Failed sales in the Health Club industry is lack of follow up.

The largest contributor to failed sales in any industry is lack of follow up. Coming up in a close second place is a failure to ask for the sale enough times. Just in case you are thinking of it, repeating yourself four times does not count as asking for the sale more then once.

The trick is to structure your offers and price points so that you have a mixture of offers. One of the most effective ways to overcome an objection is not by explaining to the prospect how badly they need to buy the thing they just objected to — it is by asking them to buy something different that helps them reach their goal in a different way.

If price is a common objection at your club, have a lower price down-sell, same thing for service or usage rate. You can apply this principal to memberships as well as to profit centers like personal training. Make sure your staff is presenting a sales offer no less than three times before a prospect is placed on to a trial pass or missed guest log. Start at a premium offer and work your way through your down-sells one at a time. Give the prospect each offer until they have settled on a purchase or you have run out of options. Progressive down-sells will help you convert 20 percent of the prospects that you would have otherwise lost and once someone buys they are 23 times more likely to upgrade to a higher rate than a non buyer.

Weight Watchers Picks a New Target: Men

An unexpected guest is coming to the NBA playoffs this weekend -- Weight Watchers. Yes, squeezed between ads urging men to drink this beer, buy that car and bank here will be one that tells them how to lose weight.
Advertising Age Embedded Player
Watch a spot from the new Weight Watchers campaign
Buzzkill? The folks at Weight Watchers don't think so, which is why they are putting some $10 million behind their first ad campaign targeted specifically at men. "Although we are predominantly female, we do have a decent percentage of men following the program," said Chief Marketing Officer Cheryl Callan. Since launching a men-only website in 2007, "we've seen a lot more male success stories come though," she added. "And that inspired us to think we have an opportunity here."

Weight Watchers, the biggest player in the $3.3 billion commercial-weight-loss category, is following the lead of its smaller competitors, which have been after men for a while. Nutrisystem has for years relied on celebrity spokesmen, such as former NFL greats Dan Marino and Don Shula. And Jenny Craig last year added actor Jason Alexander to its stable of star endorsers, joining Valerie Bertinelli, Sara Rue, Carrie Fisher and others.

The companies are all trying to move the needle in a category that has leaned heavily on women. Roughly 90% of clients are female, according to Marketdata Enterprises, which tracks the category. "It's been like that because men tend to want to lose weight on their own by working out in a health club or designing their own exercise program, and they are less likely to join groups or seek counseling," said John LaRosa, president of the Florida-based market researcher.

But Weight Watchers -- whose customer base is 90% female -- says it has noticed an uptick in male interest. For instance, Ms. Callan said the marketer got encouraging feedback when a man made a cameo in an ad geared at women. And Weight Watchers thinks men are more apt to use its mobile tools, including its iPhone and Droid apps.

But the marketer is taking baby steps into the male market, choosing to plug its website, instead of its meeting-based business, which according to Marketdata generates most of the company's $1.46 billion in yearly revenue. (Nutrisystem had $509 million in revenue in 2010 and Jenny Craig had $432 million, according to Marketdata Enterprises.)

Weight Watcher's new campaign, which debuts Sunday, is by roster agency Interpublic Group of Cos.' McCann Erickson. Ads will air mostly during news and sports programming, including the NBA playoffs on ABC and NHL playoffs on NBC. The spots attempt to be, well, manly. Real-life users plug a special men-only Weight Watchers website, which was first launched in 2007. The ads tout features such as a "Beer Cheat Sheet," which details the Weight Watcher point values of various beers. The site is not "rainbows and lollipops," says one guy on the ad. Another spot tries to urge men that it takes more than working out to lose weight: "All the guys think, 'Do some crunches, that will make you thin right away.' That just doesn't work," one user says.

Weight Watchers spent $132 million in measured media in 2010 on its various products, according to estimates from Kantar Media.

Convincing men that diet -- and not exercise alone -- is the secret to weight loss might be the biggest challenge the category faces. Guys tend to recall their younger days, when they were perhaps more active, and think "all I have to do is go back to that lifestyle," said Karen Miller-Kovach, a registered dietitian and Weight Watcher's chief scientific officer. But "it doesn't work that way. You have to run a mile to burn 100 calories. You can eat a Double Stuf Oreo, and that 100 calories is gone."

But the good news for guys? They get higher point allowances under the Weight Watchers system, even if they are the same size and weight as their female counterparts. That reflects the fact that men, on average, tend to have more "lean body mass," or muscles, meaning that males have a higher metabolism on average, according to Weight Watchers.

There are also differences in how men and women approach dieting. "Men tend to be top-down thinkers," said Ms. Miller-Kovach, author of "She Loses, He Loses," a book on men, women and weight loss. "Their approach is 'tell me what I've got to do and I don't want to know all the details,'" she said. But, women "want to know every detail." So on the Weight Watchers website, for instance, a man might pull up a quick "cheat sheet" to discover that a slice of Domino's pizza would cost him six to seven points, while a woman might hunt around in the more extensive food database and find she could have a CiCi's Pizza Buffet Pizza Chicken Pizza for just four points.

Nutrisystem -- whose 28-day diet plans rely on special foods delivered to a customer's doorstep -- first launched its men's program in 2005. The company late last year rolled out a general-market campaign that features real people. It was first launched by indie shop DonatWald & Haque of Santa Monica, Calif., but the two parties have now parted ways, according to a person familiar with the matter. Nutrisystem declined to comment other than to say it works with "several agencies."

For guys, Nutrisystem focuses on "low-glycemic good carbs" including "man food" such as burgers, pizza and hearty beef stew to "keep them satisfied while losing weight," a company spokesperson said. In a video posted on the brand's YouTube site, Mr. Marino seems to be taking Weight Watchers on, saying: "Guys don't want to go to a meeting. They don't want to read stuff in books and worry about counting calories. You tell 'em you eat this food, you eat it the right way and you stay on it and you're going to lose weight."

Ms. Callan countered that with Weight Watchers, "you can actually eat real food in the real world" vs. a "boxed burger and microwave pizza."

Jenny Craig, meantime, seems to be combating one of its natural disadvantages in the men's game -- that it's named after a woman. Mr. Alexander is the face of a campaign launched in February called "Jen Works for Men." In one ad called "Line of Men", he appears with 10 male clients who have lost weight in the program. Mr. Alexander, who says he lost 30 pounds in the program, wrote and directed the ads.

Do Virtual Health Clubs Give Real Health Club Gyms Reason to Sweat?

Just turn on your TV and check out the annual barrage of resolution-exploiting ads from health-club operators such as Bally Total Fitness and Life Time Fitness. And, indeed, the first week has been no different, except that virtual health clubs have entered the fray as well in a play to steal would-be weight losers from their bricks-and-mortar competitors.



NBC
WHO'LL BE THE BIGGEST LOSER? Web programs such as that of 'Loser' trainer Jillian Michaels are a cheaper alternative to gyms. On its face, the trend creates some awkward dynamics: Consider the ad onslaught for an online weight-loss program from NBC's "Biggest Loser" trainer Jillian Michaels, which touts a gym-free program of dieting and exercise to drop pounds. Surely that's unwanted -- not to say cheaper -- competition for, say, the biggest sponsor of the "Biggest Loser," gym chain 24-Hour Fitness, no?

Tony Wells, chief marketing officer at 24-Hour Fitness, thinks otherwise. "We don't view it as competitive," he said, adding that "Biggest Loser" has been an "incredible partner." "Fitness isn't just what happens when you're inside a gym."

The show's executive producer, Mark Koops, concurred, noting robust sales of Ms. Michaels' DVDs throughout the show's six-year run on NBC. "There's a larger agenda to the show than just the commercial interests, although those are certainly important," he said. "We're trying to encourage people to adopt a healthy lifestyle any way we can."

Analysts, for their part, largely agree, noting that because only 18% of U.S. adults belong to a health club, the online programs may actually be expanding the potential customer pools for health clubs by selling new consumers on a more-active lifestyle.

