Staying Relevant in the Fitness Industry
â˘Download as PPT, PDFâ˘
25 likesâ˘7,697 views
Fitness consumers and changing and have more options than ever before. In order to remain profitable, operators needs to clearly understand how to adopt a business strategy that leverages technology and is relevant to the way consumers want to buy. Clubs operating with high-overhead and a multitude of low value-add services are the most at risk. Learn how to refine your business for the new year.
Recommended
More Related Content
Viewers also liked
Viewers also liked (13)
More from Fitmarc
More from Fitmarc (15)
Recently uploaded
Recently uploaded (20)
Staying Relevant in the Fitness Industry
- 1. âTHE-BIG-SQUEEZEâ HOW TO REMAIN RELEVANT IN THE HEALTH & FITNESS INDUSTRY PRESENTED BY RODNEY J. MORRIS FOR MORE FREE CONTENT VISIT WWW.THE-BIG-SQUEEZE.COM
- 2. âTHE-BIG-SQUEEZEâ HOW TO REMAIN RELEVANT IN THE HEALTH & FITNESS INDUSTRY PRESENTED BY RODNEY J. MORRIS FOR MORE FREE CONTENT VISIT WWW.THE-BIG-SQUEEZE.COM
- 3. ITâS EVERY GYM OWNERâS WORST NIGHTMARE: LOW $$$ COMPETITORS ARE COMING TO TOWN AND SELLING MEMBERSHIPS AT A FRACTION OF WHAT YOU ARE
- 4. THEREâS JUST ONE PROBLEMâŚ
- 5. THEY ARE ALREADY HERE
- 6. AND THEY ARE NOT DYING⌠6
- 8. ⢠STRONG VALUE PROPOSITION ⢠MULTIPLE LOCAL STOREFRONTS ⢠AGGRESSIVE MARKETING STRATEGY ⢠AND NEW, SOâŚ
- 10. WHERE DO THEY GO⌠BUDGET GYM Theyâll pay less for less service because at least then theyâre not being âoverchargedâ ď ď˘ YOUR CLUB They drop out of our industry altogether ď MICRO-GYM/ PREMIUM OFFER Theyâll pay more in the hope that this club might actually provide something that delivers on its promise
- 11. SO YOU GET TYPE OF HEALTH CLUB 2010 SQUEEZED YEAR 2015 HOW WILL YOU COMPETE? LOW COST/BIG BOX BIGGER, THRIFTY, NEW YOU ARE YOU WORTH THE $$$ SPECIALTY/MI CRO GYM SMALLER, TRENDY ANTICIPATED TRENDS LEARN MORE AT WWW.THE-BIG-SQUEEZE.COM
- 12. BUT HOW LONG CAN YOU LAST 12
- 13. YOU HAVE TO UNDERSTAND OTHER COMPETITIVE MODELS
- 14. MYTH 1 A LOW-BUDGET STRATEGY IS ONLY ABOUT PRICING
- 15. MYTH 2 BEING A LOW-BUDGET BUSINESS MEANS INFERIOR CUSTOMER SERVICE
- 16. 16 "Just because customers want low cost, this does not mean that businesses can get away with providing cheap equipment or facilities. The experience must still feel high quality.â Henry Mason Head of Research and Analysis at trendwatching.com
- 17. SOâŚ
- 19. 19 ILLUSTRATES THE MAIN REASON FOR LEAVING 20% Results 3% Support First-time Gym-Goers 3% Enjoyment 6% Facilities 11% Cost 14% Attendance 26% Location 26% 0% 5% 10% 15% 20% 25% 30% HOW LONG DID PREVIOUS MEMBERS KEEP THEIR MEMBERSHIP? Unsure 5% More than a year 80% Previous gym experience 16% 18% 7-12 mnths 4-6 mnths 28% 0-3 mnths PREVIOUS GYM EXPERIENCE VISUAL INSIGHT RAY ALGAR 2011 Membership Duration 33% 0% 5% 10% 15% WHY THIS IS TRUE 20% 25% 30% 35%
- 20. SOME MODELS âGET ITâ THE BEST ARE BUILT ON IT
- 21. WHAT MAKES YOUR MARKET ATTRACTIVE TO COMPETITORS DIGITAL INFRASTRUCTURE SPORADIC ATTENDANCE TO LEGACY CLUBS SIMPLICITY YOU ARE AN EASY TARGET CONSUMER SENTIMENT TOWARDS LEGACY CLUBS AFFORDABILITY CHANGING CONSUMER
- 22. STRATEGY âCompanies have only three options: attack, coexist uneasily, or become low-cost players themselves.â Harvard Business Review â Strategies to Fight Low-cost Rivals
- 23. 1 CLARIFY WHAT YOUR BUSINESS BELIEVES IN Weâre here to put a dent in the universe. Otherwise, why else even be here? Steve Jobs, Founder, Apple
- 25. 3 KEEP YOUR MEMBERS COMING (AND MORE OFTEN) SERVICE BEFORE YOU SELL
- 26. 4 DELIVER ON VALUE AND RESULTS (ENGAGEMENT) YOU CAN DELIVER RESULTS OR YOU CAN DELIVER EXCUSES. YOU CANNOT HAVE BOTH.
