Are you stuck in the Rent Race?

Have lower than expected revenues put a stress on your relationship with your landlord? For some of you the hard truth is that your monthly overhead is getting harder and harder to clear. No matter what size of type of health club you operate RENT is by far your highest expense. Unfortunately covering your rent payment is most likely taking away from your fitness business operating at 100%. The logic is simple; if you’re struggling to make your rent payment then there is less money to spend on marketing methods that keep your revenue at a place that is profitable for your club. This is the fitness industry’s equivalent to “The Rat Race” we’ll call it the “RENT RACE”. You have found yourself in a constant, reoccurring pattern of scraping by. Worst of all it is clubs that are in the predicament that economic changes and slightly slumping numbers will cause the ultimate failure of the business. That is of course if you do nothing about it!

Did you know that it is a FACT that fitness center are among the top 3 business most likely to default on a lease? And your landlord knows that! And they gave you a lease anyway! Use that FACT to your advantage. Everyone is hearing about bailouts, mortgage re-negotiation, and bad lending practices. Guess what…the same economic principal that apply to over 40 million home owners apply to your business too. You can’t afford the rate you are paying, at least not right now.

Simple solution:  Ask your landlord to redo your lease or reduce your payment, with promist to pay later.  Sound impossible?  I know of 3 gym owners who have done just that!  And all 3 were able to negotiate lower payments.  Why?  Well if you were the landlord, wouldn’t you rather have some money coming in than have a business close their doors, ending all cash flow from that tenant, then have to deal with the legal issues involved.  When all you had to do was reduce rent by a couple grand…

I bet you hear “You need to spend money to make money” all the time. Let me propose a radical idea: “SAVE MONEY TO MAKE MONEY”, allowing you to spend the same amount or less that you are spending right now. But rather than spending money of overhead you will be spending it on marketing to bring sales into your club.

until next time…

Chris
www.GymMarketing.com

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