Successfully Manage Your Health Club & Fitness Center by its Income Statement

If you look at your income statement casually each month, hone in on the bottom line to make sure it’s positive and then move on to other more pressing matters, you’re not alone. But, if you aren’t disciplined about managing your business by its income statement, your bottom line might not be as positive as it could be. Using the income statement as the driving force to run your business creates a powerful, sensible connection between dollars coming in/going out and the decisions you make on a daily basis. If you listen, the income statement will tell you how and where to spend your money, and what needs to be improved or fixed.

“I have been doing this for 18 years, and I know what’s important,” you might say. True, to a degree. But who is really setting your priorities? Often, without a conscious plan driven by the income statement, you can find yourself buffeted along, reacting to customers’ requests, allowing your employees to create action items or just going with the flow, doing what you are comfortable with. If any of this rings true, you may be leaving a substantial amount of money on the table every month. Be proactive with your income statement and change that.

Getting Started

Your club’s income statement — from your accountant or spreadsheet software — should never be more than a month old. Does it have built-in columns for monthly comparisons and a yearly forecast to show at a glance how you’re measuring up so far?

Most importantly, are the line items detailed enough to give you a clear picture of exactly where your revenue is coming from and going to in terms of expenses? Even more-detailed reports should be readily available from your club management software to turn to when questions arise.

What to Look For

Start with revenue. Show individual revenue sources as a percentage of the total. For example: Premium dues 30 percent; Regular dues 50 percent; Pool memberships 20 percent. Take note if those ratios change over time. If total dues revenues are down, why? Are there fewer people for tours, has your closing rate fallen or is retention the problem? Look for potential solutions. Try them out and estimate how long a potential fix will take to have an effect. Use subsequent income statements to help determine if your fixes are working. Remember, this is not a one-time project. It is a circular process of observing data changes, analyzing them and brainstorming ideas with your management team or maybe even a member focus group. Aim to improve each line by 10-25 percent over the course of a year. Depending on problem areas you identify, run interim reports from your software, such as point of sale analyses, membership profiles or inventory breakdowns to provide more visibility towards a solution.

The Expense Side

Resist the urge to look at expenses as fixed costs you can do nothing about. Leases can be renegotiated; property can be purchased to eliminate leases entirely. Management software costs and merchant fees can be reduced dramatically. In fact, if you are not renegotiating all purchased expenses on a yearly basis, you are paying too much. It may be counter-intuitive, but see if you might be paying too little in one line item, causing you to pay disproportionately far too much in another. Sometimes you must spend to save. Maintenance expenses are one example — don’t skimp unnecessarily. The higher cost of eco-friendly devices, such as low-flow showerheads and LED lighting, could save hundreds later on utilities.

Marketing is an excellent example of an expense leading directly to increased revenue. When marketing expenses go up one month — did revenues increase in subsequent months for the item you promoted? Have you spent sufficient money to make your website phenomenal? Do you have revenue generators on your website and in your club management software, such as online joining, personal training sign-ups, online payments and e-mail blasts?

You know your business and can come up with your own revenue enhancers and smart cost savings. The key is to make it a systematic exercise: look at the numbers, calculate ratios, look for changes/outliers, and brainstorm to fix.

The pressure will be tremendous to skip this task — after all, you’re the owner and no one is making you. Also, it’s not fun. But walking around putting out brushfires is not going to bring you the long-term, sustainable results you desire. Get disciplined and you’ll start to see results

Health Club Marketing News……Keep Your Members Coming All Summer Long!

There is never enough time for Terry Dezzutti, the COO of Merritt Athletic Clubs. Since coming on in 1996, Dezzutti, 55, has spent all his energy taking the already successful club in the Baltimore area even higher.

How has he done so?

It’s been a long ride that is just now reaching the end of its destination — to be a five-star health and fitness club. To reach such a prestigious goal, Dezzutti has had to think outside the box and do things with his clubs that both reflect the Baltimore market, and separate them from other clubs.

Welcome to the Nightlife

Like many clubs in the summer, Merritt Athletic Clubs were struggling to entice members to its clubs. Members wanted to be outside in the nice weather, walking around a warm vibrant city.

According to Dezzutti, Baltimore is the type of community that thrives on an active social scene. Not only is it assisted by Johns Hopkins University, but they also play home to the Baltimore Ravens, Baltimore Orioles, and a multitude of waterways for boating and water sports.

