Can Our Industry Capitalize on the Recession?

Now that we’re officially in a recession, and scores of people are cutting back on their finances, the New Year is upon us. What does this mean for the fitness industry at a time when the greatest jump in membership sales typically occurs? We’ve always been able to count on those New Year’s resolutions!

But, over the Thanksgiving weekend, as I was watching the Fox News channel, it became ever more clear that those New Year’s resolutions may not pay off for our industry this year. While interviewing shoppers about their spending plans for the Christmas holidays and beyond, more than one individual mentioned their fitness center membership as one of the items that would be eliminated as their belts were tightened. The gym expense is considered by these people as “discretionary spending.” Even USA Today reported that cash-strapped customers have cut spending on spas and gyms.

This is not the first blog the FM staff has written about how our industry is going to hold up during what seems to be a never-ending economic downward spiral. And we are far from the only ones taking a look at this issue. Each day, a new story appears in some city paper about the problems our industry is, or in some cases, is not, facing. During Thanksgiving week alone, articles appeared with the following titles: Fitness Centers Work Out Deals; Fitness Clubs Fight Unhealthy Economy; Gyms Weather Economic Storm. And, those are just a few examples.

What’s interesting is that many noted industry experts have claimed, and are still claiming, that the fitness facility industry is recession-resistant. But, is this true? In the above-referenced articles, many facility owners are saying that they are not being affected by the recession, yet many others are saying they are.

Unfortunately, economists are saying this is one of the worst economies we have seen in a long, long time — long before fitness memberships were a part of the American family’s budget. So, with times as hard as they are, it’s logical to assume that we’ll hang on to many members, but we’ll also lose others, and we certainly may not gain many new ones.

To survive, then, our industry needs to respond in a variety of ways. Many are discounting their services, whether that is wise or not. Others are providing guarantees. See the article, Personal Fitness Training Franchise Introduces Bold New Fitness Goals Guarantee.

But, perhaps the most important response we should consider is how we can change consumers’ perceptions of “fitness.” The main thing that should be stressed in our marketing and communications to the public is that fitness is a “necessity,” rather than a “commodity.” As the writer of the article, Fitness Clubs Fight Unhealthy Economy, states, our services need to be “touted as stress-reducers, not indulgences,” and we need to highlight the economic benefits of “wellness.”

Where’s the Fitness Bailout?

Ballys is bankrupt. Fitness centers are closing at an alarming rate. Layoffs are rampant. But if you’re holding out for a free pass on your debt from the government, you’ll be waiting a long time.

The only people who have the power to offer a fitness bailout is you — to your members, to the displaced members of facilities that have gone under and to the masses of stressed-out people convinced that gym memberships are “discretionary spending.”

It’s time to step up.

We recently posted about a fitness center that temporarily discounted or suspended membership fees to help defray the cost of fitness for those in economic agony. Most commentors to this blog said they thought it wasn’t a good idea, and that it devalued the service fitness facilities offer. Many suggested finding ways to add value to memberships in order to increase their attractiveness.

Unless “adding value” includes magically giving them back their jobs or buying their homes at their 2007 value, I’m not sure many people will see the light.

So, how else can you make a fitness membership necessary, not discretionary? As usual, I’m full of ideas.

• Buddy up with a local diner so members get 10 percent off each meal they eat there.
• Hire a job counselor to meet with members in the lobby area or a spare office.
• Put up a large bulletin board and dub it the Job Center. Encourage local businesses to post their openings, and be sure to broadcast success stories.
• Offer free coffee and toast in the mornings. It’s not much, but you’d be surprised how much a free breakfast — no matter how Spartan — is worth to people.

Unlike the other bailouts in the news these days, a fitness bailout you offer will most definitely be repaid. When the economy rights itself, when people aren’t struggling and worrying, they will remember your fitness center. They will remember how important it was during this dark period in their lives.

And, someday, they just might bail you out, too.

