How profitable are Health Clubs
If you are considering owning a fitness health club or gym, one of the first things you probably want to know, is how profitable can it be? This questions cannot easily be answered as it truly varies from one health club to another. However, we have compiled several factors that influence the profitability of a health club. This will shed some light into understanding whether or not owning your gym or fitness health club is profitable.
Maximizing Multiple Revenue Sources
Some fitness clubs do this better than others. However, it can make all the difference in the world to a health club’s profitability. If you intend on making your profit from gym memberships alone, than you are missing out. Good fitness health clubs are able to open multiple revenue sources such as personal trainers, juice bars, nutritional supplements, clothing, kids club, tanning, and more. Successful gym franchises help lay out the blueprint for these revenue sources.
Refer A Friend Programs
I am sure you have heard this at some point or other, the best form of advertising is word of mouth. In the gym business referrals are huge. Getting a friend or family to join your gym has benefits to them and the person making the referral. Who doesn’t want to see their friends or family at their local gym? To many this is somewhat of a social hour, a hangout spot where you can catch up. Having a “refer a friend” strategy can have a tremendous impact on your profitability.
Local Brand Recognition
It is not necessary for your health club to be part of a large nationwide franchise in order to be recognized in your local community. The ability to have a marketing strategy that helps increase the health club’s brand recognition is integral to sales and profits. Here at the Zoo Health Club, we understand we are not the biggest. However, we help our franchises with a variety of marketing support and services, some utilizing digital marketing and social media, so you can beat out some of the big players in the industry locally. This is something we have done at many of our clubs.
Stay Connected With Members
The fitness health club trend has moved towards “no contracts”. This means that retention is the name of the game. Now I am sure that many clubs would prefer for members to not come in that much but keep their memberships active. But that is the wrong mentality. When someone stops going to the gym, it is only a matter of time until they say, “forget it. I am just going to cancel”. Staying connected with members whether its through email, text, or social media is extremely important and fundamental to sound profit. ‘
If you are exploring the health club and fitness industry for ownership opportunities, don’t go in blind folded. Educate yourself or take advantage of the experience from a franchise like the Zoo Health Club, where we have over 100 years of experience in the industry among our leadership team. The risk of failure for a new health club is pretty high, but our franchisees prove to be successful from the get go because of the plan that we lay out.