Health Club Owners Offer Advice on Surviving during the Recession
Hold on Tight: Veteran club operators who have survived past recessions share what they are doing to survive in today's troubled economy.
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What Others Have to Say
Club Industry's Fitness Business Pro recently surveyed many of the owners of clubs that appeared on the magazine's Top 100 club list in 2008. The owners were asked about subjects relating to revenue, membership and equipment purchasing for 2009. Most of the club operators expect revenues and club membership to increase or remain the same in 2009 compared to 2008 (for more details about this study, see "Industry Growth Still Anticipated"). Although many of them plan to decrease their equipment purchases compared to 2008, the majority of those surveyed do have equipment purchases planned for 2009. More than half of the club operators will be purchasing ellipticals, strength equipment and treadmills.
Here is a sampling of what club operators have to say about 2009:
"Despite the future uncertainty of the economy, I believe it is still important for clubs to continue reinvesting in their facilities and equipment. Historically, those clubs that have been able to consistently remain committed to continual improvement have outperformed their counterparts."
— Brent Darden, owner and general manager, Telos Fitness Center, Dallas
"I believe that this economy will have a negative impact on the fitness equipment suppliers in 2009. Many clubs are being faced with and have already experienced lower sales and higher attrition. I feel most clubs will be putting off their major purchases in 2009 because their money will be a lot tighter than it's ever been (payroll, supplies, utilities, etc.). It isn't the right thing to do, but unfortunately, it will be what most independent club owners will do because of money crunches."
— Jan Rubins, owner and general manager, LifeCenterPlus, Hudson, OH
"In the face of the economic situation that all America is challenged with, we are taking a close look at our spending in order to partner with the appropriate vendors and purchase the best equipment, product and services to exceed our members' expectations. By partnering with the right vendors for the right product and service, we then are not afraid to spend the necessary dollars to take care of our customer. This enables us to give our membership the best and eliminate any unnecessary spending on repairs or replacement and minimize our downtime for preventative maintenance."
— Mark Stevens, general manager, The Houstonian Club and Spa, Houston
"I do believe that it is more important than ever to make sure all your equipment is in excellent working order. While times can be tough for all of us, now is not the time to reduce service and allow equipment to go dormant. The stronger you weather the storm, the more confidence your members will have with you during the good times and bad."
— Chris Tointon, CEO, Greater Midland (MI) Community Centers
"We will most likely begin the year conservatively by waiting to see what the economy does prior to making major purchases. However, we understand how important it is to continually reinvest in our business and will not hesitate to do so if we determine it is necessary."
— Phil Wendel, owner, ACAC Fitness and Wellness Center, Midlothian, VA
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