- 27. HOW TO DELIVER ON VALUE ENGAGE â INVEST â SERVICE â RESULTS DRIVE MARKET RELEVANCE, NOT DIFFERENCE $$$ DRIVE HIGH CLUB ATTENDANCE (4 -5 VISITS/WEEK) DRIVE âASSISTEDâ & RESULTS-BASED EXPERIENCES LEARN MORE AT WWW.THE-BIGSQUEEZE.COM DRIVE COMPETITORS TO DIFFERENTIATIO N DRIVE VALUE, NOT PRICE DRIVE MEMBER ENGAGEMENT VIA SOCIAL NETWORKS
- 28. 5 AIM FOR EXCELLENCE âCharacter is like a tree and reputation like a shadow. The shadow is what we think of it; the tree is the real thing.â - Abraham Lincoln
- 29. 6 RUN MICROBUSINESSES INSIDE YOUR FACILITY ? IF YOU CANâT BEAT THEM, (WHEN RELEVANT) JOIN THEM
- 30. 7 EVALUATE TRENDS AND TAKE DECISIVE ACTION STAYING AHEAD OF THE CURVE = STAYING RELEVANT
- 31. 8 HARNESS TECHNOLOGY AND SOCIAL MEDIA TECHNOLOGY WILL GROW TO DEFINE HOW HEALTH CLUBS CREATE AND SUSTAIN MEMBER ENGAGEMENT
- 32. EVALUATE YOUR OWN PRICES AND REFINE EVALUATE YOUR OWN PRICES AND REFINE YOUR MEMBERSHIP OPTIONS (GO SEE) 9 YOUR MEMBERSHIP OPTIONS (GO SEE)
- 33. 10 INVEST IN THE BEST PEOPLE YOU CAN FIND I am convinced that nothing we do is more important than hiring and developing people. At the end of the day you bet on people, not on strategies.â - Lawrence Bossidy, Former COO of GE and author
- 34. CONCLUSION â REMAINING COMPETITIVE 1. Clarify what your business believes in, itâs purpose, your âwhyâ ⌠what contribution to the fitness industry and to people do you want to make? What legacy do you want to leave? 2. Do all you can to achieve the highest possible level of members engagement â attendance should be your #1 KPI 3. Review and rethink your value proposition⌠4. Focus on providing people with results and motivation 5. Aim for excellence â be the best at what you are specialized in! 6. Run micro-gym businesses 7. Pay attention, remain relevant 8. Harness technology and social media 9. Evaluate your price and review your membership options 10. People, people, peopleâŚ
- 35. WHETHER IT IS THE EXPERIENCE, THE STAFF, THE RESULTS YOU PROVIDE, THE QUALITY OF PROGRAMS, THE ATMOSPHERE, THE ATTENTION TO DETAIL, OR THE RELATIONSHIPS FORGED, THERE ARE MANY UNIQUEYOUR FITNESS BUSINESS APART FROM QUALITIES THAT CAN SET YOUR COMPETITORS. PLAN EARLY, AND MAKE YOUR MEMBERS AND PROSPECTS UNDERSTAND HOW YOUR FACILITY OFFERS THE MOST VALUE PER DOLLAR SPENT.