Pools were thriving in the daytime and bars into the night. Dezzutti took notice and decided to implement a combination.
It might be odd to think about a health and fitness club being associated with a bar, but more commonly the two are going hand-in-hand. To help summer attendance, Dezzutti decided to implement outdoor swim facilities.

The facilities gave members a place to socialize during the day and cool off during the hot summer months. “The summers used to be dead for us, and six or seven years ago we decided we wanted to be the place to be,” Dezzutti said. “Last year we built our first wave pool and it’s been a big wow. Our retention levels have stopped falling and sales are up.”

They’ve continually added more pools and social amenities. “At our Ford Avenue club, last year we built a pool bar and this year we are building a sun deck around the pool,” he said. “As that becomes more social, we have DJs and people hanging out all day playing beer pong and water polo, and meeting new friends.”

At their club in Canton, on Saturday night, they give the pool area a complete makeover. They turn the club into a Miami South Beach nightclub referred to as Aqua. For members the entrance is free, but it’s $10 for everyone else.

The club has a liquor license and brings in local DJs to spin until 2 a.m. “We use a lot of lighting and music, and it becomes a night club. That becomes a great source of lead generation,” Dezzutti said. “That gets us out of the realm of a regular health club chain in the summer.”

Dezzutti said the nightclub has been in operation for about six years. “It took off from the very beginning,” he said. In the beginning, the nightclub was driving in traffic of over 1,000 people a night. Over the past couple of years the numbers have barely dwindled to about 800 people due to direct competition from other local night clubs.

Above: Merritt Athletic Clubs COO Terry Dezzutti interviewed by Club Solutions Magazine Editor Tyler Montgomery

Everyone Gets Results

It’s safe to say that the vast majority of clubs are in business to get members results. Merritt Athletic Clubs take that responsibility extremely serious.

Once a person becomes a member of Merritt Athletic Clubs, they are inundated with the Results Program. “It’s unique in our market,” Dezzutti said. “When you join you have the ability to opt into this program. You have to show up twice a week and you have to initially meet with a health advisor.

“In that six weeks, if they don’t see results, we give them their money back. Initially, we test their BMI, thigh measurement and cholesterol. At the end of the six weeks, if we haven’t lowered one of those three things, they will get a full refund.”

Dezzutti feels that this program helps new members get involved and keeps them motivated. “Once they get involved in the program, they will get into a routine and start to like exercising,” he explained.

Getting new members results is just the first step. Merritt then transitions its focus to the kids. It has teamed up with the famous Olympic swimmer Michael Phelps.

Phelps had one aquatic academy in Baltimore, already. Developing the partnership gave members at Merritt more locations to train. With the inclusion of Johns Hopkins University in Baltimore — a top two, Division III swim club — swimming is a major competitive sport. Therefore, the partnership with Phelps has enhanced Merritt’s reach within the aquatic market.

“When we met with him, we had several swimming facilities already, and we discussed with him to become a spokesperson for our facilities,” Dezzutti said. “We reached an agreement and now we are using his protocols and practices as part of our system.

“It helps with community awareness. People know the work ethic that he has and we are using that to inspire kids to come in and start exercising.”

Still Attracting Members

Group X does a lot for clubs all across the country, and Merritt Athletic Clubs are no exception. “We’ve made a major investment over the past five years with Les Mills,” Dezzutti said. “I would say they do such a great job of choreographing the music and changing the programs that it inspires everybody. Now we are in the process of expanding all of our rooms and adding music and light fixtures to become more of an entertainment value while they are in there.”

There are ups and downs to installing extra lights and audio to boost the Group X experience. Dezzutti said one woman complained that she became dizzy due to the lights spinning. However, out of the vast majority of club members that participate in Merritt’s Group X, she has been the only complaint.

“People seem to like it because of the entertainment value,” he said. “We’ve also seen Group X change in other areas. Personal training for example, has turned into groups of three to five people because it saves time and money. For people who are looking to workout quickly, we’ve put in these fast track circuits. There are trainers that put members through machines and they get a good workout in half an hour as part of their membership. We are looking at obstacle courses and how we can incorporate those in the future.”

Group X is continually changing at Merritt. “People need a friend, they need a buddy, and Group X gives them that opportunity,” Dezzutti said. “When you have someone that pushes you every day, you show up and you get results.