'Social aspect'
Tom Shaw, who covers publicly traded club chains for Stifel Nicolaus, said the online plays appeal directly to consumers who -- like Ms. Michaels' trainees on "Biggest Loser" -- may be intimidated by crowds of more-fit people in a gym setting.

For those who aren't intimidated, Mr. Shaw said, there's a reason countless workout DVDs -- and VHS tapes before them -- haven't hurt the health-club business. "There's a social aspect to going to a health club that you can't get through a computer or a television," he said.

While that certainly is the case when considering workout videos, it's not necessarily so online.

Nike proved as much with its Nike Plus sports kit, which measures, records and shares running times and distance in a manner that allows users to compete in virtual global road races, and compare running notes while connecting on online forums. (It also allows runners to share their times and distances on social-media sites such as Facebook.)

Ms. Michaels' program tries to create online social networks, offering people a list of people by age, fitness level and geography to help them find "weight-loss buddies" and through online message boards.

Cutting back
It's unclear as of yet whether users will find that social aspect as satisfying as a health club, but, from the industry's perspective, it's surely a less-than-opportune time to welcome cheaper competitors. While health-club membership rolls have been surprisingly resilient to date, there are clear signs that members are becoming increasingly cost conscious.

Life Time Fitness, one of two publicly held chains, saw membership rolls increase during the third quarter, but the average "in-center" revenue per membership declined by $104 during that time, meaning members are paying their dues but cutting back on personal training and other goods and services sold at the gym.

The other public company in the category, Town Sports International, saw a similar trend of member cutbacks, but also saw a 3.3% total revenue decline during the first nine months , as memberships fell.

But if industry types are concerned about clubs' vulnerability to cheaper, online alternatives during these tough economic times, they're not admitting it.

"When you look at the videos and things that have come before, I don't think it's incrementally a new challenge," said Sharon Zackfia, a Chicago-based analyst for William Blair. "Paying for it is the motivation to do it."

Wii Fit
"The next [online site] that does [pose a threat] will be the first," said Michelle Boyko, VP-Wally Boyko Productions, which publishes the National Fitness Trade Journal. "If they have the motivation to work out at home, they don't need a computer to do it."

Mr. Wells, of 24-Hour Fitness, said younger workout enthusiasts were increasingly open to non-gym alternatives. He pointed to the success of Nintendo's Wii Fit workout system, which 24-Hour sells branded workout kits for.

"If you look at Generation X and Generation Y, they're open to fitness delivery not being confined to one space," he said. "So we'll see what role other forms of fitness instruction and advice will play."

Apple Potentially Developing Health Club / Fitness Center Application for iOS

As noted by AppleInsider and Patently Apple, the U.S. Patent and Trademark today published a patent application from Apple describing an iOS application designed to support Health Club / Fitness Center, fitness and personal training functionalities. The integrated application can provide a full fitness center experience by introducing potential new customer to a Health Club / Fitness Center and then motivating them to return to the Health Club / Fitness Center as active members. For example, the integrated application can provide functions to introduce new customers to a Health Club / Fitness Center , can provide functions to motivate customers to join and actively visit the fitness center, can provide in-gym motivation, and can provide post-workout motivation. Apple breaks the application down into four categories: introducing users to fitness facilities in their areas, encouraging them to join and participate, motivating them while using the facilities, and post-workout motivation to return and continue their fitness program. The application offers capabilities to permit Health Club / Fitness Center to reach out to potential customers with introductory offers and coupons, potential integration with fitness equipment for tracking performance, and social aspects to allow users to motivate each other.
The patent application was filed in October 2009 and is credited to Stan Ng, a longtime Apple product manager and marketing director, and Michael Hailey, a former Apple marketing manager who is now employed at Nike. Apple of course has a long-standing partnership with Nike dating back to pre-iOS iPods to offer Nike+ running and training integration. Apple has also previously expressed interest in developing digital fitness companion software for its portable devices, indicating that the company has been working through a number of concepts for how to potentially enter the market.

Gold’s Gym closes location with no notice....

Gold’s Gym at 2701 Black Road closed Thursday without giving notice to members.

Harris Bank initiated foreclosure proceedings against Gold’s in November and a receiver was appointed about three weeks ago, said Joliet attorney George Barr, whose company Barr Group also owns space in the commercial condo complex that houses the gym.

In 2005, Gold’s bought 35,000 square feet of space, which housed the former Charlie Club, of 2701 Black Road LLC, which founded the development about 30 years ago, said Barr, one of the LLC investors.

There was confusion Thursday morning when office workers and gym customers seeking an early-morning workout all found locked main doors to the building. Gym staff used to unlock the doors to the building when they opened because there were no separate doors for Gold’s, Barr explained.

That situation was rectified later Thursday when a temporary wall was erected to block access to the gym and the main doors were opened.

Matthew Nix, the court-appointed receiver, said he is referring customers with inquiries about membership refunds or personal property left in the gym to the gym’s owner.

“We just directed people to the Gold’s Gym phone number and ownership,” he said. “We’re just responsible for the mortgaged property.”

Calls to the Gold’s Gym number were answered by a recorded message that said staff was busy “assisting other customers.”

Nix said he did not close the business, but it was closed by the gym’s owner. Barr said the business is owned by Fitness Enterprises. No one from the company could be reached for comment Thursday.

The original Gold’s Gym was founded in Venice Beach, Calif., in 1965. It offers franchise ownership opportunities and has more than 600 locations around the world, according to www.goldsgym.com.

Recession-rocked health clubs

General Manager J.R. Ruis understands how tough it is for some of his longtime members at YouFit Health Club in Miami to pay even the rock-bottom monthly fee of $10.

``The unemployment center next door is busy all the time,'' Ruis said. ``And the center for children and families upstairs is real busy, too.''

The recession hasn't spared swanky health clubs, either, including the Downtown Athletic Club on the 15th floor of Miami's Wachovia Tower, which last year lost 200 to 300 members as nearby law offices, banks and architectural firms laid off employees.

In the 2005-2006 fiscal year, there were 393 licensed health clubs and fitness centers in Miami-Dade and Broward counties. Now there are 349, a drop of 44 or 12 percent.

It has become survival of the fittest in the $19.5-billion health-club industry.

The result: a buyer's market for those wanting to sweat away stress and get healthy -- especially important if you've lost your job and health insurance.

To keep members and lure new ones, many South Florida fitness centers have cut membership costs and waived initiation fees. But the biggest gain for gym consumers is a new industry trend: elimination of long-term contracts.

``They're doing that for survival purposes,'' said Terry McElroy, spokesman for the Florida Department of Agriculture and Consumer Services, which licenses and regulates health clubs.

``The fact is people used to be perfectly willing to pay for a year membership,'' McElroy said. ``They are not now for obvious reasons. They do not know if they will be working and do not want to lay out all that money at once.''

Michael Collier, general manager of 2-year-old Snap Fitness 24-7 in North Miami, agreed: ``The last thing a lot of people want to do now is be locked into a contract when they don't know what tomorrow will bring.''

Snap is waiving its $60 initiation fee and running a $1-a-day promotion, which is paid $30 per month, a $9 savings over its usual monthly fee.

YouFit, a St. Petersburg-based chain with five South Florida locations, charges $10 a month with no contracts for basic facilities offering lots of cardio equipment.

``Our goal is to be the best value in fitness,'' said J.J. Creegan, director of brand development. ``It's easy to join, easy to cancel.''

LA Fitness, with 20 Miami-Dade and Broward gyms, has done away with contracts and begun offering family memberships that cover up to four people for $90 a month.

Gold's Gym, with five South Florida outlets, has cut its membership fees by about 20 percent and begun offering month-to-month plans.

``I do think the industry had to remold itself during the recession,'' said Anthony Johnson, manager of Gold's Fort Lauderdale gym, which did a $500,000 upgrade last year, adding personal televisions and iPod docks on the cardio-training machines.