- 36. By 2015, thousands of health clubs will be forced out of business by fierce competitors. How will you survive? VISIT WWW.THE-BIG-SQUEEZE.COM
- 37. SURVIVAL IN THE MIDDLE MARKET: HOW PUT A STOP TO âTHE-BIG-SQUEEZEâ THANK YOU FOR ATTENDING IF YOU WOULD LIKE TO CONNECT OFFLINE TO DISCUSS YOUR CLUBâS STRATEGIC PLAN PLEASE VISIT WWW.THE-BIG-SQUEEZE.COM/CONTACT TO REQUEST A FREE CONSULTATION PRESENTED BY RODNEY J. MORRIS www.rodneyjmorris.com
Editor's Notes
- LOW-COST GYMS ARE CHANGING THE FACE OF THE INDUSTRY⌠The competitive play used to be mid-market vs premium clubs, with the former claiming they could offer âmore for lessâ. âAffordable fitnessâ was the Fitness First slogan as they redefined the small-club proposition. These âaffordableâ mid-market clubs now look âflabbyâ compared to their super-lean low-cost upstarts⌠And they are quickly losing market share to the low-budget clubsâŚ
- Unsatisfied members can go one of three ways⌠Some of them Drop out of the industry Choose a low-budget option if they have the feeling what they get is not worth the price they are paying⌠If your prices are close to premium but your service and offering are anything less than premium, existing members and prospects are no longer prepared to pay⌠and now with low-budget gym they have the possibility not to! Go premium and pay more in the hope to actually be delivered what was promised⌠One example of this is the fast-growing trend of the micro-gym type of facilities. What they charge per hour can be more expensive than that of all your clubs - including the monthly membership! Cross Fit Studios â 5,000+ facilities - $20 to $30 per workout Orange Theory - $23 per class Kosama, Omni, Fitness Together, Title Boxing Soul Cycle and Flywheel (US) â $32 per class Pure Yoga (Asia and US) â $145 to $165 per month Exhale Spa (US) â $195 per month for classes-only membership
- The reality: existing clubs unable or unwilling to re-invent themselves this will progressively look poor value, out-of-touch and ultimately irrelevant. AC Nielsenâs âFuture of Fitnessâ White Paper highlighted this strong risk a few years agoâŚ
- Today we want to explore some tactics and solutions to overcome this challenge.  First, letâs have a look at the low-cost model⌠Itâs easier to fight the enemy you know than one you donât. Itâs easier to fight the enemy you know than one you donât.
- MYTH #1: A low-budget strategy is not only about pricing. An existing âmid-marketâ club offering a wide range of facilities and services, that suddenly decides to reduce its membership fees to match those of a new low-cost gym and remain competitive, is not a low-cost gym at all! It is simply the same club with a different pricing strategy. Usually, and even worse, it is still more expensive than the low-budget one⌠with older machines, less technology and a little less clean - and with very unhappy members⌠The low-budget model is radically different to a mid-market fitness facility. Successful price warriors stay ahead of bigger rivals by using several tactics: they focus on just one or a few consumer segments; they deliver the basic product or provide one benefit better than rivals do; and they back everyday low prices with super-efficient operations to keep costs down.
- MYTH #2: Being a low-budget business doesnât mean being inferior. Consumers are NOT trading-off the quality of the gym experience to secure a lower price. They are trading-off service elements they do not value which means they are purchasing a ânarrowerâ experience, not an inferior one. In the low-cost model, what remains benchmarks as good as, if not better than, higher-priced rivals. This includes all elements of the brand manifestation including marketing materials, the website, the gym experience, digital communications and interactions with staff. Of course, you can probably find poorly executed low-cost businesses, but this is a failure of management rather than some fundamental weakness in the low-cost business model.
- MYTH #2: Being a low-cost business doesnât mean being inferior.
