Charging extra for group exercise options can bring in additional revenue. But it needs to be done right.

According to a 2002 survey, 85 percent of participating fitness centers indicated that they offer group exercise, exceeded only by cardiovascular equipment (86 percent) and free weights (95 percent) (IHRSA’s Profiles for Success). The survey also indicated that 23 percent of fitness center revenues are derived from ancillary sources, exclusive of membership dues and initiation fees. With a little creativity and minimal expense, fitness facilities have the potential to increase their ancillary revenue significantly higher than currently realized. One way to do this is with specialized group programming.

Most fitness centers offer group exercise classes as part of a general membership package. This, in good conscience, should probably remain the norm. However, any group activity not currently offered could be offered at an additional cost to members and even non-members. New programs cost money to develop, market and deliver. Plus, charging a nominal fee for group programming can give those classes a greater perceived value.

Assessing current group offerings
Fitness center operators can ask themselves several questions about their group exercise programs:

1. Do you know the formula for structuring a schedule for member benefits?
2. Is your exercise director qualified to do the job?
3. Are your instructors trained to deliver customer service in the group environment?
4. Do you create a monthly report tracking the success of each program?
5. Is your group programming growing?
6. How much does group programming actually cost?

Your group exercise room can be a big marketing tool. Is your membership or sales staff taking classes on a regular basis? This should be mandatory, and part of employees’ job descriptions. Having a strong group programming culture in your facility can make lifetime members.

Charging for group exercise
Charging for group programming will create an expectation for excellence. Make sure that all staff involved realize this, and are prepared to offer exemplary service and product. Try these tips for ensuring success in the realm of group programming

1. Treat group programming exactly like the sales department.
2. Be sure new members tour this area, and are told about the program as part of member sales and orientation.
3. Hire a program director with sales, marketing and group programming experience.
4. Create buddy referral programs with your group program.
5. Create two group-program-specific mailings each quarter.
6. Actively identify problem areas, and fix them. Whether it be maintenance, acoustics, new equipment, etc., attention to detail is always important, and more so with a program for which you are charging.

Realize that you are not competing with other fitness centers on price alone. Offer great value for the price of membership, and offer value-added services at additional cost. Rally Sport Health and Fitness in Boulder, Colo., demonstrates success in a competitive market. Instead of offering low membership prices, it raises its prices above the competition, but often has a waiting list for membership. How can this happen? Superior customer service, a keen eye for what is on the horizon for the industry and offering extraordinary value for the price of membership. Programs outside the general membership package require an additional fee. Remember, you are selling a service, not a commodity.

Base your business plan on attracting fewer members who are willing to pay higher prices for more personal attention, less crowded conditions, towel service and flawless execution.

Sample group programs
Following are examples of successful group exercise programs:

Weight management.  Arguably the most sought-after result of new and existing members is weight management. Weight loss is a multi-billion-dollar industry.

Everyone has a unique metabolic response to exercise, yet for year’s trainers have used generic (and antiquated) age-predicted heart rate and caloric expenditure formulas that do not take individual differences into consideration. With these formulas, people of the same age, but with difference fitness levels, are put into the same heart rate training zones. This is not only counter-productive, but it can be dangerous. A simple metabolic test (included in the program price) will determine resting metabolic rate and anaerobic threshold, allowing true individualized programming to occur.

Armed with individual numbers and a heart rate monitor (an additional sale), three to four members in similar condition can embark on a 12-week training program, three times per week. Program prices can range from $900 to $1500 plus the cost of a heart rate monitor ($50 to $300). Additional profits from exercise accessories, software or extra personal training are only one good sale away.

Post-rehab group training. Post-rehab-group training is a customized exercise program conducted with individuals who have similar injuries or conditions. It is designed for those who have been discharged from a rehabilitation facility, or recommended by a medical processional. This can be land-or water-based. The programs are administered and supervised by fitness professionals who are educated and have experience with the specific injury or condition. The goal is to help create a more functional lifestyle and reduce the risk of re-injury.

Each session should last 60 minutes, and groups should be limited to four to six individuals. Pricing should be along these lines: $1,300 for two times per week for eight weeks; $1,900 for two times per week for 12 weeks; $2,800 for three times per week for 12 weeks. Participants will also need a heart rate monitor, Physioball ($25), stretch cord ($15) and foam roller ($20) for perpetuation of their home program.

Multi-sport group program. A sports program combines strength and cardio conditioning with skill building to prepare participants in mind and body for the challenges of a sport.
This program lasts 12 weeks, and takes participants through the following phases:

• Phase I: The Basics – Builds the foundation of strength and stamina with general conditioning.
• Phase II: Rise to the Challenge – Elevates conditioning to the next level, and begins technical skill-building.
• Phase III: Over the Top – Advanced training simulates conditions encountered in the sport. This phase challenges endurance under extreme conditions and reaction to rapidly changing surroundings.

The group meets three times a week for 12 weeks (for $1,680). Participants will need a heart rate monitor, pedometer and sports-specific accessories.

Fit to be Tied. This program is for brides and grooms-to-be. IT’s designed for couples or individuals desiring the perfect body for their nuptials and honeymooning. Program emphasis is on reduction of body fat and sculpting total body musculature. Fit to be Tied is eight weeks of two weekly sessions, requiring supplemental routines between sessions (with personal training suggested). Many of the exercises taught can be incorporated in for a personal lifestyle program. Eight weeks of two sessions per week should cost $895, and include a heart rate monitor.

There are boundless opportunities for group programming and revenue enhancements. Consider what could be done around group cycling, circuit training and functional training. Working in conjunction with outside organizations and businesses will provide a plethora of opportunities and revenue streams. Ramping up your pro shop will provide an additional profit center for program accessories. Be creative, and see your group programming profits increase.