I wanted to reconnect with you with respect to the presentation earlier this month about our uptick in complaints of overcrowding and the lack of equipment available to our members, especially during peak hours. The consultants did a nice job of laying out the current situation, identifying some alternatives to alleviate pressure and recommended one feasible option that Fitness Plus should pursue. In summary, their recommendation addresses our lack of efficient use of our existing space and to reconfigure our existing facility to better utilize the space and address our members concerns about a lack of equipment availability. I wanted to give you a short summary of the problems Fitness ...view middle of the document...
We do need to act fast on a decision as the January timeframe is only 4 months away. We are at risk of losing significant amounts of new members due to the dissatisfaction. In the world of social media, if we don’t start to control the message and put together a plan to become a better fitness center, the message will then control Fitness Plus.
Available Options:
1. Construct new facility downtown
o Pro’s
 Greensboro is growing rapidly and we could grab market share with a small facility that primarily caters to Cardio Vascular machines and Free weights. This may also alleviate crowding at the existing facility as a significant portion of our membership works in the downtown area.
o Cons
 There is a new YMCA that offers a full range of services at a lower cost.
 Real estate is skyrocketing downtown. Finances are limited and it may not be economically feasible
2. Modify existing Facility
o Pro’s
 Cheaper than moving or opening additional facility
 From a timing perspective, a change can be agreed upon and completed before peak Membership month (January)
o Con’s
 Involves reducing some existing service
 Still have some capital requirements for new equipment and construction costs.
Recommendation:
Fitness centers are essentially a commodity-like business. Everyone can have a facility fill it with weights, equipment, etc. The difference is customer service and providing the customer what they want. Clean facilities, and properly maintained equipment that is available when they need it available. We are in an era of drastic healthcare costs and people are working out more than they ever had. I strongly feel that people are putting a premium on getting in a workout when they are able to and it is Fitness Plus’ job to make the club available to meet their schedules.
I have broken down my recommendations down into 2 aspects: Short-term and Long-term strategies that will remedy the short term problems of space, but also ensuring Fitness Plus is properly positioned to capture a bigger portion of the market in the next 5-10 years.
Short Term:
As the consultants pointed out, we need to make better use of our current space to ensure that we are catering to our members demands as well as positioning the club for future growth. We must take out 2 of the 4 tennis courts and covert one to a brand new cardio room and the other to expand our nautilus offerings. In addition to that I believe we must convert 2 of the 4 racquetball courts and convert this to a child watch area. This reconfiguration will give us the additional room to reduce the congestion during peak hours and also give us an added service (child care) that will differentiate Fitness Plus from the competition.
We will need to slash current member rates (25-40%) to send the message that we are serious about improving the club to address the overcrowding issues. These discounts will accomplish 2 things;
- Illustrate to our members...