- The bottom line is: the budget model is radically different to a mid-market fitness facility that would drop price and cut back on services. If you need to discuss an example, Walmart is a good one and here are some details about the business model⌠âSaving people money so they can have a better lifeâ - Walmartâs mission on which its business model is based. The current President and Chief Executive Officer of Walmart, Michael Duke, stated that the company is well positioned in todayâs difficult economy and tomorrowâs changing world (WM Annual Report, 2008). With $405 billion in net sales revenue (WMAR, 2010), Walmart is said to be worldâs largest retailer and the largest employer in the USA. Low-cost strategy: the core strategy of Walmart is "Everyday Low Prices" as its slogan states, in which the undercutting of prices is the basic principle of Walmart's business, which means low-priced products for customers. To achieve the strategy, innovation in Walmart can generate an assessment of its current business model and find an appropriate way to develop or change (Drucker, 1994). Information technology innovation Walmart utilizes information and technology to aid in the decision-making process and advance the effectiveness of its response to consumers, as well as through the information technology to control the process of logistics (Chesbrough, 2003). Technology innovation of Walmartâs business model involves process and service technology innovation, both of which can reduce the operation costs and time. Also the price of products can be reduced through the process of delivery and storage using new technology. And customer service within new technology will add more value to the same price and create a positive image for customers. To keep track of its logistics, Walmart tries more and more to rely on so-called radio frequency identification (RFID) technology (Wailgum, 2008). This technology uses a system to communicate through electromagnetic waves in order to exchange data between a terminal and the electronic tag which is attached to the delivery box. The purpose of this is their identification and tracking of products. Some of these tags can be recognized from a few meters away and others from even greater distances. Human resource management innovation Based on new ideas of relationship with its employees within the organization, Walmart develops its human resources policy to adapt to the changing environment. All of the employees of Walmart, from top manager down to the clerks, are called âassociatesâ, whereby everyone is autonomous. Walmart continuously communicates its employeesâ performance within the company and about the operations of the stores (Demense, R. & Gardner, N. 2002). This relationship and Walmartâs efficiency incentives provide a strong safeguard for achieving its strategy. The recruitment of people with the proper skills, competence and working experience can influence the morale of all employees. The problem with motivation, as well as the remuneration of Walmartâs associates, has been given a lot of coverage in the news in recent years. These articles complain about low wages and sparse benefits for the ordinary workers (Luce, 2005). Therefore, financial incentives and other forms of motivation must be constantly evaluated and adapted to ensure the satisfaction of the associates. Organization and management styles The management of Walmart has been based upon the values and principles of the founder. The managers always keep in touch with their customers as well as the operations of the retail stores, which leads to an effective communication between each store and the companyâs headquarters (Sims, 2002). Walmart puts a lot of effort into the innovation and development of its organization and management. Suppliers relationship development To achieve the objective of low price, Walmart used to adopt the centralization of purchases, in which all the transactions took place at the headquarters of Walmart. In addition, Walmart also refused to negotiate with manufacturers from the year 1992 and only allowed them to supply no more than 2.5% to avoid the dependence on one manufacturer (Raflamme, 2009). However, to compete in the global market, Walmart also needs to establish closer cooperative transactions with its local suppliers, which aligns with the needs of its consumers and lowers the inventory cost. So, since 2008, Walmart (and its subsidiary Samâs Club) also requires its suppliers to attach RFID technology to their deliveries. Otherwise these suppliers can face tough fines of up to US$2 to US$3 per delivery (Wailgum, 2008). Distribution and storage The cost of distribution and storage is a big part of a productâs selling price. So, Walmart handles 80% of the purchases that are directly shipped in the warehouse in order to reduce the cost of logistics. However, Walmart is still continuously upgrading and innovating its process and system of distribution where the products that arrive via the inbound trucks are loaded and unloaded on outbound trucks without first being stored as inventory in the warehouse. Social responsibility and sustainability Dealing with the imitation of the low-cost business model by competitors in the context of a global market, Walmart needs the innovation of technology, organizational management, relationship with suppliers and distribution services. Also, Walmartâs objective to establish itself as a key player in the society must incorporate cost innovation capabilities and social responsibility into its future business model, which looks promising with regard to future sustainability (Zott & Amit, 2007). During the last few years, Walmart has therefore tried to rebrand itself as a pioneer in environmental sustainability. By 2011 it wanted to reduce the phosphates in detergents by 70% and the amount of packaging material by 5% until 2013. It has classified its involvement into five categories: sustainability, feedback to communities, care for children, support for education, and disaster relief. For the last 13 years, its employees have spent more than 180,000 hours in âvoluntaryâ work for âpublic interestsâ in their communities (Walmart Social Responsibility Report, 2010).
