If you found extra money lying around, you would probably figure out something to do with it.
Currently, there are profit center opportunities you are passing by in your Box. It’s time to find those additional revenue streams and build them up.
More often than not, the best additional revenue streams are the passive ones. Brennan Morton, the owner of NEPA CrossFit in Plains, Pennsylvania, shared personal training has generated a lot of revenue for his business, especially considering he’s done nothing for it. The gym takes a cut from Coaches only if the client isn’t already a member of the gym. Non-members pay more.
Oddly enough, Morton said more of your current members want to do personal training than you think. He said it’s OK to be choosy and pass over difficult clients or ones who don’t fit into your schedule. By offering personal training, you add value and give Coaches their own additional revenue streams.
Carolyn Embree, the office manager of Oak Park: CrossFit LA, spoke along the same lines of value when it came to profit centers in the gym. They will bring in outside opportunities like Align Therapy or allow Coaches to host special classes, like the Sunday morning breath class currently on the schedule. “Our goal is to bring in people with different expertise and different training and just bring them to the community and let them experience that,” she said.
However, bringing other people and experts into your space requires flexibility. Embree said it’s been a trial and error system when it comes to setting a price on an expert renting the space or in determining the percentage a Coach receives for an extra class. Make sure you’re open to communication and looking to be fair to all parties, said Embree.
Space has been another large revenue stream for Morton. With a huge facility, they’ve rented out their gym to everyone from strongman competitions to a group of LARPers. He explained he’ll simply charge the group the door fee made on the event. So, he can net over $1,200 in one weekend, or just $50. However, the space would have just sat there otherwise, and it helps the rentee not fear losing money if the event isn’t well attended.
On the Affiliate’s end, it’s essential to know a few things when renting out space. First, check your lease to make sure you can rent out your facility. Make sure the rentee has their own insurance. Look into occupancy permits and get a specific number to avoid any issues down the road. And finally, have a good bathroom above all else. “You’re responsible for your space, so if it looks crappy, you’re not going to get your space rented,” said Morton. “When we rent, we do clean the night before, and we make it presentable, because again you are selling a product and that product better be nice.”
Additional profit centers don’t have to be large undertakings, however. Justin Marcis, the owner of Windy City Strength and Conditioning in Chicago, Illinois, has something as simple as locker rentals for $7 a month available to his members.
Finding those revenue streams has helped keep his membership cost low as rent has increased. Coaches are able to pitch ideas for classes, which has created Windy City’s variety of speciality track offerings. Individual program design is also available. But one of the biggest revenue streams for Windy City is retail.
“We’re pretty good at our retail,” said Marcis. “That wasn’t always the case. It came about by actually putting time into building a store within our facility – a front desk with a store and updating our product and promoting it.”
The facility underwent a massive renovation 3.5 years ago. An architect helped Marcis create a flow in the gym that clearly defines how a visitor is to move through the space during their experience there.
All in all, giving members options is key. Marcis saw the additional revenue streams also as ways to better his member experience. And his reasoning behind each is the answer to a simple question: “Why wouldn’t you do that if you can do it well?”