WISE WORDS No 1.
Stop Losing, Start Gaining

There is a solid way to start generating positive cash flow fast and dependably, and it is within reach. I have been in this industry for over 3 decades: as a gym owner, trainer, consultant, manufacturer of fitness product and systems, and know how hard it is to be profitable in this industry. I understand just how hard it is to find the time to research and validate something that can wow both your customers and yourself. Often, a company has to become large enough to be able to afford exploring and discovering new technologies and resources available to them. A company that has grown up with the industry and still spends a lot of time and money evolving is Powerhouse Gym. Powerhouse Gym International's new flagship facility has installed 12 FitWall® Money Machines in Birmingham Michigan. Understanding the need to find revenue generators for their network of clubs Will Dabish, Co-Founder Powerhouse Gym International, has researched and identified FitWall® Systems to be the one thing that can generate the highest revenues in the shortest amount of time, while delivering results and retaining members. Implementing FitWall® Training Programs brings control and focus to a facility, and takes a tremendous burden off chasing memberships and puts energy toward smaller increments of package sales. The determinable profits and the requirements to acquire them are immediately visible and achievable. The directive will be to keep 10 people in front of 10 FitWall workstations every half hour for 4 hours a day (6 days a week), at a client rate of only 15.00 per session (10 sessions package) will yield a potential profit after costs of approximately $550,000.00 clearly defines the path a facility and trainer needs to focus on daily.

Let me explain how: Clubs focusing on selling packages to the members they already have takes the pressure off of chasing the high membership volume required to equal the same revenue/income. The daily burdens, costs and liabilities attached to retaining current members are also eased and have a direct effect on the bottom line. Note that the potential profits generated in the example above are based on an equipment cost from a 2-4 year high interest lease of only 1,000.00 to 1,900.00 per month for an existing business. It is not much different for a new business with higher startup costs and interest rates. In summary, it would cost you 1,000.00 to 1,900.00 a month to profit $46,000.00 a month if you focus. The potential of paying off your equipment in as little as a month or two, is possible if you take no profits from the income in the beginning and put it all toward the equipment pay off. These are all things your accountant and banker want to hear and see in a business plan.

One added bonus is the focused footprint or floor space required for the FitWall® revenue generators. For instance, the 10 workstations referenced above require only 1,200 to 1,500 square feet of the facility. This is a very little commitment of space for a predictable revenue generator. Another example would be a 6 station system needing approximately 900 square feet and generating approximately $300,000.00 of potential profit.

I say 'Potential Profit', because without focus and determination to change the way you are doing business into Making Money, the profits will be directly affected by the deviations made from a focused action plan. Plan your work, and work your plan and you will make money. Overreact to daily issues and deviate from the plan and you will lose money. Most clubs are 'reactionary' in their business practices, and spend too much time and money putting out fires and chasing the wrong solutions to their income problems. Clubs need to be 'proactive' and stay on the path to success, and learn to discipline themselves; to look beyond what is merely pressing and focus on what is truly important. profit not loss is the focus.

Another added bonus to the revenue generator, is knowing what the potential profit is, after paying for its share of the facility's operating costs and paying the trainer. Only one trainer per session paid 25.00 per session, or the equivalent of 50.00 per hour, appears high, but is only a small factor in the generation of high profits. This rate can be adjusted up or down according to the facility and market place, as well as the price per session to the client. The best way to see these affects are with an equation based study and report, like the on the FitWall website.

FitWall's® online 'Income Estimating System' allows you to input and control your own variables and conditions related to your facility for real and quantifiable projections. Putting numbers into the calculator will help you identify what must be charged to the customer per session to make your desired profit, weekly, monthly and yearly. You can immediately see the bottom line effect on your profits by changing the session cost by just one dollar, or paying the trainer $5.00 more per session. The system gives you instant data and a real financial perspective on your business, and it can be modified at any time to see what the affect will be without waiting until the end of the year. It actually generates the majority and most important part of a business plan that banks and lending institutes look for, as well as a Return-On-Investment (ROI) study or report.

A gym really is a production facility, and a member or client comes to it to 'produce' a result, and most of the time it is to produce a positive change in the member's body and/or condition level. Unfortunately selling them a membership by itself will not necessarily produce what they desire.. The unfortunate reality that the member eventually faces is that their gym membership is not producing for them, assume they are in the wrong place and seek a new membership elsewhere. Consequently that member has to be replaced. This is a predictable scenario and outcome that all gyms are familiar with, but it does not have to be that way. Package and sell results, FitWall® Training Programs, to your customers as a prime directive and let the membership be the bonus. Producing results for clients will turn the client into your best marketing arm, and result in producing new members and profits. It is easier and less expensive to keep a member that is happy, than to keep and replace one that is not.

FitWall® focuses the gym's energy towards selling productive results to the client when they come in the door. Like a manufacturing facility, the quality of production is important to keep the customer, or in this case the client or member. FitWall® systems gives the facility and trainer QC (Quality Control) over the results produced for the client, and further more allows the facility to offer and market QA (Quality Assurance) on an ongoing basis for as long as the client participates in the program. As long as you keep producing results they will keep paying happily. One sale leads to the next one.

The most successful plan is done by dedicating space and trainers to FitWall programs. To share space and trainers with other programs limits profit potentials greatly. If the focus is to keep the space active, then the focus needs to be on selling programs, or as I call it “Tickets to get in”. Setting a value and access controls gives you a dependable and controllable revenue source. Ideally, you should not make a money machine accessible to the public (members) unless they 'pay to play'. Memberships only buy a member the opportunity to figure things out for themselves, and ultimately fail to produce their own results. Offering a package program, that focuses on producing answers and motivation giving them the largest potential possible, warrants higher prices, which is more income and profit for the gym. People gladly pay more when they can see real and attainable results and an ending point to their efforts and investment, and if you can focus on results, you will have a lot more time to become better and better at producing them.

FitWall® allows a facility to focus on marketing within its own walls to the existing membership base. The odds of success are dramatically increased and the marketing costs lowered, as well as relieving the need for ever increasing membership numbers. Just because they are already a member does not mean their revenue potential is over, but actually as a captured market, the revenue from the same member can be multiplied many times over every month. The viral impact within a club is huge, and quickly spreads outside the gym. The decision then has to be made as to where and how you will expand your FitWall® capacity and program offerings, to fill the created demand. If you want to keep increasing your profits this will have to be done before the potential client has to look outside your gym to fill their demand.. This brings you to creating a growth plan in advance and being ready to service the demand when it is time, and as quickly as possible. Remember, success in business relies on planning your work and then working your plan.

Team FitWall will gladly consult with you, to show you all your options and rates of return. We look forward to the opportunity to work with you. Focus, Focus, Focus!

Doug Brendle
Founder & CEO
FitWall®
doug@FitWall.com


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