STUCK IN THE MIDDLE

Every day I am seeing more and more pressure on middle market health clubs.  These clubs can typically be identified as a 8,000-25,000 square foot facility with multipurpose amenities, which charge between $40-70 per month for membership.  The problem that we are seeing is that these “middle market” clubs are getting squeezed by lower cost or massive full service facilities.  They are able to offer more services for the same price point or less than what the middle market clubs are offering. Specifically, independently owned, non brand affiliated clubs are struggling the most.  

The issue is that the owners of these clubs are not able to come to terms with the fact that they need to evolve their business model to stay relevant and competitive.  In some cases change might be more drastic than other.  Lets face it, if you are a middle market club owner who charges $49/m for membership and a Lifetime Fitness moves in across the street and offers everything you do and much more for the exact same price, you are going to strugle.  Sticking to your guns is not a marketing or business growth strategy.  

Every situation and market is different.  The formula for success is change.  If you dont know what you need to do, ask someone who does.  I predict a shake out of the fitness industry over the next 12-18 months of 20% or more of the stagnant health clubs.  That means that 2 out of every 10 clubs operating now will fail. The club owners who survive will be the ones who stay relevant and offer progressive business models, and continue to market properly.

Until next time…

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