- According to the UK 2012 report on the low-cost gym segment, 70 to 80% of low-cost clubsâ members have been a member of a club before⌠and 60% of them left their previous gym in less than 6 months. Their main reason for leaving was their low attendance⌠so we can say it was due to a low level of perceived value.
- It is very important to understand the underlying âdriversâ behind the low-cost gym sector. 6 underlying drivers behind the low-cost sector Changing consumer Consumers are less obsessed with buying brands merely as a means of demonstrating social âstatusâ. Not so long ago, conspicuous consumption prevailed. Surrounding oneself in âaspirationalâ items and showing them off at every opportunity helped to define our place in society. Just a few years ago, these âthingsâ seemed to matter - the type of car we had, the hotels we stayed at, and so did the club we belonged to. Today, inconspicuous consumption prevails as consumers seem less concerned with purchasing âstatusâ and more interested in receiving genuine, demonstrable value. Increasingly, this is creating consumers who are more willing to âmix and matchâ premium and âlow-costâ brands.There was a time when people did not discuss âbargainsâ found in the local low-cost store, but now some people will broadcast their purchases on Twitter. It is now a âbadge of honorâ to pay less; it demonstrates wisdom. Consumers are simply saying to themselves that they are smart and âsavvyâ shoppers Inconspicuous consumption â itâs cool to be thrifty. Simplicity A low-cost gym is very easy for consumers to understand. Stripping away the facilities normally associated with a âfull-serviceâ club, apart from the gym, makes the proposition very clear. Combined with this is the pricing policy, which is normally reduced to a maximum of one or two prices. Many low-cost gyms provide a contract-free option so the decision to join becomes more straightforward, with consumers saying to themselves: âI can try for a month to see if I like itâ. Compare this to a traditional club that may have many membership types/prices, requiring a sales consultant to discuss (and sell) the many options (eg peak single membership, off-peak, corporate peak/off-peak, peak single with/without group classes etc). As competition in the low-cost gym sector intensifies, brands will have to avoid the notion of âfacility-creepâ, which is where additional facilities are added in an attempt to create a point of difference. Choice is often good, but too much can lead to âchoice traumaâ. Consumer sentiment towards legacy clubs There is also a pervading undercurrent of mediocrity in many businesses, including gyms. Paying a premium price for a cruise, hotel, restaurant meal or health-club is no longer a guarantee of a memorable experience. Our service expectations are rising, while actual delivery is often merely adequate. When was the last time you were left pleasantly surprised and delighted by a leisure experience? Consumer sentiment towards âlegacyâ clubs is very mixed. Browse the web and read gym reviews on sites such as Yelp, Qype, Review Centre and others and it reveals very diverse sentiment. When you investigate gym sentiment, opinion around the tangible experience tends to be positive (what people are saying about the physical club environment, equipment, facilities etc). However, the sentiment turns sharply negative when the conversation reverts to membership contracts (especially long notice periods) and issues around staff support (eg updating exercise programs, staff on hand to provide advice, and just a general sense of being valued as a customer). So how do consumers respond? They decide to ignore the club industry altogether or instead seek out something that feels different, better, simpler and more âpureâ. Sporadic attendance to legacy clubs Sporadic member attendance drives some consumers into the low-cost sector.Many members attend clubs very infrequently. It can be quite common for a significant proportion of a clubâs members to attend only once per month, or less. Given that the average cost of membership to a private club is approximately $50 to $70, this can make âlegacyâ clubs look poor value. Eventually, it prompts consumers to say: âWhy am I paying for a club I rarely use?â Affordability Many first-time gym users are attracted to try a low-cost club because the price point is significantly lower than the country âaverageâ. However, it also compares favorably to alternative ways of spending leisure dollars. We can hear consumers over the dinner table saying: âA week at this new low-cost gym costs me the same as a cappuccino at Starbucksâ. The affordability and simplicity âdriversâ are closely aligned. It is a coupling of a great price with an easy-to-understand proposition that helps to âfuelâ the sector. Digital infrastructure If you look back five or ten years, corporate information technology had always been significantly ahead of consumer technology, but this situation has completely changed. Today, if you look at the kind of tools and digital solutions