The Originator of Budget Clubs - The Success Story
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Transcript of The Originator of Budget Clubs - The Success Story
The Originator of Budget Clubs - The Success Story
Presented byKenny McAndrew
1. History
• 2002 The shock of the 15€ membership• 2004 Going it alone• 2006 1st Budget Club opens• 2007 July – FitSpace doubles to 2 Clubs• 2007 October – doubles again to 4 Clubs• 2008 February – doubles again to 8 Clubs• 2008-10 Consolidation to profitability• 2011 Expansion
Big Gyms
With loads of kit...
What do you get?
• 150+ pieces of gym equipment• Separate free weights areas• Virtual spin classes• Stretch areas• PT (reps level 3) conduct
Inductions• Duty Manager (1st Aid qualified)
on duty• Join Zone• Other areas (Ladies only / quite
area / PT area)
Now the Smart bit...
Home/Office
FitSpace Solution 2. Customer fills in personal
details and accepts membership rates
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4. Joining fees included as part of 1st DD1. Customer logs
onto website
5. Customer fills in Direct Debit form (via Harland's Gp)
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3. Customer fills in pre-exercise questionnaire
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6. Customer books an induction session
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7. Confirmation screen displays all details entered and issues a PIN number
788. Customer goes to gym
and enters PIN number into the kiosk
9. Customer issued with proximity membership card
10. Customer enters gym via turnstile
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10Central Server
(Hosted?)
The Who question?
Food for thought...•10-12% of the local population are members of a health Club / gym / sports centre at any one time.•There is a direct correlation between obesity and low income. (Low income diet & Nutritional Survey 2007 for Foods Standards Agency)
•Private health Clubs and Gyms (and a number of local authority leisure facilities) are based in the majority, in middle to higher income areas
Experience of Gyms
Past = 45%
New = 20%
Current = 35%
Marketing Warfare
Flanking - High
Flanking - Low
Defensive Offensive
Guerrilla
GuerrillaGuerrilla
Guerrilla
The Future
Slide with permission from Ray Algar Low-Cost Gym Sector report 2010.
1. Segmentation of the Budget sector (Europe)Premium Budget – Big Fitness + Classes & other facilities. 20-30€ (£15-20)
Budget - Big Fitness, clean and simple 15-20 € (£10-15)
Hard Budget - Smaller Fitness, basic and hard core 10-15 € (£7.50-10)
Grunge Budget - Warehouse, temporary & basic fitness 5-10 € (£4-7.50)
2. More AutomatedFull height turnstiles with Biometric entry
Automated Electronic Marketing & Programmes
Summary•Budgets Gyms are the fastest growing sector of the Fitness Industry•They can offer fantastic value for money to the consumer •They need large investment, a sound business plan and robust and sophisticated IT. •They open up Fitness to those who have never been able to afford it before.
Future•They will squeeze the middle market•They will become segmented•They will become more automated.