Are Anytime Fitness Enrollment Fees Too Low?

Are Anytime Fitness Enrollment Fees Too Low?

Here's a question you don't often hear asked: are Anytime Fitness enrollment fees too low for their own good?

Too low for WHOSE own good, you ask? After all, people joining as new gym members of Anytime Fitness surely don't mind if prices drop.

But from the standpoint of a small business owner, and specifically as a health club owner, are Anytime Fitness enrollment fees too low right now?

Anytime Fitness "regular" prices may vary depending on where you live, but some sources have quoted these averages:
1 year Membership: $33 a month plus a one-time $39 key-fee for anytime access,
2 year Membership: $29 a month plus a one-time $39 key-fee for anytime access.

Take a look at the picture posted to the right. This is a real promotion being offered by Anytime Fitness in my area. For a very limited time, you can join for $1 + 1 month free. I took this picture today. While I'm sure this promotion may indeed "make the door swing", there are two distinct drawbacks to running a health club promotion where you DRAMATICALLY drop the price:
1) The existing health club members who paid more than a buck for their membership will feel like they were ripped off. At best, they will feel disappointed that they missed out on a good deal because they joined too soon. Some of them who joined very recently may ask the gym owner to honor the sale price for them as well and give them a partial refund.
2) The second drawback to running a health club promotion like this is that, for SOME people, you effectively (and permanently) lower the value of the membership. Many customers keep a "running tally" in their mind of how much things should cost. When a price drops to a new low, what you've done is set that price mentally lower for the price-conscious customer. You've lowered the bar, so to speak.

Many potential customers who haven't yet joined the health club, but WANT to join, will refuse to join the gym until the price is back down to that "new low" of $1 + 1 month free. It's a mental game of sorts, where people take pride in achieving the lowest possible price on their purchases. They'll remember that price, and some of them will remember it for a long time. So next month when Anytime Fitness offers memberships for $10 (or whatever), those price-conscious consumers won't bite.

This concept that the customer remembers the lowest market price and waits to buy until they can meet or beat that price isn't exclusive to the fitness center industry. Many consumers "stock up" on groceries when they can get a great price. I've been known, for example, to buy ten tubes of toothpaste when I see it on sale for less than I've ever seen it before. I remember that lowest market price and buy accordingly.

Another great example is the purchase of stocks. Many traders will analyze a stock and look at the 52-week high and 52-week low. If nothing intrinsic to the business has changed since it hit that 52-week low, then I may decide to wait and buy when it hits that 52-week low again. Why pay more for the stock than the 52-week low?

To summarize, the major drawback to running a great health club sale is that you run the risk of angering existing gym members who recently paid more while at the same time "cheapening" the value of the membership in the minds of some cost-conscious consumers.

So, back to the original question: are Anytime Fitness enrollment fees too low?

Despite the theory that this $1 sale can backfire, Anytime Fitness has been doing quite well for itself: "The chain of franchised gyms spans 14 countries. As No. 14 on our list, the company notched steady growth even as sales climbed to nine digits. Revenues approached $500 million last year, nearly double the company’s 2009 take" (SOURCE: http://www.forbes.com/sites/jjcolao/2013/02/06/americas-most-promising-companies-the-top-25/)

The bottom line is that there are probably better ways to run a health club promotion. But that fact doesn't seem to be hurting Anytime Fitness, who was recently awarded a #6 ranking in Entrepreneur's "Franchise 500 List".

 

JC Penny Back To Issuing Coupons In 2013

JC Penny Back To Issuing Coupons In 2013

Small business owners, take note of what has happened to JC Penny over the last 17 months! Books will be written, and classes will be taught, about the story we've seen unfold at this once-dominant retailer.

Just in case you're not aware of the JC Penny story, here's the Cliff Notes version. About 17 months ago (November 2011) they hired Ron Johnson as their new CEO. Johnson was basically hired to attract younger, richer customers. Ron was "a good bet" too, because he used to be Apple Inc.'s senior vice president of retail and helped create that company's very successful retail stores.

Under Ron's leadership, JC Penny rolled out their "fair and square" advertising campaign. Instead of advertising specific products, and a temporary price reduction for those products, this new ad strategy instead emphasized the convenience of Every Day Low Prices (referred to as EDLP in the retail world). "In one spot, a dog jumped through a hula hoop held by a little girl. The text read: 'No more jumping through hoops. No coupon clipping. No door busting. Just great prices from the start.' (SOURCE: http://www.9news.com/money/333745/344/JC-Penney-ad-apologizes-to-customers)

To make a long story short, the switch from coupons and sales to Every Day Low Pricing simply didn't work. The company's sales dropped faster than Lance Armstrong's popularity after he admitted using performance-enhancing drugs. In early May 2013 JC Penny released a commercial confessing to the blunder: “It’s no secret,” begins a new J.C. Penney television ad, to a soft piano soundtrack and nostalgic images of old storefronts. “Recently, J.C. Penney changed.” In the ad, the company shies away from directly addressing Johnson’s upgrades, including Denim Bars to help J.C. Penney shoppers find the perfect jeans, not unlike Apple’s Genius Bars.....these and other missteps (including, presumably, the chain’s much-derided moratorium on discounts and sales) are glossed over as “changes” in the ad" (SOURCE: http://www.forbes.com/sites/clareoconnor/2013/05/01/j-c-penney-releases-apology-ad-begging-shoppers-to-come-back/)

Okay, so what's the take-home message for small business owners like us? While many business lessons can, and will, be taught from the JC Penny story the salient point here is that customers LOVE a sale. Always have. Always will.

