Wednesday, August 3, 2011

Selling and the Gym Business

The Work Behind the Workout

Guest Post by Brett Bengochea

Gym Business Me: Hi, good afternoon…
Receptionist: Hi

me: Just looking at some gyms in the area, what are your rates like?
receptionist: Look it right there

I look down at a piece of paper with some rates printed and some corrections scribbled in with a red ink pen. Someone walks by and gets into a chat with the receptionist, I see her smile for the first time while she chats with her friend.

Conversation over, she looses the smile and hands me a newly printed rate sheet which I fold and put into my pocket.

me: Mind if I have a look around?
receptionist: Umm… sure why not. Around so

I walk around for a bit scoping out the machines. The place is well set up, plenty new (or well kept) machines. The gym members pretend not to notice me walking around in my jeans and loafers unattended.

Back at the front desk

me: You guys have anything to squat with beside the Smith machine?
receptionist: *blank confused stare*
me: Is there a squat rack and bar around somewhere I haven’t noticed?
receptionist: *blank even more confused stare*

A gym trainer casually saunters past, overhears the conversation and chimes in.

trainer: He saying he wants to do squats with free weights
receptionist: *slightly concerned frown*

Maybe she doesn’t know what a squat is go figure…

trainer: Sorry man, we don’t have a rack or squat cage, nothing

The trainer seems somewhat embarrassed that there’s no squat rack.

me: Well… Alright… *shrug*
trainer: Yeah man… Easy
receptionist: Alright, take care

This gym is located at a mall in a relatively well to do residential area in Trinidad. Now remember, a gym makes money mostly due to monthly fees of it’s members. It would go without saying that part of a gym’s business plan should include recruiting new members and keeping current members.

It would benefit the owners to go beyond “We have a really good location and plenty money to buy fancy machines.”

I’d imagine people when walking through a mall are more ready and willing to spend some money than when they’re not. I wonder, in a high traffic area like this with plenty potential customers, how many times a week a scenario like this would play out. How many times a day on busy days would people just drop in to “check out the gym”?

What if the owners with no additional purchasing of new equipment invested in training some of their staff to close the sale? Not old school hard sell type canned presentations mind you, just show some sort of interest in people joining because you believe in what a gym represents.

Now let’s pretend the owners were taking their business seriously.

me: Hi, good afternoon
receptionist: Hello *smile and tilt head forward slightly*

She pauses expectantly here, maybe she knows me, maybe I’m looking for another store, maybe I’m a potential customer. She’s inviting me to engage the conversation.

me: Just looking at some gyms in the area, what are your rates like?
receptionist: Gyms around here would go from about “X” to “Y” a month depending on the time of day you’re going or whatever…

Smile, brief pause

receptionist: But!… We have a special on now for new members [insert special here]

There’s no need to pass a rate sheet to someone who hasn’t asked for it because they may have just come in for some information and you’ve satisfied it, they can now leave.

receptionist: *touches a signup sheet*
me: Mind if I have a look around first?
receptionist: Certainly! I was just about to ask.

Receptionist pages for a trainer to come to the front.

receptionist: John Trainer this is… Sorry I didn’t get your name?
me: Brett
Receptionist: Brett! *smile* This is Brett. Brett, this is John, he’ll take you on a little tour.

He shows me around assuming that I’m already a new member and motions a few exercise moves in the air while pointing out the machines and saying what exercises they’re for. He asks me what my training goals are and how we could utilize the equipment here to build a routine.

Maybe, (unless I’m just hell bent on doing free squats) I would have signed up.

Saturday, June 25, 2011

Product Planning Success Tips

I had a great evening listening to my business students' presentations on Leading Global Brands Product Management Techniques. I came away with a few insights myself:

  • Changes in Technology and Lifestyles are big drivers of new business opportunities
  • Leading Brands started with an Innovative Concept. Invariably they enjoyed 'First Mover' advantage. 
  • They grew over the successive years through filling out their Product Line to support the original concept.
  • The major successes over the last decade have been in either Services or Information components of the Supply Chain
  • They took advantage of a 'new' under-served customer group (take for instance Starbucks and the new young urbanites & Apple and the new mobile lifestyle)
  • As they grew they continued to innovate through large R&D budgets
If you are interested in growing your business through better Product Planning, send me an email at coachbengo@gmail.com and I'll be happy to visit you and chat on the possibilities.