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Reject the Recession and Build a Thriving Health Club

With all of the negative media attention on the economy, some club owners and managers will panic and flounder while others will gain market share. Jim Thomas teaches you how to thrive rather than take a dive…

By: Jim Thomas

"When you put the right energy and focus into your health club--despite the economy--the results can be extraordinary."

In a time when many health clubs across the country are struggling, everything in the media focuses on downsizing, rising costs and economic problems, it can be hard to avoid that sinking feeling in your stomach. But as health club owners you really have two choices: You can let the negative media send you into full panic mode or you can view the economic downturn as an opportunity to increase your market share.

This is a time in the economy when market share can be seized and fortunes made. While some health club owners are giving up and closing their doors, their competitors are seizing opportunities in the market place.

Here are some thoughts on how you can thrive in the health club business during tough times:

Sharpen your skills - read, take classes and network.

1. Keep Marketing Your Health Club…and Keep Marketing

Pull-out quote: The first instinct of many health club owners we speak to across the country is to cut back on marketing, promotion and advertising…this is the worst time to cut back. Health Clubs that continue marketing through a slow economy are the ones that come out ahead when everything begins to turn around.

Make sure you have a marketing plan of action in place and stick to it. If your current marketing and promotional efforts aren't producing results, try new strategies until it does. When done correctly, marketing is an expense that should pay for itself. Find proven strategies and then keep doing them. The key here is consistency…month after month.

2. Don't Be Afraid To Discount Membership Fees

The clear reality is that your members and guests are holding on to their money more tightly than ever. The key to unlocking their wallets is in discounts. Reevaluate your membership pricing strategy and offer membership discounts off your most popular memberships and other health club services.

This may also be a good time to lower your memberships across the board and then advertise your new lower prices. I'm not suggesting you simply drip the rates….be sure to get something in return. For example, if you drop the enrollment fee, perhaps the new member signs up for a year instead of month to month.

3. Leverage the Internet For Marketing And Exposure

Are you selling memberships, gift certificates and other health club services from your Web site? Can you expand your sales channels by selling on eBay, Craigslist or other sites? Are you reaching your members and club guests with e-mail marketing? Is your Web site optimized for the search engines? Have you tried Ad Words?

It doesn't have to cost a fortune to implement an online marketing and sales strategy for your health club. Even if you simply add gift certificate purchases to your Web site, you could uncover a whole new revenue stream. Seek out an online marketing expert and evaluate the opportunities.

4.Form A Health Club Think Tank For Some Possibility Thinking

Pull-out quote: Get together with your key health club staff or assemble a small group of people who understand your business and brainstorm some potential opportunities. You might even try this at a Chamber of Commerce meeting. When several people get together with a blank slate and some good energy, good things can often happen. Ask for ideas--you might be surprised by the results.

5. Tap Into A New Niche For Your Club

Is there a niche in your health club that you have been meaning to focus on? Can you uncover a new market that makes sense for your health club? Pick a new market and then develop a plan of attack. Some good examples are conducting a dinner workshop for members and guests, become the outsourced exercise program for a local school, etc.

6. Reach Out To Your Existing Member Base

One of the most overlooked health club opportunities comes from your existing and past health club members. The fact that they have already done business with your health club makes it far more likely that they will do business with your health club in the future.

Make sure you are marketing to them, reaching out and reminding them that you are there. Ask them for referrals and offer a powerful incentive such as a cash reward or gift card for referrals when they refer guests or new members. Such programs as constantcontact.com work great for email communication.

7. Make Improvements In Your Health Club Operation

This is an ideal time to evaluate all of your health club policies and procedures. Do they make sense in this economy? Is your customer service team delivering up to your standards? Could your membership sales team benefit from some additional training?

How can you help your health club perform even better? What are steps you can take to improve member loyalty? Look at your health club through a magnifying class and seize the opportunity to improve it across the board.

8. Survey Your Members

A lot can be uncovered by reaching out to your members and asking them for feedback. Develop a short list of questions that include ratings on your health club, services and staff. Ask specific questions such as, "How can we improve your experience with us?" Once you receive the survey results, evaluate them and take action to make improvements. Let your members know that you heard them and share what improvements you are making in your health club as a result of their survey responses.

9. Keep an Eye On Capital

What goes down must come up and the economy will rebound, though it may be awhile. If sales are slower than usual, formulate a plan for getting through this period. You might need to open a line of credit, visit your bank and apply for a loan, seek private funding or even bring in a partner. Running out of capital can quickly kill a health club. Make sure you assess how much you may need before you need it and have a plan for forging ahead. Investigate bartering.

10. Get Some Help And Keep Your Eye On The Ultimate Goal

Now is a great time to sharpen your own skills. Take some classes, read some books and network with others in the health club industry so you can learn from them. Get involved with IHRSA and other groups and make sure you are on top of your game. Look for joint venture opportunities.

Make yourself more efficient by outsourcing services that consume your valuable time. Also, determine your priorities. Where should you be spending your time? What can you do to make your health club bigger, better and stronger? Leave the worrying to your competitors and instead seek out opportunities with your health club and stay positive. When you put the right energy and focus into your health club--despite the economy--the results can be extraordinary.

Now, let's go build a thriving health club.

About Jim Thomas

Go to About Jim Thomas page.

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