In
the past I’ve spent a fair amount of time prodding you to
take advantage of the PR opportunities available for motivated,
high-level, articulate trainers. I know several of you
have already secured your own local radio shows, your own
columns in print media, and regular TV and radio spots on
which you appear as experts. I congratulate you . . . but
that’s not why you did it. You didn’t pursue those opportunities
because you wanted my congratulations. You pursued them
because the opportunities offered a no-cost way to promote
your business, and as you’ve learned, the return can be
spectacular!
As a
matter of fact, today I was driving to my office in the
Miramar Park of Commerce. I was headed East on Miramar
Parkway, in a bit of a hurry to get to work, and I didn’t
notice I had slipped into a right turn lane. I zipped across
the road, moving left, to get in the forward lane, and BLAMMO!
Flashing blue and red lights! The officer came up to the
car and stood behind me. He wasn’t interested in making
eye contact or conversation. He said those all-too-familiar
words, “license, insurance, and registration please.” I
attempted to explain, but he wasn’t about to give me the
opportunity. He told me to wait right where I was and he
returned to his car to talk on that cool little radio cops
have. I saw him in my rear view mirror. He was waiting
for someone to get back to him, I guess to let him know
if I had stolen the car I was driving or if I had any outstanding
warrants. He studied my license and a moment later, walked
right up to my window. “Hey, you’re the fitness guy on
ZETA! I listen to you all the time. As you can see, I’ve
let my body go a little bit since I got married (he patted
his belly as he spoke) and I always hear you talking about
how anyone can get back in shape. What could I do to get
started?”
I drove
away with the policeman’s card and told him I’d invite him
to my next seminar (hmmm . . . that’s not a bribe, is it?).
As I drove away I realized . . . I deserved a ticket.
I did knowingly make an illegal maneuver. No ticket was
issued. Was I lucky? Maybe, but I find luck happens more
often when you aggressively seek out those opportunities
that initially appear elusive. If I had never been on radio
I have a feeling the kind officer would have returned to
my car with one of those pretty yellow little slips of paper.
I’m not suggesting you attempt PR so you can break the law
and get away with it, but I do personally see the benefits
of being perceived as an expert in many different ways.
In the past few weeks I’ve been interviewed for scores of
articles in publications from the National Enquirer (really!)
to Self Magazine. Am I lucky? Lucky that I learned long
ago that PR opportunities only show up at your door when
you don’t really need them, and that if you want to be respected
as an expert, a guest, and a great interview, you’ve got
to lay the groundwork.
The
Club Industry Conference
I just
met 170 trainers at the sessions I conducted at Club Industry
in Chicago. Maybe 3 out of 170 had actually capitalized
on PR opportunities. Interestingly, those 3 were the most
vocal throughout the session, happy to share their experiences,
relaying stories of great success. One wrote a weekly column
in the health section of her local newspaper. She had more
clients than she knew what to do with. Another retained
a client who was a bigwig at a local radio station and he
now airs a weekly fitness tip every Friday. He had just
raised his fees from $35 to $75! The third was appearing
on the local TV news doing a 4-minute fitness segment every
week. His business nearly doubled since he started appearing.
The benefits are immediate once you gain perceived status
as “an expert.” If you haven’t taken advantage of the PR
opportunities that await you, read through your back issues,
pull out the ideas that you find most compelling, and start
marketing yourself.
One
thing that I find frustrating about the breakout sessions
at large conferences, such as Club Industry, is that they’re
limited to 90 minutes and the people in the room are all
thinking on different planes when they arrive. 90 minutes
is sufficient for me to unify the group’s mindset, to help
them understand, conceptually, what it takes to be a true
fitness professional, but it’s challenging to pull off the
mindset adjustment and also deliver enough “how to” information
to give trainers complete clarity. After conducting these
seminars for near 18 years, I’ve learned that in terms of
actually facilitating improvement, the mindset is more important
than the “how to.” Once someone can clearly see a vision
of potential, the "how to" almost falls into place.
As a
result of my desire to really hammer home the perception
shift, I often go off on related tangents, I answer questions,
and I encourage full participation from the audience. No
two sessions are exactly the same. Because I can’t predict
precisely who will attend a given session, and what their
greatest challenges will be, I make up a handout, but point
out early on that it is simply a vehicle for taking notes.
I always apologize in advance in case I don’t complete the
handout. Completing the handout is not my mission. Teaching
trainers to implement success strategies is. As a result,
at the Club Industry conference, people left with handouts
that were not completed and they feel as if they missed
out on something. In this issue I’m going to do two things.
