Surviving the Economy

Every business today has been affected by the economic downturn. I doubt any fitness facility has been immune to members who have had to either put their memberships on hold or terminate them completely due to layoffs, pay cuts, etc. The question, then, is what is the right thing for the fitness industry to do to not only help their customers, but to also reduce their attrition rates?

Several solutions are being offered for how fitness facility operators are dealing with customers who are in a pinch. But, all of these solutions deal with the dreaded “discounting.” The notion to discount our products and services has been widely discouraged over the years, namely because, by discounting, we’re sending a message that our product is not worth what we’re asking. But, is that really relevant in today’s economic climate?

For many facilities, apparently not. According to an article published last week in The New York Times titled Staying Healthy in a Sick Economy, the author notes that consumers are especially in need of a healthy outlet during this stressful period. So, to help these consumers and, of course, to keep them on the rosters, fitness center operators are willing to bargain. A couple of examples include not charging members who quit a fee to rejoin when they’re able, and offering shorter, cheaper and shared training options. (See last week’s related blog, Survival of the Fittest.)

The issue is whether the fitness industry can portray itself as the savior by tightening its belt to serve the public, and then reemerge when the economy strengthens as a product to be valued, returning to previous pricing strategies.

Maybe, maybe not. It depends on how many low-priced competitors decide to pounce on the market to lure cash-strapped customers into their facilities and away from the higher-priced ones. Look, for example, at a new line of fitness facilities named MiFit in the United Kingdom. Recognizing that people are struggling to pay the dues at most fitness centers, their new “low-cost fitness concept” provides memberships available only online at a rate of 9.95 pounds per month. According to the managing director of the corporation, MiFit fills “a gap in the market by providing premium fitness technology at a low cost.”

I guess only time will tell how the economy will affect our industry long-term. For now, facility operators will just have to do what they believe is necessary — for the good of their members and their fitness centers.

Survival of the Fittest

When times are tough, only the strong survive. The global economic crisis is about as tough as it gets, and already some fitness businesses are struggling — and failing — to stay alive.

New business ventures are being put on hold because entrepreneurs can’t get the credit to fund them. Clubs are facing increasing attrition rates because members can’t afford their dues. And there’s nothing you can do about it.

Or, is there?

According to a recent article in the New York Times, some clubs are finding ways to help their members through the economic hardships, and hopefully ensuring their own survival.

TELOS Fitness Center, Dallas, Texas, now waives applicable fees for rejoining the club for longtime members who have quit and wish to return. “I’ll put a note in their file and we’ll let them pick up their membership without any fees,” Clarisa Duran, sales and marketing director, told the Times.

What are you doing for your members to help ease the burden brought on by lost jobs, lack of available credit, and Wall Street turmoil?

Trainer Certifications: The Government May Soon Step In

While the debate rages on in the fitness industry about whether the government should step in to regulate/certify/license personal trainers, California may be one step closer to doing just that. In September, Governor Arnold Schwarzenegger signed a bill into law that creates a statewide certification system for massage therapists.

Now, I know that massage therapists and personal trainers are two different things. However, the reasons cited for this new law for massage therapists can also be applied to personal trainers.

Senator Jenny Oropeza, a Democrat from Long Beach, says that therapists currently are regulated by a patchwork of local regulations that vary between cities and counties. While trainer certifications don’t vary by where they live and work, they do vary by what type of industry certification they have — if they have one at all — where they were educated and how much experience they have.

Oropeza went on to say that the legislation “will help identify legitimate therapists and make sure they have proper training.” Isn’t this exactly why many people argue that personal trainers need standardized testing and/or certification? So fitness centers and clients can identify who is legit?

The time is approaching when states will step in to regulate personal trainers. The industry needs to respond by either self-regulating, which is happening already to some extent, or by getting involved in the process of state regulations so that at least we have a say in what the eventual law will entail.

Green Power

How responsible do you feel about going green in your facility? The heightened concern about environmental issues has prompted different reactions from people. But, recent surveys show that, despite the role you feel you should play, most people do feel that everyone needs to play a part. And, one fitness facility may be a leader in the green energy department.

One survey, the 2007 Cone Consumer Environmental Survey, found that most Americans are making personal efforts to reduce their impact on the environment through energy conservation (93 percent), recycling (89 percent), conserving water (86 percent), and telling friends and family about environmental issues (70 percent). In addition, 93 percent of Americans believe companies have a responsibility to preserve the environment.

So, how can your facility be one of those companies? We’ve reported on a number of green efforts made by facilities across the country in Fitness Management magazine. But, none so far has managed to top the creativity of the most recent green-ovation put to use at the Ridgefield Fitness Club in Ridgefield, Conn. Ridgefield is the first facility to have a new invention installed on its bikes that actually generates electricity, which is then put back onto the fitness center’s energy grid.

The invention was created by Jay Whelan, who owns the company The Green Revolution Inc. He came up with the idea to generate electricity using stationary cycles by attaching a black box. According to an article in The Ridgefield Press.com, “A group cycling class using 20 bikes has the potential to produce 3.6 megawatts of renewable energy a year. … That number of megawatts is enough to light 72 homes for a month and reduce carbon emissions by 5,000 pounds.”

While Whelan brought the technology to the Ridgefield Fitness Club first “to see how gym members feel about helping the environment during their cardio,” this invention could be the beginning of a green revolution. The company is already working on attachments for other cardio machines, including ellipticals and rowers. Which means that, if Americans really believe that it’s the responsibility of businesses to play a major role in energy conservation, this could be the industry’s ticket to being a positive role model for society.

How important do you feel your role is in the greening of our environment? Important enough to go with The Green Revolution?