``People just couldn't afford to keep coming.''

Membership is climbing again, Johnson said, after dropping about 25 percent in early 2009.

Fitness aficionados who've kept their gym memberships are using them more. Average health club attendance increased to an all-time high of 102 days , according to the International Health, Racquet & Sportsclub Association.

``In hard times, people need something to break the stress and exercise becomes your ally,'' said Bill Higgs, general manager of Shula's Athletic Club in Miami Lakes.

Nonetheless, Higgs said, revenues are down about five percent at the gym named for former Miami Dolphin coach Don Shula.

``When it comes down push to shove, and your home is foreclosed or something like that, you might not have much of a choice,'' said Higgs, who has added kids' programs and sponsored a weight-loss contest open to the community. ``It's still tough out there.''

Some South Florida clubs have gone the extra mile for unemployed members, allowing them to slide a month or two on payments or even work out for free.

``I have a very personal gym where everybody knows everybody,'' said Chris Russo, owner of Miami Shores' MPower Project Fitness.

``If somebody who's worked their [butt] off for years and finds themselves in a crappy position, I'll tell them: `Come in and pay when you can.' ''

The 14-year-old gym is running a sale, offering membership for $99 down and $29.95 month.

``Would I have done that three years ago?'' Russo asked. ``Probably not.''

Loyalty can be a two-way street. Adrienne Jarrett, 55, an administrator at the University of Miami Center on Aging, said she began taking her lunch to work and shopping for clothes at thrift stores, but won't skimp on workouts at MPower Project.

``It makes me feel fantastic and healthy,'' Jarrett said. ``I walk a little taller. Smile a little more.''

Harold Stowe, 59, said he's being eating out less to afford his MPower membership. He lifted his shirt to reveal a six-inch scar on his chest.

``Quadruple bypass,'' said Stowe, who is retired. ``My doctor said I should exercise 30 minutes a day and I don't have the will power to do it at home.''

The 26-year-old Downtown Athletic Club took a proactive approach to its declining membership. It offered two-month free memberships to laid-off members, pumped about $500,000 into a new cardio center and bolstered its classes and basketball league.

At the same time, new downtown condo buildings began filling with residents and Wells Fargo moved into Wachovia Tower.

The net result: ``We've picked up what we lost and added 15 to 18 percent,'' said Bryant Samson, general manager of the gym with a bird's-eye view of the city. ``We're now ahead of our best year ever.''

Then there's the über-upscale Equinox Fitness Clubs, which costs about $135 a month and is banking on members' vanity.

Equinox's three South Florida clubs have not slashed prices, said chief operating officer Scott Rosen, and instead have upgraded with the newest generation in spin bikes, eco-friendly towels and high-end shampoo, conditioner and body wash.

``In Florida, a lot of people are body conscious,'' Rosen said. ``You can do without another meal at China Grill, but you can't do without Equinox if you want to look good on the beach.''

Naked Workout? The First of its Kind, Lets You Get Buff in the Buff

Pet peeves in the gym – be they other people's loud grunts or their refusal to wipe down sweaty machines – are commonplace.

But a gym in the Basque region of Spain taking the fitness club culture and turning it on its head.

Easy Gym in Arrigorriaga is letting nudists work out in their birthday suits.The gym, the first of its kind, came up with the idea while trying to figure out how to reinvigorate their business amidst a recession."With the crisis we noticed there were fewer people using the gym," owner Merche Laseca, told the BBC. "I'm not a nudist myself, though I have no problem with it. But this initiative is about the money.The gym's grand opening actually ended up not being so grand, as only four people could be seen working out on the first day, according to Spanish website ABC.But Laseca believes that the business in the buff can only go up from here. Starting in May, the space will be open to nude gym rats every Saturday afternoon and all of Sunday.The owner believes nudists can be a burgeoning niche market. The Basque region boasts 12 nude beaches, local swimming pools with naked sessions and even a mass nude run in nearby Sopelana, the BBC reported.But not everyone sees the business model as a naked truth."Each to his own," the owner of a traditional gym in Bilbao told the BBC. "But I think it's the most unhygienic thing in the world."Nonetheless, the gym is moving forward. According to Spanish newspaper, El Correo, a yoga teacher teacher has offered to teach naked yoga classes.Maite Vicuna, the president of the Basque Naturist Association, told El Correo that the culture of nudists is light years ahead of where it was."Ten years ago if you went on a naked run through the woods they would have arrested you," Vicuna said. "But now everything has changed. Everyone is much more accustomed to it."

Is Your Health Club Suffering The recession?

Health clubs not sweating the recession

Colorado Athletic Club and Carmichael Training Systems among those expanding

It’s hard not to sweat during these uncertain economic times. Literally.
Although the recession has taken its toll on countless businesses across the state, Colorado’s health club industry continues to expand. “I think don’t think we’ve been hit as hard as retail businesses because people still value their health,” said Ed Williams, president of Denver-based Wellbridge, which owns and operates four Colorado Athletic Club locations and has plans to open two new clubs in Boulder and Denver. Nationwide, the brand has 20 locations. “When life becomes more stressful, people want to make themselves more healthy,” he said. One of the new Colorado Athletic Club sites will be in Boulder’s 29th Street Mall; it is planned to open by year’s end. The 14-year-old Colorado Athletic Club will also add its sixth Colorado fitness outlet in Denver’s Tabor Center. Williams, who founded Wellbridge 27 years ago, said the company is taking advantage of the down economy by building health clubs in good locations that were more expensive before the recession. “We’re facing the same obstacles as everyone else in this economy, but these locations were strong enough that we had to grab them when they were available,” Williams said. When the economy turns around, Williams said, the newly built sites will reap more benefits. That could mean increased membership and use of facilities. Currently, membership numbers at Colorado Athletic Club gyms have not increased, but use of facilities has gone up 30 to 40 percent, Williams said. That means instead of working out twice a week, people are now heading to the gym three or four times weekly. But Colorado Athletic Club is not the only health club chain expanding. Carmichael Training Systems, a state-of-the-art training outlet for high-endurance athletes opened a new location in Colorado Springs . And fitness studio Brio Active officially opened its doors in Cherry Hills Marketplace in Denver recently. Nationwide, franchises of the Irving, Texas-based Gold’s Gym have recently opened or are planned to open this year in several cities, from Fitchburg, Wis., to Midlothian, Va. Franchises are also planned in parts of the East Bay and Bay Area in San Francisco to take advantage of low-cost real estate.
The gym in Cherry Hills Marketplace is the pilot studio for Brio Active, which takes a “new approach to fitness and wellness” with a 25-minute full-body workout. Expert coaches move groups of four or fewer clients through warm-up, flexibility and strength exercises and complete each workout with a “recharging” massage.
The fitness studio chose Colorado as its first location because it is an "activity-oriented state" with many different markets to reach out to, including hardcore athletes as well as those who don’t exercise regularly, said Marsha Macro, manager of Brio Active. Sufferers of multiple sclerosis, arthritis and other physical ailments also find Brio Active’s approach beneficial, Macro said."We have many fingers in the market right now, and we're touching so many people," Macro said. "We want to find out what works and grow with success. We plan to open more sites in Colorado and then go nationwide."Macro said she expects membership to be slow during the summer because more people spend time outside during this season. But despite the state of the economy, she said, fitness remains a priority for many."You need something that can take your mind off what's happening," Macro said

Planet Fitness Forced To Go 24/7 To Keep Up With Anytime Fitness!