“In the future people will be doing classes for specific body types and specific ages. You’ll see more seniors working on balance classes with balance boards to get through their daily life.”

However, to simultaneously connect with the youth and seniors of Baltimore, where could one man find enough time? Somehow Dezzutti has done the impossible. He has found time to create a harmonious balance between the two and still continue to grow and improve — teaming with Phelps, a nightclub atmosphere, family-oriented pools and special senior-focused Group X classes are all examples of this effort.

In a continually evolving market, Dezzutti must stay aware of trends for all populations. In fact, for the most part, Merritt’s demographics are pretty equal across the board — that means, with the nightclub atmosphere, summer pools, gym equipment and ever-changing Group X classes, all demographics must be reached. And, even when it has seemed impossible to wrap all that into a nine-club, Elite Sports Club Network, Dezzutti and his team found a way to do so.

***
It’s not a surprise the ideas Dezzutti has implemented at Merritt Athletic Clubs. He’s spent 30 years in the fitness industry, starting when he was 19 years old at Broome Racquet Club in Binghampton, NY.

After he graduated from State University of New York in Portland, NY., he felt a desire to pursue a life in fitness. “I always liked the atmosphere,” Dezzutti said. “People are always trying to stay healthy and you’re in a positive environment.”

After college Dezzutti worked at several health clubs, starting at the Denver Sporting Club. From there he found himself traveling across the U.S. looking for great opportunities and clubs trying inventive ideas.

In 1996, when Dezzutti took his role at Merritt Athletic Clubs, he became an active member of Rex Rountables. “I enjoy hearing from other CEOs in other industries,” Dezzutti said. “I listen to their ideas and think about how they can be implemented in our industry.”

It’s that constant attempt to think outside the box that has made Merritt Athletic Clubs a poolside-gathering place during the summer, a nightclub on Saturday nights and a place for people in Baltimore to get fit all year

Health Club Marketing News……Keep Your Members Coming All Summer Long!

There is never enough time for Terry Dezzutti, the COO of Merritt Athletic Clubs. Since coming on in 1996, Dezzutti, 55, has spent all his energy taking the already successful club in the Baltimore area even higher.

How has he done so?

It’s been a long ride that is just now reaching the end of its destination — to be a five-star health and fitness club. To reach such a prestigious goal, Dezzutti has had to think outside the box and do things with his clubs that both reflect the Baltimore market, and separate them from other clubs.

Welcome to the Nightlife

Like many clubs in the summer, Merritt Athletic Clubs were struggling to entice members to its clubs. Members wanted to be outside in the nice weather, walking around a warm vibrant city.

According to Dezzutti, Baltimore is the type of community that thrives on an active social scene. Not only is it assisted by Johns Hopkins University, but they also play home to the Baltimore Ravens, Baltimore Orioles, and a multitude of waterways for boating and water sports.

Pools were thriving in the daytime and bars into the night. Dezzutti took notice and decided to implement a combination.
It might be odd to think about a health and fitness club being associated with a bar, but more commonly the two are going hand-in-hand. To help summer attendance, Dezzutti decided to implement outdoor swim facilities.

The facilities gave members a place to socialize during the day and cool off during the hot summer months. “The summers used to be dead for us, and six or seven years ago we decided we wanted to be the place to be,” Dezzutti said. “Last year we built our first wave pool and it’s been a big wow. Our retention levels have stopped falling and sales are up.”

They’ve continually added more pools and social amenities. “At our Ford Avenue club, last year we built a pool bar and this year we are building a sun deck around the pool,” he said. “As that becomes more social, we have DJs and people hanging out all day playing beer pong and water polo, and meeting new friends.”

At their club in Canton, on Saturday night, they give the pool area a complete makeover. They turn the club into a Miami South Beach nightclub referred to as Aqua. For members the entrance is free, but it’s $10 for everyone else.

The club has a liquor license and brings in local DJs to spin until 2 a.m. “We use a lot of lighting and music, and it becomes a night club. That becomes a great source of lead generation,” Dezzutti said. “That gets us out of the realm of a regular health club chain in the summer.”

Dezzutti said the nightclub has been in operation for about six years. “It took off from the very beginning,” he said. In the beginning, the nightclub was driving in traffic of over 1,000 people a night. Over the past couple of years the numbers have barely dwindled to about 800 people due to direct competition from other local night clubs.

