Who knew????

Did you ever imagine that an auto insurance company would have the answer to successful weight-loss? 

Yup when all else fails… go for the GUILT TRIP!

This is the latest commercial from Geico Insurance on saving money.   What a crack-up!

If you have kids and remember (or have kids entering this phase) you’ll know how true this is….

How funny is that?

Perhaps we should all hire the popular middle school kids to follow our clients around during the day and give them the: “Dude, that is so GROSS!”

Or, how about we develop an app for our clients’ mobile devices that they can trigger (or triggered by a GPS app) every time they walk into a donut shop or fast food joint.  The girls would come up on the screen and, well… you get the idea…!

She sells and markets one package.  It is a “Corporate Health Management Package” that results in a training/coaching contract designed specifically for globe-trotting corporate executives.  Her average client pays between $8,000 – 10,000 per year ….and she rarely sees them in person.

Her day is spent primarily on the phone, email and the MAP System as she coaches her clients both online and by phone… typically at the same time.   It’s a lot of coordination but she has a system that makes it all work.

She currently has a waiting list and is learning how to streamline her business to allow for even more clients!

That’s not the most interesting part.  What’s so fascinating is HOW she finds clients.

Here’s Her Secret

Janice is a “stalker.”   Listen to this….

Have you ever been to a motivational, self-improvement or success seminar?  Zig Zeigler, Tony Robbins and Brian Tracy are just a few of the big names. But, there are literally thousands of “success” speakers who are retained to speak to various niche markets —  from banking and real estate to technology and manufacturing.  And lots of them speak in Chicago to coincide with various tradeshows.  Perfect for Janice!

Here’s What Janice Figured Out

• Almost every single motivational speaker spends at least 10-15 minutes on the absolute importance of daily exercise and nutrition.

• At the end of the presentation, Janice introduces herself as a “corporate fitness specialist” to the speaker and trades business cards.

• Three days letter she sends a package to the speaker that includes her resume, experience, references and an offer.

• The offer includes a commission for any referrals (from the speaker’s client or attendee list) who sign-up for her annual “Corporate Health Management Package.”

• If possible, she attempts to schedule a lunch or coffee with the speaker in order to get face-to-face with this potential referral source.

Obviously, not every fit pro can do what Janice does.  Nor, would they want to.  The point is to demonstrate a very creative approach to getting new clients.

What About You..?

Are there pockets or niches that make sense for you?

• Several trainers and clubs use the MAP System in coordination with high school and college athletic directors and coaches.   And, coaches can mandate program adherence.

• Some fit pros have been successful using the Daily Journal as a “fund raiser” for schools and non-profit organizations.

• We have at least three fitness pros who target their own church groups with “after sermon” classes on lifestyle programming (Reference Manual).  It’s like Sunday School!

• Jimmy Kessler is an ex-cop who targets Police and Fire Depts.  He goes to their locations and speaks to his “brothers” on the importance of being fit.  These guys totally “get it.”  In some cases he trains at the Fire Station while others travel up to 90 minutes to train with him personally at his studio.  He’s crazy successful and in some cases is paid by the city via yearly contract.

All of these activities almost always CONVERT into new clients and members.

Could you become a Fitness Stalker?   What market(s)…?

Over the years, lots of trainers, educators, and perhaps you, have presented Weight-Management workshops for audiences of 25-100 people.

Some, like Janice Noble, have more than 400 in attendance!  At the end of their presentations, they typically have a sign-up sheet to capture emails, addresses and other follow-up information.

For the past several years, new fitness trends require facility owners to increase overhead with new equipment, new programming and specialized staff – often with little or no ROI.

The logic behind this imbalance often is justified as a means to acquire new members in such a competitive market.

Today’s economy, however, necessitates a different strategy.  Service-based businesses must shift focus from “acquisition” (pursuing new members) to “retention and leverage” (increasing revenue through existing members).

The following are five ideas that require minimal expenditures while generating ROI almost immediately when properly executed:

Pro Shop Profits

All clubs, studios, and spas should dedicate floor space for a pro shop, retail center or kiosk.  Existing pro shops should evaluate and set new revenue goals.  Key considerations:

• Carry only best-of-breed or exclusive (non-internet) products;
• Private-label as much as possible to maintain margins;
• Build traffic through creative merchandising;
• Commission staff on pro shop sales;
• Expand existing lines and introduce new products;
• Promote pro shop and products throughout the facility;
• Make products available via club website for out-of-towners.

Frequent Member Rewards Programs

Airlines do it.  Starbucks does it.  And you should at least consider it, too.  With a focus on increasing member activity and building traffic, a “frequency rewards program” can add to a facility’s overall revenue picture.  Frequency programs can be initiated at check-in, pro shop, personal training, special classes/programs or all of the above.  Even a low-tech punch card system can be implemented with success.