Planet Fitness has extended hours at its corporate-owned clubs in New Hampshire to 24 hours a day, seven days a week. The change, announced on Planet Fitness’ Facebook page and Twitter account last week, affects 11 New Hampshire corporate clubs. The new hours also apply to two Planet Fitness corporate clubs in Massachusetts and two in Rhode Island. The 24-7 corporate clubs are staffed at all hours, says John Craig, director of brand development for Newington, NH-based Planet Fitness.“Given the 24-7 business cycle and the growing numbers of folks who work second and third shifts, we think it will help a lot of our members,” Craig says.
Most Planet Fitness franchise clubs are open around the clock weekdays until 9 p.m. Friday, Craig adds. On weekends, those clubs are open from 7 a.m. to 7 p.m.

Life Time Fitness Eyes $1 Billion and East Coast

Life Time Fitness Eyes $1 Billion and East Coast

As Life Time Fitness announced 9.5 percent revenue growth in the first quarter, its CEO said the company may hit $1 billion in revenue this year as it ramps up plans for growth in number of clubs and related businesses and as it increases spending on marketing to improve retention.

“Our goal of $1 billion in 2011 is achievable,” Bahram Akradi, chairman, president and CEO of the Chanhassen, MN-based company, said in a conference call with analysts announcing first quarter 2011 financial results. “We will do all we can do to achieve this milestone.”

Life Time Fitness’ first quarter 2011 revenue grew 9.5 percent to $240.6 million compared to $219.8 million from the same period last year. Net income for the quarter was $20.8 million compared to $17.8 million in first quarter 2011. Net income for the quarter was $20.8 million compared to net income of $17.8 million for first quarter 2010.

The company has 90 locations spread across 20 states, but Akradi said his primary area of interest for expansion is on the East Coast, where the company already has clubs in New York, New Jersey and Maryland. “We have some incredible sites in the works,” he said, although he wouldn’t give exact timing. “We are excited about the places we are going and the opportunities we have.” Life Time opened a club in Syosset, NY, in the first quarter. In May, the company will open two clubs—one in Colorado Springs, CO, and the other in Summerlin, NV. Life Time will expand much faster starting in the second half of this year and into 2012, Akradi says. The growth will be balanced between adding more locations and adding other businesses that support the healthy way of life approach that the Life Time clubs are targeting. Those businesses could be events (such as marathons), wellness services or chiropractic services. Akradi, who said that the company reviews dues pricing at each club monthly, plans to increase dues and enrollment fees at some clubs. In particular, the company is increasing dues for members who were given discounts to attract them from lower-priced clubs that had gone out of business. “My vision is every member in every club will pay the same rate,” Akradi said. “And we wouldn’t have special prices for anyone.” The company would be able to justify those higher prices by differentiating on services and programming. “Our goal is to differentiate Life Time Fitness so we don’t have to play in the price segment,” he said, noting that Life Time’s average member price compared to all other national chains is two to three times more. “So, we have focused ourselves on delivering programs—not just equipment—high-quality people and well-run facilities. We want to get to the point where price is not a factor. I feel we are 80 percent there from two years ago. I’m comfortable with the way we have strengthened our brand.” For the year, Akradi expects revenue to increase 7 percent to 9 percent or $980 million to $995 million, primarily due to growth in in-center revenue and corporate businesses, as well as membership growth in new and ramping centers. Net income is expected to increase 14 percent to 18 percent or $92 million to $95 million. Memberships in the first quarter grew 6 percent to 650,784 from 613,882 at the end of first quarter 2010. Quarterly attrition in first quarter 2011 was 8.4 percent, down from 8.5 percent in the prior-year period. Attrition for the trailing 12-month period was 36.1 percent compared to trailing 12-month attrition of 39.3 percent at the end of first quarter 2010.

The state of North Carolina’s litigation against former Peak Fitness owner Jeff Stec is still ongoing.

The state of North Carolina’s litigation against former Peak Fitness owner Jeff Stec is still ongoing.

That information came in a press release from the office of North Carolina Attorney General Roy Cooper, who recently announced that his state has stepped up its efforts to ensure that health clubs are prepared to refund members whose clubs have closed.

Cooper’s office stated that multiple locations of ZX Fitness, which took the place of the former Peak Fitness clubs after Peak Fitness went into bankruptcy, are still under investigation, along with two Curves for Women clubs in North Carolina. Two other Curves for Women clubs have entered into settlements with the Attorney General’s office requiring their compliance with the law. Three more Curves for Women clubs have complied with the law after receiving a warning letter from the office’s consumer protection division.

In all, the division has recently contacted 28 North Carolina clubs and related businesses, such as dance and martial arts studios, about their compliance with state law. Over the past few years, the division has recovered more than $500,000 for members whose clubs have closed.

“My office hears every week from people whose gym shut down, leaving them in the lurch,” Cooper said in a statement. “Fortunately, North Carolina law requires health clubs to set aside money for refunds, and we want to make sure that businesses are following the law so consumers are protected.”

Under North Carolina law, health clubs, dance studios, martial arts studios and dating services are required to have a bond or letter of credit to cover certain prepaid contracts in case they go out of business and need money to repay consumers. Businesses are required to file sworn statements with the Attorney General’s office about their bonds twice a year.

Urban Active Faces Lawsuit, Responds to BBB Rating! Looking Really Bad For Urban Active

Urban Active says it cannot comment on a recent lawsuit, but it is attempting to resolve complaints filed with the Better Business Bureau (BBB) of Central Ohio, which last week issued the Lexington, KY-based company an "F" rating.

An amended version of the lawsuit was filed Tuesday in Franklin County (OH) Common Pleas Court. The complaint was originally filed last Wednesday on behalf of Ohio resident Amber Gascho. The amended version includes Ohio residents Ashley Buckenmeyer and Michael Hogan on behalf of themselves and all other similarly situated plaintiffs.
Gascho, Buckenmeyer and Hogan claim Global Fitness Holdings LLC, Lexington, KY, which does business as Urban Active, violated the Ohio Consumer Sales Practices Act and the Ohio deceptive trade practices act and breached a contract. The plaintiffs, represented by the law firm of Vorys, Sater, Seymour and Pease LLP, Columbus, OH, are seeking an award of damages of more than $25,000. The lawsuit is seeking class-action status for all Ohio Urban Active members who purchased membership contracts from Nov. 1, 2007, to the present.

Specifically, Gascho, Buckenmeyer and Hogan allege that Urban Active:

Misrepresented the terms and duration of its membership contracts, personal training contracts and other contracts for services. Misrepresented customers' cancellation rights. Failed to notify customers of their cancellation rights as required by law. Failed to provide customers with copies of contracts at the time of signing as
required by law. Failed to honor notices of cancellation. Continued to charge customers after cancellation. Failed to inform customers of hidden $15 "maintenance fees,"which increase the cost of its membership contracts. Failed to provide customers with personal training sessions as contracted for in their agreements.

Gascho claims that Urban Active told her that she could cancel her personal training contract for a $10 fee, but when she tried to cancel the contract, she was told the
charge would be $250, according to the complaint. Buckenmeyer claims that an Urban Active personal trainer pressured her into signing a contract, but after she tried to cancel the contract four hours later, Urban Active refused to cancel the contract and continues to charge her bank card, according to the complaint.

Like Gascho and Buckenmeyer, Hogan claims he was not advised of his cancellation rights, nor was he provided with duplicate copies of a notice of cancellation form.
Hogan claims that he tried to cancel his Urban Active contract in October 2010, yet his bank card was still being charged through last February, according to the
complaint. Hogan was charged more than $100 in additional fees after he resent a notice of cancellation, fees that Hogan claims Urban Active has refused to refund.

John Gragg, general counsel for Urban Active, says the company does not comment on litigation, but he did tell Club Industry that the company "will vigorously defend
our good name."

The lawsuit comes on the heels of a release from the BBB of Central Ohio, which says it has received more than 200 complaints from Ohio Urban Active members within the last year. Of those complaints, 78 of them were either unanswered or unresolved, as Urban Active did not respond to written requests for explanation, the BBB said.

"We're aware of the complaints that have been filed, and we're aware that people are frustrated and that it's taken a while to respond to concerns," Gragg tells Club
Industry. "Our goal is to provide the best fitness experience, and we take any complaints very seriously."