Better than a Snooze on the Bench Press

Often, being unusual gets you noticed. And, in a time when economic circumstances are causing people to cancel their gym memberships, facility owners need to get creative to ensure a constant cash flow. Take, for instance, The Marsh, “a center for balance and fitness” in Minnetonka, Minn. This 67,000-square-foot facility not only offers a fitness center, café, salon and massage services, it also offers its own hotel.

Called the Inn at The Marsh, the Inn has six rooms plus a lounge and conference room, and prices are quite reasonable for a high-end facility. (Marsh members pay $95 per night.) While a hotel may seem extreme, remember that YMCAs have been doing this for years.

Of course, most fitness centers can’t offer a hotel. There are countless variables that go into such a venture, including staff time, laundry facilities and a reservation system. But The Marsh makes it work since it is a large facility with other amenities already in place, such as conference rooms and a restaurant.

However, you could offer other unusual services and amenities that make your fitness center stand out. What about a car wash in your parking lot? Dry cleaning delivery? Dog walking while members work out? A fitness library? If you want to make your fitness center a hub for your members, one way to do that is to offer convenience — a place where they can not only get a great workout, but maybe where their in-laws can stay during the holidays, or where they can drop off their dry cleaning so they don’t have to make that extra trip.

Do you offer unusual services or amenities? Post your ideas!

Kids: Healthy or Unhealthy?

Are kids today healthy or unhealthy? I guess it depends on how you look at it.

On November 25, The Press-Enterprise published two stories on the topic. The first praised Riverside, Calif., county’s students for scoring better than the state average on the 2008 California Physical Fitness Test. The annual test rates the percentage of children who score within the Healthy Fitness Zone, a measure of reasonable levels of fitness that can be achieved in six areas: aerobic capacity, body composition, abdominal strength and endurance, trunk strength and flexibility, upper-body strength and endurance, and flexibility. Overall, said the article’s author, Riverside County fifth- and seventh-graders did slightly better than the state average.

The second story, however, criticized the county’s students for having made only small gains in physical fitness, with two in three children still not meeting fitness standards. This, despite the fact that some schools have made fitness a priority. One in particular, Eisenhower High School in Rialto, “rivals most fitness clubs in the variety and number of exercise classes it offers,” says the article’s authors.

The reality is that only one in three students in California meet the state’s basic physical fitness requirements, which is consistent with the national average. Healthy or unhealthy? No matter how it’s reported, the answer is definitely “unhealthy”!

What are we going to do about it? We need to ensure that kids get the information they need to make healthy choices, and that they are pushed into programs that improve their fitness levels. An example of this is an after-school program held at six elementary schools in Marion, Ga. Hosted by the Boys & Girls Club of Marion, the program is available from the end of the school day until 6 or 7 p.m., depending on the school. Rather than “riding the bus home to do nothing,” the students get homework help and tips on nutritious eating and fitness.

This is an idea that all fitness centers could capitalize on. How about yours? It’s a matter of making our nation’s kids healthy.

What's In A Name?

Shakespeare said a rose by any other name would smell as sweet. He is an undisputed literary genius, but I wouldn’t pay him a dime to name my fitness facility.

For fitness businesses, names are incredibly important. The potential success for a facility boasting the best equipment, the lowest membership fees and the choicest amenities would be greatly diminished if it were named, say, Sweaty Feet. Or, Possible Results. Or, Failed Resolutions.

Like I said, a name is important.

So important to one fitness center, in fact, that its owners didn’t trust themselves to name it when they were looking to re-brand. Instead, they posted on a popular naming site, and were rewarded with dozens of choices for just a few bucks.

Everyone loves to suggest names. Try getting pregnant; you’ll see what I’m talking about. Naming a fitness facility is no different. It can even be a way to get some cheap publicity while you’re in the construction process. What if a club held a local contest to help find its name? The winner could receive a free membership for a year, and the contest could help build anticipation for the grand opening.

I’d name a few of my favorite (awful) facility names, but I’d like to keep my job. Instead, I’ll share my favorite (awful) name for a hair salon: Curl Up and Dye. The name just makes you want to submit to the scissors of a cynical, possibly suicidal hairdresser, right?

Just for kicks, what are your favorite (awful) club names?