PUBLISHED BY the International Health, Racquet & Sportsclub

THE PRICE – IS IT RIGHT? ›9Why lower isn’t always better

KIDDING AROUND ›17Impact Athletics has mastered the art of youth programming

CORPORATE CHALLENGE ›29Maximize profits by tapping into this lucrative market

››› PUBLISHED BY the International Health, Racquet & Sportsclub Association

Novem

ber2005

SUPPLEMENT TO CLUB BUSINESS INTERNATIONAL

Answer toHis Prayers ›20

Answer toHis Prayers ›20

80% of Your Potential Members

Suffer From Back Pain.

Now You Can Be The Solution!

The Worldwide Leader in Spinal Strengthening

The Core Spinal Fitness SystemsTM

by MedX

Differentiate Your Club in Less Than 300 sq.

feet and For Less Than $600 Per Month.

Develop a new niche market: people with back and neck pain.Over 40 published articles in peer reviewed medical journalsprove that isolated strengthening of the lumbar extensormuscles reduces and frequently eliminates back pain.

This unique program is delivered through a series of 5patented machines proven to target, isolate and strengthenspinal muscles like no other equipment on the market today.

Call today to find out how to differentiate your facility with TheCore Spinal Fitness Systems. We provide you with a 1 yearmarketing plan and free on-going support.

Call Today for Your Free

Marketing & Promotional Packet

866-814-0719

www.corespinalfitness.com

What value does your customerplace on credibility?

The ICAA age-friendly designation will

provide you with unprecedented

credibility.This seal of recognition lets

older adults know you take their

business and well-being seriously.When

you join this program, you can place this

seal on all your marketing pieces, i.e.

advertising, flyers, direct mail, posters,

postcards, door stickers, brochures,

client handouts, and website.

To learn more, visit

www.icaa.cc

Contents NOVEMBER 2005

›20SAM GABUZZI converted a closed church into a truly unique fitness center

POINT OF VIEW ›14Got Yoga?Most U.S. clubs are coming up short, says IHRSA veteran Rick Devereux

SIMPLY THE BEST ›17Kidding AroundImpact Athletics has mastered the art of youth programming

Articles DepartmentsWELCOME LETTER ›6

NEED TO KNOW ›9The Price: Is it Right?Why lower isn’t always better

INDUSTRY NEWS ›10Club Business EntrepreneurConference recap, news fromZone Café, convention pricebreak, hurricane relief update and more

PROFESSIONAL’S CORNER ›25Group Fitness ManagementSolid advice from the founderof Les Mills International

FEATURED TIP ›29Corporate ChallengeGaining the competitiveadvantage

IHRSA BENEFIT SPOTLIGHT ›32fitRewardsMotivating and rewardingemployees can be easier—andless expensive—than you think

BUYER$MART ›35

IHRSA ASKS 7 QUESTIONS ›36Celebrating SilverTony Rea reflects on 25 yearsas a Gold’s Gym owner

Nicki Anderson, Owner, Reality Fitness PersonalTraining Center, Naperville, IL

John Atwood, Owner, HealthFit, Needham, MA

Rick Bennett, Owner, Corvallis Fitness Center, Corvallis, OR

Karl Buchanan, CEO, Impact Athletics, Cary, NC

Tom Calvario, Owner, Pottstown Health Club,Pottstown, PA

Mike Carville, President, South Yuba Strength & Wellness, Nevada City, CA

Kim DeMars, Manager, Beverly Hills Club, Beverly Hills, MI

Jim French, Owner, The Canyons Athletic Club,Hamilton, MT

Paul Kienitz, Owner, Riverside Athletic Club, Merrill, WI

Nancy Kouris, GM, World Gym, Hampton Bays, NY

Ted Murray, Owner, Punta Gorda Tennis Club,Punta Gorda, FL

Carol Nalevanko, Vice President, DMB Sports Clubs,Scottsdale, AZ

Phil Wendel, Founder, ACAC Fitness & Wellness Centers, Charlottesville, VA

Kristi Wolf, Owner, Powerhouse Gym & FitnessCenter, Anchorage, AK

CLUB BUSINESS FOR ENTREPRENEURS EDITORIAL ADVISORY [email protected]

Photography (cover/above): Jay Lee Studios/Hoffman Estates, IL

%H�6WURQJ��

:$/.,1*� 7+( 1(: 5811,1*�

� �� 1DXWLOXV� ,QF� $OO ULJKWV UHVHUYHG� 1DXWLOXV� WKH 1DXWLOXV ORJR� 7UHDG&OLPEHU DQG %H 6WURQJ

DUH HLWKHU UHJLVWHUHG WUDGHPDUNV RU WUDGHPDUNV RI 1DXWLOXV� ,QF� %DVHG XSRQ VWXGLHV DQG UHVHDUFK

FRQGXFWHG DW WKH +XPDQ 3HUIRUPDQFH /DERUDWRU\ DW 1HZ <RUN·V $GHOSKL 8QLYHUVLW\� DQG VWXGLHV

SXEOLVKHG LQ WKH RIILFLDO MRXUQDO RI WKH $PHULFDQ &ROOHJH RI 6SRUWV 0HGLFLQH� 1/0*��

7+( 1(: 1$87,/86� 75($'&/,0%(5�

FDUGLR�PDFKLQH�JLYHV�\RX�D� UXQQHU·V�ZRUNRXW�DW�D�ZDONHU·V�SDFH��,WV�XQLTXH�GHVLJQ�FRPELQHV�ORZ�LPSDFW�ZDONLQJ�ZLWK�JUDGXDO�KLOO�FOLPELQJ�WR�JLYH�\RX�WKH�LQWHQVH�UHVXOWV�RI�UXQQLQJ� &RQWDFW�\RXU�1DXWLOXV� WHUULWRU\�PDQDJHU�RU�YLVLW�ZZZ�1DXWLOXV7UHDG&OLPEHU�FRP�IRU� LQIRUPDWLRQ�RQ� WKLV� UHYROXWLRQDU\�QHZ�PDFKLQH�

Happy Anniversary!

This month marks the first anniversaryof Club Business for Entrepreneurs.We hope you have found each issue tobe both relevant and valuable to yourbusiness. As we look towards 2006, we welcome your comments, questionsand suggestions on topics you wouldlike us to cover in future issues. Contact us at [email protected].

We would like to thank the morethan 400 of you who joined us in Las Vegas in September and helpedmake IHRSA’s 1st Annual Club Business Entrepreneur Conferencesuch an overwhelming success. See page 10 (Industry News) for a brief recap of this memorable event.

During his Conference keynoteaddress, Michael Chaet warned againstgetting involved in “price wars”. In thisissue’s Need to Know (page 9), we look atresearch that should give pause to clubs considering slashing their rates. It shows that those independently-ownedclubs with dues greater than $70 permonth have the highest retention rate,and those with dues of $40 per month or higher enjoyed greater revenue growth in the past year than their lower-priced counterparts.

In IHRSA’s Guide to MembershipRetention, John McCarthy points outsthat group fitness participants are more loyal to their clubs and more likely to renew their memberships than “machine” members. Therefore, it is vital that you keep these coremembers happy. To help you do so,

Phillip Mills, founder of Les Mills International, outlines his company’seight golden rules for group fitnessmanagement in our Professional’s Corner (page 25).

In our Featured TIP (page 29), we profile a successful corporate challenge and offer advice on tappinginto this lucrative market.

Finally, our cover story (page 20) onSam Gabuzzi, owner of the Two RiversL.I.F.E. Fitness Center in Wisconsin,serves as a compelling reminder to all of us to “think outside the box”. He did—and converted an abandonedchurch into a truly unique fitness center!

Best wishes for a happy, healthy and prosperous holiday season andNew Year.

Regards,

Jay M. Ablondi Meredith PopplerPublisher Director of Sales

6 C l u b B u s i n e ss fo r E n t re p re n e u r s n N O V E M B E R 2 0 0 5 n w w w. i h r s a . o rg

Welcome Letter

The mission of IHRSA is to grow, protect, and promote the industry, and to provide its

members with benefits that willhelp them be more successful.