Most of the complaints deal with billing issues. Specifically, members have complained that Urban Active continued to charge their bank accounts or credit cards after
the members believed that their contracts had expired or had been canceled.

"The trends we're seeing in complaints against Urban Active tell us consumers need to read the fine print on the contract before they sign and keep a close eye on their
bank statements to insure they're not getting billed more than they should," Kip Morse, president and CEO of the BBB Central Ohio, said in a statement.

The Lexington Herald-Leader reported last week that the BBB of Central and Eastern Kentucky also has given Urban Active an "F" rating. That chapter has processed 93
complaints against Urban Active over the past three years, with 62 of them resolved, the newspaper reported.

Gragg told media outlets last week that the complaints represent less than half of 1 percent of the company's overall membership base.

"We apologize to our customers who have experienced problems," Gragg says. "We're working diligently to resolve these issues by promoting more personnel to provide
better customer service. We're also working with all of the Better Business Bureaus to resolve these issues as well."

Gragg adds that Urban Active had taken steps to resolve these issues before the BBB Central Ohio released its report.

"Every one of those cities that we have BBB issues, year in and year out, we're unanimously voted the top health chain of that market," Royce Pulliam, CEO of Urban
Active, tells Club Industry. "We know we've got a few customer service issues that we've got to get under control, and we're going to put forth all our best efforts to
make sure that we do so. We do have a few things to be better at, and we're going to be better at it."

Urban Active has 34 clubs in operation, primarily in Ohio, Kentucky and Tennessee. The company also has expanded into Pittsburgh, Omaha, NE, and Charlotte, NC. Last
year, Urban Active closed two of its clubs in Cincinnati and a club in Brentwood, TN.

Gragg confirmed that Urban Active will open two new clubs in July, one in the Buckhead section of Atlanta and the other in Dublin, OH. He adds that Urban Active also is considering seven to 10 other locations for development.

Health Club Pre-sale Investigation Guidelines

Pre-sale Investigation Guidelines

Every gym that has been approved to pre-sell memberships must be inspected by the Administrator’s designee. Appointments for pre-sale inspection should be scheduled within fifteen days of a planned opening. When there are delays in gym equipment delivery or construction, gym owners may be compelled to change the date of their gym’s opening and pre-sale inspection. In such cases, owners must contact this office to schedule a new inspection appointment.

On the day of the pre-sale inspection, gym owners will be required to provide:

1. A copy of a permanent Certificate of Occupancy.
2. A list of all pre-sale memberships, including names, addresses and amounts paid.
3. Copies of the escrow account statements for all months through the date of the inspection.
4. Membership contracts for review, even if the contracts are stored electronically.
5. An in-depth onsite examination of the facility and services.
Please be aware that temporary Certificates of Occupancy will not be accepted by this office. If a local municipality does not provide Certificates of Occupancy, a letter or other documentation must be provided by that office which authorizes the occupancy of the facility. In addition, all construction must be completed within the facility prior to the pre-sale inspection.

The pre-sale membership list must be in a format which includes complete names, addresses, zip codes and amounts paid at the execution of each membership contract. The list must include a total of all funds collected by the gym during the pre-sale. Remember, the list total, must be reconciled to the final escrow account statement balance. This means that all deposits and credits must be reflected in the final escrow account statement.

Membership contracts will be inspected for completion. Each contract should accurately show the member name, address, amount paid, term of the contract, 7 day cancellation date and signatures of the gym’s representative and member. There should be no blank spaces or errors within the contracts at any time.

After the pre-sale inspection, a written statement will be issued by this office which will certify to the bank or trust company that the health spa is fully operational and available for use and, that all funds which are held in trust may be released to the gym.

In Summary

Every gym that has been approved to pre-sell memberships must be inspected by the Administrator’s designee. Appointments for pre-sale inspection should be scheduled within fifteen days of a planned opening.

On the day of the pre-sale inspection, gym owners will be required to provide:

1. A copy of a permanent Certificate of Occupancy.
2. A list of all pre-sale memberships, including names, addresses and amounts paid.
3. Copies of the escrow account statements for all months through the date of the inspection.
4. Membership contracts for review, even if the contracts are stored electronically.
5. An in-depth onsite examination of the facility and services.
After the pre-sale inspection, all funds which are held in trust will be released to the gym.

This guide to negotiating and maintaining business deals and relationships in the fitness industry outlines six important steps to produce a deal.

"THE ONLY GOOD deal is a win/win deal,"says Robert Dedman Sr., founder of ClubCorp, Dallas, Texas, in the book King of Clubs.

In his mind, dealmaking is both an art and a science, a process of bringing multiple parties together in a business relationship that produces success for

everyone involved. This may seem counter to what is often seen in the news today, or what many people may have experienced in their professional

careers. In recent years, far too many business leaders and politicians measure the value of a deal solely in terms of what they receive from

the arrangement, no matter what the results end up being for the other parties involved. This modern-day approach to deal-making is counter to

the philosophy and business practices of insightful organizational leaders who understand and accept the value of creating business

relationships that result in positive outcomes for everyone involved. A win/win approach to deal-making drives long-term business partnerships

and helps foster continual growth and profitability in an organization. The relevance of such a precept could appropriately be summed up in

another quote from Dedman: "In the deal-making business, we are also in the repeat business."

Deal-Making Tips Given the aforementioned foundation for what constitutes appropriate deal-making and the steps involved in its success,

several general suggestions can be applied to the process of buying, leasing and selling a fitness center. Leasing space for a facility • Apply

the 15-percent rule, which refers to the fact that a fitness center should never spend more than 15 percent of revenue on rent. • Be clear about

the cost of the rent. Is it a triple net rent that also requires the lessee to pay taxes, utilities, etc.? • Understand the common area

maintenance costs (CAM charges). • Set 20 as the upper limit for space (e.g., the rent should never exceed $20 per square foot for the base

rent). • Know what is allotted for tenant allowance (TI). In most markets, clubs should be able to get $15 to $20 per square foot for their

facility's TI. • Determine if the deal provides anything else (e.g., signage, good visibility, partnering in promoting the business). Buying a

fitness center • Determine the base value of the business by using a fair multiple of EBITDA. In the health/fitness industry, a multiple of

between three-times and sixtimes earnings is relatively fair for a leasehold space and a freehold (e.g., land and building). It should also be

noted that, in some instances, the multiple can jump as high as eight-times earnings. • Make sure to do due diligence on the proposed deal, and

get a succinct EBITDA number for the trailing 12-month period, as well as for the past three years. • Establish a strategic return on assets or

return on equity that needs to exist to make the deal work. Establish the price based on what it will take to achieve this return. • Determine

realistic five-year projections. Don't rely on the calculations of others. • Be careful on leaseholds about buying the business and then having

to lease the land and building from the current owner. Such a situation is seldom, if ever, a great deal. • When someone buys the business, the

purchaser is getting the company's assets and liabilities. Selling a club • Develop an investment memorandum on the business. This package

should tell the story of the fitness center, including its history, marketing data, financial data, information on the people, the competitive

market, etc. • Initially, try to sell the facility to people you know. Work your existing relationships to identify potential buyers. • Remember

that, while brokers can be helpful, they can also be costly. Keep the broker's commission under 6 percent if at all possible. • Start with the

investment memorandum, but get down to personal presentations. • If the facility for sale has been a successful operation, set a high

price-point, but also set a walk-away price. For example, a high asking price for a fitness center could be eight times earnings, while a

walk-away price could be five times earnings. • Determine what financial return the selling price should provide. Sellers need to know what

their return on investment is just as much as the buyer does.

