With the New Year just around the corner, gym owners are gearing up for the post-holiday rush – after all, the first week of January is to health clubs and fitness facilities what Black Friday is to retail stores!

New members will be looking for a facility where they can fulfill their New Year’s resolution to lose weight, exercise more or take up a new sport, while existing members will be eager to work off all those holiday treats!

Here’s some quick tips on how you can prep your gym for the post-holiday, New Year’s resolution rush:

All Hands On Deck

January is definitely the busiest time of the year at fitness facilities, so be sure to have lots of staff on hand to sign up new members, conduct tours and ensure everything runs smoothly. Prevent conflicts between members over equipment usage by maintaining a strong staff presence on the gym floor, and make sure your facility rules are clearly posted, including any time limits on cardio machines.

Keep It Spotless

With the inevitable influx of members, your equipment will be getting quite the workout! Keep everything spotless (including the washrooms and showers) by doubling-up on your maintenance schedule for January and ordering extra disinfectant and paper supplies now. Remember that January isn’t just New Year’s resolution season, it’s cold and flu season too!

Differentiate Yourself From The Competition

The fitness industry is highly competitive – in some markets there are dozens of gyms battling to earn new membership dollars, so it’s important to offer both new and prospective members a reason to pick your facility. What sets your gym apart? Consider offering a unique product, service or ‘perk’ that appeals to members, such as cutting-edge classes, specialized equipment or ‘extras’ like a juice bar.

Go Paperless With Electronic Membership Agreements & Automatic Billing

Here at ABC Financial, we make new member recruitment easy with our paperless electronic membership agreements that save you time and money, while ABC’s comprehensive fitness club management software and payment processing services can help your gym collect more revenue from more members.

To learn more about how ABC can deliver real-world membership and financial services for your facility, contact us today!

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Recent research points out that the common mental shortcuts (called heuristics) that we use in making decisions lead to faulty decisions.  Of even greater concern is the research that shows the faults can be amplified in a group, and spiral into an even worse decision than an individual would make.  The real challenge is that even the best and brightest CEOs cannot see these weaknesses. They self-report that they have excellent decision making skills. Here are the executive heuristics that have been researched and reported in a recent Harvard Business Review Article.

The planning fallacy leads us to always underestimate how much time something will take and how much money it will cost.  One executive in a company that made dozens of acquisitions each year said that they knew about the planning fallacy so after they did their due diligence on the acquisition they multiplied key factors by three, yet they still always found it took longer and cost more.

The overconfidence fallacy leads us to believe our forecasts are more accurate and precise than they are.

The availability fallacy leads us to seize on whatever springs most readily to your mind as a solution either because it’s memorable we recently experienced it.  Doctors tend to diagnose what they have been seeing recently so that the same signs and symptoms get widely different diagnoses.

The egocentric fallacy leads us to exaggerate the extent which our tastes and preferences and insights are typical.  This explains why so many new products/services and businesses fail.  The leader thinks he or she knows what the customer wants.

The sunk cost fallacy leads us to stick with hopeless projects because we have already invested so much and if we quit now we will lose that investment.

The framing fallacy where decisions are affected by how the options are presented. People are more likely to agree to an operation if they are told that 90% of the people are alive after five years than if they are told that 10% of the people are dead after five years.

All the above fallacies are in play when a leader makes a decision.  They operate in the back ground of the mind so the thinker is rarely aware of their influence.  When the leader is aware of them, he or she experiences them as ‘my intuition’ or ‘my experience’ coming into play to help me make a good decision.

Business thinking for the last few decades has encouraged leaders to make decisions with their teams to improve the quality of the decision and the engagement of the managers.  Engagement usually occurs, but improved decisions do not.

The above six individual fallacies are exacerbated in a management team setting.  We ‘go a long to get along’ because we want to be liked, so we agree regardless of whether it makes sense.

In the 1970s an experiment would have seven people sitting in a U-shaped table. Perceptual illusions were shown on a screen. They were all told to answer the opposite of what they thought was true. At this point the last participant entered, and was not briefed on answering the opposite.  Again and again the un-briefed member caved in close to 95% of the time and agreed with an answer that fit the group but did not make sense to them.  Most of us care so much what others think that it is very difficult for us to be truly honest in the face of disapproval.  This phenomenon was labeled Group Think.

The loyalty fallacy occurs naturally in ever hierarchy.  Good employees want to be loyal to the boss at best and are fearful of stepping out of line at worst.  Everyone is thoughtful about making waves and going against the grain.  The recent spate of millions of car recalls by GM was caused by the ‘loyalty’ fallacy and the ‘go along to get along’ fallacy.  A culture of niceness which has persisted for over three decades at GM.