PUBLISHING

Publisher: Jay M. [email protected]

Content Editor:Kristen A. [email protected]

Contributing Editors:Rick Devereux John McCarthy

Kathleen Hart Rollauer

Associate Director of Advertising:Michele [email protected]

Advertising Account Executives:Jessica DiManno

William Finn Donna Garrity

Christine Richards Paterson

MEMBERSHIP

Director of Sales:Meredith Poppler

[email protected]

Sales Assistant:Debbi Kellner

Sales Representative:Michael Murphy

Sales Managers: Kevin Carroll

Manny Lherisse Bob Pelletier

Art Direction, Design, Production:tpgcreative, Boston, MA

IHRSA EXECUTIVE DIRECTOR

John [email protected]

CLUB BUSINESS FOR ENTREPRENEURS

EDITORIAL & ADVERTISINGOFFICES

[email protected]

www.ihrsa.org/entrepreneur

800-228-4772 USA & Canada617-951-0055 • 617-951-0056 FAX

Club Business for Entrepreneurs is published quarterly ©2005

by the International Health, Racquet & Sportsclub Association, 263 Summer St.,

Boston, MA 02210 USA

POSTMASTER: Please send change of address to

Club Business for Entrepreneurs, c/o IHRSA

263 Summer St., Boston, Massachusetts 02210

VOLUME 1, ISSUE 4

Photography:Tracy

Pow

ell

OUR SOFTWARE WORKS SO YOU DON’T HAVE TO

OUR SOFTWARE WAS DESIGNED BY EX-NASA ENGINEERS TO SIMPLIFY YOUR LIFE.Odds are, you’ve dealt with club management software that’s better suited for a landfill thanrunning your club. But before you decide all management systems are garbage, considerAphelion. As our customer, you can speak with a tech rep immediately. In fact, with our premiumservice, we'll guarantee a response within 30 minutes or you'll receive a month of free service.So call us for a no-obligation assessment for your club.

TECH SUPPORT IN30 MINUTESOR LESS. NOT THAT YOU’LL

NEED IT.

800.324.9800 • 1100 NASA PARKWAY, HOUSTON, TX 77058 • WWW.APHEL ION.NETH O U S T O N • K U A L A L A M P U R • L O N D O N • M E X I C O C I T Y • D U B A I • M E L B O U R N E

Need to Know

w w w. i h r s a . o rg n N O V E M B E R 2 0 0 5 n C l u b B u s i n e ss fo r E n t re p re n e u r s 9

The Price: IS IT RIGHT?Many business owners struggle with pricingtheir products and services. It always helpsto scope out the competition. The following2004 data about independently-owned U.S.clubs, excerpted from IHRSA’s Profiles ofSuccess, will help you do just that.

Fast Fact: Most clubs raised their prices in 2004–an average of 4% for dues and 29% for initiation fees.

Is Your Club a Profile of Success?

> Profiles of Success presentsoperating benchmarks (brokenout by club type and size) suchas: total revenue, membershippricing, facility reinvestment,rent, membership retention, etc. IHRSA memberswho participate in the annual Industry Data Survey (IDS) receive a free copy of Profiles of Success. Contact [email protected] to be sure you receive a copy of the IDS for 2006. Visitwww.ihrsastore.com to purchase Profiles of Success. Member price: $240 (print) or $215 (PDF);non-member price: $550 (print) or $525 (PDF).

[ ]PERCENTAGE OF CLUBS OFFERING

VARIOUS CONTRACT TERMSMonth-to-month 71%

1 year + converts to month-to-month 47%

1 year + converts to another year 47%

Longer than 12 months 26%

* Does not total 100% due to clubs offering multiple options.

PERCENTAGE OF AVERAGE CLUB’S MEMBERSHIP ACCOUNTS

PER TYPE OF CONTRACTMonth-to-month 42%

1 year + converts to month-to-month 31%

1 year + converts to another year 21%

Longer than 12 months 5%

* Does not total 100% due to rounding of numberto nearest whole number.

CLUB PRICING Median for all Clubs Median for Clubs

<20,000 sq. ft.

Initiation Fee $150 $112.50(single adult, excluding discounts)

Monthly Dues $55 $49.50(single adult, excluding limited or exclusive options)

Guest Fee $12 $10 (single adult, first visit)

FREQUENCY OF ADVERTISED DISCOUNTSNever 1-2 times 3-4 times 5-6 times 7+ times

Initiation Fees 28% 13% 22% 9% 28%

Monthly Dues 74% 11% 6% 1% 8%

Median discount on initiation fee: 50%

Median discount on monthly dues: 10-15%

MONTHLY DUES AS THEY RELATE TO PROFITABILITY AND GROWTH

Dues EBITDA Revenue Net Membership Retention(Single Adult) Growth Growth

(Over Previous Year) (Over Previous Year)

≤$40 15% 3% 5% 68%

$41 - $69 16% 6% 4% 66%

≥$70 18% 4% 1% 74%

MINUTESOR LESS. NOT THAT YOU’LL

NEED IT.

800.324.9800 • 1100 NASA PARKWAY, HOUSTON, TX 77058 • WWW.APHEL ION.NETH O U S T O N • K U A L A L A M P U R • L O N D O N • M E X I C O C I T Y • D U B A I • M E L B O U R N E


Industry News

EntrepreneursWIN BIG IN LAS VEGAS

Zone Café Goes NationwideZone Café is now approved forfranchise in 46 of the 50 U.S.states. International inquiries aresteadily growing, and internationalopportunities are in the works.

Earlier this year, Zone Café,the Reno-based division of Dr.Barry Sears’ Zone Wellness, was named the official in-clubrestaurant partner of IHRSA.

Through its Zone Expressoption, Zone Café provides aunique opportunity for healthclubs to enter the restaurant business in a manner featuringhealthy, safe, nutritious foods. The program is based on the well-known Zone Diet, a diet based ona 40-30-30 ratio of carbohydrates,fats and proteins, respectively.Each restaurant can be accommo-dated in 750 square feet—lessspace than a racquetball court. Themeals, menus, and retail productsare all part of the package.

To learn more, log on towww.ihrsa.org/zonecafe. n

> In September, more than 400 independent-club owners and operators attendedIHRSA’s first annual Club Business Entrepreneur Conference in Las Vegas, Nevada.The event, presented in conjunction with the National Fitness Trade Show (NFTS),included networking opportunities and dynamic workshops from Thomas Plummer, Michael Chaet, and many other industry experts.

“It was the best conference I’ve attended in years,” says Kevin Ward, head trainer at the Asylum Fitness Club in Fort Myers, Florida. “Everything was sousable...on an immediate level. There was not a bad speaker in the bunch.”

Exodus General Manager Marlin Tohiariki traveled more than 6,000 miles from New Zealand to attend the conference. “Even if we had left after the first day, the trip would have been well worth it,” he says. “The information wereceived and insights provided by the presenters have already made a profoundimpact on our direction and focus for our new club.”

More than $1,045,000 was raised for the MuscularDistrophy Association’s ALSResearch Program at a dinnerhonoring Augie Nieto with aLifetime Achivement Award.Earlier this year, Nieto wasdiagnosed with ALS, morecommonly known as LouGehrig’s disease. He drawsstrength from his family andfriends, maintains a positiveattitude and continues to lead an active life. To learnmore or to donate, visitals.mdausa.org/augie.

Stay tuned towww.ihrsa.org/conference inthe coming months for detailson next year’s event! n

Speakers field attendee questions during the last session of the conference

join IHRSA as we celebrate silver, cher-ishing the past twenty-five years of anindustry that has made a difference in

millions of lives. And, together, we go forgold, looking forward to the next twenty-five years as our industry grows, evolves,and exceeds the needs of those we serve.

IHRSA25 is an event twenty-five years in themaking. With keynote speakers, education,workshops, networking and the most expan-sive trade show ever, if you miss it, you willmiss out! Register by November 15th andsave! Non-member rates are available. Visitwww.ihrsa25.org for all the details. n

Plan to Attend the Event of a Lifetime!

/UR�WEIGHTS�ARE�BUILT�TO�LAST�*UST�LIKE�OUR�CUSTOMER�RELATIONSHIPS�

/UR�WEIGHTS�ARE�BUILT�TO�LAST�*UST�LIKE�OUR�CUSTOMER�RELATIONSHIPS�


Industry News

NCSF Receives NCCA Accreditation

The National Council on Strength &Fitness (NCSF)—a for-profit certification group—has received

accreditation by the National Commissionfor Certifying Agencies (NCCA), the accrediting board for the National Organization for Competency Assurance(NOCA). The NCCA accreditation serves as an external audit to help ensure the health, welfare and safety of the public through the evaluation of all facets of the certification program and the organizations that assess professional competency.

