Monday, August 18, 2008

Pinching Pennies


Everyone has heard about Barack Obama’s money-saving advice to Americans in this economic crisis: Keep your tires properly filled with air. Obama got a lot of flak for this. It’s a mundane and unglamorous solution, after all — hardly worthy of an election year sound bite. But pinching pennies is nothing if not mundane and unglamorous, and here are a few ideas that might help your fitness center. (Offer your ideas — or disagree with mine — in the comments.)

1. Reduce your personal training staff. Unless every session time is filled for every personal trainer at your facility, you can most likely afford to cut at least one position. Even if you have a commission-based arrangement with trainers, consider what you shell out when they’re in the building waiting for business: They use water and electricity, take up employees’ time chatting, wash their hands, fiddle on the computer. These are all little things, but, over time, they add up.
2. Eliminate your marketing budget. In this economic climate, keeping the members you have is a better bet than attracting new ones.
3. Keep membership fees constant. The temptation to slap a “sale” sign on the front door to lure potential members inside is strong, but don’t do it. It devalues the service you offer. And, there is no quicker way to alienate your tried-and-true members than by slashing the membership fee of Mr. Sweaty-Come-Lately.
4. Control the temperature manually. For the time being, take the thermostat off autopilot and experiment with keeping the temperature a bit higher than normal. In the winter, keep it a bit cooler. Honestly, there is no “perfect” temperature for a fitness facility (though you’d be surprised at the number of inquiries we get asking for a hard-and-fast number).
5. Eliminate paper. Come on, now. There are lots of ways to cut paper use in your fitness center. Why print out a gazillion copies of the new group exercise schedule every month when you can write it out on a large whiteboard? If members like to have a hard copy, keep the schedule updated on your website and send out a mass email each month.

I’m not saying that any of the above ideas are more sound-bite-friendly than Obama’s air pressure bit. But, at this point, I’d bet some facility owners would be willing to sacrifice a live chicken or two to keep costs down. Keeping enough air your tires, in comparison, isn’t really all that silly.

4 comments:

LSchmidt said...

Yes, there are guidelines for facility temperaturs. Please see ACSM's Health/Fitness Facility Standards and Guidelines Third Edition, page 68, Appendix A. ACSM has outlined the effects of various temperatures on human performance giving the effective temperatures and its effects.

So don't try to save a dime that could potentially effect your client's health.

Heather Peavey, Blog Editor said...

The American College of Sports Medicine (ACSM) has published guidelines about facility temperature (and that book is even available in FM’s online bookstore at www.fitnessmanagement.com/bookstore).

However, guidelines are not standards, and therefore I maintain that there is no hard-and-fast rule about facility temperature.

I agree that members’ comfort and health must come first. However, it can’t hurt to fiddle just a bit with the thermostat to find a temperature that is acceptable to exercisers and saves a penny or two.

Anonymous said...

Hi Heather,

I agree that the nickle and dime stuff is important and financial discipline should be ingrained into the culture of any business.

Another good example is for businesses to periodically review (every 6 months) their suppliers (supplements, gatorade, apparel etc) and try to find or negotiate a better deal.

Eliminating the marketing budget is not something I would recommend ever. Improving ROI on marketing spend is something that every business could and should do however.

Certainly eliminate the 'shot gun' marketing approach where you are marketing to the world at large and focus in on specific target markets that your business can service better then anyone else in your local area.

Keeping members is essential but retention starts with acquisition. If you are attracting the best prospects (for your business) in the first place you are much more likely to keep them for the long term.

Heather Peavey, Blog Editor said...

Anonymous - I can see your point about marketing. You can't retain a member you don't have, right?

Your point about avoiding "shotgun" marketing is also a good one. The challenge is finding the target market that doesn't see fitness as a luxury — because, in this tight economy, who isn't cutting back on luxuries?

I see it like this: An emphasis on marketing relies on the old adage, "You have to spend money to make money." But I wonder how many clubs are (for the time being) abandoning the idea of growing their business, and are shifting their focus on just staying afloat until the economy rights itself.