3 Ways to Dramatically Increase Your Gym’s Profits

profits

One of the benefits of owning a “microgym” or a Box is creating a culture-based atmosphere, with low overhead and a higher profit margin than a typical gym membership. That can also be a limiting factor when it comes to growing your business. Unless you have a high recision rate – members leaving – the last thing to do is keep exclusively focusing on new leads and members.

Too many fitness business owners fall into the trap of adding more classes to accommodate more new members with the goal of making more money. If you have full classes and your Coaches are busy, the last thing you don’t need is more leads to increase profits. You need to learn to increase your profits by monetizing the current pool of red hot leads already under your nose.

Here are three of the best ways to do it:

Raise Your Rates 

This is actually one of the easiest and best ways. Most people won’t mind – in fact they expect – regular incremental rate increases. If you have a member base of 200 clients paying $200 per month, increasing the rate to $249 increases your monthly EFT by $9,800 or $117,600 for the year. Even only raising the monthly rate to $225 increases your EFT to $5,000 per month or $60,000 for the year.

That’s game changing income.

If you do this, be sure to thoroughly explain to your membership why you’re doing it and how it will benefit them. You may lose a few over it, but you’ll have a smaller base that you can work with more closely, and still come out with higher margin. Don’t be the cheapest guy in town. Put up your velvet rope, and charge what your services are really worth.

Point of Sale Upsells 

Raise your hand if you hate selling. Most fitness business owners hate sales because they aren’t very good at it. You don’t need to spend much time selling your core programs anymore because most people have made up their mind whether they are going to join before they’ve walked into the door.

The real sale begins after the handshake and before the contract is signed. Upselling is crucial to begin to monetize your new members while they are still in a buying mood. Do you have an upcoming workshop that this new member would be a good fit for? Does this new member have a nutritional gap that could be filled with a supplement sold at your business? Do you have a self-produced DVD or audio program that would serve this member?

Additional products presented at point of sale are more likely to sell rather than a few days or weeks in. What do you have? Be like Colombo and say ”Just one more thing.” If they are excited to drop $200 on you, do you think another $20 is going to be a deal breaker? If you don’t have anything to sell to this new member, get something. People want more. Give it to them.

Consider this: If you close 20 new members a month and half of them buy a $20 cookbook from you, that’s additional $200 that month and $2,400 for the year. There’s your new equipment you’ve been meaning to get. Or that’s an annual bonus for your Coaches. Or a killer party for your members at the end of the year. Get it? Get good at upselling. Yesterday.

Back End Offers

Offer your current members add-on opportunities. Something that works well is semi-private training sessions. Small group training sessions are usually made up of four to six people who want a specialized session with more instruction in a certain aspect of what you do.

Maybe kettlebell lifting. Or Olympic lifting technique. Powerlifting. How about a traditional bodybuilding program? Make it a different experience than what they normally receive in your core program.

If just 20 people per month join a small group program at $149, that’s an additional $2,980 per month or $35,760 for the year.

The best way to get your members into your small group training is simply asking them to join. “I’ve noticed the progress you’ve been making on the kettlebell swing, Mrs. Jones.” Or “We have a new six-week kettlebell lifting program coming up that I think you’d be a great fit for. It’s for people like you who want to really take advantage of the fat burning/muscle building/work capacity increasing benefits of kettlebells and learn some new exercises we don’t do in our regular training. That sound like something you’d be interested in?” Boom.

Increasing the monetary value of your current members is the fast track to profits in your facility. Use one or all of them as part of a comprehensive business plan and watch your business soar.

 

By Chad Smith, the owner of Fitness Revolution Hagerstown. For more information, email him at chad@frhagerstown.com. Article on behalf of STRENGTH.com

Box Pro Magazine