Frequency reward points can be redeemed for:

• Training sessions;
• Pro shop discounts;
• Membership monthly add-ons;
• Co-sponsored venues and events (restaurants, movies, golf, etc.).

Speaker’s Bureau

A speaker’s bureau requires virtually no capital, adds value to a membership and draws non-members to your facility.  Most local speakers will lend their expertise at no charge provided they are allowed to hand out business cards and collateral.  Presentation topics might include:  10 Ways to Cut Household Costs, Eat Better and Be Happy;  Finally, the Truth About Weight-Management (staff);  New Investment Strategies in Today’s Market;  How to Shape-Up and Prepare For A New Job Interview.  The best ways to take full advantage of your presentation is to:

• Invite local media;
• Video the presentation for your website;
• Provide pro shop product samples (bars, drinks, etc.);
• Offer special “right now” membership pricing for non-members.

Co-Promotions/Sponsorships

Hikes, Bike Rides, Grocery Store Field Trips, Fitness Contests, Boot Camps, 5K, 10K and Mini-Marathons are just a few of the activities that can be co-sponsored and co-promoted with non-competitive businesses with minimal shared investment.

During any of these events, it will be important to:

• Display your logo via signage, banners, apparel, print collateral, lead boxes, etc.;
• Set-up an exhibition table or booth to showcase products and services;
• Video and photograph the event including members, staff, participants for web, newsletter, bulletin boards and other promotional vehicles;
• Distribute media releases with photos before and after the event.

Education-based Programs / Weight-Management / Nutrition Education

Creating a classroom environment, allowing participants to arrive in street clothes and teaching a paid curriculum is one of the most lucrative services a facility can provide.

Although it takes time to organize and plan it does not require major capitalization.  Plus, these education-based curriculum can be taken off-site and become a profitable mobile “classroom” at corporate conference rooms, churches, schools and community centers.

Education-based programs held in classroom environment will:

• Generate new and ongoing revenue both onsite and off-site;
• Introduce your facility to non-members;
• Motivate participants through education toward personal training and nutrition services;
• Attract media attention.

While the fitness industry is known for being “trendy,” it remains incredibly competitive and suffers the same demise felt by all retail businesses during a lousy economy.

However, with a small shift in focus, a little creativity and a “take action” mandate, your facility will prosper!

As always, I welcome your comments and suggestions.

Yet, one of our customers, Roberta Sanchez, recently told me how she gets all her referrals through the use of a paper clip!

Well… that’s the way she presented it.  Got my attention.

Here’s what she really meant…

She simply hand-writes a simple “welcome” note and then attaches it to the inside cover of the Daily Journal with a PAPER CLIP!

Here it is:

Dear (Name).

• Your trust and faith in me to help you achieve your goals is very meaningful to me. As such, I will give to you 100% of my expertise, knowledge and motivation. My goal is for you to get everything you want out of this partnership.

• Please know, that while you have your expectations, I, too, have some hopes…   I hope you will either put in the effort or be willing to adjust your expectations. Your results are totally contingent upon your efforts. I will always give 100%. It’s my life!

• I hope you will have the courtesy to provide 24 hours notice if you can’t make our appointment together. Time is what I sell so, if you cancel, I need to fill that time.

• Finally, my business is 100% built on referrals and word-of-mouth. If, after we spend some time together, you feel your friends, family, co-workers or others could benefit from my services, I hope you’ll refer them to me.

I can’t wait to start our journey together.

————————————————————————-

Roberta has a waiting list and is in process of opening her second studio.

And, of course, she’s trained her entire training staff how to get PAPER CLIP REFERRALS!

Let’s Go!

There are several similarities among fitness clubs / studios and auto dealerships.  At the local level, they are similar in that both clubs/studios and dealerships are “sales driven.”

However, the larger umbrella for dealerships are the “brands” they carry.  And the branding is carried out by the manufacturers  (think Ford, Chevy, Honda, etc) through big national ad campaigns.

Similarly, it’s the same umbrella / branding benefits that a licensee or franchise receives from being a Gold’s Gym, 24 Hour Fitness, Curves, etc.  In the fitness industry, this is typically “commodity” marketing…. fitness for the masses.

But, what about the small independent club or studio?

What’s the Positioning?

There’s a point where a potential member is going to draw a comparison between you and your competitors.  There’s just no getting around this fact.  A small club or studio will always have difficulty if it attempts to compete on price — or to be all things to all people.

