|
It’s been 2 years of non-stop change. As of 27 January 2006, Mid Thomas became a co-owner of Counties Fitness Centre with her partners, Tracey and Ian Wilson. Only 19 months prior to that, Mid began her dual role as full-time General Manager and GF Manager of this small independent club, in July 2004. Situated in a small rural town of 33,000 people, Counties Fitness had been struggling to grow for a number of years. When Mid took over as General Manager, membership was only 400 and she was eager to forge a prosperous new future for club.
Driving growth
Mid spotted the opportunity to use GF as a key contributor to club growth. As the only club in town with Les Mills Programmes, Mid saw GF as a critical market differentiator to drive membership numbers. With steady determination, memberships tripled within 12 months to 1,200 people, despite Counties Fitness being premium priced at NZD 749 per annum. Given all of Counties’ 5 chain and independent competitors are within 10 minutes walk of the club, that’s a strong result. |
- 400 to 1200 members in 12 months
- 4 to 22 instructors in a year
- Growth from 10 to 40 GF classes per week
- 1 main GF studio, 1 RPM studio
- Rural independent club
- Premium priced at NZD 749 per annum
- GF as core catalyst to growth
- 66% of weekly attendances from GF
- 18% of floor space dedicated to GF
- General Manager became co-owner in January 06
- 3 year lease on new GF studio already confirmed
|
The Instructor team exploded from 4 to 22, delivering circa 40 classes per week to members, compared to 10 classes per week, prior to Mid being on board as General Manager. From August 2005, memberships stagnated at 1,200, because the former owner put the business up for sale. New member prospects were understandably wary about committing to a business with an uncertain future.
Since February 2006, new memberships have leaped by 250 people under Mid, Tracey and Ian’s leadership. The club is now close to capacity with GF providing 66% of total weekly attendances. So, after only 4 months of business ownership, the new owners have committed to a 3 year lease for a custom built 3rd GF studio of 400 m², costing NZD 50,000 per annum or NZD 150,000 over the 36 month term. Mid is holding off on sales until the new studio is ready for action, so as to be certain to accommodate the demand for GF. Meanwhile Counties Fitness is buying another 8 bikes to try to service their massively popular RPM classes….
GF evaluated
Mid recognizes that GF is only one element of club success, yet she prioritises it as a top catalyst for profitability. Counties Fitness offers a wide range of services to deliver members a powerful fitness experience. These include Personal Training (“PT”), cardio machines, weights, massage, nutrition supplements and childcare.
Yet Mid is firm that the economics of GF are indisputable. ….
- “Cardio machines accommodate maybe, 3 people an hour, whereas GF can service up to 40 people an hour in the main GF studio. And, while PT can train a maximum of 2-to-1, GF can exceed that ratio up to 20 times in our studio,”
- “GF delivers over 60% of attendances yet only takes up 18% of the club’s 1,200 m² floor area, with its two GF studios,” and
- With 66% of total club attendances being in GF, our cardio machines are more cost effective to maintain.”
So Mid concludes that, “as long as cost per head for Instructors is on budget, offering GF as a core service, is a must have.”
Leadership builds a strong team
Balanced with her attention to club business dynamics, Mid is passionate about helping people change their lives for the better. She applies this passion to her employees as well as her members. Consequently, in January 2005, Mid facilitated all club staff to create the club’s overall vision so that everyone is aiming for the same outcome, which turned out as “to be the greatest club in the local area.” She also charged her Instructor team to make her redundant, given she was the most experienced Instructor Counties Fitness employed. This leadership style has created a culture of fun and supportive excellence across the club, together with a commitment to be the best. Understandably, growth, profits and expansion have followed.
Given Mid’s extraordinary success with GF, we look forward to reading Mid’s Q&A session on building and growing a top Instructor team in next months issue of Group Fit P.R.O.F.I.T.
Counties Fitness Centre is a privately owned independent club in Pukekohe, New Zealand and has 7 Les Mills Programmes
Phillip says….
Mid’s business savvy combined with her passion for making a difference makes a potent force for business success. She has made GF into a V8 engine to help fast-track club growth using raw belief and an eye to the hard realities of club profitability.
With her GF Manager “hat” on, she is a role model for Key Element 8 of the Group Fitness Management System, “Appoint or be a Great GF Manager” and based on my understanding of her team building expertise, displays excellent skills in Key Element 3 and 4: “Recruit World Class Instructors” and “Organise Great Instructor Training.” As recommended in Key Element 7, “Plan for Success”, Counties has a clear path to growth and is ready to pursue greater success. Superb.