Nov 19 2009

Can You Afford to FIRE Your Members?

I’ve said at certain times it’s okay to let an irksome member go. I stand behind this statement and in rare cases the amount of trouble, time devoted, and pure frustration of dealing with an unjustifiably irrate member is just not worth it.

firedNOW HOLD ON, CLUB OWNER TURNED DONALD!  before you go pulling cards from all your pain in the  A!$* members you must understand the consequences.

TMV= Total Member Value

What’s this person actual worth over the life of their relationship with the club. Believe me it’s not simply $39 or whatever your gyms monthly rate is. All current club dues, personal training fees, future pro-shop purchases, referrals, and renewal dues must all be accounted for.

Different gym members with varying habits obviously represent different TMV’s. However,  in my experience many carry a TMV in the neighborhood of several thousand dollars of  lost revenue if they leave or get revoked.  Especially, if they are being presented with  many opportunities to spend money in a well run health club. (Shameless Plug)Which can be accomplished easily by following the principles we routinley cover here. 

Again, its okay to say bye-bye  if you can afford to OR  justify the loss  quantifiably. Otherwise suck it up, grin and bear it and get busy finding  new members who can replace the TMV you los e when you’ve had enough.

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