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TSI 2011 - Driving Small Group Training Profitability
- 1. Driving Small Group Training Profitability
- 2. WHY? Why Should we focus on small group training?
- 3. IHRSA 2011 list of trends: Trend 6 – The evolution of Personal Training “… The main factor for growth, even in the recession, is the trend away from one-on-one training towards small-group or semi-private training to increase the fun level while mitigating expenses.” IDEA – Top 3 programming trends survey 2010: Small Group Training was the number-one trend for 2010. All 3 top trends involve groups of individuals coming together to achieve their fitness goals. Member Retention: Members that are invested in activities within your facility will keep their membership longer and visit your facility more often. Financial Success: WIN-WIN-WIN Lower training cost to members, Higher pay to trainers, Increased profitability
- 4. CORE STRATEGIES 5 core strategies for driving small group training profitability, sustainability and success.
- 5. Key Benefits to your members: Provides a structure to influence member and trainer success Creates a progressive program with continuity and results Allows for camaraderie and a socialization while training Helps clients accomplish their fitness goals Key Benefits Facility: It’s easier and more profitable Easier to manage your small group calendar/schedule Easier to implement creative/unique programming Easier to track and compensate your trainers Easier to manage your profitability Developing Programs With Start Date and End Date Package Model WARNING Most common mistake is to offer packages of open classes on a Group X schedule.
- 6. FULL sessions - NOT - More sessions Start slowly with less session offerings while you build demand Consistently evaluate your supply and demand ratio Focus on selling out a program session before starting it Pricing should be affordable and exciting during the initial launch Maximizing Program Capacity/Profitability Most common mistake is starting with too many sessions and/or too high of a price. This could cause a problem of too many sessions to fill and people to sell in too short of a time to fill them. WARNING
- 7. How do I know my optimal pricing? 2 – 3 people – 2/3 cost of one on one personal training ($60 to $40) 4 – 6 people – half-price of one on one personal training ($60 to $30) 7 - 10 people – 1/3 cost of one on one personal training ($60 to $20) Maximizing Program Capacity/Profitability Keep pricing lower in the beginning to build demand Offer specials and promo’s for first time purchasers. Pricing should be in alignment with the demographics of your facility. Initially, money should be a “non-issue” – it is affordable for your average member.
- 8. Waterfall your program start dates Allows you to be selling every week Quickly integrates new members Structure your Demo’s for success Utilize free demo’s to sell and fill your programs Demo the program you are selling at the time and day the program will be offered Executing Sales and Marketing Utilize “SOLD OUT” marketing strategy Creates urgency to buy now People want what they cant have SOLD OUT!
- 9. SALES TIPS Sign them up when they’re still sweaty from the demo! Use in club marketing and free passes to drive awareness and participation. Executing Sales and Marketing
- 10. Optimizing Small Group Schedule and Space Dedicated SGT Schedule Monday Tuesday Wed Thursday Friday Make-up/ Demo Class Make-up/ Demo Class Pilates 5 p.m. (free demo) Pilates 5 p.m. (free demo) Pilates 5 p.m. (free demo) Pilates 5 p.m. (free demo) Week 1 Program 1 Strength 9 a.m. (free demo) Strength 9 a.m. (free demo) Week 2 Program 1 Continues Strength 9 a.m. Strength 9 a.m. SOLD OUT ! SOLD OUT ! Week 3 Program 2 Strength 9 a.m. Strength 9 a.m. Pilates 5 p.m. Pilates 5 p.m. SOLD OUT ! SOLD OUT ! SOLD OUT ! SOLD OUT ! Week 4 Program 1&2 Continue Strength 9 a.m. Strength 9 a.m. Pilates 5 p.m. Pilates 5 p.m. SOLD OUT ! SOLD OUT ! SOLD OUT ! SOLD OUT !
- 11. Optimizing Small Group Schedule and Space Monday Tuesday Wed Thursday Friday Week 1 Program 1 Program 2 Sold Out Strength 9 a.m. Sold Out Strength 9 a.m. Sold Out Pilates 5 p.m. Sold Out Pilates 5 p.m. Week 2 Program 1&2 Continue Sold Out Strength 9 a.m. Sold Out Strength 9 a.m. Sold Out Pilates 5 p.m. Sold Out Pilates 5 p.m. Sold Out 9 a.m. Free Demo 12:30p.m. Free Demo 5 p.m. Sold Out 5 p.m. Sold Out 9 a.m. Free Demo 5 p.m. Free Demo 12:30p.m. Sold Out 5 p.m. Week 3 Program 1&2 Program 3&4 Sold Out 9 a.m. Sold Out 12:30p.m. Sold Out 5 p.m. Sold Out 5 p.m. Sold Out 9 a.m. Sold Out 5 p.m. Sold Out 12:30p.m. Sold Out 5 p.m. Week 3 Program 1&2 Program 3&4 Make-up/ Demo Class Make-up/ Demo Class Make-up/ Demo Class Make-up/ Demo Class
- 12. Choosing your equipment Pick equipment that is versatile and functional Equipment that many types of members/clients can be successful using Total Gym GRAVITY, TRX, Perform Better toys, PlyoRebounders, Vibration Look for programming and education support for your team Invest in the Real Estate Create a small group training area, room or space in your facility Not in the Group X studio Mental model in GX Studio is free Run into scheduling challenges with your popular free classes On the fitness floor More visual exposure to the other members Personal training is done on the floor – people are used to it. Dedicated Small Group Training Room Only Small group happens in here and everything is fee based Optimizing Small Group Schedule and Space
- 13. Developing Your Team for Success Creating the WIN WIN WIN Cost to client is less than one on one Personal Training Trainers have opportunity to make more per hour Facility will net more per program Choosing the right team to drive your program Appoint a dedicated small group champion In charge of driving profits, marketing programs and developing trainer team Choose trainers who are comfortable working with an audience Choose group instructors that are also certified trainers Provide education solutions for your team to grow
- 14. Developing Programs With Start Date and End Date It’s easier and more profitable Creates better participant experience Maximizing Program Capacity/Profitability FULL sessions NOT more sessions Sell out programs prior to starting them Executing Sales and Marketing Strategy Waterfall your program starts Schedule your Demo’s to sell Advertise your Sold Out Programs Close while their still sweaty Optimizing Small Group schedule and Space Dedicated Small Group Calendar/Schedule Choose good equipment and Programs Invest in the appropriate real estate in your facility Developing your team for success Creating the WIN WIN WIN Choosing the right team to drive your program Driving Small Group Training - SUMMARY