It’s the same as Joe’s Hardware attempting to compete with Home Depot or Loew’s.  Instead, a small club or studio should be unique – in a premium way.  It should be like the difference between going to a Ford dealership versus a Ferrari showroom.

Road Trip!

And, that’s why, together, we would actually make the trip to an exotic car showroom and take in the look, feel and yes, even the smell of what it is like to be a “premium priced” marketer.
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Check out the merchandising.   Ferrari is acutely aware that as a premium priced marketer it must be a brand evangelist (apparel, towels, model cars, key rings, sunglasses, driving shoes, etc.).  And, none of it is cheap. The quality is as high as the car itself.

The Commodity “Mind-Set”

The point is that fitness professionals often get trapped into “commodity thinking.”

It’s a huge mistake.

Independent trainers should position themselves as a “signature” model.  Studios and small clubs are high-end “boutiques.”   These positions command premium pricing and much higher profitability. 

The high-end positioning also provides numerous opportunities to “line-extend” into new profits centers … including branded products, consulting, speaking and executive health management.

Do Your Homework

The next step is to conduct a little competitive research by visiting a “commodity club” as a potential member and take the tour.   Are you getting the Ford dealership commodity “price-point” treatment?

Compare it to your facility.  Your staff.  Your Presentation.

O.K. now for the self-serving portion of this post.

Creating a signature brand is the reason to brand your daily journals.  It’s the reason to carry your own signature brand of supplements.  It’s the reason to ONLY carry apparel with your logo.  With all the “noise” in the fitness industry, the top marketers of clubs and studios as well as the top trainers in the country understand the “value” of their brand…. and really use it to cut through all the clutter!

It is the essence of our business model to help you become a highly profitable signature brand.

Ford or a Ferrari?

Your comments are always welcome…!

Go to a big screen theater and watch “Moneyball.”   

Honestly, the movie serves as a perfect metaphor for what’s going on in the fitness business right now.  And, why some fitness businesses are wildly successful and why some are headed for financial failure.

Moneyball is how I would ask you to start thinking about your business — regardless of whether it’s personal training or a club environment.

How to Win

There’s a part in the movie where Pete explains to Billy that for decades, baseball has been looking at all the wrong indicators.  And, that traditional baseball looked at “Player Talent” as a way to win championships.  He went on to explain that you don’t win games with “players.”   You win games with “runs.”

Fitness Business Moneyball

So, let’s apply this same analogy to the fitness business.  You don’t grow a fitness business chasing “new members.”   You grow a fitness business by generating “cash flow and net profits.”  I’ve written about this before.

You gotta love the part where all the team scouts and managers are sitting around a table discussing players.  These guys have lived baseball their whole lives.  It’s in their blood. Seasoned pros.  And they are set in their ways.  They absolutely refuse to “open-up” their thinking.

As I watched this segment, it reminded me of how our industry continues to pursue business success through chasing new clients and new members instead of developing new ways to generate more money.

We’ve Always Done It This Way

Want proof…?  Take a look at your email.  How much of it claims to help you get more clients/members.  Do you ever receive an email that claims to help you generate more money from existing members or clients..?  

In fact, sometimes it’s just the opposite.  Thousands of clubs continue to purchase trendy programs that cost a bundle in licensing fees, training, staffing and operations… yet don’t charge members for participation.  So.. it actually adds to club overhead.   Talk about nutty strategy!

Get Some Pop Corn

Here’s my advice.  Go watch the movie.

Think about how you plan to grow your business. Are you going to focus strictly on new memberships or focus on ways to make more money?

Just for starters… one of my most successful customers is a 3-trainer studio that generates an extra $575 per month in NET PROFIT… with home-made energy bars negotiated with a membership trade-out!

I always appreciate your comments….

Do world class athletes just figure it out for themselves…? Heck no! Even a 5 year-old T-ball player start out with some serious COACHING…. right?

THE TECHNICAL STUFF IS EASY

Listen… the technical aspect of weight-management is no more difficult than balancing a check book. Caloric input vs. caloric output. Pretty simple.

The hard part is actually doing it and holding oneself accountable. Plus, the challenge of changing lifestyle habits and behaviors. People need help in figuring out what alternatives are best and fit into their particular life circumstances. This is the real stuff!

So let’s have an “adult conversation” about weight-management.

FALSE EXPECTATIONS

• When it comes to weight-loss (fat-loss) almost all consumers enter the fitness environment with unrealistic expectations (lose 20 lbs in 20 days). A fitness professional absolutely MUST ADDRESS THIS ISSUE RIGHT AWAY.

• I continue to advise my consulting clients to look the client squarely in the eyes and ask, “Exactly what are your expectations of this program?” This absolutely needs to be brought out and “put on the table” and addressed.

