Guest post by Mike Hedlesky covers the most basic and essential terms anyone in the fitness industry should know.
Here is a teaser from my blog where you can read the full post!
There are some very basic terms that every gym owner should be using and considering on a daily basis in order to make sure they are running an efficient and profitable club:
Sales- Obviously, the sales are what drive the club forward. If no one is buying your product (memberships) you are not making money. Sales can be broken down into two very important groups. Gross Sales are how much is actually billed to the client or member. Net Sales are the actual profit of the gross sale that the club receives after all deductions are made. For example, the gross sale of a personal training session may be $60. The net sale may only be $30 to the club once the personal trainer is paid out.
EFT (Electronic Funds Transfer) - This is the most hassle free way to collect membership dues at a gym. Simply by getting a members credit card number or bank/routing number, monies are collected each month via auto billing so that you and your staff don’t have to feel like bookies tracking down unpaid gambling debts. Also, keeping track of the clubs Recurring Revenue (collection of gross sales of monthly payments) based on the Number of Existing Members is as easy as clicking on the “Reports” icon in your auto billing system. With this in mind, you can also easily keep track of average monthly and total New Member Sales to ensure the positive growth of your club. Furthermore, using gym management software like this will allow you to keep a database of prospective member information.Following up with unsure walk-ins is key to keeping a high member Conversion Rate.