Personal Training –Increase your Bottom line and Decrease Attrition

Tamer El-Guindy, MBA

Director of International Franchising

Personal Training Statistics

o Personal Training is the most important ancillary revenue in the Fitness Industry.

o Twenty Five years ago, most people were not aware of Personal Training, but today is a household term.

o In 2012, 9.6 million Americans paid for the service of a Personal Trainer.

Personal Training Statistics

o From 2005 to 2013 the industry has seen a 53% increase in Personal Training sales.

o For Commercial clubs, the incidence of personal training is 13%

o Personal Training Impact on Attrition is significant. Several Industry studies have directly related increase in PT with a direct decrease in Attrition and Increase Sales through referrals.

PT LOCATION

o Creating a specialized area in your location designated to personal training is important to create a sense of exclusivity and perceived value.

o Specialized equipment – Body Fato Function Training/ Core Training o Personal Training area

PT CUSTOMERS

o ALL MEMBERS ARE POTETIAL CUSTOMERSo 3.6 Million Members who belong to a health club and use

Personal Training are first time members of a club. o Understanding what the client want is the most

fundamental question.

THE BOTTOM LINE

o A Strong Personal Training business correlates to improved members retention since people who participate in personal training remain members longer.

o As with membership sales, there must be a constant focus on the front door, driving in new business and attracting new clients while also keeping a steady eye on the back door, retaining and serving existing clients.

PROFIT MARGINS AND METRICS

o After a competitive analysis of Personal Training, pricing can be determined. Standard overall profit margins range from 25% to 45%.

o Expenses include- Trainers payroll and taxes plus commissions and any advertising and promotion costs.

o Further allocations are: Fitness Manager, General Manager, General facility costs percentage.

INDUSTRY METRICS

o Percentage of Personal Training revenue to total gross revenue

o Penetration percentage of Personal Training Clients to total Membership.

o Percentage of Personal Training to member usage.o Average amount spent on training per member.

INDUSTRY METRICS

o Number of Active Clients ( unique users who have trained in the past year)

o Percentage of New Clients.o Renew Rate of Department and Individual PTo Closing Rate at Point of saleo Closing Rate at Orientation o Effectively Rate *

THE BOTTOM LINE

The Right personality is the most important qualification for a successful personal trainer. CORE VALUE

Training the person to have the skills ( Personal Training Certifications) is the next step.

RAZOR’S THOUGHTS

o People are the only true competitive advantage on organizations. You may copy systems, products, software and whole companies. But what you cannot copy is creativity, innovation and PASSION. The old business proverb “ Everybody is replaceable and expandable” is fundamentally wrong.

Organizations and leaders that follow this crucially flawed philosophy will eventually see that only thing truly replaceable is their own company.

RAZOR’S THOUGHTS

Customer satisfaction is WORTHLESS…..

Customer loyalty is EVERTHING…..

RAZOR’S THOUGHTS

o Customer Loyalty can only be achieved if you have employee Loyalty first. Managers search for ways to constantly reduce customer and product attrition and forget the obvious impossibility of doing so, without first achieving lower employment attrition levels.

BUSINESS MODEL

o Outsource- Positives- No Management and expense cost involved.

o In House- Positives- Control of Membership, ability to alternate attrition rate, Employee Loyalty directly connects with customer Loyalty.

BUSINESS MODEL

o Outsource- Negative- No control of membership base. Inability to impact attrition rate. Liability to sessions render, Negative Brand perception.

o In House- Negative- Significant management investment.

The culture of success starts with passion