
Lockers/interior design
Fitlockers: Lockers/interior design
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
21-24 Sep 2020
Loews Coronado Bay Resort, Coronado, United States
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21-24 Sep 2020
Messe Stuttgart, Germany
Diary dates
22-23 Sep 2020
Heythrop Park, United Kingdom
Diary dates
17-23 Oct 2020
Pinggu, Beijing, China
Diary dates
03-06 Nov 2020
Online,
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27-28 Nov 2020
Athena, Leicester, United Kingdom
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23-26 Feb 2021
IFEMA, Madrid, Spain
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03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates

features

IHRSA Update: Know your customers

IHRSA’s Kristen Walsh shares highlights from The 2019 IHRSA Health Club Consumer Report into the US fitness market, as well as giving universal advice about how to stay relevant

By Kristen Walsh, IHRSA | Published in Health Club Management 2019 issue 11
As trends come and go, be alert and pivot your business creatively, says IHRSA / shutterstock
As trends come and go, be alert and pivot your business creatively, says IHRSA / shutterstock

In order to adequately recruit, serve, engage and retain health club customers and members, it’s crucial to understand everything about them – their needs, their wants and their behaviours.

IHRSA’s annual Health Club Consumer Report 2019 is based on a nationwide sample of more than 20,000 interviews and provides demographics and health, sports, and fitness participation data on US health club consumers.

Review your business model
At this moment in time, fitness facility operators, especially those in the fitness-only category, find themselves competing in an industry segment that’s dominated by discount operators (75 per cent charge less than US$25, and 32 per cent charge less than US$10 a month).

If your present business model is fitness-only (equipment, group exercise studios and locker rooms), then chances are most of your competitors will be in the low-price game, and your existing and future members will frame their buying decision around the lowest price.

Stay in the game
Consequently, if you plan to continue to operate a fitness-only model in your business, your options include:

• Lower your price and add a little extra. Rather than go head-to-head at $10, try $15 to $18, and then offer a few classes, some virtual classes, and possibly offer fee-based small group training.

• Continue to operate at your present price point, eg, $30 to $40, but differentiate your offering. Create a speciality, such as a genre of group classes, small group training or coaching, that none of your competitors is offering.

• Move up the chain. Add physical and programming amenities known to denote value and a higher price point. For example, you could add a court for POP tennis and pickleball; add a speciality studio and theme it; create more tribal programming, or partner with another small business to incorporate a custom bundle of services with higher perceived value into your offering.

Pursue ‘odd’ and ‘weird’
Dr Seuss notably quipped: “You have to be odd to be number one.” What he meant was that reaching the top and, equally importantly, remaining at the top, requires a penchant for being a little different from the rest.

“Odd” refers to your business’ value proposition and whether it offers consumers and members something unique, innovative, and relevant – rather than the same old same old.

Dr Seuss also said: “We’re all a little weird and life is a little weird, and when we find someone whose weirdness is compatible with ours, we join up with them and fall in mutual weirdness…”

What the doctor ordered speaks to building a value proposition that appeals to one or a few weird audiences. Many successful boutique studios have taken this approach to crafting their value proposition. Gym Box in the UK is a premium operator that has taken a different approach and, in so doing, carved out a distinctive position for itself in the marketplace.

Just remember, being ‘odd’ also requires innovation and – importantly –having relevance to the audience you pursue.

So, what does it take to foster a value proposition and culture takes you to number one and enables you to leverage ‘weird’?

Find your tribe
Consider selecting single or multiple niche audiences to serve, and craft your value proposition and culture to be relevant to them. Study your marketplace, talk to your existing members and, most importantly, search for un-served/under-served groups.

• Deliver your offering differently. No one says you have to operate in the same way as your competitors.

Maybe offer club access via bundled packages instead of monthly subscriptions.

How about investing more in technology and becoming the most tech-savvy fitness business in the market?

• Be a 2.5 percenter. Two-and-a-half percent refers to the percentage of businesses that are real innovators. These are businesses that pursue innovation or are willing to adopt business practices and technology early on, typically way ahead of the competition. For example, why not try a ‘freemium’ approach to your business model, similar to that used in the gaming industry, in which you offer the basics for free and then charge extra for upgrades and add-ons.

• Go back in time or shift into the future. CrossFit, possibly without even knowing it, built a business proposition around some of the clubs of the mid-1800s, in which gymnastics and calisthenics were the core of the programme. There are other models from olden times that would still work today.

Conversely, you could go the opposite route and create a high-tech virtual experience (ie virtual reality, streaming mobile content, virtual check-in, etc) supplemented by human contact.

