What gym business terms are important to know, understand, and account for?
A guest post on my blog touches upon the most basic terms gym owners, operators, and personal trainers should know and account for. Here is just a snippet from that post:
EFT (Electronic Funds Transfer) - This is the most hassle free way to collect membership dues at a gym. Simply by getting a members credit card number or bank/routing number, monies are collected each month via auto billing so that you and your staff don’t have to feel like bookies tracking down unpaid gambling debts.
Also, keeping track of the clubs Recurring Revenue (collection of gross sales of monthly payments) based on the Number of Existing Members is as easy as clicking on the “Reports” icon in your auto billing system. With this in mind, you can also easily keep track of average monthly and total New Member Sales to ensure the positive growth of your club...
For the full article, please visit http://blog.gyminsight.com/ and give me your feedback as to any essential business terms in the fitness industry that were not mentioned and that you think are important and why!
I am hoping that everyone involved in this discussion to take something away from it! Thank you for participating!
it is a good idea putting some terms together to make sure that everybody has the same understanding.
I felt that the area of cost and cost/revenue relation was a little unrepresented. You use the word 'liability' and that encompasses it but I think that this would be worth expanding on. Business terms like Return on Investment, Break-even Point, for example.
"A fair and even generous Commission program will identify lazy employees..." What does this mean? I don't get how a fair or generous commission program shows the owner who the lazy employees are since the employee's take-home pay is a simple arithmetic computation of number of training sessions (times) the commission rate (assuming of course that their only source of pay is commission). If that's true, then it's the number of training sessions NOT the commission RATE that will actually tell the owner who is working harder.
I agree with most of the post, but think that in reality less emphasis should be placed in the post on NEW business, and more on RETAINED business. It's an old axiom in business that some businesses spend so much time and attention on 'new business' that they fail to take good care of their existing business. It costs a lot less to retain a client than it does to attract a new one!
That's my two-cents :-)
I also /agree with LaRue over the commission. There are a lot more things to include into a commission based position. Because I run a club of 900+ people, I regularly sign on a few people every week. A smaller club of 400 down the road gets a little less than half of what I do in a week, but the town is much smaller. There's another one near a metropolitan area north of here, and some clubs are 7000+. I don't even want to think of the numbers that join/quit every single day.