What is deal-making? Deal-making is the process by which multiple businesses or individuals negotiate a business relationship that provides

each group with certain desired benefits. A deal can range from the negotiation of a lease to the establishment of working conditions between

employers and their employees.While the term "deal" is most often associated with real estate transactions and the purchase and sale of

businesses, a deal is really a process involving a situation in which two or more parties come to a mutual understanding regarding a working or

personal relationship. In the fitness industry, deal-making can include such business transactions as purchasing a fitness center, selling a

facility, negotiating a lease, negotiating out of a lease, negotiating an independent contractor agreement, settling a member dispute or

negotiating purchasing agreements with vendors. The art of doing a deal is about negotiating a business relationship that produces win/win

results for all involved, both from a process perspective and an outcome perspective.While simple in its definition, it is a complex and

challenging undertaking few professionals ever have the chance to fully develop. A framework for deal-making Deal-making involves six important

steps, each of which is critical to helping produce a win/win process and outcome: 1. Establish a relationship. Far too many business deals fail

or succeed at this first step. All too often, deal-makers want to discuss the terms and conditions of a deal before actually getting to know

with whom they are getting into business. It is absolutely critical that all parties who are considering doing a deal together get to know each

other. In some cases, the first several months of talks can revolve around getting to know each other; only after that can discussions proceed

to talks about possible terms. The underlying moral is that great deals are often the result of building a trusting relationship with the other

party. As Dedman so aptly puts it, "Deal-making needs to be a courtship, not just a transaction." 2. Discuss the deal's social context. Before

jumping into a discussion of the business-related terms of the pending arrangement, reach a clear understanding of the underlying social

contract of the potential business relationship — and the ongoing social contract. In essence, each party must be able to clearly delineate two

key points: what is the real nature of the deal (e.g., what, if any, are the hidden expectations and agendas attendant to the relationship that

might not have been put in writing); and what do the parties to the potential business relationship want the ongoing social contract to be

(e.g., how will they deal with each other and how will decisions be made, beyond the legal nature of the deal)?

After weak relationships, this factor is probably the second most common reason that most deals fail. Individuals who enter into a business

relationship must understand what the other party expects from the relationship and how they want to be dealt with beyond the standard legal

verbiage of most deals. Individuals should not allow their perceptions of the social contract to cloud their level of objectivity concerning the

deal. An effort should be made to discuss these important issues and arbitrate any areas of potential disagreement or misunderstanding. 3. Do

the due diligence on both sides. Fitness professionals should determine what it is they are really negotiating, whether it is a purchase, sale,

lease or simple contract. In other words, you should know everything you can about the other business and the people involved with that

company.An article that appeared in the Harvard Business Review in 2004 noted that "deal-making is glamorous, but due diligence is not."Many

deal-makers fail to do their homework, and, as a result, don't have a thorough understanding of the deal. In this regard, a list of the key

elements that should be addressed before entering into a business relationship includes the following: • Know the customers of the business with

whom you are considering doing business. • Know the competition for the business. • Verify the economics of the business with your own people;

don't depend on the data you are given. • Verify the cost economics of the deal. • Take stock of the core capabilities of the other party (core

competencies). • Determine the stand-alone value of any deal as if it was not going to be a part of your business. 4. Know the synergies and

skeletons of the deal. From the club professional's perspective, this step involves knowing both your business and that of the other party. It

requires that an honest S.W.O.T. (strength, weaknesses, opportunities and threats) analysis be performed for both your business and the other

business. Once the S.W.O.T. analysis is conducted, a spreadsheet should be compiled that illustrates how the various strengths, weaknesses,

opportunities and threats line up. This depiction will help delineate key points. For example, are there synergies between the parties involved?

Do your perceived strengths work well together or do they complement each other's perceived weaknesses? Are the business opportunities enhanced

by the potential relationship or weakened? Once a spreadsheet has been developed that clearly shows the potential synergies between the parties

involved, a timeline and cost should be assigned to each of them. Then, assess if the timelines and costs make sense, and what effect they might

have in influencing the direction of the negotiation. Such a detailed investigation will also help you identify and deal with any potential

skeletons (i.e., barriers and hurdles that will have to be overcome if the deal is to be done) that might exist. Sometimes individuals choose to

ignore such skeletons because the synergies attendant to the relationship seem to be strong. Other times, skeletons can bring down the entire

deal, but usually only after the deal has been made. 5. Determine a walk-away price. For every deal, individuals need to establish a set of

clear benchmarks that frame whether they will proceed with a deal. Such a benchmark may be any number of criteria or factors (e.g., a minimal

purchase or sale price, a certain lease rate, a particular timeline for closing the deal, the involvement of a certain person). Draw a firm line

that you won't step over, no matter how good the rest of the deal looks. Too many people dis-miss red flags or warnings concerning a possible

business relationship because the perceived immediate outcome looks so good to them. Having a walk-away price or benchmark enables you to create

an objective perspective of every deal, and diminishes the emotional capital that often comes along. 6. Employ a team approach.Deal-making is

not and should not be a lone shark approach. When only a single individual controls the deal-making process for a business,emotional thinking

can interfere with objective decisionmaking. All factors considered, if a business forms a relationship with another company, it's better to

have several people from each business have some sort of relationship with individuals in the other company in the event that an individual

integral to the potential business relationship leaves the organization. Too many deals fall apart because an influential person left an

organization. Once a business enters into due diligence, it's critical to have a team of individuals from that organization with contrasting

strengths be involved in the process. This step can enable the strengths of an organization to be leveraged to the benefit of everyone.

Furthermore, having more than one person from a particular business involved in the negotiating process can help facilitate matters when

sticking points are reached. Finally, several minds working together almost always arrive at solutions and decisions that inspire greater

ownership than those reached by a single person. More than a handshake Sound deal-making involves adhering to certain precepts, concepts and

principles. The days are long past when deals are consummated with a heavy dose of trust and a simple handshake. Rather, deal-making should be

the systematic process that leads to a fair and appropriate business relationship between the involved parties.Ultimately, the basic foundation

of the process will be the underlying elements of the proposed relationship and the people who are part of it. Perhaps no one states this

critical connection better than Dedman: "It takes two things to make a great deal — the deal and the people who come with it!"

Nondues Pricing Outperforms Pricing for Membership Dues and Fees

Last year, fees for club lessons and instruction increased by 1.49% over 2009. This accords closely with the increase in fees for "all items," which rose by 1.64% between 2009 and 2010. However, fees for club dues fell by 1.75% last
year, reflecting intensified competition in terms of dues pricing among competing club businesses.

A month-to-month comparison reveals that, in December '10, club dues were comparable to those in December '09,reflecting a negligible increase of just 0.33%. In the previous one-year period, from December '08 to December '09,dues had dropped by 1.68%.

Pricing consistency from December '09 to December '10 suggests that, by year's end, club operators had identified the right price point for consumers.

Reflecting the yearly trend, prices for nondues services recorded modest increases in December for the second consecutive month: fees for lessons and instruction were up by 1.07%. Steady-to-increased pricing for nondues items
continues to demonstrate that operators can capitalize on ancillary services while consumers remain sensitive about membership dues.

The Fitness Life Marketing Sales Process: From Leads to Members

THERE ARE three basic stages when selling memberships.

This three-stage process incorporates planning, teamwork and determination.

Stage 1:
Identifying leads "Leads" are individuals whose demographics (personal characteristics and behaviors) align with the demographics of your members,
and have given an indication that they might be interested in a membership. Examples of leads include individuals who complete a lead card, responded
to an advertisement or called because of a direct-mail piece they received. Leads are individuals who, when exposed to the features and benefits of
your facility, may become more interested and eventually decide to join. The process of generating leads should be the top priority of your
membership sales team and marketing department. The lead-generation process involves two distinct phases. The first is marketing, which is designed
to generate consumer interest and awareness of your fitness center. The second is lead tracking, or database mining, which enables you to place a
name with a lead. You should make every attempt to get the mailing address, phone number and email address for each person who calls your facility,
responds to a lead card or marketing piece, attends a health fair or visits using a guest pass. Generating leads is a full-scale effort that ties
marketing to information collection.