IHRSA recommends that, beginningJanuary 1, 2006, member clubs hire personal trainers holding at least one current certification from a certifyingorganization/agency that has begunthird-party accreditation of its certifi-cation procedures and protocols from an independent, experienced, andnationally recognized accrediting body.

To learn more about IHRSA’s recommendation, log on towww.ihrsa.org/accreditation. n

B illing, tracking and managing personal training services has never been easier. AAC’s Personal TrainingManagement Software lets you track the number

of available sessions and “no shows,” view a member’s personal training information immediately upon check-in,and receive notification of sessions used. You can assignmembers to specific trainers, view and print a detailed training history for each member, and set trainer sessionrates and sales commission percentages. Utilize the built-inPersonal Training Reports to review trainer logs or memberlogs, and to generate customized sales renewal call lists.More information can be found at www.affiliated.org, or call (800) 233-8483. n

Product Profile: Affiliated Acceptance Corporation’s Personal Training Management Software

> Our hearts are with our friends andcolleagues in the Gulf area who are dealing with the horrific effects of thisyear’s hurricane season. As we learnmore regarding the impact of HurricanesKatrina and Rita on our industry, we will post updates at www.ihrsa.org/relief.This area of IHRSA’s web site alreadyincludes job availability information fordisplaced industry professionals as wellas details from clubs across the U.S. who are raising funds and collectingsupplies to aid hurricane victims.

We encourage all who have any related news and/or photos to share to send e-mail to [email protected].

Special thanks to TedMurray, owner of thePunta Gorda Tennis Clubin Punta Gorda, Florida, who provided advice and support to cluboperators who were preparing for or who were affected by thisyear’s hurricanes. As you will recall, Ted was featured in the May 2005 issue of Club Business for Entrepreneurs, in which he described the devastation to his club caused by HurricaneCharley. Ted’s tips for preparing for a hurricane are available at www.ihrsa.org/relief. n

Donna Nelson, owner of Liberty Fitnessof Ocala, Florida, collected donationsfrom members to help hurricane victims

Hurricane Relief Efforts Underway

Point of View

In the U.S., yoga is just anotheractivity that grew fast and iscompared to—and is often

supplanted by—Pilates and vari-ous group exercise classes withfunny names. In other countries,variations on yoga grow, but donot detract from an establishedbase of practitioners, which clubshere would love to cultivate.

Even in India, where yoga hasmore than a thousand years of tradition and more millions of followers than we have sportsfans, interesting variations suchas “laughing yoga” emerge andquickly attract participants inthousands of studios.

We’ve missed the opportunityhere in the states. Rather thanteaching yoga, we have hostedyoga classes, which are exerciseclasses based on yoga postures,accurately demonstrated by able,certified teachers. Though theclasses are marketed as open to

all, they attract a narrow range ofattendees (85% are women) whoare usually fit and flexible enoughto perform yoga poses withoutthe understanding or spiritbehind each pose and the flow orsequence of the practice. Cultivat-ing yoga class attendees ratherthan yoga practitioners not onlyshort-changes the member—itshort-changes the club.

Consider the following:• If 20 million Americans take ayoga class each year, there are200 million who do not, andcould—yoga is for everyone.

• Most clubs do not charge foryoga classes, yet they pay instruc-tors top dollar. (Teachers in clubsearn $35 per hour, and in studiosthey often earn twice that!)

• Most clubs have studios which gounused more than half the time, andcould be used to generate profitsfrom private yoga instruction, whichwould attract new members andclass participants.

In the U.S., we simply have itbackwards. We’ve realized thatone-on-one personal training isless efficient and profitable thantraining in pairs or small groups,which provide additional motiva-tion and fun to students andteachers alike. For the club,group training is more profitable.

With yoga, we need to takeadvantage of the fact that it is amillennium-old tradition which

most certified teachers are quali-fied to teach privately for goodmoney. Studying yoga privatelywith a teacher—or in smallgroups—is old tradition for a reason: it provides benefits to thestudent that are valuable enoughto pay for. We must admit thatour group classes are free for areason—they simply don’t pro-vide a benefit for which peopleare used to paying.

I urge you to talk with your yogateachers about offering privateinstruction in your studio to yourmembers or their other clients. Ithink you will find they are veryinterested. See if it doesn’t make adifference to your bottom line! n

RICK DEVEREUX is a certified yogateacher who is moving in thedirection of private practice at alocal club. He is also the outgoingdirector of marketing at IHRSA.He can be reached at 781-883-0979 (9am – 5pm EST) or via e-mail to [email protected].


Less is More: Thoughts on the Future of Yogaby Rick Devereux

Rick Devereux

67% of IHRSA clubs offer

yoga instruction.

Fast Fact


Point of View

How to Increase Profits from Yoga Classes:The Segmentation 101 Opportunity

Benefits • You will expand your yoga clientele.• You can charge fees for “special” interests.• You can draw people into classes during off-peak times for special interests.• You will create opportunities for your teachers to talk to those who may need private instruction, eitherbecause they are new to yoga or because they want to concentrate on an individual interest or problem.• Your special interest classes can be shorter than typical yoga classes, which people attend for an all-pur-pose workout replacement (yoga practices vary in length according to the purpose).• You can use a smaller studio space, or offer outdoor classes in good weather.

Promoting Classes• Do target mailings of fliers and e-mails, as well as articles in your newsletter and promotions on your website.• Create a yoga bulletin board with a section outlining the benefits of different classes totarget groups. Include testimonials from those who have benefited in specific ways.(Yoga beneficiaries are often passionate about sharing—many of these peopleare in your classes, if you currently offer yoga; if not, many members will havetaken yoga elsewhere.)• Place ads in local papers and post fliers on public bulletin boards.• Give fliers for classes on health-related specialties to local physicians’offices for distribution to patients.

Pricing• As with any new offering, invite people to try the class for free before signingup or during a trial promotion period before a class series is offered (someclasses may be more perennial than others).• Offer a class series with enough sessions so that participants will seeresults (teachers should decide the length needed).• Charge enough to cover the cost of the instructor times two, assumingminimal attendance (half capacity). When you offer private yoga, chargetwice what your instructor will be paid.

One Final NoteIf your current yoga classes are full, continue to offer those in addition to private or semi-private instruction. Never change a winning game!

Instead of naming classes by the type of yoga offered—which means something only to teachers and people who really know yoga—name them by the type of intended participant, or for the benefit to be derived,such as “yoga for (beginners, hurting joggers, ‘tennis’ shoulders, golfers, better digestion, back pain sufferers, relaxation, weight management, better sleep, stress management).”

Your instructors can come up with a score of titles, based on their own, often-evolving interests andknowledge. The Yoga Journal, to which most yoga instructors subscribe, is full of articles about teachingto different populations and interests.

Give your club the management strength of theComplete Club Management Solution from ABC Financial.

www.abcfinancial.com

Club Software Solutions

Payment Processing Solutions

Marketing & Retention Solutions

maximize your club's growth potential. maximize your club's profits.

P.O. Box 6800 • Sherwood, AR 72124 1-800-622-6290 (option 3) • Fax 501-992-0801

...

...

...

...

Get the management tools you need to grow your club.

ABC offers all the club management tools you need to manage your club and maximize your profits.

DataTrak Club Management Software.DataTrak, our proprietary browser based club management system, was designed and built using the concept of centralized data and provides our clients a wide range of services to efficiently operate their club. DataTrak is loaded with the essential tools you need to manage your club.OnLine Club Management Center.Log on to ABC's Club Management Center interactive web site at anytime to view reports and update member account information. Plus, your members have immediate access to view their account balance and make payments. Billing And Payment Processing.Our Processing Division offers full service accounts receivable processing - EFT, credit card and monthly payment books. From start to finish we monitor every aspect of your members account. Customized Marketing Programs.Our Club Marketing Division offers a wide range of customized sales and marketing programs designed to enhance club operations, increase sales and improve your bottom-line profit. Club marketing services include “Friends are Free”, a customized referral program; “VIP Preferred Program”, our exclusive member retention program, and our comprehensive membership renewal program “Renewal Plus”.