Above: Merritt Athletic Clubs COO Terry Dezzutti interviewed by Club Solutions Magazine Editor Tyler Montgomery

Everyone Gets Results

It’s safe to say that the vast majority of clubs are in business to get members results. Merritt Athletic Clubs take that responsibility extremely serious.

Once a person becomes a member of Merritt Athletic Clubs, they are inundated with the Results Program. “It’s unique in our market,” Dezzutti said. “When you join you have the ability to opt into this program. You have to show up twice a week and you have to initially meet with a health advisor.

“In that six weeks, if they don’t see results, we give them their money back. Initially, we test their BMI, thigh measurement and cholesterol. At the end of the six weeks, if we haven’t lowered one of those three things, they will get a full refund.”

Dezzutti feels that this program helps new members get involved and keeps them motivated. “Once they get involved in the program, they will get into a routine and start to like exercising,” he explained.

Getting new members results is just the first step. Merritt then transitions its focus to the kids. It has teamed up with the famous Olympic swimmer Michael Phelps.

Phelps had one aquatic academy in Baltimore, already. Developing the partnership gave members at Merritt more locations to train. With the inclusion of Johns Hopkins University in Baltimore — a top two, Division III swim club — swimming is a major competitive sport. Therefore, the partnership with Phelps has enhanced Merritt’s reach within the aquatic market.

“When we met with him, we had several swimming facilities already, and we discussed with him to become a spokesperson for our facilities,” Dezzutti said. “We reached an agreement and now we are using his protocols and practices as part of our system.

“It helps with community awareness. People know the work ethic that he has and we are using that to inspire kids to come in and start exercising.”

Still Attracting Members

Group X does a lot for clubs all across the country, and Merritt Athletic Clubs are no exception. “We’ve made a major investment over the past five years with Les Mills,” Dezzutti said. “I would say they do such a great job of choreographing the music and changing the programs that it inspires everybody. Now we are in the process of expanding all of our rooms and adding music and light fixtures to become more of an entertainment value while they are in there.”

There are ups and downs to installing extra lights and audio to boost the Group X experience. Dezzutti said one woman complained that she became dizzy due to the lights spinning. However, out of the vast majority of club members that participate in Merritt’s Group X, she has been the only complaint.

“People seem to like it because of the entertainment value,” he said. “We’ve also seen Group X change in other areas. Personal training for example, has turned into groups of three to five people because it saves time and money. For people who are looking to workout quickly, we’ve put in these fast track circuits. There are trainers that put members through machines and they get a good workout in half an hour as part of their membership. We are looking at obstacle courses and how we can incorporate those in the future.”

Group X is continually changing at Merritt. “People need a friend, they need a buddy, and Group X gives them that opportunity,” Dezzutti said. “When you have someone that pushes you every day, you show up and you get results.

“In the future people will be doing classes for specific body types and specific ages. You’ll see more seniors working on balance classes with balance boards to get through their daily life.”

However, to simultaneously connect with the youth and seniors of Baltimore, where could one man find enough time? Somehow Dezzutti has done the impossible. He has found time to create a harmonious balance between the two and still continue to grow and improve — teaming with Phelps, a nightclub atmosphere, family-oriented pools and special senior-focused Group X classes are all examples of this effort.

In a continually evolving market, Dezzutti must stay aware of trends for all populations. In fact, for the most part, Merritt’s demographics are pretty equal across the board — that means, with the nightclub atmosphere, summer pools, gym equipment and ever-changing Group X classes, all demographics must be reached. And, even when it has seemed impossible to wrap all that into a nine-club, Elite Sports Club Network, Dezzutti and his team found a way to do so.

***
It’s not a surprise the ideas Dezzutti has implemented at Merritt Athletic Clubs. He’s spent 30 years in the fitness industry, starting when he was 19 years old at Broome Racquet Club in Binghampton, NY.

After he graduated from State University of New York in Portland, NY., he felt a desire to pursue a life in fitness. “I always liked the atmosphere,” Dezzutti said. “People are always trying to stay healthy and you’re in a positive environment.”

After college Dezzutti worked at several health clubs, starting at the Denver Sporting Club. From there he found himself traveling across the U.S. looking for great opportunities and clubs trying inventive ideas.