that are available to consumers in their everyday lives, they are extremely sophisticated and user-friendly tools, with a quick learning curve. This is why you see such wide-scale adoption. So when these consumers come to a commercial setting (such as a gym), the kind of technologies they see may sometimes have fewer features than those used in their everyday lives. The consumer smartphones are now more advanced than most dedicated medical devices. With technology, what you have to do is invest in building a platform, one that provides various services to the customer. However, once the platform is up and running, customers can start using it on their own at virtually zero cost to the organization. This is why low-cost businesses tend to use technology more and gravitate towards using a self-service model. Having the right digital infrastructure creates a âwin-winâ for both the low-cost operator and the consumer. The infrastructure embraces such things as affordable broadband to access the web, âWi-Fiâ networks, interactive websites, biometric access systems, digital surveillance and mobile platforms that allow consumers to join online, book activities, administer their own accounts and essentially to serve themselves. This all makes interacting with low-cost providers easy and empowering. It means that using the website to book a class is both fun and fast and probably quicker than calling reception. Social media can also be leveraged to connect and communicate with consumers, which helps to foster a more intimate relationship. For the low-cost operator, this digital infrastructure helps to create a âleanâ and highly efficient organization that ultimately helps to drive down costs, allowing it to offer services at prices that consumers find very exciting. Â Each of these drivers is contributing to the rise of the low-cost gym sector.
- After reading about the rise of low-cost gyms, it is understandable to jump to the immediate conclusion that the future is all about âlow costâ. Is turning your model into a low-budget one the only answer?  NO! This is not necessary. Here are three good reasons not toâŚ
- Both strategies are right because strategy has to synchronize with what you deeply believe. Remember, this is likely to be a long-term journey so the âfuelâ required to drive the business every day will come from an exuberance and passion for what you are pursuing. clarify the purpose of the business first and the profits should follow. Low-cost gym operators passionately believe they are helping to âdemocratize fitnessâ by lowering joining barriers and making it easier for consumers to embed physical activity into their lives. You may not believe this, but what does your business believe in? What is the underlying purpose driving this business? What do you want my business to stand for? What type of business are you passionate and excited about developing? What will be your personal legacy to the health-club industry? What difference are you trying to make? These are challenging but vitally important questions, so do not rush to the first answer. SUGGEST 3 SOURCES OF READING: âStart with a Whyâ, âDriveâ, and âThe Upside or the Irrationalâ. Test your answers with your team, industry colleagues, friends and family and constantly refine them.
- Focus on achieving ultimate members engagement and attendance High attendance leads to higher levels of loyalty, referrals, higher membership and higher membership fee⌠You can prevent the people from wanting to leave and you can get back those who have left. 70 to 80% of low-cost clubs member have been a member of a club before⌠âLow attendanceâ is the #1 reason why they left â you can get your members to value their membership in your facility more by increasing their attendance. A survey on ex members of Gym Group in the UK shows only 6.8% of members stayed longer than 12 months; 27.4% left in their first 3 months; and another 34.9% left within 6 months. Nearly 40% of them joined another facility⌠Attendance should be your number-one KPI. Evaluate your service and member engagement metrics, benchmark yourself against top performers and set some challenging goals Weekly club attendance and average attendance per member - What % of your members attend once, twice, three times and three+ times per week? Aim for a BHAG of 2 club visits per week per member as an average. What is your GX attendance? Your team training attendance? 90% prefer to exercise in a group. Making exercise social/building bonds is a key strategy to differentiate against low-budget clubs. Aim for a BHAG of 50% of your club attendance to go to your group exercise classes. People coming to GX attend their club twice more than others â start from there. Secondary KPIs: Consider net promoter score (NEP) Online review Investigate the percentage of walk-ins converted to sales to get a feel of the appeal of your value proposition Survey your members to find out what they feel is most important and implement accordingly. The question is: how do you increase attendance? WOW YOUR MEMBERS!