Simply the Best

A Positive ImpactWhere Family, Fitness and Fun Come TogetherIn 1999, Army veteran Karl Buchanan and his wife, Darci, opened Impact CheerGym in Cary, North Carolina in response to what he calls “Big Trophy Syndrome.”

“Some parents make theirkids feel like losers if they don’twin,” explains Buchanan. “Wedecided to open a cheerlead-ing facility at which kids—including our daughter—would be encouraged to perform at a high level of competition without that kind of pressure, and in a morepositive atmosphere.”

Impact Cheer Gym, locatedin a school gymnasium,

consisted of little more than a portableradio, two water coolers and seven rolls ofcarpet-bonded foam.

Two moves and two name changes later,Impact Athletics Family and Wellness Center boasts one of the nation’s most successful competitive cheerleading pro-grams. In fact, the club recently receivedthe 2005 Cheerleaders of America, Inc.(COA) Program of the Year Award at theCheerleading National Championship.

Other competitive youth sports offeredat the facility include: gymnastics, jumprope, hockey, dance, wrestling and swimteam. Non-competitive options include:dance (hip-hop, tap, jazz & ballet), tram-poline, tumbling, cheer, gymnastics, swimlessons and tae kwon do.

KidzTown, the club’s child care centerfor kids up to age 7, features fun age-specific play space with activities such asmoon bounce, padded obstacle courseand numerous active classes. TheZone for pre-teens and youngteens offers a game roomwith the latest arcade games.Tickets won during arcadegame play can be redeemed

for smoothies, pro shop items and evenbirthday party room rentals.

Club members enjoy whitewater raftingtrips, mom’s night out, fly-fishing excursions,and much more. “We do a lot of things thatmake us a cohesive, tight, supportive group,”explains Buchanan.

“At some clubs, people show up, workout, and leave and never think about theclub otherwise,” says Buchanan. “Wedon’t want to run that kind of business.”

Athletes are encouraged to be well-round-ed and to give back to the community. “Werequire all of our athletes to participate in atleast one community service project,” notesBuchanan. “They also must participate ina bonding activity such as going to thebeach or volunteering at a soup kitchen.”

With so many active kids on site, doesBuchanan worry about liability? “Everyday,” he says. “If you lookat the sports we do, andconsider the ‘sue-happy’society in which we live,we can’t let our guarddown for a minute.”

Karl Buchanan

The club’s hockeyprogram is ranked #4 in the U.S.

Give your club the management strength of theComplete Club Management Solution from ABC Financial.

www.abcfinancial.com

Club Software Solutions

Payment Processing Solutions

Marketing & Retention Solutions

maximize your club's growth potential. maximize your club's profits.

P.O. Box 6800 • Sherwood, AR 72124 1-800-622-6290 (option 3) • Fax 501-992-0801

...

...

...

...

Get the management tools you need to grow your club.

ABC offers all the club management tools you need to manage your club and maximize your profits.

DataTrak Club Management Software.DataTrak, our proprietary browser based club management system, was designed and built using the concept of centralized data and provides our clients a wide range of services to efficiently operate their club. DataTrak is loaded with the essential tools you need to manage your club.OnLine Club Management Center.Log on to ABC's Club Management Center interactive web site at anytime to view reports and update member account information. Plus, your members have immediate access to view their account balance and make payments. Billing And Payment Processing.Our Processing Division offers full service accounts receivable processing - EFT, credit card and monthly payment books. From start to finish we monitor every aspect of your members account. Customized Marketing Programs.Our Club Marketing Division offers a wide range of customized sales and marketing programs designed to enhance club operations, increase sales and improve your bottom-line profit. Club marketing services include “Friends are Free”, a customized referral program; “VIP Preferred Program”, our exclusive member retention program, and our comprehensive membership renewal program “Renewal Plus”.

Simply the Best

Along with part-owner Jason Ybarra, theBuchanans take every feasible precaution to ensure the safety of kids in the club.

The club has imposed age requirementsfor youth who want to use fitness equip-ment. Those ages 12 and 13 may onlywork out with a parent; those ages 14 and15 may work out alone but a parent mustbe in the building; and 16 year-olds maywork out alone but must go through a fitness orientation.

“Our equipment is top-notch,” addsBuchanan. “We have sprung floors.Instead of one-inch padding we have two-inch padding. We go the extra mile toensure safety.”

“We require—and pay for—all coachesto be trained in CPR and first aid,” notesBuchanan, who is proud of the staff hehas assembled. “We offer professionalcareers for people when they graduatefrom school,” he explains. “We offer com-petitive compensation and full benefitspackages for full-time staff. We also recruit on a national level. All of our hockeycoaches are professional players.”

Buchanan cites communication as theclub’s biggest challenge. “From a stafflevel, there are so many activities goingon, the person at the front desk has toknow when the bus leaves for the raftingtrip, where the wrestling competition isbeing held, and so on,” he explains.

“In addition, we must distribute thisinformation to our members.”

With so many programs going on at atime, it could also be difficult to monitorthe performance of each one as it relatesto the success of the business.

“We use CSI’s excellent software systemwhich allows us to track each department aswell as overall program growth,” explainsBuchanan. However, in some cases, clubmanagement will offer programs that losemoney—if they generate participation inanother program.

“Take wrestling, for example,” saysBuchanan. “Our program is profitable, buteven if it wasn’t, we’d keep it because itdraws in other kids. Our wrestlers have sisters who want to cheer.”

In fact, cheering is the club’s most popu-lar program, but not the most profitable.“Our most profitable offering is weekly,recreational, non-competitive classes whichaccount for $78,000 per month in revenue,”notes Buchanan.

The abundance of youth programsdoes not come at the expense of a calm,peaceful club, adds Buchanan. “Our care-fully planned facility and program designallows us to control traffic flow and segregation of age groups to maximizeeach customer’s experience.” n

KARL BUCHANAN can be reached via e-mail to [email protected].


Impact Athletics offers a competitive but positive atmosphere for young athletes

Sam Gabuzzi is glad he kept an open mind while searching for a location for a new fitness center. While at his vacation home in Two Rivers, Wisconsin—a small town of 13,000, located on Lake Michigan—Gabuzzi noticed that

the town lacked a full-service health club, and decided to open one.

Gabuzzi began talking with the town’s recreation director, who referred him to its economic development director, Dan Pawlitzke. He showed Gabuzziseveral properties, including the former St. Luke’s Catholic Church, which hadclosed in 2002 when the parish merged with others.

“When he first mentioned the church, I thought, ‘What a neat piece of realestate to own.’ Then I pictured it full of exercise equipment and realized itwould be a unique and visually stunning fitness facility,” says Gabuzzi. Hebought the 115 year-old church, brought on his father and his father-in-lawas junior partners, and began work on the Two Rivers L.I.F.E. Fitness Center.

20 C l u b B u s i n e s s fo r E n t re p re n e u r s n N O V E M B E R 2 0 0 5 n w w w. i h r s a . o rg

ANSWER TO HIS

Prayersby Kristen A. Walsh

©

Photography: Jay Lee Studios/H

offman Estates, IL

SAM GABUZZI Converted a Closed Church into a UNIQUE FITNESS CENTER

During the design process, Gabuzzi considered themany town residents who have a connection to thebuilding. “During the construction, people wouldcome in and say, ‘I had my first communion here, Igraduated from grammar school here, I had myconfirmation here, I got married here, and my wife’sfuneral was here,’” he recalls. “They’d say, ‘That’smy grandfather’s name on that window.’ They werehappy to learn I planned to keep as much of thechurch in tact as possible,” he recalls.

In May, the club opened to rave reviews frommembers, residents, and the local media.

“Members say they like working out in a spiritualatmosphere,” says Gabuzzi. “However, because thebuilding’s artifacts, which were incorporated in thedesign, are not overly religious, it isn’t offensive tononbelievers or disrespectful to the church.”

Today, rows of treadmills, stationary bikes, andelliptical trainers sit in place of pews. The old choirloft, which still houses the church’s pipe organ, will

Prayers continued

This semi-private area is ideal for specialty classes The retail and lounge areas are open and uncluttered

soon have additional cycles for Spinning classes.Life Fitness selectorized strength-training equip-ment and free weights are found around the eastwall beneath stained-glass windows. Televisions aremounted between the stained-glass windows on theopposite wall.