One, I’m going to emphasize that they didn’t miss out on
anything if they grasped the concepts of the Paid Small
Group Orientation, the Series, the Retainer, and effective
marketing. OK. I guess I finished with the first thing.
Now on to the second. I’m going to include the information
that completes the Club Industry handouts for my two sessions.
For many of you much of it will be a review, but it’s important
to frequently return to the fundamentals. This issue will
put those fundamentals together whether you’re a facility
owner, a Personal Trainer, or both. For those of you who
were at the Club Industry conference, your apprehensions
about what you might have missed out on will be alleviated.
Excellence
My first
session was titled Achieving Excellence For Your Club.
While it was for health club and personal training studio
owners, I was surprised how many fitness directors and personal
trainers showed up. Many expressed that they were hoping
to open a facility in the future and they wanted to do things
correctly from the start. I’ll describe the content here
as it applies to facility owners, but if you are an independent
trainer working without your own facility, you’ll be able
to pick and choose the rules that apply.
I started
the session out by discussing the word “Paradigm.” A paradigm
is a set of rules or guidelines that become associated with
a specific undertaking or career. I started in the health
club industry in 1978 and I’ve watched it go through some
stunning changes. Back when I started, and right up through
about the mid to late 80’s, the paradigm for health club
operation was as follows:
“Build
a clean club with adequate equipment, implement an aggressive
sales force and ad campaign, and expect to lose 50% - 75%
of your members when their annual memberships expire.”
That
was the mentality under which the great majority of commercial
health clubs operated. Revenue was almost synonymous with
membership. Customer service was virtually non-existent,
and attentions were placed on collections and appointment
setting. At the time, the paradigm worked, at least in
terms of profitability. As we completed the 1980’s and
moved into the 90’s, the industry started going through
a very distinctive change. The market was growing narrow,
as so many people had been alienated by health clubs. People
walked in with their guard up and their hands on their wallets
because they knew . . . those sales people will go to great
lengths to pressure, to coerce, and ultimately, to obtain
a signature and a credit card.! If you think about the
big picture, it doesn’t seem realistic to believe that that
old paradigm could have lasted forever as a standard for
health club operation. After all, if 75% of the health
club members aren’t renewing, that means at least 75% of
health club members were disappointed. Waste enough money
on memberships you don’t use, and it’s only a matter of
time until you decide, “health clubs aren’t for me.”
Aside
from the alienation of prospects and members, new challenges
emerged for those independent or small chain health club
owners operating under the old paradigm.
The
mega clubs started expanding with centralized administration
allowing them to operate with a lower cost per club.
The
non-profit clubs began expanding into the commercial realm
. . . with tax-exempt status allowing them to operate at
roughly 60% of the costs of a conventional commercial health
club. They began to rival the top health clubs’ equipment
selections, bells and whistles, and variety of fitness classes
and programming.
If a
mega club opens in your backyard, or a YMCA happens to negotiate
a deal for the land down the street, it’s very hard to compete
. . . especially if you’re operating under the old set of
rules.
There
are yet further challenges. As competitors operate with
reduced overhead, our costs go up in quest of excellence.
In other words, if you decide you’ll be better than the
competition because you’ll bring in a more experienced,
educated, and professional staff, you’re going to see payroll
escalate rapidly.
There
are also more perceived solutions out there than ever .
. . ranging from fat burners to ab trimmers, from diet programs
to infomercials. These offerings compete with club membership
offerings, and they can compete with much lower price tags.
I know
. . . it’s starting to look glum for the independent health
club operator. Don’t worry. There are plenty who are making
things happen . . . big time! They’ve just learned to a
adopt a new paradigm, a set of rules for the 21st
century. In my session I referred to the “new” paradigm
as, “The Management Paradigm for Excellence.”
The
new paradigm looks something like this . . .
“Sell
consistently, deliver a quality product, manage payroll
and costs, hire and develop exceptional performers, and
strive to deliver more value than people expect while encouraging
members to happily spend.”
The
new paradigm is clearly a shift from the older operating
mentality.
My intention
in this session was to actually demonstrate how I brought
a club from the brink of bankruptcy to the point of healthy
profitability, pointing out the rules and guidelines along
the way. Before I actually discussed the club, I felt it
important to discuss the Stages of Fitness Business Growth:
Stage
1: Chaos
Stage
2: Organization
Stage
3: Excellence
Almost
every health club opens its doors in a state of chaos. That’s
not necessarily a bad thing, at least not initially. The
trick lies in managing chaos, and finding your way out of
it within a relatively short time period. In the initial
stages of chaos, passion runs high, enthusiasm prevails,
and the challenges become clear.
