The Originator of Budget Clubs - The Success Story

Presented byKenny McAndrew

1. History

• 2002 The shock of the 15€ membership• 2004 Going it alone• 2006 1st Budget Club opens• 2007 July – FitSpace doubles to 2 Clubs• 2007 October – doubles again to 4 Clubs• 2008 February – doubles again to 8 Clubs• 2008-10 Consolidation to profitability• 2011 Expansion

Big Gyms

With loads of kit...

What do you get?

• 150+ pieces of gym equipment• Separate free weights areas• Virtual spin classes• Stretch areas• PT (reps level 3) conduct

Inductions• Duty Manager (1st Aid qualified)

on duty• Join Zone• Other areas (Ladies only / quite

area / PT area)

Now the Smart bit...

Home/Office

FitSpace Solution 2. Customer fills in personal

details and accepts membership rates

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4. Joining fees included as part of 1st DD1. Customer logs

onto website

5. Customer fills in Direct Debit form (via Harland's Gp)

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3. Customer fills in pre-exercise questionnaire

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6. Customer books an induction session

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7. Confirmation screen displays all details entered and issues a PIN number

788. Customer goes to gym

and enters PIN number into the kiosk

9. Customer issued with proximity membership card

10. Customer enters gym via turnstile

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10Central Server

(Hosted?)

The Who question?

Food for thought...•10-12% of the local population are members of a health Club / gym / sports centre at any one time.•There is a direct correlation between obesity and low income. (Low income diet & Nutritional Survey 2007 for Foods Standards Agency)

•Private health Clubs and Gyms (and a number of local authority leisure facilities) are based in the majority, in middle to higher income areas

Experience of Gyms

Past = 45%

New = 20%

Current = 35%

Marketing Warfare

Flanking - High

Flanking - Low

Defensive Offensive

Guerrilla

GuerrillaGuerrilla

Guerrilla

The Future

Slide with permission from Ray Algar Low-Cost Gym Sector report 2010.

1. Segmentation of the Budget sector (Europe)Premium Budget – Big Fitness + Classes & other facilities. 20-30€ (£15-20)

Budget - Big Fitness, clean and simple 15-20 € (£10-15)

Hard Budget - Smaller Fitness, basic and hard core 10-15 € (£7.50-10)

Grunge Budget - Warehouse, temporary & basic fitness 5-10 € (£4-7.50)

2. More AutomatedFull height turnstiles with Biometric entry

Automated Electronic Marketing & Programmes

Summary•Budgets Gyms are the fastest growing sector of the Fitness Industry•They can offer fantastic value for money to the consumer •They need large investment, a sound business plan and robust and sophisticated IT. •They open up Fitness to those who have never been able to afford it before.

Future•They will squeeze the middle market•They will become segmented•They will become more automated.