Stage 2:
Qualifying prospects A prospect is a lead who has expressed a need for or an interest in your fitness
center. Accordingly, a prospect is more likely to become a member than someone who is a lead. Turning leads into prospects occurs in many ways. The
most critical factor is talking with the lead and identifying his or her desires and needs, and then having the salesperson offer solutions through a
facility membership. Core marketing strategies that are likely to be successful at generating prospects include member referrals, guest visits from
distributed guest passes and referrals from corporate accounts. Leads turn into prospects when they indicate, verbally or non-verbally, that your
fitness center offers them an opportunity to fulfill a specific need, when they have previously been members of another fitness facility, have a
history of exercising and want to resume the activity, are looking for a way to achieve a fitness or weight-loss goal, have contacted the facility
based on the recommendation of a current member, have taken a tour of the fitness center or have used a guest pass. When your sales members determine
that a lead has become a prospect, it is their responsibility to move forward with the final process of closing the sale.

Stage 3: Closing the sale
The process of moving a prospect to membership usually takes place in one of two ways. The first is referred to as "relationship selling," where
prospects choose to become members because the facility has demonstrated that it can fulfill an expressed need. The second method is often referred
to as "high-pressure sales," wherein the salesperson applies pressure for the prospect to join using certain "closing" techniques. The relationship
approach is likely to generate the highest closing percentage (i.e., the percentage of prospects who become members) and the highest quality member,
while "high-pressure" closing techniques usually produce high closing percentages, but low-quality members. Relationship selling usually brings in
members who will remain members. This method involves an indepth process of uncovering a prospect's needs and then connecting your services to those
needs.

This process does not intimidate the prospect, and it does not employ discounting or other rehearsed processes to move the prospect to
membership. As easy as 1–2–3 Membership sales — like most things of value — do not occur by accident. Rather, they are a byproduct of a wellthought-
out plan. Each stage involves a number of key steps that are an essential part of selling memberships.

The three stages of membership sales take
individuals from leads to prospects to members.Generating leads should be the top priority of your membership sales team and marketing department.

Launch of Gold’s Gym Express

Gold’s Gym International (GGI) announced the launch of Gold’s Gym Express ™. Drawing inspiration from the company’s storied history of delivering the ultimate fitness experience, the Gold’s Gym Express is designed to help people of all fitness levels achieve their goals at a great price.

More than 20 corporate-owned and franchised Express locations around the country are already in the planning stages. With excitement for the new concept generating demand in the investment community and with GGI’s current franchise base, the company expects to have more than 100 new Gold’s Gym Express locations in the pipeline by the end of 2011. That number is expected to grow significantly in 2012 and beyond.

“The new Gold’s Gym Express will allow us to expand the Gold’s Gym brand in ways not possible before,” said Jim Snow, the president of Gold’s Gym International. “It will provide Gold’s Gym International and our new and existing franchisees with another option to grow. From city centers to small towns, this concept is nimble enough to thrive in any setting, and the incredible value combined with Gold’s Gym expertise will help us attract more members than ever.”

You lost how much weight?

Sixty-eight pounds. That's 13 five-pound bags of sugar! Approximately the weight of 4.3 bicycles specially designed for Lance Armstrong's Tour de France ride! Or, something we may all be more familiar with... slightly more than the average weight of an 8 year old!

Imagine losing 68 pounds of fat from your body, and the wonderful, freeing feeling that must bring with it! Amerishape Weight Loss System at Golds Gym in AL talked with Margenie Naberstaure to find out just what it does feel like, so we could share her success with you!

Now picture Margenie Naberstaure, a beautiful, intelligent and successful sales representative from Birmingham, AL, hiding from pictures and mirrors, ashamed of the 215 pounds she carried on her 5'8 frame. An emotional eater, she often turned to food for comfort, reasoning that she didn't have any other vices, so it was OK for her to eat whatever, whenever and as much as she wanted. But desperation eventually set in when she noticed her knees began to hurt, she had back pain and, worse, her doctor wanted her on cholesterol medication Margenie 's total cholesterol was nearly 300!

She decided it was time to get serious and get healthy, once and for all. She had checked out Amerishape Weight Loss System at Golds Gym in AL before, but gave it another look. She reasoned, "It costs about .72 cents a day? I can spend that much on one coke... It's worth a shot." What she found once she joined was everything she had been missing in her attempts at other diets. She found structure and direction in the meal plans, she found information and education at her fingertips -- everything she needed to learn how to live a healthier lifestyle!

After just a week, Margenie shed an incredible 11 pounds! Talk about motivation! That's when Margenie knew this was going to be the beginning of something different. She was following the meal plan to the "T." She was so determined to make THIS time THE time. Margenie says, "I became a student of the industry of Margenie ." She was discovering how to make Margenie function best by eating right and exercising.

That once size-18 body and heavy spirit was feeling better every day. Margenie tells us each day she spends some time affirming her success; she says "You're getting better and better each and every day. You're a beautiful woman, and you're getting smaller and smaller every day!" This helped her through the few rough spots she encountered, and helped get her back on track if she slipped up. Margenie is also a believer in the support that is part of Amerishape Weight Loss System at Golds Gym in AL. She said she's found a new family, "I never feel alone, there's always someone who's walking the same walk I am."

She was in the middle of a long plateau when she joined the Amerishape Weight Loss Plan at Golds Gym in AL Member Event in Birmingham, AL and met Donna Cale, Amerishape Weight Loss System at Golds Gym in AL Fitness Pro. She said he was absolutely wonderful and helped her understand what was happening with her body and how to move past the plateau. She overcame her struggles by learning more and educating herself with all the resources available to her on the Amerishape Weight Loss System Plan

Today Margenie is an amazing size 8/10 and only 7 pounds from her goal. Workouts consist of cardio five days a week for 30-40 minutes and strength training another 3-4 days a week. She still follows the plan and has several favorite meals that she can make without looking at the recipe! Pita pizza and stir-fry top that list! And what's even better? Margenie 's cholesterol is down to 164, controlled entirely by the dietary changes and exercise she's incorporated into her lifestyle.

Speaking with Margenie , one learns almost immediately how this weight loss has changed her life. Margenie exclaims, "I feel beautiful, energetic and happy! My confidence has increased exponentially. I feel like I want to live forever! There's a completeness now that I needed for me. I gained the confidence and knowledge I needed to do this for the rest of my life! I can go out to eat at restaurants or visit with friends; I've learned how to eat away from home without fear."

Margenie has this advice for those just starting out, "Anybody can have success -- you just have to make the decision, the decision that 'I want to be healthy, I want to be beautiful!' Once you make that decision and make that commitment, you've made it, and nothing can stop you!"