Most
club owners in this session felt they were stuck in the
Chaos stage. Before I went into precise methodologies for
achieving excellence, I felt it important to provide some
preliminary rules. I wanted to work to develop what I have
already explained to you as the new paradigm. One great
way to develop a paradigm is to find role models who are
achieving excellence, and learn from them!
I’m
thankful I’ve had my share of role models, and when I had
the opportunity to interact with them, I became a sponge,
soaking up every bit of success information I could find.
One
of my role models is Joe Weider. Joe taught me the following
rules that absolutely play into the new paradigm:
Without
benefit oriented emotion-driven marketing, even the best
products will fail!
That
comes from Joe’s own experience, however, if you evaluate
the revenue growth of any successful product or service,
you’ll find it applies across the board. I think you’re
well aware that there are many products, from Bee Pollen
to Apple Cider Vinegar that have been sold massively through
emotion driven marketing, even though the value of these
products is questionable. I’m sure you can also think of
some health clubs that had what you believed to be inferior
products, yet the money poured in. Why? Emotion driven
marketing.
If as
a health club or studio owner you have the greatest personal
training staff in the world, and your facility is stacked
with exceptional equipment, something has to drive people
through the door before you can sell a single membership.
Fail to market by tapping into people’s emotions and you’re
in for quite a struggle. Push the right emotional buttons
consistently and business will literally flow to you.
The
second rule I learned from Joe Weider:
A
Business Founded in Passion Must Stay True to Its Mission
As trainers
and fitness professionals, we all operate businesses that
were founded out of our passion to help others. Too often
I see people who have potentially thriving businesses and
exponential growth potential get sidetracked by the lure
of quick money. I’ve seen trainers alienate all of their
clients by becoming aggressive marketers of multi level
marketing nutrition offerings. I’ve seen health clubs try
to become Physical Therapy centers and wind up with a For
Sale sign on their front lawns.
You
have to be true to your core business. If you are driven
by passion, it becomes relatively simple to focus that passion
toward finding a way to making it pay. If you let go of
that passion, work begins to manage you rather than the
other way around.
Another
role model that I personally learned from is Lee Labrada.
Lee has been a consulting client of mine, a frequent guest
on my radio show, and most importantly, a friend. I watched
as Lee used his bodybuilding acclaim to launch a nutritional
supplement company and I witnessed both his mistakes, and
his phenomenal achievements. In considering my experience
with Lee, I can pull out two rules, both of which have proven
invaluable in the continuous growth of my own business.
Maintaining
a Position of Integrity Can Be Your #1 Sales Tool.
Never
Consider Surrender, even Giants Can Be Defeated.
If
you know anything about Lee Labrada, I’m sure you’ll see
how these rules apply. In an industry where deception and
exaggeration are more the rule than the exception, Lee guarantees
his label claims and the quality of his ingredients. “If
it’s on the label, it’s in the package.” I remember the
early days of Labrada Nutrition, where Lee, his wife Robin,
and a skeleton crew of passionate but not yet experienced
assistants, went head to head against the massive giants
of the sports nutrition field. This shouldn’t be surprising,
as Lee took the very same approach when preparing to get
up on the Bodybuilding Stage, and his track record proves
it . . . Giants Can Be Defeated.
The
third role model I’d like to reflect on is Joe Cirulli.
I’ve written about Joe in several different publications.
Many of you met him at my East Coast PEAK Training Forum
in May of 2002. Joe is an incredible motivator, maintains
great vision, and is committed to success at all costs.
The first five health clubs Joe worked for went out of business.
That was his education in how “not” to run a health club.
Here’s what I learned from Joe:
Past
Failures Have Nothing To Do With Potential For Success
A
Well Trained Staff Sharing a Common Mission becomes an unstoppable
force.
There
are three traits Joe Weider, Lee Labrada, and Joe Cirulli
share. They all had:
-
A
Vision
-
A
Mission
-
A
Plan
Preparing
for Growth
We all
seek growth as nothing really stays exactly as it is. You
and your business are either growing, or you’re moving in
the other direction. When I work with fitness facilities,
in order to prepare for growth, I find it important to first
Determine the Present State of the Organization. The three
possibilities are:
Dependence
(correlates with Chaos)
Independence
(correlates with Organization)
Interdependence
(correlates with Excellence)
Dependence
indicates that the entire operation is dependent solely
upon an owner, manager, or CEO, and that head honcho is
constantly running around putting out figurative fires.