In 1996, when Dezzutti took his role at Merritt Athletic Clubs, he became an active member of Rex Rountables. “I enjoy hearing from other CEOs in other industries,” Dezzutti said. “I listen to their ideas and think about how they can be implemented in our industry.”

It’s that constant attempt to think outside the box that has made Merritt Athletic Clubs a poolside-gathering place during the summer, a nightclub on Saturday nights and a place for people in Baltimore to get fit all year

Saved by quick thinking after heart attack at Planet Fitness

Everything happened the way it should have when bystanders acted quickly to combat the “perfect storm” of medical complications that stopped Dave Durant’s heart from beating.

Around 10 a.m. on Sunday, March 20, the 48-year-old Vernon resident had just finished a 5k run on a treadmill at Planet Fitness in Oneida. The workout was routine. He wiped down the equipment and headed to the drinking fountain, as usual. The next thing he remembers is waking up on a stretcher, being wheeled into an ambulance.

Luckily for Durant, when his heart stopped beating, there happened to be a nurse and a physician in the building. The gym is also equipped with an Automated External Defibrillator and staff trained on identifying situations in which to use it.

Dr. John Wight, of the Tri-Valley Family Practice in Vernon, was on the treadmill in front of Durant, listening to music, when his wife pulled the headphones out of his ears and told him a man had collapsed and 911 was being called. Going over to Durant, Wight said it looked like he had fainted or fallen. As he tried to figure out what was wrong, he noticed he was barely breathing. He checked for a pulse and asked for the AED.

Oneida Healthcare RN Cindy Ewing, who happens to be a CPR instructor, was exercising when her friend got her attention to tell her about Durant.

“By the time I walked over there, the Planet Fitness staff members had already had the AED out and were starting to apply the AED pads to his chest,” she said. “Dr. Wight was at the head of the patient. He was totally blue. He wasn’t breathing at all so I just started doing compressions on him.”

Ewing continued doing chest compressions on Durant until the AED analyzing his heart identified a shockable rhythm.

“The patient was in full cardiac arrest,” she said.

Durant, who is CPR certified himself and whose wife is a nurse, was shocked once by the defibrillator and Ewing continued compressions until Oneida Fire and Rescue arrived. At that point, Wight said Durant began “coming around” and was disoriented.

Oneida Firefighter Darrin Ball, who was one of the rescue workers who responded to the 911 call, said the patient was blue when he arrived but was breathing.

Saved by quick thinking after heart attack at Planet Fitness

Everything happened the way it should have when bystanders acted quickly to combat the “perfect storm” of medical complications that stopped Dave Durant’s heart from beating.

Around 10 a.m. on Sunday, March 20, the 48-year-old Vernon resident had just finished a 5k run on a treadmill at Planet Fitness in Oneida. The workout was routine. He wiped down the equipment and headed to the drinking fountain, as usual. The next thing he remembers is waking up on a stretcher, being wheeled into an ambulance.

Luckily for Durant, when his heart stopped beating, there happened to be a nurse and a physician in the building. The gym is also equipped with an Automated External Defibrillator and staff trained on identifying situations in which to use it.

Dr. John Wight, of the Tri-Valley Family Practice in Vernon, was on the treadmill in front of Durant, listening to music, when his wife pulled the headphones out of his ears and told him a man had collapsed and 911 was being called. Going over to Durant, Wight said it looked like he had fainted or fallen. As he tried to figure out what was wrong, he noticed he was barely breathing. He checked for a pulse and asked for the AED.

Oneida Healthcare RN Cindy Ewing, who happens to be a CPR instructor, was exercising when her friend got her attention to tell her about Durant.

“By the time I walked over there, the Planet Fitness staff members had already had the AED out and were starting to apply the AED pads to his chest,” she said. “Dr. Wight was at the head of the patient. He was totally blue. He wasn’t breathing at all so I just started doing compressions on him.”

Ewing continued doing chest compressions on Durant until the AED analyzing his heart identified a shockable rhythm.

“The patient was in full cardiac arrest,” she said.

Durant, who is CPR certified himself and whose wife is a nurse, was shocked once by the defibrillator and Ewing continued compressions until Oneida Fire and Rescue arrived. At that point, Wight said Durant began “coming around” and was disoriented.

Oneida Firefighter Darrin Ball, who was one of the rescue workers who responded to the 911 call, said the patient was blue when he arrived but was breathing.

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