- The answer is: results and motivation⌠growing member engagement, attendance and therefore membership and profit. Doing all you can to deliver these to members. Why? 1. Research â see the recommendations in AC Nielsenâs White Paper entitled âFuture of Fitnessâ for example  2. Customer trends â look at Cross Fitâs success⌠and those of all the micro-gymsâŚ
- AIM FOR EXCELLENCE Whatever value proposition you decide to focus on, you have to deliver high satisfaction to be the best. Aim for excellence. Play on your strengths - identify what you are really good at, what truly sets you apart from the competition and what you love to do. If there are enough customers willing to pay for it, or if you are better to be a smaller company, focus on that and leave the rest out! A large list of activities delivered in an average way is NOT what consumers are looking for today! Customers will pay more if theyâre convinced that what you have to offer is demonstrably better than that provided by the competition.
- RUN MICRO-BUSINESSES INSIDE YOUR BUSINESS If you choose to focus on several things (multi-activities), make sure you excel in all of them as much as you would if they were your only value proposition. This means lifting up the level of your game⌠but also charging for it - and vice versa. Consider creating micro-gyms inside your facility, or specialized satellite clubs, ie launch a premium HIIT/Functional Fitness studio, mind/body, hot Yoga, PT, cycling studios in your club (or nearby) Offer the best-possible programming Build a dedicated space with specific design, look and feel, and equipment Hire highly specialized coaches fitting the essence of the activity Build a community â have a dedicated Facebook page, events, activities, uniforms etc Sell it on top of your basic membership and promote/open access to non-members  6,000+ Cross Fit studios charging $15 to $30 per workout⌠Hot yoga $25 to $35 Soul cycle $32 per ride + an extra $32 to pre-book for your ride⌠LMNZ Auckland generates NZ$10,000 per week of additional revenue through charging a $5 booking fee per ride (even if the membership is the most expensive in town)
- Harness technology and social media â your consumers do! Automatize what you can â ie the part of the consumer proposition that provides low levels of value. How can you bring value to members using technology and social media?
- This is not about taking your prices downâŚYes, you want to make sure your prices match the value you offer, but you might even have to consider increasing prices to present a higher-end option⌠Come up with a pricing strategy that offers: Real value for money to members â can you justify/demonstrate why you are more expensive? Can customers explain it themselves and do they agree with you? Flexibility options No âone size fits allâ Provide customized solutions or make sure the solutions you present feel âuniqueâ by means of smart pricing presentation strategies Offer specific membership for specific activities â ie gym and cardio equipment + virtual GX classes only, live GX, team training only etc No commitment - people are willing to pay more for that. Take the example from the phone companies â offer a more expensive membership without commitment, a cheaper one with much more benefits with a higher level of commitment Even when they choose a higher commitment option, people should be able to reverse back â ie a member has to leave after 6 months instead of 12. You stop their membership but they have to pay the difference between what they paid because of the longer commitment ie $45 per month and what they would have paid without the 12 monthsâ commitment ie 6 months x an additional $20.
- Recruit the best-possible talents, train constantly, motivate and inspire. People are your best assets in this fight â this is what low-cost businesses donât have. But make sure their interactions with members bring real value - ie if the role of the membership consultant is to take prospects through the membership options, just set up some iPads at reception and use your website⌠If you worry a virtual GX option might affect the numbers in your live classes, work on building up your instructor teamâs quality big-time!  The rise of the European low-cost operators has focused me on our specific proposition - why become a member of Holmes Place? To get a premium experience. More than anything, a premium experience relies on people to deliver it - premium brands cannot survive without exceptional teams engaging with customers. Neil Burton, CEO, Holmes Place Central/Eastern Europe