Independence
indicates a working model where each department is at some
level self-sufficient and can operate within the parameters
of goals, commitments, and budgets.
Interdependence
is the most advanced stage of business operation, and it
is far and away the most valuable. Interdependence suggests
that each entity, each employee, or each department not
only maximizes potential independently, but also feeds the
potential of others throughout the corporation. If you’re
operating a health club in the 21st Century,
Interdependence is where you want to be.
Once
the present stage of the organization is clearly identified,
we need rules and ideas so we can formulate a cohesive plan.
I’ve already covered some general rules provided by role
models. Now let’s look at some specific success rules for
health club operation:
- The
front desk is the control center. It is essential that
the front desk is staffed, but overstaffing can be a costly
mistake. Most clubs can operate with one front desk attendant
60% of operating hours.
- Personal
Trainers should never be a liability. They should receive
a percentage of revenues that they generate.
- Written
job descriptions are a necessity
- Sales
personnel should have the ability to earn significant
income in direct correlation to significant sales
- Membership
prices should be consistent and firm
- Marketing
dollars should be a percentage of the previous month’s
sales (i.e. 7%). Failure to track ads leads to risk of
cost outweighing production.
- If
a Profit Center isn’t generating a profit, it shouldn’t
exist.
Those
are the rules I use to formula a plan to move a fitness
facility operation from chaos to organization, from dependence
to independence.
The
next part of this issue is sort of like a “how to manual”
for taking a club out of chaos. I’ll walk you through the
process using an imaginary club, but I’m sure you’ll figure
out . . . the imaginary club is based on actual events at
actual facilities.
The
First Step: Identifying the Bright Spots
Before
you attempt to correct issues and problems, you need a clear
picture of your resources. In Club X, I identified some
overriding bright spots:
- The
club had sold 1,000 memberships in 5 months. That demonstrates
that it is a saleable product.
- The
demographics in the area were strong with a very high
disposable income
- The
immediate area lacked a fitness facility operating under
a paradigm of excellence
- The
club was large, well equipped, and clean
The
potential for success was there. We then move on to the
next step:
The
Second Step: Identifying the Challenges
Upon
close inspection, a chaotic business has inherent individual
challenges that warrant immediate action. One common challenge
is most clubs is a weak bridge from the point of sale and
Personal Training. To optimize potential for profit, there
must be an emphasis upon connecting new members with trainers.
This could be the single most powerful step in kicking profitability
into high gear.
I won’t
get into detail on the challenges I identified at Club X,
but I will provide a summation.
The
front desk was overstaffed, payroll was near 50% of revenues,
the sales manager was paid an exorbitant salary although
sales were unstable, there wasn’t any direct link between
the point of sale and personal training, the juice bar was
losing money every month, and there weren’t any written
job descriptions resulting in a chaotic free for all.
I know
at first glance that sounds as if the club was a complete
and total mess, but remember the bright spots. It just
needed some cleaning up.
Maximizing
Internal Leadership
With
the bright spots identified, and the challenges isolated,
it was time to work from the top down . . . to maximize
the impact of the leader. Remember, leaders have visions,
missions, and plans, so before we could take aggressive
action to correct the shortcomings, the owner had to refine
his mission, establish a clear vision of the organization
stage, and create a written plan.
The
Mission must be a compelling underlying reason for the facility’s
existence. The mission ties in with the passion that drove
you to start the business in the first place.
The
Vision must be a clear image of the Organization stage.
In zeroing in on a crystal clear vision, you have to provide
answers to the following questions:
- What
are the specifics that exist that make the facility unique?
- What
is the unique selling proposition that is backed up by
service?
- What
can members come to expect without being disappointed?
The
Plan must be in writing offering a comprehensive set of
guideposts by which you can monitor and evaluate progress.
The plan must include budgets and financial forecasts, written
job descriptions for all positions, standards that will
separate non-productive employees from those with potential
to grow, a marketing plan emphasizing community awareness
of the facility, direct marketing to establish a “position”
in the marketplace, and an internal marketing plan to connect
members with profit centers.
Is that
a lot of work? Putting together a comprehensive written
plan? Absolutely, but it may very well be the most important
determining factor as to what your future holds. Whether
you are a Personal Trainer, studio owner, health club operator,
or fitness competitor, I urge you to crystallize your vision,
your mission, and your plan.
