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The Originator of Budget Clubs - The Success Story Presented by Kenny McAndrew.

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Presentation on theme: "The Originator of Budget Clubs - The Success Story Presented by Kenny McAndrew."— Presentation transcript:

1 The Originator of Budget Clubs - The Success Story Presented by Kenny McAndrew

2 1. History 2002The shock of the 15€ membership 2004Going it alone 20061 st Budget Club opens 2007July – FitSpace doubles to 2 Clubs 2007October – doubles again to 4 Clubs 2008February – doubles again to 8 Clubs 2008-10Consolidation to profitability 2011Expansion

3 Big Gyms With loads of kit...

4 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 (1 st Aid qualified) on duty Join Zone Other areas (Ladies only / quite area / PT area)

5 Now the Smart bit...

6 Home/Office FitSpace Solution 2.Customer fills in personal details and accepts membership rates 2 4 1 4.Joining fees included as part of 1 st DD 1.Customer logs onto website 5.Customer fills in Direct Debit form (via Harland's Gp) 3 3.Customer fills in pre- exercise questionnaire 5 6.Customer books an induction session 6 7.Confirmation screen displays all details entered and issues a PIN number 78 8.Customer goes to gym and enters PIN number into the kiosk 9.Customer issued with proximity membership card 10.Customer enters gym via turnstile 9 10 Central Server (Hosted?)

7 The Who question?

8 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%

9 Marketing Warfare Flanking - High Flanking - Low Defensive Offensive Guerrilla

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

11 1. Segmentation of the Budget sector (Europe) Premium Budget – Big Fitness + Classes & other facilities.20-30€ (£15-20) Budget - Big Fitness, clean and simple15-20 € (£10-15) Hard Budget- Smaller Fitness, basic and hard core10-15 € (£7.50-10) Grunge Budget- Warehouse, temporary & basic fitness5-10 € (£4-7.50) 2. More Automated Full height turnstiles with Biometric entry Automated Electronic Marketing & Programmes

12 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.

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