IS cash still KING?

Used to be nothing polorized health club business owners  more than whether to push memberships for cash upfront or build the draft. Over the years we’ve come to our senses and acknowleged  big recievable bases are  key to long-term sustainability of  a gym. Regardless, of which camps theory you subscribed to, there are times we find ourselves wanting or needing to push some cash memberships.

In these circumstances there is an alternative to the traditional deep discounting PIF MEMBERSHIPS of yesteryear or hard line NO discounts or PIF all draft approach. This little used option actually can support both maintain cash down while still boosting the draft quite a bit.

How about a  90 Day same as cash program.

 If needed you may even want to discount the price a little to sway people to go this route.

Here’s how it works.

Lets say your gym monthly membership is $39 with a $69 enrollment for 12 months. Total membership cost is $537. Why not have  a $499 PIF membership for 12 or 12 + 3 free months that saves them some money but, isn’t so deeply discounted prospects  automatically jump on it.  If there is  interest  however present the 90 SAC program. In this case they can pay $199 to get started which more people can afford to do than have $500 to drop and set up  $100 drafts for the next 3 months. In effect you just cleared a bit more on the downpay compared to a monthly enrollment and boosted draft $100 which is equivalent to  2.5  monthly memberships. Now keep in mind you have to replace deals sold this way every 90 days because your draft is only increased for 3 months but if you are consistent with this program you can get a good number of these  per month.

Forget  about big discounts, get a little cash boost  and build draft. Not too shabby! Try it and see what you think!

Yours in Good Health,

Frank Emanuel, THCP

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