There are five specific ways to largely avoid these fallacies and the poor decisions they produce.  REX trains all of its Roundtable chairs in these tools. We will cover them in future articles.

Will Philips is the founder of REX Roundtables serving 150 of the world’s best clubs with 5,000 sites and 30,000,000 members.  Improving performance of their clubs and the quality of the leader’s lives.

Click here to read part 2

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If your answer to the above is: 1) the one that sells the most memberships; 2) the one that retains the most memberships; or 3) the one that sells and retains the most memberships…in all three cases – SORRY CHARLIE!!!!

Increasing statistical evidence from Fitness Business Council independent-club quarterly and annual surveys points to the fact that the most profitable health clubs are consistently:

• THOSE THAT PRODUCE THE HIGHEST PERCENTAGE OF ANCILLARY REVENUES TO TOTAL REVENUES (otherwise known as AR2TR).

A glance at FBC’s last six (6) quarterly reports and the 2013 end-of-year report shows that clubs which regularly produce more than 24% ancillary revenues also regularly produce double-digit net profit margins (total revenues-total expenses/total revenues).

While there remains one exception to the above rule…that being the low-price “fitness-only” clubs like Planet Fitness TM or clones…which generally offer no services other than a workout in a well-equipped but minimally-staffed facility – even those facilities are beginning to see gradual diminishing of profit margins, often due to the fact that they produce extremely low annual ancillary income.

The converse is also statistically true (as any 20-year-plus industry veteran can tell you): those clubs which predictably produce lower-than-20% AR2TR are the most likely to fail.  At the end of our country’s last severe economic pullback (the recession of 1991-1994), 9% of existing health clubs had closed their doors.  Of that number, greater than ¾ of the clubs that closed produced less than 18% ancillary revenues (inflation-adjusted for 2014: 22%).

Why is ancillary revenue so important to a club’s success?  The answer here is rather simple: with the exception of the afore-mentioned low-price, relatively-low-payroll operators, the vast majority of clubs make absolutely no profit in the first year on membership sales!  Add to that fact the alarming news that annualized Member Retention is once again trending downwards (at last look, only 62% versus a less-than-2-years-ago-high of 68%)…and even a casual observer recognizes the need for what has been aptly named “the monetization of members.”

Recent polls support the premise that the higher-the-price club, the greater the percentage of ancillary revenues produced by that club.  Interestingly, third-quarter 2014 data shows that clubs priced under $50 monthly (for single membership) not only have the highest annual member attrition (well over 40%) but also produce less AR2TR in direct relationship to lower prices!  (The weakest ancillary revenue percentage – 15% – is reported by the $20-$29 membership price range.)

Time to re-think your business’ long-term strategy?  Should you concentrate not solely on membership sales…but also on selling those members additional services once they’re inside your doors?

(Michael Scott Scudder is Founder/CEO of Fitness Business Council, the independent club business network.  Michael can be contacted at 575-751-1212 or mss@fitnessbusinesscouncil.com.  For your PDF copy of the 3^rd Quarter FBC Business Results Report, click Michael’s secure Dropbox link.

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You just never know when things will change.  You get transferred to another club.  You have a new boss.  Your company is sold.  Even if things just seem to be going crazy in the gym you have worked at for years. Things change, but the expectation of sales production remains.

Here are some tips to help you make the membership sale no matter what the circumstances;

1. Attitude is everything.  The key to remember here is that it’s more important how you feel about your prospect than how they feel about you. You can’t let crazy circumstances change you. The positive expectancy to win.    The will to make it happen.  No negatives, attitude is paramount.  If this is not in place, you can’t even get started.
2. Have commitment in your posture and voice. You want to be using words like great!  Fantastic!  Terrific! Show confidence!
3. Have enthusiasm that conveys conviction and belief. It’s been said many times that the definition of sales is a transfer of feelings or a transfer of enthusiasm. It really goes beyond just enthusiasm; it’s your passion, your belief and your conviction for what you do that means you can’t be swayed otherwise.
4. You must be sold. You must be sold that your company is the best.  You have the best product and best service.  You’re the best person to help them get the results they want.  You’re sold on the value you bring to your customer. You are unreasonable to the point that nothing can be said that will change how you think.
5. Always agree first with your prospect. This is senior to everything you do in the sales process. Always be agreeable. Don’t defend your position.  Certainly don’t tell your customer they’re wrong.  Be agreeable.  Mary, I understand.  Mary, I agree with you.  Even if your customer says they didn’t come to join today, you say, “Mary, I understand, most of our guests don’t come to join when they first come in.”  Then follow your sales process.
6. Be sure you are getting daily training. Be sure you are getting daily training.  If your club is providing this great, if not, be sure to get it on your own.  Daily training will add a sale a day to your production.