A semi-private room with wood-laminate floorand shelves filled with exercise mats, medicineballs, and yoga blocks for specialty classes is locat-ed in front of the altar. What once held the pulpitand altar are now locker room and shower facilities.

There is capacity for 1,000 members using the10,000-square feet of workout room on the first floor.“At one point, I wanted to make the facility two-levels—sanctuary and basement,” recalls Gabuzzi.“However, I would have had to install an elevator,which would have been extremely expensive, so I kepteverything on the main level in order to keep the club accessible to individuals with disabilities.” Thebasement has a full, commercial-grade kitchen, whichhe hopes to use in some way in the future.

Also included in the purchase of the church was an 8 bedroom, 4.5 bath rectory, which Gabuzzikept entirely intact and will soon rent out to a printing business.

Gabuzzi credits Pawlitzke with helping him obtainthe proper zoning permits and funding. “The townwas eager to have more business development,especially this type of facility that would benefit so many people,” says Gabuzzi. “Special care neededto be taken, though, since this was considered the‘mother’ church, and so many people are emotionallyattached to it.”

Pawlitzke sees the fitness center as a good adaptive use of the building, which is located in theTwo Rivers Historic District. “It keeps the churchstanding and it keeps the integrity of the blockintact,” he says.

Front desk employee Fay Henning is happy towork in the relaxing, non-traditional facility. “L.I.F.E.stands for Lifestyle Improvement For Everyone,” sheexplains. “That speaks well for having it in a church.In fact, people in the community are beginning to refer to the club as St. Fitness!” n

SAM GABUZZI can be reached via e-mail [email protected]. For more informationabout his facility, visit www.tworiverslifecenter.com.

“ ”SPECIAL CARE NEEDED TO BE TAKEN, SINCE SO MANYPEOPLE ARE EMOTIONALLY ATTACHED TO THIS BUILDING.

Rows of cardio equipment sit in place of pews The club’s east wall contains the building’s original stained-glass windows


Photography: Jay Lee Studios/Hoffman Estates, IL


Many health clubs are missingout on the full benefits of groupfitness for lack of simple man-

agement practices.We should not forget that health clubs

can deliver a really good return on invest-ment—yet some operators let businessobjectives slip from focus because of othermotivations for their involvement in fitnessand exercise.

Club operators should be setting ambitiousgoals for themselves and focusing on excel-lent performance in order to achieve them.

Group fitness management is one ofwhat Les Mills refers to as the “Eight KeyAreas to Club Management” (see side-bar). The company’s “Eight Golden Rulesfor Group Fitness Management” are:

1. Create a ScorecardGather statistics about key aspects ofyour club’s group fitness performance. Ifyou can’t measure it, you can’t manage it.Equally, the team can’t play to win if itdoesn’t know the score.

The key data are the most obvious.Keep track of how many members attendevery group fitness class. This informa-tion helps you to both refine yourtimetable and assess the performance ofinstructors.Additional benchmarks to measure andanalyze include:• Overall class attendance;• The number of quality instructors gainedor lost;• Results of membership satisfaction surveys;• Group fitness class attendance as a percentage of total club attendance;• Performance against budget; and• Results of marketing initiatives.

2. Maximize the Group Fitness TimetableRestructuring your group fitnesstimetable is often the quickest way toincrease participation—and profits. Don’tspend more money on equipment andother capital until you are fully utilizingwhat you already have.

The average number of participants ineach group fitness program provides abasis for simple strategies such asincreasing the availability of the instruc-tors and programs that attract highattendance—and reducing or rethinkingthose that are less popular.

3. Recruit—and Keep—World-Class InstructorsA single great instructor can bring hundreds of new members to a club overtime. Take a disciplined—yet creative—approach to recruiting instructors. Thenext great talent may be at a nearby performing arts school, theater, dancecompany, or physical education program.

Use your attendance data to assess andrank instructors (allowing, of course, for differences in the popularity of differenttime slots). Reward your best performers,

and demonstrate your commitment to staffby ensuring that less-popular instructorsreceive coaching and extra training.

4. Organize Great Instructor TrainingOffer extensive training for instructors plus a certification regimen. These provide apathway to excellence for instructors. Train-ing should emphasize the five key elementsof leading a successful class, namely:• Pre-choreography;• Physical execution; • Instruction;• Performance; and• Communication.

5. Develop the Best Studio You Can AffordFor today’s demanding consumers, the quality of your studio has a big impact ontheir perception of the overall experience.Consider whether your studio is world-class,and what changes would enhance its appeal.Hire the best architect and/or decorator youcan afford, and deliver the best lighting,sound system, stage arrangements andmember amenities that you can.

Create an incremental studio improve-ment plan, and budget for addressing the most urgent priorities first.

6. Deliver World-Class MarketingEffective marketing—that is, making surethe right people know how great your

Professional’s Corner

Group Fitness ManagementKey to Business Successby Phillip Mills


Professional’s Corner

programs are—leads directly to increasedmembership and higher retention.

The quality of your marketing materialssets the tone for consumers’ perceptions ofyour offering. They would be hard-pressedto believe your programs are world-class ifyour marketing materials are old-fashioned,poorly designed or cheaply printed.

7. Plan for SuccessSet medium-term objectives (one to threeyears) for your group fitness programs, supported by a costed plan that is afford-able. Schedule regular reviews, duringwhich you analyze the previous period’sperformance and decide whether you needto change anything.

8. Appoint—or Be—a World-ClassGroup Fitness ManagerThe group fitness manager is a key hire.If a single great instructor can deliverhundreds of new members over time, a

great group fitness manager can bring in thousands.

It goes without saying that managersmust be disciplined and committed

to succeeding on key performance indicators in areas such as class atten-dance, recruitment and training. Aneffective group fitness manager must also lead with passion and drive—there-by providing a role model for everyaspect of your club. n

PHILLIP MILLS is the founder and chairman of Les Mills International, the world’s largest provider of groupfitness programs to health clubs. His seminar on Les Mills’ seven exercise-to-music programs are used by about four million people aweek in nearly 10,000 clubs across 55 countries. Contact details are at www.lesmillsusa.com in the U.S. and at www.lesmills.com for other countries.

Manage your whole club with one flexible solution.

For more information, call 800.242.9522 or visitwww.checkfreeclubmanager.com

© Copyright 2005 CheckFree Corporation. All rights reserved.

CheckFree Club Manager.™ Grow with the mostflexible and scalable club management softwaresolution that easily integrates with your existingsystems and our CheckFree Schedule Manager™,CheckFree Contract Manager™ and CheckFree EFT processing.

Introducing: CheckFree Schedule Manager.™

Your members and staff now have the ability toeasily schedule and securely pay for programsand services—online, in real-time. Meanwhile,you gain immediate access to transaction data essential for profitable business decisions.Tightly integrated with CheckFree Club Manager,this self-service reservation solution immediatelyupdates your staff on member schedules uponcheck-in.

Visit us in Orlando at AthleticBusiness booth #1601.

Keys to a Profitable ClubThe best-selling audio recording fromIHRSA’s 2005 International Convention &Trade Show was “Eight Key Areas to ClubManagement”, presented by Philip Mills.

These include:• Group fitness management;• Club facilities and equipment;• Marketing;• Sales;• Personal training;• Hospitality;• Administration and information technology; and• Management/leadership.

