We are happy to talk to you about the needs of your fitness club! We will answer your questions regarding pricing, system functionalities and additional services such as access control.
Have you ever wondered about proven methods of generating additional income in the club? We are sure that your answer is yes! In this eFitness MEETS BUSINESS podcast, we talk to Mantas Badikonis, CEO at Gym+, about proven ways to generate additional revenue in 14 low-cost clubs.
Gym+ is the largest chain of fitness clubs in Lithuania. They differentiate their offering not only based on the length of the membership (monthly or yearly) but also on what is included in the membership. What was the reasoning behind implementing a structure with basic, premium, and flexible membership with add-ons? As Mantas said:
Since we were going for more development work, we then decided to separate and put those add-ons as a separate membership.
In this case, we were able to provide even the lower price for those members who were not willing to pay the price for any add on and they needed only the plain membership to go to the sports hall. And that’s it. So in that case, we were the first ones in Lithuania who were able to offer 24/7 services for € 9.9 per month.
That was like a bomb in the Lithuanian market. Nobody could understand how we were doing the math and our finances with such a low price. But, since we were differentiating our brand as a budget sports club, we were providing the very low price and we were just getting for the high quantities of the members.
That was the reason behind. And then we decided that we should offer something more.
Also, Mantas shared with us the percentage of how many members go with base membership and how many go with premium and told us about his strategies to upgrade basic members to premium ones.
Where to look for improvements while running a sizable low-cost fitness club chain? Interestingly, the CEO decided to successfully outsource sales activities like renewal campaigns. You’ll also hear more about it in this podcast episode!
Listen to the podcast!
CEO of Gym+ in Lithuania
00:00-02:24 – Intro
02:25-06:22 – Strategic approach, membership structure and pricing in low-cost fitness clubs
06:23-10:25 – Basic, premium or flexi membership with extras – different membership structures
10:26-14:58 – Additional services in low-cost fitness clubs
14:59-17:41 – How many members choose Basic Membership and how many choose Premium or Flexi Membership?
17:42-22:22 – What are the strategies for upgrading basic members to premium members? How to sell with an additional service?
22:23-27:37 – Renewal campaign and outsource of sales activities
27:38-31:51 – The most common objections and how to overcome them?
In the eFitness MEETS BUSINESS podcast we talk to gym owners and industry experts on how to increase gym profits and expand the business.
Podcast host:Dawid Skopiasz
International Sales Executive at eFitness