With extra competition, club owners and managers are under increased pressure to maintain membership numbers in order to maintain profitability. This has lead some to:
- The “race to the bottom” – who can charge the least for memberships and have the shortest contract terms.
- Getting rid of any wage costs – with automated access.
- Adding “free SGT classes” in the hope that this will attract and retain more members. Sometimes these free classes actually compete with personal training growth.
- Adding functional training cages and equipment in the hope that this too will attract and retain more members. If the club owner calculates the annual cost of the space, the equipment and the power.. then compare this with the actual member utilisation, it rarely adds up to a profitable outcome. Hint – it’s all about the programming and the program marketing.
- Let self-employed rent-paying trainers run their own SGT classes, where all the money goes to the trainer. Not a win-win for the club.
Meanwhile, there’s increasing competition from Crossfit “boxes”, “training gyms” and outside bootcamps – where participants typically pay 2-4 times the fees they would have paid the club for a membership.
Many club owners are asking “Is there a way to charge for Small Group Training?” There are actually two ways:
- Pay per session – this is disasterous. Typically clubs never know how many people are going to turn up.
- Premium membership where members pay a premium and this gives them access to unlimited SGT classes. This can be a management headache. If the club has less than 100 square metres, it is a challenge if more than 12 people show up. If only a few show up, then it’s not worth paying the trainer to run the session.
These steps make it difficult for the club to make any real profit contribution to the business (extra revenue – trainer expense) through the SGT trend.
The club owner also faces issues like:
- Who is going to design the program/s? What happens if they leaves?
- Will that person create lesson plans for each program that change every session – knowing that this contributes to member retention?
- If the club does have an expert on board, is it a wise use of their time designing programs versus delivering and marketing programs?
- If the club also runs licensed group-ex classes (Les Mills, radical or Mossa etc..) would the club owner consider paying a team member to design classes and train instructors instead?
- If the club does not operate with employed fitness staff or trainers, who would teach SGT?
Enter TRIBE Team Training
- With TRIBE Team Training every session is pre-booked, so the club can better manage their space. No more empty or over-crowded classes.
- With TRIBE Team Training every session is pre-paid, so that every session on the schedule represents a profit centre to the club. Some centres have over 50 TRIBE Team Training sessions per week!
- With TRIBE Team Training there’s an innovative win-win business plan for clubs that have rent-paying self-employed trainers.
If your club has between 60 and 100 metres of space, TRIBE Team Training offers the club and its trainers the highest income potential, even after paying license fees! Many clubs do TRIBE with an open floor space. Some clubs have a functional training cage and they use TRIBE programs and marketing to maximise utilisation and income from their investment.