At IHRSA25, you will see and hear engaging,thoughtful speakers who will address real issuesthat will challenge the fitness industry as we gofor gold in the next twenty-five years. Prepare tohear excellence including:

“Good to Great” and “Built to Last”:Successful Habits of Visionary CompaniesJim Collins Sponsored by Precor

“The Secret: What Great Leaders Know ...And Do“Ken Blanchard, Ph.D. Sponsored by Technogym

“The Physical Inactivity Epidemic”Dr. Steven Blair

“Working for Peace and The Soul of Healing”Deepak Chopra, MD Presented by the American Journal of Health Promotion

“FISH! Philosophy”Dr. Stephen C. LundinPresented by Club Marketing & Management Services, Inc. – CMS

International Health, Racquet & Sportsclub Association • 263 Summer Street, Boston MA 02210 USA

HURRY! REGISTER BY

NOVEMBER 15 AND SAVE $150

1986 1987 1988 1989 1990 1991 1992 1993 1994 19951996 1997 1998 1999 2000 2001 2002 2003 2004 2005

2007 2008 2009 2010 2011 2012 2013 2014 20152016 2017 2018 2019 2020 2021 2022 2023 2022 2025 2026 2027 2028 2029 2030

1982 1983 1984 1985

www.ihrsa25.org19812006

Jim Collins

Deepak Chopra Steven Blair Stephen C. Lundin

Ken Blanchard

Don’t wait, register for IHRSA25 by November 15, and pay only $525 for a four-day pass. That’s$150 off the on-site IHRSA member registration rate. To register, visit IHRSA25.org or call800.228.4772 (US/Canada) or +1.617.951.0055 (international)

It’s the most compellingspeaker lineup...in 25 Years!That’s why you MUST attend IHRSA25! March 20 - 23, 2006, in Las Vegas, Nevada

At IHRSA25, you will see and hear engaging,thoughtful speakers who will address real issuesthat will challenge the fitness industry as we gofor gold in the next twenty-five years. Prepare tohear excellence including:

“Good to Great” and “Built to Last”:Successful Habits of Visionary CompaniesJim Collins Sponsored by Precor

“The Secret: What Great Leaders Know ...And Do“Ken Blanchard, Ph.D. Sponsored by Technogym

“The Physical Inactivity Epidemic”Dr. Steven Blair

“Working for Peace and The Soul of Healing”Deepak Chopra, MD Presented by the American Journal of Health Promotion

“FISH! Philosophy”Dr. Stephen C. LundinPresented by Club Marketing & Management Services, Inc. – CMS

International Health, Racquet & Sportsclub Association • 263 Summer Street, Boston MA 02210 USA

HURRY! REGISTER BY

NOVEMBER 15 AND SAVE $150

1986 1987 1988 1989 1990 1991 1992 1993 1994 19951996 1997 1998 1999 2000 2001 2002 2003 2004 2005

2007 2008 2009 2010 2011 2012 2013 2014 20152016 2017 2018 2019 2020 2021 2022 2023 2022 2025 2026 2027 2028 2029 2030

1982 1983 1984 1985

www.ihrsa25.org19812006

Jim Collins

Deepak Chopra Steven Blair Stephen C. Lundin

Ken Blanchard

Don’t wait, register for IHRSA25 by November 15, and pay only $525 for a four-day pass. That’s$150 off the on-site IHRSA member registration rate. To register, visit IHRSA25.org or call800.228.4772 (US/Canada) or +1.617.951.0055 (international)

It’s the most compellingspeaker lineup...in 25 Years!That’s why you MUST attend IHRSA25! March 20 - 23, 2006, in Las Vegas, Nevada

w w w. i h r s a . o rg n N O V E M B E R 2 0 0 5 n C l u b B u s i n e s s fo r E n t re p re n e u r s 29

This article will detail a successful corporate fitness initiative and highlight therecommended steps to followon similar ventures.

Build From EstablishedRelationshipsIt can be difficult for smallclubs to establish an “in” withlarge corporations when tryingto set up a corporate fitnessprogram. Initially, focus onexisting members who are in the upper management attheir places of employment.

Also, determine whether anyclub members have businessrelations with local corporations.Current members are preferableto collaborate with because they

are using your facility, and are most likely satisfied with its offerings.

In this article’s corporate challenge profile, the owner ofFitness on the Move LifestyleCenter in Fort Myers, Florida,enjoyed a positive club owner-to-client relationship with the CEOof Chico’s FAS, Inc., whose worldheadquarters, with a staff of700, is also located in FortMyers. The CEO had exercisedat the club for more than twoyears and, in conversations withclub management, expressed adesire to motivate his employeesto exercise. This was the “cue toaction” that a business opportu-nity was ready to cultivate!

The next step was to developa marketing concept that would do two things: providethe company with a plan to create healthy opportunities foremployees, and develop a strat-egy for the club to ultimatelyconvert these employees intorevenue-producing members.

Launching the Fitness ChallengeThe marketing concept devel-oped in this case study wasChico’s Fitness Challenge, whichallowed employees to participatein a three-month exercise pro-gram at Fitness on the Move.

With a large number ofemployees opting to participate,the club provided the companywith a greatly reduced (by nearly 70%) corporate member-

ship rate. The company offereda cash prize to the five employ-ees who created the greatest fitness change during the chal-lenge. Fitness on the Move alsooffered a one-year membershipto each winner.

The company announced thechallenge at its holiday party.Later, the company’s adminis-trative team sent broadcast e-mails to employees announc-ing the event. Employees whowere already exercising at a gymwere encouraged to participate.Employees were given threeweeks to sign up.

It was decided that the winners would be the five individuals with the greatestpercentage of changes in theircombined body fat and bodyweight. It was also made clear

Featured Tip

Corporate Challenge:Gaining the Competitive Advantageby Troy De Mond, M.A. and Len Kravitz, Ph.D.

As club owners face the daily challenges of signing up and retaining members, anoften-overlooked strategy is to focus on

corporate accounts. Businesses are always looking to improve employee productivity and retention—while reducing costs such as health care premiums—and health club memberships (or even discounts)are considered by employees to be valuable perks.

Chico’s Fitness Challenge Overview• 210 people checked in at least once• 92 people used the club at least 12 times• Check-ins totaled 3,374 (average 281/week or 47/day)• 78 people were post-tested; they lost 540 pounds (average 7/person)• 65 people converted into paying members• Greatest weight loss for a single participant was 44 pounds

Scott Edmonds, CEO of Chico’s FAS, Inc. (left) and Troy DeMond, owner of Fitness on the Move Lifestyle Centerannounce the winners of the Chico’s Fitness Challenge


that any ties would be decidedby awarding victory to the per-son with better club attendanceduring the challenge. This pro-moted club usage and discour-aged dieting alone.

Prior to the challenge, eachparticipant completed a healthhistory questionnaire and theclub provided assessments ofresting heart rate, blood pres-sure, body weight, and percentbody fat. These meaningfulhealth parameters served asobjective variables, which areeasily tracked over time, andare also of special interest to participants.

Getting Off on the Right FootWith the pre-testing complete,each participant met with a personal trainer for an initialconsultation. This provideddirection on getting the mostout of the personalized program. It also exposed thetrainers to potential clients,thus increasing the trainers’(and club’s) revenue opportu-nities. (If you have a largenumber of corporate chal-lenge participants, try smallgroup orientations with up to10 people per session.) Duringeach consultation, the traineroriented the participants tothe facility and providedinstruction on cardiovascularconditioning, resistance exer-cise, and flexibility training.

Each participant was urgedto exercise aerobically at leastthree days per week, for atleast 20 minutes. Once a basefitness level was establishedover a three- to four-week peri-od, participants increased theirexercise duration upwards of40 to 45 minutes per session.

The personal training teamprovided instruction on selec-

torized weight equipment,which included a variety ofexercises targeting upper,lower, and core exercises forthe entire body. Participantsbegan with a single set pro-gram of moderate intensity, atleast two days per week. Theywere instructed to increasethe number of sets to two orthree after two weeks. Thisinitial session finished with ademonstration of flexibilityexercises to do at the end of each workout. Lastly, thepersonal training team encour-aged participants to utilizeadditional club services such as nutritional counseling.

The Start-Up Follow-UpDuring the first month, thesales team monitored partici-pation. After the first twoweeks, any participant whodid not visit the club receiveda phone call. During theseconversations, a positive dia-logue was used to encouragethem to take advantage of theopportunity and to informthem that if they needed any-thing, the staff was ready tohelp. This proved to be a pow-erful contributing factor toprogram participation.

At the 30-day mark, callswere made to those with threeor fewer check-ins. Participantswere informed that there wasstill time to create positive healthchanges. After the 30-day mark,any non-participant was maileda “thinking of you” card to letthem know there was still timeto start the program.

After the first 30 days, theclub provided the company’sCEO with a progress report.This included an update of participation, attendance data,and positive changes already

occurring with some partici-pants. The CEO was encour-aged to share this feedbackwith all employees in order tokeep the challenge on theirminds. In addition, the club’smanagement posted someshort-term success stories onthe club’s reader board, toacknowledge these participantleaders and to inspire others.

Each participant received acommemorative shirt, paid forby the company. An e-mailannounced that shirts could bepicked up at the club, whichprovided another incentive toattract employees to the facility.

