Pilates Still a Revenue Source During the Recession

Proof of Pilates: Although some fitness club programs may be suffering because of the economy, mind/body programs, such as Pilates, are faring well at some high-end clubs.

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As the number of group Pilates classes increases, the need for truly qualified instructors who know how to train multiple people at a time also increases, many club operators say. In the past, the demand for mind/body programs has exceeded the supply of instructors, but that's beginning to change, says an international mind/body company executive, who has seen an increase in the teacher-training side of his business.

High-end clubs have an advantage in hiring the best Pilates instructors because of their resources, IDEA's Webster says.

“Pilates instructors typically earn more per hour than any other type of instructor,” Webster says. “This leads me to believe that high-end clubs can better afford to hire qualified Pilates trainers.”

Hiring the best Pilates instructors often depends not only on the amount of money club owners can afford to pay but whether the instructors are willing to adopt the philosophy of a club's Pilates program. Adrienne McBride, the corporate director of fitness, group fitness and Pilates at Club One, San Francisco, took over the Pilates program at Club One four years ago. Prior to her arrival at Club One, the company grossed $200,000 in Pilates but netted only $1,000 annually.

With a more careful approach to business and a greater emphasis on instructors teaching the program McBride's way, the program's revenue has increased. Last year, Club One generated $1 million from its Pilates program with a net of about $400,000.

McBride's program is fitness-based Pilates, designed for clients to work up a sweat and get in a good workout, she says. McBride switched from one-on-one training to more group training, and she let go instructors who disagreed with her philosophy, she says.

To make Pilates programs even more profitable, some club operators are marketing to nonmembers as well as members. About 10 percent to 15 percent of the people in Club One's Pilates program are nonmembers, McBride says, adding that nonmembers are attracted to the Pilates program more than they are to the club.

A typical hour-long Pilates session at Club One costs $25, so in a group session with six clients, the club generates $150, half of which goes to the instructor.

“You've got to make that $25 so worth it,” McBride says. “You've got to create a sense of community and really bond with the six people.”

Club operators have relied on creative marketing to attract both members and nonmembers.

Telos Fitness Center features bridal Pilates packages for soon-to-be brides, as well as maternity Pilates packages for soon-to-be moms. Partnerships with local businesses are important to Telos, too. Telos officials are in discussions with a local mall to set up Pilates classes in the mall's outdoor garden.

“We've always sought out a high-end customer that was looking for a full experience, whether it was training or Pilates or yoga,” Duran says. “We realized that more than ever, that still has to remain our focus but that we have to find even more unique and strategic ways to get a person in here than we normally would. Everybody's looking for a way to increase value for their customer and make things exciting and fun and stress free.”

Instead of asking prospects to just try out a membership or a guest pass, Duran encourages them to try the club's mind/body services. During a tour, she introduces prospects to Combs in the Pilates studio.

“People are a little more open to some one-on-one attention,” Duran says. “Once they meet Veronica and see what she has to offer and the studio, they're blown away.”

Although Greenwood relies heavily on its membership base, the club's director of Pilates devised a program to offer nonmembers a certain number of sessions per month for a higher price than members pay, Neubert says. Nonmembers pay $10 more for private or semi-private Pilates sessions and $5 more for equipment-based Pilates classes, she says. After a session, the Pilates instructor escorts nonmembers to the front desk, walking past the cycling studio, the cardiovascular area or an energy zone class so they can see all that the club has to offer. If the nonmembers want to stick around at the club after their session, they have to pay extra, Neubert says.

Each month, O'Clair offers programs to familiarize people with Club Xcel's Pilates offerings. She targets everyone from the deconditioned, and members who never participated in Pilates, to athletes. The club recently conducted a Valentine's Day Pilates partner program that resulted in multiple-pack sessions for nonmembers who wanted to continue coming to the club, O'Clair says.

“I hit all my markets with the specialty programming,” she says.

No matter how big or small a club is, all club operators are more than aware of what's going on around them regarding the economy, and several of them are responding by adapting their mind/body programs. As the executive from the mind/body program company says, “It's an opportunity to redefine and pay closer attention to what we do. Everybody is sharpening their pencils.”

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© 2012 Penton Media Inc.

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