Getting
to the Nitty Gritty
Once
the bright spots are identified, the challenges isolated,
and the vision, mission, and plan are all in place, it’s
time to take those aggressive actions that will move the
club out of the danger zone.
In order
to fix the chaotic operation at Club X, the following steps
were in order:
Terminate
non-productive staff members and hire qualified individuals
for the first Tier of Management (i.e. Fitness Director,
Membership Director)
Work
with the new managers to create a shared vision for the
new team
Establish
a compensation program with incentives for production
Hire
high-level trainers with recognized credentials
Put
the new hires through two weeks of intensive training prior
to them taking their places on the workout floor.
The
training of the Personal Training staff must include extensive
focus on marketing and building overall profit center revenue.
An overall
marketing plan must be designed including combined advertising,
internal marketing, and outreach, and kick it off by planning
an event that attracts the community.
A daily
focus must be placed upon membership and revenue goals
Close
controls using a bookkeeping system, purchase orders, and
petty cash accountability must be implemented and maintained.
Let’s
review the stages of fitness business organization:
Dependence
– the staff is 100% dependent upon owner and management
to make decisions and to prosper
Independence
– First level managers are responsible for maintaining
budgetary controls but can make marketing and purchasing
decisions
Interdependence
– The team emerges as a group of synergistic players who
collectively contribute to the bottom line with a reliance
on both specialties and teamwork.
In order
to grow a company interdependently, there some other
rules, rules that lead from a place of organization and
independence to excellence and interdependence:
You
must have a company-wide emotional buy-in. This is
a must for growth, for positive working environment, and
if you hope to send a consistent message to members. The
entire staff has to buy in (emotionally) to your vision,
mission, and plan.
The
Leader Must Lead. That doesn’t mean must put out every
fire, but instead follow the old ABC’s of the One Minute
Manager. Activate actions, measure Behavior, apply Consequences.
You
must build various tiers of excellence. The first level
management staff should have authority to make hiring decisions
(when budget allows). The second level staff should be
hired experts and professionals. These include sales experts
and fitness professionals. The third tier should be the
“bullpen,” individuals who want to become experts and professionals,
but have to do their time in less prestigious positions
as a trial period.
You
must creatively offer incentives in order to keep momentum
high. Reward for production, but do not pay for effort.
Effort without production is time wasted.
Recognize
your top performers as well as the second and third tier
people who perform exceptionally well. Recognition
breeds future achievement. This can include employee of
the month programs, newsletter pieces, or the awarding of
gift certificates of plaques. Public praise in a meeting
is an inexpensive way to ensure employee loyalty and production.
What
you have here is a list of governing rules that can take
any business from chaos to excellence, and in order to set
a standard, we need to clearly identify the New Paradigm
for Excellence in our field.
The
New Paradigm
Sell
consistently, deliver a quality product, manage payroll
and costs, hire and develop exceptional performers, and
strive to deliver more value than people expect while encouraging
members to happily spend.
The
Personal Trainers
The
next session I conducted at Club Industry was specifically
for Personal Trainers. It was titled, “Redefining Personal
Training Professionalism for the 21st Century.”
I started out by asking the trainers in attendance to answer
the 3 questions that lay the groundwork in most of my trainer
seminars.
- Why
Have You Chosen The Business of Personal Training?
- Who,
In General Terms, is Your Competition
- If
You Were To Write A Job Description For Yourself, What
Would Your Primary Responsibility Be?
It’s
interesting how in every seminar the answers to these questions
are the same. They chose their career out of a passion
for fitness, out of a desire to help others. Independent
trainers initially express that the large health club chains
are their competition. Their job descriptions never include
sales or marketing, but always related directly to customer
service. As you might have surmised by now, I know the
trainer mentality well.
After
a brief discussion reviewing the predictable responses,
I express that as professionals, if we truly position ourselves
as professionals, we can eliminate any competition.
We then
get into a discussion about “the Big Guys,” the mega clubs
with massive advertising budgets. Are they competition
for the struggling independent trainer? At some level the
answer would have to be yes.
The
strength that the Big Guys have is plain and simple . .
. lots and lots and lots of money. Trainers or independent
clubs can never compete with the marketing power of the
large health club chains. In order to do battle, the independent
fitness operator has to separate himself or herself from
“The Big Guys” by maximizing the value of the trainer’s
great strength. What is that strength? It’s twofold.
