By: Michael Scott Scudder
Hi everyone! A little different between-newsletters-blog today. No A/V this time, just a few KPI's that may help you, from our not-quite-yet-completed 1st Quarter Business Results Survey.
Responses to-date representing well over 700 facilities. Full infographic-type report will be coming to you via private email in about a week.
- 56% report higher profits in the 1st Quarter ’15 vs. same period ’14 (50%).
- 61% say business will be more profitable for the rest of the year than in 2014.
- 51% report higher Group Exercise class attendance 1st Q ’15 vs. 1st Q ’14 (25%).
- Only 34% say GEX attendance will be up for the rest of 2015. ???? GROUP EX IS A HIGH RETENTION PROGRAM AND STRONG KEY PERFORMANCE INDICATOR (KPI)…WHY SUCH LITTLE FAITH IN IT?
- More clubs (56%) reporting increased profits in ’15 vs. ’14 (50%).
- But average profit margin dropped to just under 8%. Getting increasingly tougher to make higher profits.
- Total sales increase in 58% of clubs; ancillary sales production is carrying the load, not membership sales.
- Ancillary revenue average percent now at 24%. In other words, nearly 25 cents of every dollar is being produced at predictable profitability – a good sign. THIS IS A HUGE KPI FOR YOU.
All that said…only 35% of respondents are “very optimistic” about their business’ future. And only 9% are “very optimistic” about the economy turning around in 2015. The effects of a long financial downturn are still with us.
AND – A SCOOP ON A SOON-TO-BE-RELEASED NEWS ITEM! Fitness Business Council (www.fitnessbusinesscouncil.com) will merge into Wellness Business Council (www.wellnessbusinesscouncil.com). It’s time…many quality clubs now embracing wellness and not just fitness. WBC is now live…click this link.
- Your FBC membership entitles you to a free-for-the-balance-of-2015 membership in WBC.
- I have posted four (4) great downloadable info pieces in the passworded Members Only page (Password: fit2well – exactly as shown, all lower case letters).
- A great how-to on better email marketing for your club: THE FUTURE OF EMAIL HINGES ON CONTEXT
- How-to on doing a better job of listening to customers: LISTEN-UP CUSTOMER FEEDBACK GUIDE
- State-by-state rankings for well-being, 2014: GALLUP HEALTHWAYS STATE RANKINGS
- Top 100 U.S. Communities for well-being, 2014: GALLUP HEALTHWAYS TOP 100 RANKINGS