What is a “passive” profit center?
It’s a service or shop that is totally dependent
upon the regular traffic of your club or training facility for
business.
Does your pro shop, juice bar, or tanning business
pro-actively solicit business outside your facility? Probably not -- that’s
why they’re considered "passive."
If you have a weight-management program, it can be incredibly pro-active through outreach. It can be aggressively
marketed inside and outside your facility. And, when
implemented as a core service, it will stimulate your
“passive profit centers” through member retention.
Here’s an example: Mary Jones is Worth $2,000+ - and she has 20 close
friends -
- Mary Jones is a member at your facility. She's 35 years old, with
two children. She's decided to get into shape.
- Mary enrolls in your Weight-Management and Lifestyle Program (nutrition only) for $299.
In one year, she will make twelve $30 supplement
purchases for an additional total of $360.
- Mary needs a personal trainer because she's never used some
of the equipment. She purchases 6 sessions @$50 per session for a
total of $300.
-
Mary brings her two children to the gym 3 days a week at $2
per session. That's $6 per week or $312 per year.
- Mary averages $10 per month on tanning as she knows better
than to sit too long in the sun. Over the course of a year she'll spend $120.
She'll also spend $250 per year at the juice bar on
herself and her children. As Mary's body
starts to change, she finds herself in the pro-shop buying fitness
apparel that compliments her new figure.
- Mary's friends notice her new lean and energetic persona. They ask
her how she did it. She refers them to you and your Weight-Management
and Lifestyle Program.
Through weight-management and lifestyle programming, your members and clients
achieve their fitness and cosmetic goals -- the very reasons they came
to you in the first place. As a result, your retention rate increases.
And, with retention, your other profit centers also reap the reward.
Passive” Profit Centers Check List
Do you have “passive profit” centers located within your
facility? If so, think of ways you might combine efforts to help promote
each business. For instance, you might develop a special menu for the
juice bar -- or special discounts at the pro shop, etc. Don’t forget
that you can barter or trade for products or services under your own
roof.
- Pro Shop
- Juice Bar
- Personal Training
- Group Instructors
- Child Care
- Chiropractor
- Café
- Full Restaurant
- Travel Agency
- Salon
- Nail Salon
- Massage
- Car Valet
- Tanning
What kind of activities can you conduct with these passive profit
centers to help cross-promote each business?
Here's are some examples:
- One facility ran a sales promotion contest with its program instructors and trainers
to see who could distribute the most “Free Fitness Assessment”
coupons. Each coupon had the instructor’s or trainer's name on it. When it was
redeemed, the instructor scored a point. The prize was $100 cash. This
promotion generated 15 new sales. Could you do this?
- Here’s a simple cross promotion. The weight-management program
refers clients to the juice bar for special menu items created
specifically for the program. The clients are provided coupons for the
juice bar entitling them to a 10% discount on those menu items. It’s a
simple idea with a win-win result.
- Want to make it even simpler? Implement an internal lead-box
campaign at each member service location. Offer a free weight-management
program for the winner. Although this may be considered a “no-brainer”
you’ll at least gain lots of new leads for your weight-management and lifestyle program.
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