Now, go close a sale!

Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting and turnaround firm specializing in the fitness and health club industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars and workshops across the country on the practical skills required to successfully build teamwork and market fitness programs and products. Learn more here: Jim Thomas On Demand

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Creating Customer Experience vs. Selling Customer Service

The fitness club market is overwhelmed with selection for the fitness-minded, from the abundance of health clubs to the variety of services. Clients have their pick of hours, locations, types of classes and equipment, cost, and availability of experienced trainers in just about any gym they walk into. Only one service remains unique.

You’ll never have a product or price advantage again. They can be easily duplicated, but a strong customer service culture can’t be copied. ~ Jerry Fritz

Remarkable customer service is the one way a fitness club will consistently set itself apart from competitors. Promoting good customer service seems cliché. It is common personnel campaigning and common customer marketing. But today’s common knowledge of customer service boils down to making sure staff is friendly, available, and helpful in selling product.

Today a fitness club succeeds by creating a remarkable customer experience rather than selling good customer service. In successful business Ritz-Carlton’s words, customer experience, “enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.” Developing remarkable customer experience at a fitness club starts with understanding a client’s wishes and needs or, put more simply, why a person is at the gym.

Creating Customer Experience at the Gym

Today’s customer is limited in motivation, accustomed to technological ease, and mindful of exercise options at home or a park. Part of the client’s “unexpressed need” is the ability to start right into their workout, free of discouraging hurdles.

Technology is one of the best assets a gym has to “instill well-being” in offering a Ritz-Carlton kind of remarkable customer experience in meeting this need:

• Enrollment processing using health club software is fast and easy without the awkwardness of paper or complicated online forms or disgruntled staff using or disgruntled clients completing them. A first impression is still key in developing customer experience.
• Automatic fund collection in health club software manages a client’s credit card, debit card, or checking account on file empowering staff to focus on enriching the client’s experience with gym services and empowering club members to impulsively join a kick-boxing class or grab a refreshing drink. No one need count change.
• Check-in with a health club software enabled key fob, key tag, or pin code could be a thoughtless moment for staff and client. Creating a remarkable customer experience is staff using that moment to look the client in the eye to offer a friendly, personal greeting.
• A gym app to check on H.I.I.T. class schedules, schedule a time with a personal trainer, or update their account information meets a distracted client’s real-time needs and with push alerts give them needed motivation to work out and go to the gym.

Technology is just a tool for creating remarkable customer experience in a fitness club. Recognizing useful tools for creating remarkable customer experience comes from first considering the client’s needs.

Attentive staff focused on individual needs delight clients. Clients delighted with experience attract others. Fitness clubs with remarkable customer experience surpass competitors.

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The gym, like any other public place, has a set of written and unwritten rules. Like all forms of etiquette, these exist to make everyone comfortable.  Below are a few ways we can work to make our time at the gym as pleasant as possible:

Cleanliness:

• Ever wonder why there are random cleaning supplies sitting around the gym? Most will have a station or two with paper towels and a spray bottle of cleaner. Between each station you use, you are expected to spray down a paper towel and wipe the equipment.
• For another buffer between yourself and other’s perspiration, it’s also acceptable to bring your own towel, or use one provided, to sit on at each seated station.

Cardio Etiquette

• Some gyms have rules clearly posted about the length of time allowed for cardio machines. These gyms are typically the busier ones; so don’t look for it everywhere. If there are no rules posted, and you notice people waiting around for equipment, it’s considered polite to limit your time to thirty minutes or less.

Weight Etiquette

• Do not drop weights. It can damage the equipment, and the sound is quite loud.
• Don’t monopolize equipment. If you’re doing hard sets, of course, take a minute or two between each one—then put your weights back, or clean your machine, and leave it for the next person.
• If the gym is very busy, and there’s a line for the machine you are using, consider letting someone else use it while you recover. Taking turns at sets is a great reason to bring a partner to the gym.

General Etiquette

• There’s nothing wrong with talking between sets, but try to keep it to a minimum. If you find you are involved in a serious discussion, it might be best to go out to the lobby. People trying to work out can be easily distracted by non-workout-related conversations.
• When you choose to engage in a conversation, engage with those you know. Don’t assume the girl on the treadmill next to yours came to the gym to have social hour.
• It’s important to breathe correctly when working out, and sometimes that will come with a grunt. It’s natural—but try not to call in the wild with your exhale.
• If you are in great shape, it’s absolutely something to be proud of. If a conversation arises, and it’s appropriate, disclosing your max-lift weights is reasonable. But many people are not concerned with how much weight you lifted last night, and it may, in fact, make them uncomfortable—so answer questions, but save bragging for a more private conversation.