Maybe you've seen the bumper sticker that boldly states "You can have my gun when you pry it from my cold, dead fingers." This classic American quote has been around for decades, becoming famous when it was featured in the movie 'Red Dawn'. It's not a huge leap of the imagination to see JC Penny customers shaking their collective fists at Ron Johnson, screaming out their mantra: "You can have my coupons when you pry them from my cold, dead fingers".

Taking away their coupons was probably the death-knell for Ron Johnson.

So, as a small business owner, are YOU offering coupons and sales to your customers?

Be honest. When was the last time you ran an ad in the local newspaper that had a coupon for $___ off the usual price? When was the last time you ran a radio ad offering $___ off for the next 10 people who called your business? When was the last time you announced (on your Facebook page) that you were offering a $___ discount today only? Have you grown complacent and quit sending out coupons?

If you quit sending out coupons, and quit offering sales, you do so at your own peril.

After all JC Penny is back to issuing coupons in 2013 and THEY had to learn this lesson the hard way.

Take a lesson from Ron Johnson and issue some coupons in 2013.....because customers LOVE a sale. Always have. Always will.

FREE Small Business Marketing Ideas

Since when do small business marketing ideas have to cost an arm and a leg? The simple answer is: THEY DON'T. Some of the best small business marketing ideas are completely FREE of charge.

Today, like many days, I went into the nearby Subway for a $5 footlong sandwich. Love that deal! Anyway, as I entered the clerk behind the counter said "Hi, welcome to Subway" in a friendly voice. As I was paying for my order that same clerk greeted another customer that had just entered. I got the distinct feeling that this crew is greeting EVERY customer that enters their store. It sounded like an honest greeting, too, not contrived or forced.

Maybe they got the idea from Jacksons, one of many local gas stations. I've been going there for years, and it is a very rare day when you can enter without being verbally greeted with a friendly "hello" or "how are you today?"

How much does it cost these businesses to greet their customers? ZERO.

How much goodwill does this simple gesture create? Hard to say.

There are studies upon studies proving that people value good customer service. It's been proven again and again. Without a doubt, a friendly greeting is plain old-fashioned good customer service.

This tactic not only creates loyalty, but it can also make the cash register ring. People will pay more for good customer service, and that's a fact. For example, near my home we have a grocery store where the service is bare-bones. They don't bag your purchases. They don't even have "baggers" on staff. Carry it out to your car? Forget about it! As a matter of fact, if you encounter one of their employees on the sales floor you almost guaranteed to be ignored completely.

On the other hand, I also live near another grocery store that is more traditional. They have a Courtesy Clerk bagging groceries, and they'll take it out to your car if you want. Some of the clerks will smile and greet you. They are, at least, making an effort towards customer service. This store charges much higher prices than the no-service store.

The service-oriented grocery store is still in business. This means that at least some consumers will pay more for the same product when that product is offered with a serving of customer service.

Back to the smile and greet thing. Smiling and greeting each customer as they walk in the door is a free small business marketing idea that just may pay off for you and your business. It takes little effort. The cost is zero. The goodwill created, while hard to quantify, is still real enough to generate more sales.

.....and that, ladies and gentlemen, is enough for both you and I to take a good hard look at implementing this free small business marketing idea.

Why not require the front desk staff in our gyms to greet each person as they arrive? In doing so, we'll be adopting the tactics embraced by:
-> Subway (the world's largest submarine sandwich chain with more than 37,000 locations around the world)
-> Jacksons (a nationally recognized chain of over 200 Chevron/Texaco/Shell branded convenience stores in 5 western states)
-> Walmart (each week, more than 200 million customers and members visit their 10,700 stores under 69 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs 2.2 million associates worldwide.)

Yup. Walmart has perfected this free small business marketing idea. They hire people to be nothing but greeters. You think you know better than Walmart, the biggest retailer in the world? Hey, Walmart does a lot of things wrong but this is one thing they do right.

So, it really is true. Some of the best small business marketing ideas are completely FREE of charge.

Gym Membership Drive Ideas for May

Believe it or not, tomorrow is the first day of May already. School is almost out for the year and summer's about to begin. How are you doing on selling gym memberships?

Do you need some gym membership drive ideas for May?

Thankfully, we have a list of more than thirty free advertising ideas and marketing tips that will help you sell more gym memberships this May! When you have a product to sell (which you do: health club memberships), then event marketing can be a powerful way to boost sales. In other words, you can form a connection between a national event and your fitness center. By partnering with a national event or cause in this way, you gain the double benefit of helping a worthy organization while at the same time dramatically improving your own sales and profits. It's the perfect win-win situation!

