Mark Mastrov: Proven Game Changers for Health Club Operators

As the industry faces a tough year ahead, club operators should try these strategies to pull through.

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Marketing. By now, you have more than likely cut your marketing budget in a desperate attempt to shave expenses. If you indeed need to do more with less, then go back to some of the basic local marketing techniques that are a cornerstone of our industry. Grass roots marketing — such as lead box programs, flyer distribution, corporate programs, connecting to local schools, the chamber of commerce, community and charity events — can yield big results if you make it a primary focus. The only grass roots programs that don't work are the ones that no one focuses on with their time and energy. In today's market, we need to continually reinvent ourselves and look for opportunities to become a staple within our communities and drive our own traffic. Price drops are never the solution to low volume. Call all of your former members and make them an offer to come back that they cannot refuse. Look to barter and trade where you can. Focus on the area of influence in your club's market. You need to own those areas.

You should also consider cutting costs — but in the right places. Bid out your contracts, as a lot of good quality companies are willing to do more for less than before. Look at areas such as janitorial and supplies — from paper to cleaning goods. Dig into repair and maintenance, bank fees, processing fees, media and even rent. You may be surprised at how many landlords are willing to renegotiate a lease to keep a good tenant. Look at every line item and get aggressive.

Team Building. I don't believe in cutting back on key team members who connect with members and make our industry successful because the savings look good on paper or to hit a year-end target. We have learned over the years that our industry is built on human capital. We are in the business of connecting our team with our members and our communities, and helping people change their lives for the better. Now is the time to invest in our most important asset — our teams. We need to pump up the volume on training and development, morale building contests and events, and create a rallying cry around making a difference in the lives of our members. We need our teams to excel, even in today's economy. People perform best when they know that they matter. Make them matter.

As my good friend Bahram Akradi said to me recently, "I've never seen a market like this in my 27 years in this industry." We are working harder than we ever have, and we are getting the job done. This is what it is going to take — working harder than ever before. So let's get focused and fired up, because now more than ever is the time to step up.

Mark Mastrov, founder of 24 Hour Fitness, is now an investor in various business opportunities through his company, New Evolution Fitness Co. He can be reached by e-mailing mark.mastrov@fitnessbusinesspro.com.

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