- 15. Thank you for attending!! Jesse Campanaro 858.967.1811 [email_address]
Editor's Notes
- #6: The Program Model is best explained in contrast to the package model, which is very common in fitness facilities for selling personal training. In the package model, a client can purchase, say for example, 10 sessions. They can use these 10 sessions at their discretion, attending classes that are on the schedule. So what many facilities have found is that one week the client will come on a Monday, the next week on a Wednesday to a different trainer, and then not at all for three weeks. As we all know, muscles atrophy quickly and three weeks later, they may not be at the same level as the regulars who are coming every week consistently. This slows down the class and wastes precious moments of a 30 or 45 minute class that could have been dedicated to training. Plus the client doesn’t see the results he or she may want. The program model consists of GRAVITY programs that have a start date and an end date. For example, a popular length is 4 weeks or 8 weeks. This means a client would commit to joining a program that starts in week 1 and ends in week 8. The benefits of this model can be seen on both sides - to you and your members. Some benefits to the members: A trainer can now create a continuous program that allows for progression. Seeing a client consistently twice a week will allow you to tailor workouts to their levels of progression. You can also now market programs to particular demographics. We’ll talk about this more in the Marketing section. Plus with the commitment to a program that runs twice per week, the client should see results after consistent training for a certain number of weeks. Additionally, it also benefits the members because it creates camaraderie amongst the group, who will be seeing each other for the same time on the same day for the next 8 weeks. There is something to be said about the social aspect of training. This model benefits you as the club: Because it’s difficult to predict a client’s decision to come to recurring classes on a schedule, where some days seem popular but a week later have no participants, the package model can become an organizational nightmare. Utilizing the program model allows for you to have a consistent schedule with consistent attendees. It also organizes your trainer compensation. Another flaw in the package model is the uncertainty of the number of participants. Similar to the example I gave earlier, one week a trainer might have 5 people in a class and the next week they might have 2. It may not make financial sense to run a class with just 2 people, who are paying less than what you need to pay the trainer, but you can’t cancel the class. With the program model, the clients have all paid up front and so the trainer can be assured that they will always have a full session. And lastly, now that the trainer is seeing the same people in every session, the session itself can run quicker and smoother, making each minute you have in the half hour or 45 minutes very valuable.
- #7: The key to a successful program is FULL sessions, not necessarily MORE sessions. When you launch a small group program, you want to start out slowly and build your demand and therefore the value of the program. When you start out, make money a non-issue. You don’t want price to be what’s holding the client back. If you’ve given them a demo and you know they love the program, the cost of the program should be right in line with their desire to purchase. This is when you keep your supply of the program low, allowing you to keep the demand high.
- #8: The key to a successful program is FULL sessions, not necessarily MORE sessions. When you launch a small group program, you want to start out slowly and build your demand and therefore the value of the program. When you start out, make money a non-issue. You don’t want price to be what’s holding the client back. If you’ve given them a demo and you know they love the program, the cost of the program should be right in line with their desire to purchase. This is when you keep your supply of the program low, allowing you to keep the demand high.
- #9: The waterfall structure is the idea of starting out slow and waterfalling new programs in. Start out with one program in week 1 and do not add a new program until week 2. You can have a full schedule of what you’re going to offer ahead of time. But keep the new programs in your “back pocket” until you can be sure you have enough demand to fill them. Instead of starting out with way too many program offerings and having to scramble to fill them, with the waterfall structure you can add a new program only when you know it will be sold out. Once you’ve filled the programs you started out with, you can utilize the “SOLD OUT” strategy. This shows your members that there is so much demand for the program that you don’t even have enough time and space to meet the demand. You may have classes you know you can schedule, but don’t release them right away. Put up signs that say “sold out – ask a team member for details on the next GRAVITY program.” This also allows you to integrate new members into the programs easily.
- #10: The waterfall structure is the idea of starting out slow and waterfalling new programs in. Start out with one program in week 1 and do not add a new program until week 2. You can have a full schedule of what you’re going to offer ahead of time. But keep the new programs in your “back pocket” until you can be sure you have enough demand to fill them. Instead of starting out with way too many program offerings and having to scramble to fill them, with the waterfall structure you can add a new program only when you know it will be sold out. Once you’ve filled the programs you started out with, you can utilize the “SOLD OUT” strategy. This shows your members that there is so much demand for the program that you don’t even have enough time and space to meet the demand. You may have classes you know you can schedule, but don’t release them right away. Put up signs that say “sold out – ask a team member for details on the next GRAVITY program.” This also allows you to integrate new members into the programs easily.
- #13: Please let us know about the fitness market in your territory.