Click here to read our 100% original article that is PACKED FULL of gym membership drive ideas.

How To Sell More Gym Memberships This October

Tomorrow is October 1, and like most gym owners or health club managers you're probably wondering how to sell more gym memberships this month. After all, the big boom of holiday sales won't begin for at least a month. People aren't thinking about squeezing into that holiday dress yet, and gift certificates as last-minute stocking stuffers won't sell until late December.

But there is some good news!  October is literally PACKED with awesome opportunities for health club advertising! As a matter of fact, there are so many great marketing ideas for gyms in October that we had to categorize them into nine different sections! You can read all about it.....for FREE.....click here to read our original article titled "How To Sell Gym Memberships In October".

Yet another GREAT example of how you can sell more gym memberships this month is by issuing a press release to the local media. Write up a short article on the topic of Halloween candy. You could call it "Halloween Candy Calories Add Up To One Scary Story" or maybe "10 Ways To Lose Weight This Halloween". Make it short, concise, and catchy.

Then, when the local newspaper prints the article, they'll include a short promotional blurb about your gym. It's sometimes called an author's box, and it basically lists your qualifications and contact information. If you can, you should mention that you're offering a limited-time Halloween promotion. For example, you could trade 5 pieces of Halloween candy for free 1-week pass.

Print up this article and distribute it in the health club, too. Email it out to gym members. Get it out there as much as possible, simply because it's free advertising for you! For a sample article you can use to get you started, click here.

Now get out there and sell some more gym memberships this October!

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Best Gym Marketing Ideas For August

Welcome to August!

Smart health club owners know that the best gym marketing idea this month is the back-to-school promotion. At back-to-school time, moms (and dads) suddenly have more time to do something for themselves. Why not encourage them to spend that time exercising?

As a fitness center owner, not only can you market to parents this month, but you can also target teachers and other school employees. How about offering group discounts to teachers? If you decide to go this route, don't forget to make up some posters to hang in the teacher's lounge of the local school.

Also, keep in mind that when school starts, so do the inevitable fundraisers! Kids are ALWAYS looking to sell chocolate bars, cookie dough or books. Why not help them meet their financial goals, while they help you meet yours?

Here's how: consider providing the local school with a customized and personalized gym membership offer: "Friends of ABC School can join this month for $75 registration (instead of the usual $150) and $50 will be donated directly to ABC School". The kids will do the selling for you, distributing their flyers all around the neighborhood. All you have to do is sign up the new members and give the school a check at the end of the month.

Concerned about that whole "giving a check" part? You shouldn't be. If you gain 10 new members you wouldn't have gained without this promotion, and those 10 new members pay you $750 of which $500 you have to give to a worthy cause, then YOU STILL WIN. After all, you still get the $250 in registration fees. You also get to keep the ongoing monthly revenue, which is the real goal here anyway.


Need more ideas on how to make more moolah this month? Check out our 100% original, and 100% free, article titled "How To Sell Gym Memberships In August".

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Curves For Women Cost Of Membership

The Curves For Women cost of membership dropped this week when they rolled out a national ad offering "Get 2 Free 2-Week Curves Memberships". In short, Curves is offering one two-week membership for you, and one for a friend.

So is this a smart move on the part of Curves, or has the 900-pound gorilla in the fitness industry finally made a mistake?

The short answer is "no", Curves has not made a mistake by offering literally millions of free guest passes. Let's face it, the folks at Curves are SMART. You may not like their business model. You may not like their workout. You may not like their machines. But the one thing you cannot dispute is that they know what they're doing. Curves didn't get to be the biggest health club franchise by being stupid.

By offering so many free guest passes, Curves is simply playing a numbers game. They know that for every x number of women they get through the door, y will join as full paying gym members. By offering these free passes, Curves is simply increasing the number of tours their clubs will give (x) which will in turn increase the number of women joining the club (y).

Some fitness center owners are, believe it or not, afraid to offer free guest passes. They fear that offering a free trial pass will "cheapen" the membership somehow. They fear that it devalues the health club membership.

To answer that objection, just consider the facts:

CostCo is well known for offering free samples of the food items they sell. Is CostCo stupid? Of course not. CostCo is one of the most successful retailers in the world.

Car dealers offer you the opportunity to take a free test drive of any car, at any time. Why do they do that? Doesn't it "cheapen" the car? Of course not! Car dealers know that the free test drive is a proven method to increase sales.

Retailer Bed, Bath and Beyond provides a display of most items. In other words, they take the item out of the box and set it up so you can mess around with it and check it out. It's the coffee-maker equivalent of the free sample, and IT WORKS. Customers are much more likely to buy a product when they can feel it, see it and "kick the tires", so to speak.

So, did Curves make a mistake by running a newspaper insert offering "Get 2 Free 2-Week Curves Memberships"?

Nope.

Savvy gym owners will follow their lead and crank up their distribution of guest passes. It's a proven business method that works. Need some ideas on how to get more guest passes into the hands of potential customers? Check out our articles titled "Health Club Advertising Ideas - Guest Passes" and "Health Club Marketing With Free Passes".