Some people are in great shape, others are at the beginning of their fitness journey; while everyone puts on a brave face, you never know what effort it took to walk in the door that day. Following these few rules, based in general politeness, will help everyone have a great workout and think positively of the gym.

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You’ve spent weeks, months, maybe years, crafting a healthy lifestyle. You do cardio several times a week, lift weights or do other weight-focused exercises regularly. Breakfast is a piece of fruit and a protein-packed smoothie or couple of eggs with a slice of toast. You’ve planned your snacks down to the calorie, and even have a cheat meal on occasion just for good measure. You get eight hours of sleep every night. Everything is going your way. Nothing can stop you.

Until vacation time.

Well, maybe not just vacation time. Maybe you find leaving town for any occasion—a work trip, to visit relatives, to volunteer—to be a difficult time to maintain your routine. You’re not the only one—many people find it difficult to maintain their daily habits when out of the environment that reinforces them. Below are a few tips to help you make better decisions while on vacation, or any time you are traveling:

• Make a food plan. It’s incredibly easy to impulse eat while away from home. Are you used to three squares a day with snacks in between? Think about what those meals usually consist of, and seek it out; for example, going to lunch while away from home. If you usually eat lightly at lunch, stick to the same type of food while away. A salad is pretty easy to find, even at fast food joints. If you prefer a heavy-but-healthy breakfast, have a pep talk with yourself before hitting the hotel breakfast bar. Grab the type of food you would normally have. As for snacks, there are grocery stores everywhere. Nothing says you can’t grab the same snacks you keep at home and instead keep them in your bag.
• Think movement. If the place you are staying provides access to any equipment you are accustomed to, make a plan to use it. Otherwise, don’t worry about getting in the exact workout you’re used to—just think about incorporating regular movement into each day. Body weight exercises, like push-ups, pull-ups, and sit-ups, are old standbys that will serve you well. For cardio, something as simple as a walk around the block can help keep the blood flowing. I’ve even been known to walk circles around my hotel for half an hour, if I wasn’t sure of the area’s safety or layout.
• Remember to sleep. Stress from the day, hotel cable channels, food or alcohol to excess—all of these can contribute to not getting enough rest. To offset this, try to keep to the same schedule you keep at home. If noises or light bother you, consider investing in a set of earplugs and a comfortable sleep mask. They may not sound good from the luxury of your home, but when traveling, it’s better safe than sleep deprived.

You will come home healthy as the day you left if you can plan ahead, stick to somewhat of a normal routine, and think outside the box.

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Social media, once just a way to keep in touch with friends and share photos, has now crept in to almost every part of life. We use it to share events, log where we’ve been, and get discounts on retail. It’s even become part of our workout routines.

Lately, I’ve seen a lot of notifications on Facebook letting me know “So-and-so is on a run with (fill in the app). This app will speak your comments to her.” In other words, my friend downloaded an app and then logged into that platform with her social media account. She simply opens the app, starts her workout, and without missing a beat, she can start sweating while her friends cheer her on from the digital sidelines.

Then there’s the ubiquitous sign or suggestion at the gym or studio: “Tweet your workout and receive ______.” Often, the reward is in the form of a discount, a particularly delightful treat for those of us who hit up specialty classes on a regular basis.

Or, what about that crazy new workout your friend tried and loved? How many times did she share it before you finally asked or agreed to join her for a free class—and, what did she receive when she brought you in?

Once upon a time, we went for a run or to the gym and could be relatively assured that, for an hour or so, we could leave behind our work, our personal lives, and our constant need for connectivity. This compartmentalization was, in many ways, a benefit for our minds while we worked out our bodies. Relaxing mentally, an important part of health, was conveniently worked into another routine.

Now, it is more and more rare to hit the stacks without unlocking a reward, sharing our progress on a social media site, or stating proudly the location of our activity. Instead of time for mental relaxation, we have turned the gym into another potential for social interaction.

Luckily, when the goal is to get in shape, any healthy means to achieving to that goal is great. We’ve known for years the positive impact of the buddy system on workouts, and the trend of including our social network in our gym time seems to be just an extension of that trend—as long as you make an active decision to use it to your benefit.

When using social media and apps in fitness, be conscious of the decisions you are making. If downloading an app that tracks your workouts is helpful, use it. If that same app can share your stats, and that motivates you, share away. When it comes to posting where you’ve been and how much you loved it, well, do it if it makes you feel good. However, if utilizing these tools doesn’t make you feel more motivated, or if they distract you, don’t force it. As with anything health or fitness related, the key is to work with yourself, not against.

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