Sales Team Jump-StartAfter the first month, the club’smembership team began tofocus on converting participantsinto paying members. Thecompany was invited to distrib-ute (via e-mail) a time-sensitiveincentive offer to all employees(participants and non-partici-pants), encouraging early clubenrollment before the challengeended. This converted 20% ofchallenge participants intoclub members. A second e-mail was sent to employeestoward the end of this offer.

Everybody WinsThe results of the post-testingassessments were inspiring,

and many participants wereeager to continue exercisingat the club. During theseassessments, the club’s mem-bership director was presentto facilitate sign-ups.

A showy event announcingthe winners from the fitnesschallenge was held, working col-laboratively with the company’sPR department. Press releaseswere sent to local media sourcesannouncing the big event. Thefive winners received theirprizes at this event.

Perhaps the biggest winnerwas Chico’s FAS, Inc., whichwas rewarded with healthier,happier, and more productiveemployees. n

TROY DE MOND, M.A., theowner of Fitness on the Move Lifestyle Center, can be reached via e-mail to [email protected]. LEN KRAVITZ, PH.D., the Program Coordinator of Exercise Science andResearcher at the Universityof New Mexico, can bereached via e-mail [email protected]. To down-load supporting materials referenced above, visitwww.ihrsa.org/entrepreneurand access the on-line version of this article.

Featured Tip

Dollars and SenseThe Economic Benefits of Regular Exercise,published by IHRSA, is an invaluable tool forcorporate presentations, staff training and educating local legislators and the public aboutthe economic benefits of regular exercise.It demonstrates how major corporationshave experienced reduced absenteeism,improved employee productivity andmorale, and reduced turnover and medical claims as a resultof implementing corporate fitness programs. To purchasecopies, visit www.ihrsastore.com.

FUTURE VISION ANDTHE INDEPENDENT CLUB OPERATORBy The Clubdoc Mike Chaet Ph.D.

One of the most common questions asked of our company and myself is: "What do you think the future of our industry is?" "What are the future trends, that as an independent club owner, we're facing?"

Future TrendsWe see five major future trends that will affect the overall industry.

1. More and New Business ModelsThe range of these models may be small like Curves or huge like the Lifetime Fitness model. We will see more and more Personal Training based fitness centers, time driven workout centers, women’s only, men’s only, weight loss based fitness, medically based and the list goes on. Each one targeting it’s own niche.

2. Fitness without WallsWith the entrance of the internet into the fitness market we see people going online to get their diets, fitness programs, and an entire array of fitness advice, even personal training. It is cheap and convenient.

3. Competitive Attacks From Every DirectionWe’ve already seen hospitals, universities, public schools, and other organizations and entities enterthe market. This approach will only get more intense in the future with new and expanded entries.

4. Chains and Franchise OpportunitiesWe see the entry of non-club people and companies that understand the power of franchising and howto execute this strategy. National branding and franchising is an extremely powerful business model.

5. Individual EntrepreneurshipCompetition from other entrepreneurs is always part of the game. There are always motivated individuals that think they can do a better job, build a better mousetrap and are willing to put their money and energy where their mouth is.

FUTURE PROGNOSISThese trends are visible signs of an industry that isin its mature stages. In the beginning and growth stages of our industry things were easy, the build it and they will come mentality worked for many club operators. You have been put on notice: Those days are over! It is a new day with a new mentality that will produce successful clubs for the independent club operator. Three key factors: sound management systems, on target positioning, and a high product value, need to be top priority in order to besuccessful in this disorderly time in our industry.

Mike Chaet, Ph.D."Clubdoc"Founder and PresidentCMS InternationalContact Clubdoc [email protected]

Become a CMS Client

The System that WorksThe Network that Shares

Since 1975

Market Exclusivity

QualityNational

MarketingCampaigns

Trainingand

Educationfor your

Staff

TurnkeyClub

ManagementSystem

Personaland

AttentiveService

CMS InternationalP.O. Box 1156

Helena, MT 59624406-449-5559

www.cms-clubweb.com

ADVERTISEMENT

FUTURE VISION ANDTHE INDEPENDENT CLUB OPERATORBy The Clubdoc Mike Chaet Ph.D.

One of the most common questions asked of our company and myself is: "What do you think the future of our industry is?" "What are the future trends, that as an independent club owner, we're facing?"

Future TrendsWe see five major future trends that will affect the overall industry.

1. More and New Business ModelsThe range of these models may be small like Curves or huge like the Lifetime Fitness model. We will see more and more Personal Training based fitness centers, time driven workout centers, women’s only, men’s only, weight loss based fitness, medically based and the list goes on. Each one targeting it’s own niche.

2. Fitness without WallsWith the entrance of the internet into the fitness market we see people going online to get their diets, fitness programs, and an entire array of fitness advice, even personal training. It is cheap and convenient.

3. Competitive Attacks From Every DirectionWe’ve already seen hospitals, universities, public schools, and other organizations and entities enterthe market. This approach will only get more intense in the future with new and expanded entries.

4. Chains and Franchise OpportunitiesWe see the entry of non-club people and companies that understand the power of franchising and howto execute this strategy. National branding and franchising is an extremely powerful business model.

5. Individual EntrepreneurshipCompetition from other entrepreneurs is always part of the game. There are always motivated individuals that think they can do a better job, build a better mousetrap and are willing to put their money and energy where their mouth is.

FUTURE PROGNOSISThese trends are visible signs of an industry that isin its mature stages. In the beginning and growth stages of our industry things were easy, the build it and they will come mentality worked for many club operators. You have been put on notice: Those days are over! It is a new day with a new mentality that will produce successful clubs for the independent club operator. Three key factors: sound management systems, on target positioning, and a high product value, need to be top priority in order to besuccessful in this disorderly time in our industry.

Mike Chaet, Ph.D."Clubdoc"Founder and PresidentCMS InternationalContact Clubdoc [email protected]

Become a CMS Client

The System that WorksThe Network that Shares

Since 1975

Market Exclusivity

QualityNational

MarketingCampaigns

Trainingand

Educationfor your

Staff

TurnkeyClub

ManagementSystem

Personaland

AttentiveService

CMS InternationalP.O. Box 1156

Helena, MT 59624406-449-5559

www.cms-clubweb.com

ADVERTISEMENT


Motivate Employees with fitRewards!

f itRewards, the official rewardsprogram of IHRSA, helps cluboperators motivate employees

by rewarding them for “wow”moments.

Employees at Eclipse Fitness inGreen Brook, New Jersey, love theprogram. “We reward them for hit-ting their goals and for outstandingmember service,” says owner ChrisPacifico. “Last year, I gave everyonefitRewards points and let themchoose from a variety of gifts.”

Pacifico was surprised at howappreciative employees were com-pared to cash incentives—especiallyafter only 10% of the points wereredeemed. In fact, many employeesopted to save points for use towardsbigger rewards.

It’s not uncommon for redemp-tions to be below 50% of the total point liability, says MariaParrella-Turco, executive directorof fitRewards.

“The most common concernamong club owners when con-sidering fitRewards is redemptionliability,” says Parrella-Turco.“Fewer than 50% of memberswill redeem—that’s the incentiveindustry standard.”

Greg Maurer, general manager atPike Creek Fitness in Wilmington,Delaware, implemented the pro-gram to assist in acquiring membere-mail addresses. “We have dou-bled our e-mail penetration sincelaunching the program,” he says.

Maurer recently switched toConexion because their platform isseamless with fitRewards. “If wewant to award points to promotejuice bar or pro-shop purchases, orprogram participation, Conexion

and fitRewards make the processeffortless for us,” he explains.

Through a new strategic part-nership between fitRewards andRetention Management, e-mailmessages offer rewards points tonew club members and to thosewho have stopped using the clubif they start using it again.

“All three programs—fitRe-wards, Conexion and RetentionManagement—feed one anotherand connect, and it’s been great,”says Maurer.

Ray Coassin of New ParadigmPartners, one of the industry’s lead-ing consultants, believes fitRewardswill be a key catalyst for increasingguest traffic and member retention.

Eclipse Fitness New Jersey Gen-eral Manager Bill Lemanski agrees.“We’ve had the program for almosta year, and we have seen a differ-ence in our referral business andour retention,” he says. “We rewardmembers each time they submit acomment or suggestion and theyare so appreciative,” he says.

