Last week, I explained how important fitness / skills assessments are to keeping your sports facility customers happy and your employees accountable. Now I will explain why you should charge for these assessments, and how they can be an “ace in the hole” when you sell sports facility memberships.
Many sports facility owners and managers shy away from charging enrollment fees because they’re afraid that such fees will drive away new business. The key to using enrollment fees to increase revenue at your facility is to make sure that clients get a valuable product for the price of the fee: a fitness / skills evaluation from one of your staff members.
At DNA Sports Center, I charge a $69 enrollment / evaluation fee for all my Parisi Speed School programs, which adds up to $73.49 after taxes. With that fee, I am able to pay for the “welcome” pack of merchandise that new clients receive (which includes a Tshirt, a printed manual, a bag, and more), the payment for the staff member conducting the private evaluation, and the equipment used for the evaluation (we use laser timers to assess sprint times, for example). Part of this fee can also be used to pay commission on whichever employee or client referred the new member.
Clients understand that they (or their child) are getting a great value for the cost of the enrollment; they receive private assessments and the use of high-tech evaluation equipment, and they walk away with plenty of merchandise and a printed report card of their scores.
Furthermore, the evaluation fee is a great sales tool because you can choose to waive it if your potential customer hesitates or is struggling with the membership’s overall cost. My staff members often use it to incentivize new clients to buy a bigger package (typically 12 months). Waiving this upfront enrollment fee is often easier and more profitable than discounting other services that your clients may receive.
If you would like to consult with Mike Meszaros about how to maximize profit in your sports facility, please call (513) 791-4940.