Most fitness club owners and operators know the lifeblood of their business depends on monthly membership dues. But what are the best ways for them to generate additional revenue?
AB Show guest speaker Trina Gray experimented with a strongman competition for her members eight years ago, but her idea didn’t pull its weight. Gray, the owner of the multipurpose Bay Athletic Club and Bay Urban Fitness group training studio in Alpena, Mich., found out that her core base of working parents had no interest in pulling a semi trailer.
“It was at that event I had this awakening moment that I needed standards for my business,” Gray says. “I probably turned off more people than I turned on.”
Since then, Gray has had greater success implementing new revenue streams. At the AB Show this Nov. 17-19, Gray will share some of the guiding principles behind her success.
“You need armor to stay strong in this business,” she says. “You can’t rely on just membership dues to grow. It’s not safe, it’s not strong. It’s a house of cards to build a business on one or two streams of revenue.”
Implementing new revenue streams, according to Gray, starts with a solid understanding of your business and clients. When evaluating new opportunities, Gray suggests asking the following:
1. Will a certain new trend create guaranteed results for members?
“Ask yourself, ‘Am I bringing this on because it’s cool or new, or is it going to create results?’ Is it going to be time-consuming or confusing?”
2. Is a new revenue stream going to create community?
“I wonder how much people actually diligently look at their business operations and say, ‘Am I creating opportunities for people to engage, connect and have community? Will this revenue stream introduce people to each other? Will this get people to know each other?’ I don’t want my team to be the reason why people are coming to my club. I want my members to connect with each other.”
3. Will this new initiative create any new stories?
“Could somebody have an experience with this program or product that will create a potentially life-changing story? Will this camp get someone off the couch? Will it show them what they’re made of? Will it show them that they have an inner athlete? Will it help them take control of their daily habits? If I do this program or this initiative, and I interview someone six months from now, will they reference that that was a turning point for them?”
4. Will this serve our client avatar or ideal customer?
“Yes, we have a lot of general-membership facilities in this industry, and yes, we serve a lot of people, and that’s great. But within that spectrum of all the people we’re serving, who is your ideal client? Can you offer more to them?”
5. Does it fit our brand?
“If people looked at our social media, website or newsletter, and I ask them what they thought my club is about, everyone says fun, community and friendship. It’s obvious from the outside looking in. So, when I’m bringing something on, does it fit our brand? For us, doing something that’s really outside of that, even though it might be a good idea for someone else, it won’t resonate with my base.”
Transform your program, facility and career at the AB Show, Nov. 17-19. This premier event is the No. 1 place for you to learn how to build a great team, get top-notch education and tips from industry thought-leaders, and find the products and services you need to effectively manage and equip your program or facility.
Get the rest of Trina’s tips on managing your fitness facility during her AB Show session: “Stay Financially Fit: Multiple Revenue Streams.”