Caring and the ability to satisfy. Do the large health
club chain operators care? Sure . . . about money. We
care about people.
Can
the large health club chain operators satisfy? Statistically,
95% of their members don’t even show up regularly! We have
the ability to not only satisfy people, but to thrill each
and every one, that’s 100%, or our clients!
In order
to create that separation, to position yourself as being
different than the other advertised fitness and weight loss
solutions, you should live by the following promise. Promise
to consistently deliver more value than people expect!
Is that
hard to do? Nope. There’s a difference between what people
“hope” for and what they “expect.” While they hope they
develop lean, toned bodies, most people are so used to fitness
failure they’re shocked when they finally achieve a result.
If you focus on delivering more value than expected, you’ll
wind up thrilling each and every one of your clients.
Setting
Your Fees
It’s
amazing to me how trainer fees run the gamut. I meet trainers
who are charging $15 an hour. The average trainer in 2000
made $10 an hour. I charge $200 per hour! Am I 20 times
more valuable than the average trainer? Ego aside, I’d
have to say yes, but so are you! The average trainer doesn’t
subscribe to newsletters or attend conferences. The reason
I’ve achieved such great results in helping trainers increase
their income is in part because I’m only attracting those
who have the passion, the commitment, the desire, and the
willingness to work.
If you’re
closer to the $10 number than to the $200 number, think
carefully. If, in fact, you are delivering more value than
people expect shouldn’t you be treated as a professional?
Doesn’t a professional deserve to be justly compensated?
Do you believe if you raise your fees you’ll cost too much?
Then your thinking isn’t yet aligned with mine.
There
is a distinction between “cost” and “value.” If someone
fails to receive value, they will perceive their expenditure
to be a cost, but if that same someone delivers value that
exceeds his or her expectations, the expenditure is viewed
as an investment. I understand why you might start out
with fees at $35, but realize that your fees are marketing.
Your fees, in part, affect the perception others have of
you. Once you set your value too low, it’s difficult to
break out of the low-income trap.
Forget
about the word cost. I want you to think in terms of value.
If you can change somebody’s life in a positive way, improve
their health, help them love their reflection, boost their
self-confidence, and feel better about themselves, is there
any question that service has significant value, value in
line with doctors and lawyers?
As I’ve
shared with you before, there are three ways to increase
profits:
- More
clients
- More
actions per client
- More
$$ per action
If you’ve
been a subscriber for some time you know that already.
What do trainers conventionally do to attract new business?
They do FREE stuff. Free consultations, free fitness assessments,
and free workout sessions. Let’s think about a Golf Pro
for a minute. If you joined a country club, and paid $30,000,
and you wanted to take some golf lessons, would you expect
the Pro to teach you for free? Not if you have any common
sense. You recognize that this is his livelihood, and by
virtue of his position, he is a professional and deserves
to be treated as one. Ask a doctor to treat you for free
with the promise that if you like the treatment you’ll come
back next time your ill. He’ll either have you arrested
or laugh you out of the office.
It’s
time Fitness Trainers began to see themselves as “Professionals.”
If we aspire to lead the field, we shouldn’t follow convention.
We must identify tactics and methodologies capable of generating
excellence.
In the
session at Club Industry, I shared three vital foundational
business concepts that are often ignored by Personal Trainers:
- Make
Sure Your Pumps Exceed Your Drains (revenue pumps that
is)
- Develop
a plan – Without a Plan You Never Know If You’re On Course
- The
More People You Thrill The Greater Your Potential For
Profit and Growth
Much
as the role models I shared earlier, much as the top health
club owners, the top Personal Fitness Trainers have some
clearly discernible attributes that lead to success:
A Successful
Trainer . . .
- Has
a Plan
- Recognizes
the Drains Associated With a Business
- Learns
to Manage the Fine Balance Between Dollars Coming In and
Dollars Going Out
- Has
Value
- Delivers
More Value Than People Expect
- Commands
Professional Respect
Those
of you who have my Profits book, or who have attended my
PEAK seminar, have learned in some detail about the Seven
Mistakes Personal Trainers Make That Cripple Their Profitability.
I won’t get into them here, but I will list them, as this
ties in closely with the content matter this month.
The
Seven Mistakes
Trainers
. . . .
- Try
To Keep Their Clients Indefinitely
- Try
To Sell With Features
- Give
Away Their Valuable Service
- Sell
Packages
- Focus
On Taking People Through Workouts
- Believe
Marketing = Advertising
- Believe
Business Cards and Flyers Will Work
By now
you should be able, with some careful thought, to discern
why all seven of these actions are mistakes.
