As the fitness industry enters the reopening period, some disciplined decisions need to be made for the fitness industry and our businesses. Some key questions to ask include:
- What do we create?
- What do we eliminate?
- What do we improve/evolve?
- What is our short-, mid- and long-term strategy?
These are big decisions. All of us have an opportunity to reset and look at our Value Proposition (Price for Offering) and our Value Chain (Cost of Delivery for Service Offering). This is a good time to review your membership and ancillary sales approach, your service delivery model, and price to expense optimization model.
My recommendation is to not discount at this time and to prepare for, if not implement straight away dues and price increases. In many markets, there has been a reduction in clubs and gyms that are open. Members are out there looking for a new facility.
There are certain things many of us have accelerated last year. These include virtual programming and outdoor spaces. Also, how we communicate through video with our members and teams has been accelerated. We can now communicate with our members and member groups outside of our four walls like never before. This acceleration in technology has made all of us more comfortable with this format of connection and it provides you with an opportunity for your business. In many cases, we can get deeper in conversation with fewer barriers on video conferencing than we sometimes get when live.
Putting groups of members together is an opportunity coming out of this pandemic. Augmenting group fitness schedules with virtual options should grow as members are more comfortable with this format. This is an opportunity to maintain class schedules with potentially necessary reduced payroll during the rebound time frame.
Now is the time to ask these strategic questions about your business and our industry. Please share your comments and feedback with us. If you’re looking for assistance with your health and fitness business, the Active Wellness Team may be able to help you. Contact our team today to learn more.
Bill McBride is Active’s President, CEO and Founder. Bill is a health club industry veteran with nearly 30 years of experience leading and managing all aspects of our operations. Bill has served as chairman of IHRSA’s board of directors and several advisory positions for prominent industry associations and was named Top 25 Consumer HealthTech Executives of 2020. He’s also involved in industry fitness business webinars on a regular basis and in his free time enjoys spending time outdoors hiking in Arizona.