Fran Fitzgerald of Liberty Fitness in West Chester, Ohio,received 14 referrals within twoweeks of the implementation of theprogram. “I was never proactive ingetting referrals,” she confesses.“Now, with fitRewards, I have agreat reason.”

October 1st marked a new trans-formation for fitRewards. From atechnology standpoint, there isenhanced member communicationvia e-mail, and club managementsoftware integration with companiessuch as Twin Oaks, Conexion andmore in the works. This makes pointcollection more seamless for clubs.

Also as of October 1, the plat-form is three-dimensional. “Clubscan now offer their own rewardsin the rewards selection, such asmassage, tanning and personaltraining sessions,” explains Parrel-la-Turco. “Also, due to our largeclient base, fitRewards has lever-aged large vendor relationshipswith companies such as Sony andPanasonic, whereby club operatorscan choose all the rewards in theirreward menu and pay less than theretail cost!”

fitRewards will provide fulfill-ment on reward options includinghats, t-shirts, polo shirts and otherapparel. Once a member selects toredeem points for a specific appar-el item, fitRewards will embroiderthe club’s logo on the merchandiseand ship it within 7 to 10 businessdays—right to the member’shome. The club does not need tomaintain any inventory or supplya minimum order. Most impor-tantly, all of this is at a low cost toyou, the club operator. n

To learn more, visitwww.ihrsa.org/fitrewards.

IHRSA Benefit Spotlight

Bill Lemanski, GM of EclipseFitness, with his club’s fitRewardskiosk where members andemployees can redeem their points

THE HISTORYTHE BRAND

THE PLACE

M A K E Y O U R O W N R U L E S

3223 Washington B lvd. | Mar ina De l Rey | CA 90292

For Franch i se Info Ca l l : 800.544.7441

or Emai l : in fo@wor ldgym.comJoe GoldFounder

SUPREME AUDIO - FITNESSAUDIO The only company dedicatedexclusively to Fitness Sound Systems!FREE “Professional Fitness AudioBuyer’s Guide” featuring Special Projects, Telex, Shure, Audio-Technica,Sennheiser, and Samson wirelessmicrophones, variable speed tapedecks and CD players, speakers, and amplifiers. Broadcast-Visionentertainment systems. Free lifetime

technical support. 24 hour shipping… 99% same day!Largest selection of components with 100% secure onlineshopping. Competitive prices!

For more information, please call Jane Plaugher at 800-445-7398 or visit our website at

www.SupremeAudio.com

PureFit won “NutritionBar of the Year.” Theytaste great, and do notcontain many of theharmful ingredientsfound in most bars,

like hydrogenated oils. They also do not contain wheat,gluten, dairy, or artificial sweeteners. Vegan approved, theyare available in three award winning flavors: ChocolateBrownie, Peanut Butter Crunch, and Almond Crunch. Calltoday for free samples and receive 50% off your first order.

1.866.PureFit (1.866.787.3348) www.purefit.com [email protected]

“Nutrition bars are for everyone.We decided to make one that was nutritious.”™

ASF International provides the most comprehensive, one-source club managementsolutions in the industryincluding; full service paymentprocessing and billing,ClubPRO 3000® software with integrated online

business and member management and full service marketing programs designed specifically to increase referrals, sales and retention.

For more information, call 800-227-3859 or log ontowww.asfinternational.com.

ASF International Body Bar Systems, Inc.

The Body Bar™ is a weighted, solidsteel fitness bar encased in easy-gripdurable rubber, with smooth rubbercapped tips for added safety. Barsrange in weight from 4 (2'), 9 (4'),12 (4'), 15 (4'), 18 (4'), 24 (4'), and30 (5') pounds, and easy to store.The bar is utilized in a wide varietyof workouts for individuals, groupfitness instructors and personaltrainers. All products and programsare supported by the Master YourBody™ program of videos, masterclasses and workshops.

Call for pricing. www.bodybars.com 800-500-2030

w w w. i h r s a . o rg n N O V E M B E R 2 0 0 5 n C l u b B u s i n e s s fo r E n t re p re n e u r s 35

Special Advertising Section n www.ihrsa.org/buyersmart

• Sudden cardiac arrest is the leading cause of death in the U.S.

• Average EMS response is 8-12 minutes.

• Early on site DEFIBRILLATION is the most effective way to increase the chance of survival.

• Physician’s Resource is a national distributor of AUTOMATED EXTERNALDEFIBRILLATORS (AEDs).

• Easy for ANYONE to Operate.

• Complete Service and Support.

Cardiac Arrest... Are You Ready?Cardiac Arrest... Are You Ready?

Call for Information

Physician’s Resource 800-866-6689www.physiciansresource.net

Call for Information

Physician’s Resource 800-866-6689www.physiciansresource.net

PricesStarting at $1200

Since 1994

Physician’s Resource for Medical Equipment PureFit

Supreme Audio, Inc.RMT Fitness

VitaGlide Pro – The NewStandard for Seated FitnessThe VitaGlide Pro is a revolutionary fitness machinedesigned to improve the qualityof seated workouts. Its linear“push-pull” stroke, varyingintensity levels and digital pulsemonitor help users maintaintheir target cardio range while

toning the upper body and midsection. Inclusively designedwith rollaway seat and direct access from wheelchair.

Visit us at Booth #155 at the Club Industry Show!

Call (800) 577-4424 or visit www.rmtfitness.com for more information.


7IHRSA Asks Questions

How did you get started in the fitness industry?

My background is in motel operations.In 1980, I turned my hobby—racquet-ball—into my profession, by opening aGold’s Gym. My partner and I built thisfacility from the ground up and we stillown and operate it today.

What does your club do best?

We stay current with fitness trends in equipment and programs and provide our members with excellentservice. Our willingness and ability toconstantly reinvest in our club createsan attitude and pride that transfers toclub management and the entire staff.We are always looking to add to—andimprove upon—what we offer our members.

Describe your club’s community involvement.

Every year, we help a different organization with fundraising. This

year, we chose the American DiabetesAssociation. We are a major sponsorlocally, and Gold’s Gym International is a major national sponsor.

We are also heavily involved in ourlocal version of Get Active America!which we refer to as Get Active Amarillo.Upon returning from IHRSA’s 2004 convention, we spearheaded a communityeffort. This has resulted in a city- andcounty-backed nonprofit organization, the purpose of which is to promote thevarious activities Amarillo has to offer itscitizens and to educate them about theimportance of being active. The city hassince constructed a $2.4 million walk/biketrail and Gold’s Gym is the title sponsor of a fitness program called Walk AcrossTexas, utilizing that trail along with manyother activities.

Describe the biggest obstacle you haveovercome related to owning your gym.

The learning curve we went through in our early years was a major hurdle. I had always operated motels, andthought a club couldn’t be much differ-ent. I was wrong! There is somethingunique about a business that serves thesame group of customers every day.

In addition, even though many of us enter this industry as a result of a fitness hobby, as I did, it is important to remember that clubs are businessesand must be run like businesses—not hobbies.

What is the biggest challenge currentlythreatening the success of your club?

The State of Texas has not taken thesame positive steps toward eliminating

unfair competition from nonprofits that have been taken at the federallevel. Nonprofit organizations such as the YMCA are still exempt fromcharging their members sales tax—which discriminates against our mem-bers and gives nonprofits an even moresignificant pricing advantage than theyalready enjoy.

How have you kept your club fresh after all these years?

In 2002, we totally gutted and renovated our club and added 12,000square feet. It took us 18 months to complete the project and we never had to close the gym—even for one day! Our membership has nearly doubled since the completion, to almost9,000 members.

What has kept me excited about ourclub is watching our staff become not onlypassionate about fitness, but also aboutthe business.

What IHRSA membership benefit do you find the most valuable?

Being in an isolated market in the panhandle of Texas makes staying current in the fitness industry a realchallenge. Fortunately, we joined IHRSA15 years ago. Since then, we’ve attendedmost of the association’s annual conven-tions. The seminars and the trade shows are invaluable. The publicationsare priceless. The overall education wereceive from being an IHRSA memberhas been a key to our success! n

TONY REA can be reached via e-mail to [email protected].

Celebrating Silver

Tony Rea reflects on 25 years as the owner of Gold’s

Gym in Amarillo, Texas

“It is important to remember that clubs must be run likebusinesses—not hobbies.”

Documents

PUBLISHED BY the International Health, Racquet & Sportsclub