If we
are going to deliver value, we have to recognize what it
is that our clients want. I know initially you’d come up
with answers such as “they want to lose weight,” or “they
want great abs.” That may be true, but those are not wants
as much as vehicles. They want those things because they
believe they will bring them to a place where the feel better
about themselves. I’ve shared this in previous issues,
but it’s important and bears repeating.
People
Want:
- To
Feel Good
- To
Make a Positive Change
- To
Be Empowered
- To
Know Achievement and Potential
Trainers
who focus on “taking people through workouts” give up their
power by ignoring the importance of developing skills of
influence. Trainers often shy away from selling, yet their
competitors are full willing to sell aggressively which
puts the trainer at a major disadvantage
Trainer
Gain Profit Power by mastering skills of influence.
There
are four terms that I define in my sessions, as these are
four areas that together can have a very dramatic impact
upon profitability.
The
Consultation – this replaces the free consultation.
It’s an actual session, an hour spent one-on-one, trainer
and client. I believe you should charge consistently for
your time, thus, if someone wants to consult with you, your
hourly rate should be at least as much as it would be if
this person were to commit to ongoing sessions.
The
Series – this replaces the selling of packages, where
you collect money that isn’t rightfully yours until you’ve
completed your session commitment. Trainers destroy the
perception of their value by discounting sessions in exchange
for commitment. Isn’t commitment a requirement if someone
wants to make a positive physical change?
The
Orientation – this is a small group session that serves
as an introduction to supportive eating, to exercise realities,
to important fat loss concepts, and to taking complete control
of someone’s metabolism. The Greatest Challenge The Professional
Trainer Faces is Public Perception. The trainer needs a
forum where he or she can prove to clients that there is
true value here. The Orientation is that forum. Because
it is a group (ideally between 3 and 8 people), you are
not compromising your fees when you charge less than you
would for a standard one-on-one session. I suggest the
Orientation is priced at 25 – 30% of your regular per session
fees.
Marketing
– many trainers believe that marketing and advertising are
one and the same. Advertising is a form of marketing, but
I don’t believe it’s financially sound for a trainer to
rely on advertising to generate business. Marketing can
be cost-free. Marketing is any activity that puts your
likeness, name, voice, or image in front of your target
market. Advertising always has a cost involved. Even with
health club businesses, I believe optimally advertising
would be 5% of their marketing. There are so many ways
you can promote without tying up money and moving into a
deficit position.
We are
in a field that has unfortunately over the past two decades
positioned us to fail. As personal trainers, we face some
challenges people in other industries are able to bypass.
Challenges
Trainers Face
- There
isn’t a standardized recognition of professionalism
- Most
trainers give their services away
- If
we charge fees equal to other professionals in other fields,
we appear comparatively expensive in our own field.
- We
appear to be the most painful option in a field of quick
fixes.
- In
order to establish value, we have to separate ourselves
from the rest of the pack.
And
one challenge that a mentioned just a few paragraphs ago
that bears repeating . . .
- The
Greatest Challenge the Professional Trainer Faces is Public
Perception.
Remember,
in order to modify perception, we need a forum. We need
to position ourselves as experts and become resources for
basic understandable truth. The Orientation is that forum.
Marketing
Ideas
You
know I’ve already given you scores of powerful marketing
ideas in previous issues. There are a few that I’ve gone
to great lengths to explain in the months past, but there
are four that I want to highlight as they consistently prove
very powerful in increasing trainer perception and revenue.
Become
A Published Author
This
might sound difficult, but all you really have to do is
write a fitness related article, print it, laminate it,
and hang it from the handlebar of the stationary bike in
your health club. That’s a start. With time you should
start to develop some media concepts and seek out opportunities
to write a regular column for a local periodical.
Be
A Media Guest
I started
this issue by talking about the power of being a media guest.
It instantly positions you as an expert. Start out by contacting
the smaller radio stations with a press release related
to a timely, newsworthy, or shocking story. With perseverance,
you’ll find a great payoff (you might even get out of a
ticket or two).
Seminars
Sure,
you can promote for-fee seminars and not only generate significant
revenue, but you can also captivate and compel your audience
so you pick up recurring clients. It’s just that unless
you have a name for yourself, it’s challenging to get people
to pay to hear you speak. I’d suggest you start out by
speaking at schools, corporate luncheons, and networking
meetings. That will allow you to hone your skills and begin
to build a seminar program that can ultimately be your strongest
marketing asset.
