Finding the Silver Lining

These days it’s hard to escape bad news. One story after another tells of clubs with padlocked doors, displaced exercisers and plummeting profits.

But there are some bright spots in the fitness landscape. Ed Ruane, owner of Life fitness facility in North Lawrence, N.Y., opened his heart and a collection box to the victims of a deadly local fire. He says the club will match dollar for dollar the money collected at the front desk.

Your business may be struggling, there are others who have it worse. Remembering that — and offering a hand to help — is the best way to see the silver lining in any dark could.

Crash Course

For a crash course in the fitness business, check out "Value Added: Working Out the Business" by Thomas Heath of The Washington Post. David von Storch, founder and owner of three VIDA Fitness facilities in Washington, D.C., talks about everything from making the most of industry trade shows to investing money back in the club to getting “over the hump” and into soaring profits.

This industry has a lot of club owners with no shortage of enthusiasm and passion, but it’s too rarely applied in a way that makes financial sense. Much of what von Storch discusses isn’t revolutionary, but he’s applied it with such gusto that his success is energizing and inspiring. He’s absorbed every piece of information available, learned from past failures and created a fitness business that is going nowhere but up.

I thought the article was informative and von Storch’s approach to running a club was refreshingly simple. Your thoughts?

In the Spotlight

The tax-exempt status of non-profit fitness centers is the subject of a long-standing debate in the fitness industry. It hasn’t always taken center stage but, thanks to the current economy, that seems to be changing.

Now, the spotlight is shining brightly on non-profit fitness centers as states and cities explore new ways to get desperately needed funds.

Winchester, Va., is considering taxing hospital fitness centers.

The State of North Dakota tried to pass a bill that would allow levy property taxes on some nonprofit organizations, including YMCAs. The bill failed, but some lawmakers are still pushing to tax those businesses for police and fire protection.

Local governments are cutting or reducing funding. Bar Harbor, Maine, slashed taxpayer funding by $41,000 for the Mount Desert Island YMCA. Instead of getting $56,800 from the city, the YMCA will now receive $15,000.

Some will call this an overdue leveling of the playing field. Others will call it a devastating blow to communities and under-served populations. The debate will continue, and we can expect that scrutiny of some businesses’ tax-exempt status will only intensify.

We won’t all make it through to the other side of this recession. But those who do — for-profits and non-profits alike — will likely be faced with a new industry landscape. It's anyone's guess which fitness businesses will be in the spotlight then.

Same-Boat Marketing

I’m going to be honest. “Same-boat marketing” is not a real term. I made it up. But even though you won’t see it bolded in any marketing textbooks, same-boat marketing is a technique all fitness clubs should use while the economy is in recession.

National Public Radio’s Morning Edition did a segment about marketing strategies in a recession. It highlighted companies that are focusing on building connections and bonds with consumers to boost sales. Most interesting was Hyundai, a savvy (and struggling) automaker that has thrown itself into the same boat as consumers with an innovative new program.

Hyundai Assurance allows consumers to finance or lease a new car with a simple promise: If consumers lose their income in the next year, they can return the car. No fees, no debt, no guilt. “We’re all in this together,” Hyundai’s ad says. “And we’ll all get through this together.”

It’s a great idea, and fitness facilities would do well to devise their own assurance programs. Let consumers buy a one-year membership at full price with the assurance that they can immediately cancel their membership without penalty if they lose their job within that year.

Buying anything is a risk in this economy, so share that risk with your consumers. Get in their boat and earn their trust. In the long run, you’ll earn their loyalty, too.