• If the client says, “I want to lose 20 lbs in 20 days” the trainer has an OBLIGATION to start a new dialog and to re-frame those mis-informed expectations. Anything less is just setting you up to take the BLAME when the client doesn’t hit his or her preconceived, unrealistic goals.

FROM SABOTAGE TO REFERRALS

• Even when the client is motivated and understands how it all works… that it is a “process,” a “lifestyle” and is the “perfect client” – there is the issue of SABOTAGE that goes on at the client’s home.

• Consider the “mom” who wants to lose body fat and change her lifestyle but is met with resistance and objections at home by the husband and kids. Or, the office co-worker who goad your client into coming along to the fast-food joints for burgers and fries.

• We consult our clients to hold classroom style meetings once a week and encourage the “mom” to bring her husband, kids, other family members, friends, co-workers, etc. to the first two meetings (for free) in order to gain their support and encouragement. You’ll be amazed at what happens once you show the “support group” how to actually be supportive..!

• These two free classroom meetings for “supporters” almost always CONVERT into REFERRALS for the club or trainer. But, it is a rare club owner or trainer who sees the value in this. It’s too complicated or too much work. (It’s really not!).

INCENTIVES ARE CHEAP AND EFFECTIVE

• Incentives... This is much like a sales program where there are GOALS as well as INCENTIVES for ACHIEVEMENT of reaching those goals. Almost all clubs, trainers, etc. miss this one.

• It is NOT ENOUGH REWARD for people to simply operate on the belief that “down the road” they are going to feel better, look better, lose body -fat and have increased energy, less stress,,, etc., etc. They need SHORT TERM GOALS and incentives – EVERY WEEK. And not physical attribute goals, but, even behavior pattern achievements such as:

• How many times did they make it into the club (recorded)

• How many minutes of cardio (resistance training, stretching, etc.)

• Did they complete their Daily Journal every day

• Best handwriting in the Journal

• Did they share a healthy recipe

• Did they complete all the quizzes

• Did they create or pre-plan their weekly menus

… and then validate and recognize these achievements via public postings in the clubs, discounts on training or pro shop, even little certificates of accomplishment with their name on it goes a long way in rewarding their short-term efforts.

YOU ARE THE PILOT…

This is why, when it comes to seriously changing someone’s body composition it’s hardly ever a simple “auto-pilot” program. The tools, like the MAP System and a Daily Journal are all that’s needed. That part is simple. But after 20 years of doing this stuff, I can assure you it’s the SUPPORT and EDUCATION and how those elements are delivered that are key.  You are the pilot!

Executed correctly, it is a much bigger money-maker than just exercise programs. It also will generate more referrals than any other product or service in your fitness business. It will attract new prospects from a full 60-minute marketing radius. It can be taken “on the road” as a mobile program for corporate accounts, churches, schools, organizations, etc.

After all, the #1 reason people join a club or hire a trainer is to change their body (usually NOT to get bigger!).

I hope this sheds a little light on some of the challenges we face every day and why I continue to create even more tools (like the recent video) to help with the process.

Your comments are always welcome…!

I have never forgotten it.  If your business is losing money, you will eventually “go out.”  It’s that simple.

Business is a black and white proposition.

No gray area.  Either you’re making money or you’re not.  END OF STORY!  PERIOD!

There comes a time when each of us, as business owners, need to sit down with a calculator and figure it out.  Oh, I know you’re probably pounding the “top line” and gross sales are just great.   But what about gross profit.  Let’s go a little deeper and ask about your net profit.   Reality dictates that the top line is meaningless if your net profit runs negative.  Business takes no prisoners.

With entry level trainers, I always get a blank stare when I ask the question: “What do you charge yourself for labor?“  Rookies simply charge $X amount per session and put it in their pockets.   They never consider costs of doing business.

This is true even among some very seasoned professionals.  This is the quickest route to failure.  Business take no prisoners.

 Take Action

Here’s what I did with the advice.  Take it for what it’s worth.

• I hired an accountant (you might work a trade-out) to look at my business and create a spread sheet to show gross sales, gross profit and net profit.  It became very detailed, so I attended some night classes to help me understand “profit and loss” statements and “balance sheets.“

• I created active spreadsheets in Microsoft Excel so at the end of EVERY DAY I know where I stand.  It only takes 5 minutes at the end of each day to have complete financial snapshot of my business.

• I created daily, weekly and monthly goals for my business based on those snapshots… and work tirelessly to meet or exceed those goals. (for those of you who call me on weekends and are surprised that I answer the phone…. this is why!)

I still conduct these activities today.  You know why?  Because business takes no prisioners!