Medical
Affiliation
Too
many trainers try to connect with doctors by knocking on
doors requesting a “you-refer-me, I’ll-refer-you” relationship.
These attempts rarely prove fruitful. Doctors have far
more on their minds than to recommend to every patient a
trainer who popped in one fateful day to drum up business.
Do doctors need your referrals? Even if they did, do you
really have all that many clients and contacts who have
immediate need for medical attention? I’ve found a far
more effective method of affiliating with doctors. Create
a platform where you stand alongside three or four doctors.
There are two powerful ways to do this. One is to find
three or four doctors willing to write articles for a newsletter
you’re going to produce. You will write an article as well.
Readers of the newsletter see an article by a doctor, another
article from a doctor, yet another article from a doctor,
and an article from you. Their perception of your value
is instantly raised. When you produce the newsletter, each
doctor will receive a nice stack that will be handed out
in their waiting area. They’re thrilled to participate
in distribution, since doctors, like trainers, have egos
and love seeing their name and a validation of their intelligence
in print. The other way to create a medical affiliation
is to establish a monthly health night at a health club
you work with. Each month, a doctor gives a 45-minute seminar
. . . and you work yourself into the rotation. Each month,
the doctors who aren’t presenting set up tables where they
can interact with people at their leisure. Of course you’ll
have a table as well. Again, the perception is, you have
an expertise in line with medical professionals.
Club
Owners and Trainers
The
final point I’d like to make before concluding with a review
is that club owners and trainers speak different languages.
Club owners have usually strapped themselves financially,
mortgaged their homes, gotten loans from banks, and are
in an ongoing struggle to not only repay all necessary debts,
but also to try to make a few dollars in the process. Trainers
think about helping people. Very often trainers tell me
their health club owners don’t care about personal training.
That’s because it’s being presented in a different language
than club owners respond to.
A typical
conversation in which a trainer wants to convince a club
owner to make changes in the personal training program has
the trainer saying something like this, “and I’m certified
and I really have a knack for getting people results, and
I know a lot of the members, and blah, blah, blah, blah,
blah. The club owner’s attention is elsewhere. If you’re
going to influence a club owner, you have to speak to him
in a language he understands. Money.
In my
seminars I ask the question, “What is an annual membership
worth?” Someone usually calls out, “four hundred dollars.”
Others in the room report higher figures, but what they’re
actually doing is telling me the membership price. I didn’t
ask what the membership costs, I asked what it’s worth.
If a
club sells memberships for $400 and 95% of the members fail
to show up regularly, 50 – 75% of the members don’t renew
when their memberships expire, and active members aren’t
contributing to the immediate bottom line, that club starts
each new month with a desperate struggle to sell more memberships.
Until it’s positioned properly, few owners recognize the
true potential of a personal training force. Let’s say
the club has 2,000 members, and 10% of them connect with
a Personal Trainer only once a month. That means 200 people
each month will be contributing money toward the club’s
bottom line. If the club were to receive only $10 per session
(and they should receive more), they’d increase their monthly
revenue by $2,000. That’s $24,000 in a year! But that’s
only a starting point.
Personal
Training is the pivotal profit center as it is capable of
feeding all other avenues for profit. When a trainer tells
his client how valuable a post workout recovery drink is
. . . you can be sure that client’s going to start plopping
down $3.50 after every workout. If the same 200 members
who took advantage of personal training buy only one $3.50
drink per week, four per month, the club would increase
monthly revenues by nearly another $3,000! Initiated by
the training team!
Recognize
that the club owner you might have been trying to influence
was unresponsive to your past attempts at initiating change
because you were speaking the wrong language. Explain the
positive impact you’ll have on the bottom line and I don’t
think there’s a club owner in the country who wouldn’t at
least give you a chance to prove yourself.
WRAP
UP AND REVIEW
In closing,
I’ll note the key points I addressed in my Club Industry
session. These points should help you integrate everything
I discussed, every idea that flew out of your head while
you were reading, and every “next move” you can make into
your plan.
-
Motivate Influential Individuals to Spread the Word
of Your Existence and Value
-
Prove
and Document Your Value on an Ongoing Basis, Carefully
Selecting Your “Guinea Pigs.”
That
should help you align your thinking to make a few shifts
in your business that when stacked upon each other can help
you double, triple, or in some cases quadruple your income!
Of course, there will be more empowering information next
to come. . . ‘til then, STAY FIT AND KEEP GROWING!
*
* *
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