Last year, we embarked on a journey to figure out what leading boxes around the world are doing to create financial success for themselves. We interviewed a broad array of boxes, asking them to share details about the performance of their box through a series of financial, operational and emotional questions.
With over 400 boxes responding, we got great insight into many facets of running a box, as well as identified what the leading boxes were doing right. In fact, we were able to create the most comprehensive financial performance information that we’ve ever seen for our industry. Here are the top insights we discovered.
1). Leading Gyms Charge More
Leading boxes charge far more than lagging boxes, about 30% more.
Leading affiliate gyms hire and train the best coaches, develop top programming based on the abilities of their members and have an amazing community that supports one another. They provide an unparalleled experience and realize the value they offer each and every member. They understand they provide more value than competing boxes, and therefore, can confidently charge more.
2). Leading Gyms Optimize Their Space
Leading boxes had smaller facilities and more members than lagging boxes. In fact, leading boxes were, on average, 24% smaller than lagging boxes.
Regardless of the size of your box, make sure you utilize the space well. If you’re seeing a large square footage per member, look for ways to offer more than one class at specific times (if space allows for it).
Remember, if you’re going to charge more for memberships, you’ll need to provide unbeatable programming and instruction. Stray away from offering large classes that pack members in like sardines. If your classes are full, look for opportunities to add more to your schedule.
3). Leading Gyms Avoid Discounts
Leading gyms do not discount their memberships. Because of this, leading boxes bring in about 50% more revenue per member than lagging boxes.
From Groupon and LivingSocial to discounted first month memberships, avoid bringing people into your box at a lower price point. While a discounted membership might seem like an enticing way to quickly acquire new members, it’s difficult, and many times impossible, to get them to pay full price for your product when they’ve experienced it at a discount. This again goes back to the idea that’s it’s absolutely okay to charge a high price for high-quality product.
Interested in learning more about what leading boxes around the world are doing right? Get your copy of Zen Planner’s 2016 Affiliate Gym Benchmark Report. It also features helpful benchmark data, including demographics, class types, average coach salaries and much more.
*Guest post by our partner, Zen Planner