Find out more at: www.ihrsa.org/publications

Dr Seuss Photo:shutterstock
"You have to be odd to be number one" - Dr Seuss
Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Consider adding new amenities to your club, such as a pickleball court / shutterstock
Consider adding new amenities to your club, such as a pickleball court / shutterstock
Treadmills remain the most popular piece of equipment in the gym / shutterstock
Treadmills remain the most popular piece of equipment in the gym / shutterstock
Gym Box in the UK has carved out a distinctive position
Gym Box in the UK has carved out a distinctive position
Time shifting: CrossFit has built an enormous following by delivering traditional training methods in a new way
/ shutterstock
Time shifting: CrossFit has built an enormous following by delivering traditional training methods in a new way / shutterstock
http://www.leisureopportunities.com/images/imagesX/894719_58225.jpg
1 out of 5 Americans age six and older belongs to health club. Find out more key findings from the 2019 IHRSA Health Club Consumer Report...
IHRSA, Kristen Walsh,research, consumer report,
Latest News
Boutique operator Digme Fitness will open two new studios in London over the next two ...
Latest News
A government investment of £1.75bn – to pay 50 per cent of rents across the ...
Latest News
Health clubs and gyms in Catalonia have reopened their doors once for a second time, ...
Latest News
Health clubs, gyms, indoor pools and leisure centres have reopened in Wales – nearly five ...
Latest News
Today (10 August) is the last day for companies to enter the follow-up survey to ...
Latest News
A significant proportion of leisure facilities in England have not reopened since lockdown measures were ...
Latest News
Industry body, ukactive, has questioned the decision to close gyms and health clubs as part ...
Latest News
Prime Minister Boris Johnson has paid a surprise visit to a branch of The Gym ...
Latest News
Planet Fitness' share price on the New York Stock Exchange has remained steady at between ...
Latest News
Two of the largest health club operators in the US have announced that members and ...
Latest News
If you're a personal trainer working in the UK, you can now get online PT ...
Opinion
promotion
Data-driven businesses are some of today’s greatest global success stories, providing blueprints for success.
Opinion: Up your ‘data game’ to successfully relaunch your fitness business
Opinion
promotion
Evidence suggests that over many years personal trainers have been forced to leave the fitness industry because employment patterns are erratic, earnings are inconsistent and it is difficult to build up value needed to secure an appropriate lifestyle.
Opinion: Personal trainers need support as employment opportunities diminish: FREE on-demand webinar
Featured supplier news
Featured supplier: Fisikal chosen as tech partner for ‘JP4’; new health app from fitness expert, Jessie Pavelka
Fitness expert and television host, Jessie Pavelka has collaborated with Fisikal, experts in digital management solutions, to create the new JP4 app, a premium 12-week personal health and fitness transformation programme that takes the user on a journey of change through four key elements of health.
Featured supplier news
Featured supplier: Gympass partners with F45 Training to bring functional team training to world's largest corporate fitness platform
Gympass, the world’s largest corporate fitness platform, has announced a partnership with F45 Training, one of the world’s fastest-growing fitness franchisors that will give its corporate members access to their global network of workout facilities.
Video Gallery
THROWDOWN
Core Health & Fitness
Throwdown® creates opportunities to push boundaries by enabling everyone to reach their peak performance. Read more
More videos:
Company profiles
Company profile: Precor
For more than 35 years, Precor has driven fitness forward. We continue that heritage every ...
Company profiles
Company profile: TRIB3 International Ltd
First established in Sheffield in January 2016 TRIB3 is a bootcamp boutique studio designed to ...
Supplier Showcases
Supplier showcase - Speedflex
Catalogue Gallery
Click on a catalogue to view it online
Directory
Direct debit solutions
Harlands Group: Direct debit solutions
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Management software
Fisikal: Management software
Fitness equipment
Healthcheck Services Ltd: Fitness equipment
Software
Volution.fit: Software
Gym flooring
REGUPOL/Berleburger Schaumstoffwerk (BSW): Gym flooring
Exercise equipment
Matrix Fitness: Exercise equipment
Wearable technology solutions
MyZone: Wearable technology solutions
Lockers/interior design
Fitlockers: Lockers/interior design
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
21-24 Sep 2020
Loews Coronado Bay Resort, Coronado, United States
Diary dates
21-24 Sep 2020
Messe Stuttgart, Germany
Diary dates
22-23 Sep 2020
Heythrop Park, United Kingdom
Diary dates
17-23 Oct 2020
Pinggu, Beijing, China
Diary dates
03-06 Nov 2020
Online,
Diary dates
27-28 Nov 2020
Athena, Leicester, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
Diary dates
03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates
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