The Sales Process: From Leads to Members

THERE ARE three basic stages
when selling memberships.
This three-stage process incorporates
planning, teamwork
and determination.
Stage 1: Identifying leads
“Leads” are individuals whose
demographics (personal characteristics
and behaviors) align with
the demographics of your members,
and have given an indication
that they might be interested in a
membership. Examples of leads
include individuals who complete
a lead card, responded to an
advertisement or called because of
a direct-mail piece they received.
Leads are individuals who, when
exposed to the features and benefits
of your facility, may become
more interested and eventually
decide to join.
The process of generating
leads should be the top priority
of your membership sales
team and marketing department.
The lead-generation
process involves two distinct
phases. The first is marketing,
which is designed to generate
consumer interest and awareness
of your fitness center. The
second is lead tracking, or database
mining, which enables you
to place a name with a lead.
You should make every attempt
to get the mailing address,
phone number and email
address for each person who
calls your facility, responds to a
lead card or marketing piece,
attends a health fair or visits
using a guest pass. Generating
leads is a full-scale effort that
ties marketing to information
collection.
Stage 2: Qualifying prospects
A prospect is a lead who has
expressed a need for or an interest
in your fitness center.
Accordingly, a prospect is more
likely to become a member than
someone who is a lead. Turning
leads into prospects occurs
in many ways. The most critical
factor is talking with the lead
and identifying his or her
desires and needs, and then
having the salesperson offer
solutions through a facility
membership. Core marketing
strategies that are likely to be
successful at generating
prospects include member
referrals, guest visits from distributed
guest passes and referrals
from corporate accounts.
Leads turn into prospects
when they indicate, verbally or
non-verbally, that your fitness
center offers them an opportunity
to fulfill a specific need,
when they have previously been
members of another fitness facility,
have a history of exercising
and want to resume the activity,
are looking for a way to achieve
a fitness or weight-loss goal, have
contacted the facility based on
the recommendation of a current
member, have taken a tour
of the fitness center or have used
a guest pass. When your sales
members determine that a lead
has become a prospect, it is their
responsibility to move forward
with the final process of closing
the sale.
Stage 3: Closing the sale
The process of moving a
prospect to membership usually
takes place in one of two ways.
The first is referred to as “relationship
selling,” where
prospects choose to become
members because the facility has
demonstrated that it can fulfill
an expressed need. The second
method is often referred to as
“high-pressure sales,” wherein
the salesperson applies pressure
for the prospect to join using
certain “closing” techniques. The
relationship approach is likely to
generate the highest closing percentage
(i.e., the percentage of
prospects who become members)
and the highest quality
member, while “high-pressure”
closing techniques usually produce
high closing percentages,
but low-quality members.
Relationship selling usually
brings in members who will
remain members. This method
involves an indepth process of
uncovering a prospect’s needs
and then connecting your services
to those needs. This process
does not intimidate the
prospect, and it does not
employ discounting or other
rehearsed processes to move the
prospect to membership.
As easy as 1–2–3
Membership sales — like
most things of value — do not
occur by accident. Rather, they
are a byproduct of a wellthought-
out plan. Each stage
involves a number of key steps
that are an essential part of selling
memberships.

Memberships: It’s All About the Numbers

TO MANY individuals in the fitness
industry, the word “sales” elicits
negative perceptions. In reality,
however, sales essentially involves
nothing more than providing a
worthwhile product, for which a
market exists — a needed service
or an exceptional experience that
fulfills a prospect’s wishes. Here is
an overview of the sales process.
The mathematics of
memberships
A thriving membership is at the
heart of every successful fitness
center. The challenge of sales is to
make sure that the facility’s membership
level continues to grow, thus
ensuring the overall profitability and
vitality of the club. According to the
International Health, Racquet and
Sportsclub Association’s (IHRSA)
2004 Profiles of Success, member fitness
centers had a net membership
growth in 2004 ranging from 3 to
6 percent. This profile also indicates
that most mature club operations
had membership growth closer to
3 percent. Figures 1 and 2 show that
most fitness centers have to sell
between 800 and 1,300 memberships
on an annual basis to succeed,
with some of the larger club operators
having to sell as many as 5,000
memberships annually.
What is most evident from these
figures is that, on an annual basis,
most fitness centers generate new sales
at a rate ranging from 28 to 54 percent
of their base membership. Fitness
centers have a pattern that requires a
high rate of membership sales. If, for
example, the mean number of total
sales for fitness centers larger than
60,000 square feet, which is 1,557
memberships, is used as a basis for
identifying the extent of the need to
sell memberships, and that number is
converted to a weekly sales rate, a facility
ends up having to sell 20 memberships
a week. If
the annual sales
ranges indicated
in Figures 1 and 2
are examined, the
average sales
required on a
weekly basis for
the majority of
fitness centers
would range from
a low of 10 to a
high of 30 sales
per week. Facilities
in large chains
often have to sell
an average of 100
memberships per
week. A highperforming
sales person will,
on average, make
approximately 10
membership sales
a week. In other
words, most fitness
centers will need at least two full-time
membership sales people. In fact, highsales-
volume clubs will often need as
many as 10 membership sales people.
Obviously, sales are most definitely a
numbers game.
The membership sales
continuum
Membership sales involve three
distinct stages: identifying leads,
qualifying prospects and closing
the sale. Each of the stages is like a
filtering screen, with the number of
people at each stage being screened
until it becomes a smaller population
with better qualifications for
membership. As Figure 3 indicates,
the sales process can begin with
100 leads who develop into 30
prospects, which results in 15 sales.
For example, a fitness center that
requires 20 new memberships per
week would need to generate a total
of 130 leads and 40 prospects
weekly. When examined in this perspective,
the sales process requires a
large reservoir of leads in order to
produce the required level of membership
sales. While the percentages
tend to vary from market to market
and club to club, the average fitness
center can expect to convert 20 to
50 percent of its leads to prospects,
and 20 to 80 percent of its prospects
into actual members.
Numbers don’t lie
Membership sales are a byproduct
of a disciplined business practice
that requires a detailed system
of checks and balance. While a
variety of ways have been used
over the years to sell memberships
(some more successful than
others), the bottom line in every
situation is how many memberships
are actually sold.

Health Club...Staging the Membership Tour

AMONG MANY types of membership
strategies, fitness center tours
produce the highest percentage of
pro.spects from leads, and memberships
from prospects. A membership
salesperson who has
mastered the art of the tour can
be assured to generate quality
prospects and membership sales.
But, there are key steps involved
in staging a successful facility tour.
Start with a Q&A
Begin the tour with a relaxed
Q&A session. Sit down in an
open, non-intimidating setting
and offer prospects water. Then,
talk to them about why they want
to join, their favorite activities,
goals, etc. This information will
not only increase the chances of
the membership sale being closed,
but can prove invaluable in setting
up the tour. This feedback can
also be used to improve membership
growth and retention.
Find their “hot spots”
Potential members are knowledgeable,
and giving them a
“canned” tour is one of the worst
things you can do. It can turn
prospects off, and detract from
the level of professionalism of
your staff members. The tour
should be personalized for each
prospect, based on the priorities
indicated in the Q&A session. Use
that information to identify the
prospect’s “hot spot,” and start the
tour there.
Introduce prospects to your
facility’s experts in their indicated
areas of interest. If the tour has
been scheduled, arrangements
should be made for the experts to
be present. If the tour is unscheduled
and an expert is not available,
the fitness director or an
assistant can fill in.

Never lead off a tour of the fitness
area by saying, “this is our
cardiovascular room,” or, “we have
Nautilus equipment.” These are
obvious statements that indicate a
lack of professionalism and
understanding of the prospect’s
specific needs. Instead, focus on
what sets your fitness center apart
from other clubs, and what those
differences mean to the prospect.
Focus on the staff, service, members,
programming, etc. — not
the equipment.
“Want to try the facility today?”
Give prospects the opportunity
to use your fitness center that day.
Better yet, connect them with
another member or a staff person
who can provide any needed
assistance.
Introduce a member
From a sales perspective, nothing
nothing
is stronger than the testimony
of a member to show a prospect
the value of your facility. The
introduction between a prospect
and a member should be short
and brief. A satisfied member can
be your best salesperson.
Provide printed information
Prospects should be provided
with the facility’s brochure before
the tour begins. This way, they can
reference information presented
in the brochure during the tour.
In addition, the tour should
include a brief review of the
fitness center’s programs
and/or events. It is important
that the prospect gets a feel for
the various activities and traditions
of your facility. This situation
also represents a great
opportunity for prospects to
ask questions, and gives the
salesperson the chance to elaborate
on the level of member
participation in the facility.
Ask for the sale
After the tour is complete, the
salesperson should sit down with
the prospect in a non-intimidating
setting and ask if he or she has
any further questions. After providing
answers, the salesperson
should ask for the sale. If the sale
doesn’t occur, the salesperson
should give the prospect a guest
pass, and then follow up at a later
date to see how his or her visit to
the facility went.
Steps to success
A well-planned membership
tour is one of the most effective
things a facility can do to help
bring about membership sales.
Collectively, these steps can provide
fitness centers a pathway to
success.