There are no shortcuts on the road to success. There are, however, proven methods that can increase your likelihood of avoiding potholes and detours along your way.
As an owner, I love knowing what works for my business to help generate revenue. I also absolutely love conducting experiments in my Gym-Biz Laboratory. Fortunately, some of my experiments succeed, but most fail pretty miserably.
10 proven ways to double your gym’s income:
1. Implement an auto-pay system and a student withdrawal notice
All students in our gym are enrolled in our monthly auto-pay system with a credit card attached to their account. Each month we use our cloud-based class management tool to process everyone’s tuition at once. (It’s like pushing a magic button!)
We ask for a 30-day written notice of withdrawal, so we have time to fill a student’s spot if one should become available. We’ve noticed this also saves students from withdrawing, which means more money is coming to your business.
2. Provide a 100 percent money back guarantee
Three years ago, we ended our Free Trial Program and replaced it with a 100 Percent Money Back Guarantee program. As a result of this change, we charge for every class a student takes instead of discounting for trial classes.
What does that mean for us? You guessed it. Increased revenue. Making good on our money back guarantee (thankfully this is a rare occurrence!) helps establish goodwill, too.
As an added bonus, it inspires confidence in our staff and customers that we believe in our program enough to bet tuition on our student’s happiness.
3. Price your services courageously with a minimum 3 percent annual price adjustment
As a business owner, you know that pricing your services is both an art and a science.
Our pricing reflects not just our costs of operating, but also indicates the value we feel we are delivering. We strive to be the pricing leader in our industry by demonstrating continued reinvestment, learning and innovation.
4. Never cut off class enrollment
At Twister Gymnastics, our sessions never end! Once we implemented a year-round schedule, we never looked back. If your industry allows for continuous enrollment- do it. The potential added enrollment revenue will add up over time, thus adding to the bottom line of your organization’s success.
At certain times of the year we may need to make minor adjustments and we continue to educate our customers that gymnastics is a year-around sport.
5. Allow students to register online
If you aren’t providing your students and parents the opportunity to register for your classes online, what are you waiting for? I have yet to hear anyone say they regret letting customers register 24 hours per day.
6. Set a strict no pay = no play policy
This is a tough pill to swallow, at first.
Five years ago, we implemented a zero receivables policy, so that no one owes us money. This coincided with our auto-pay and withdrawal notice system from tip #1. Additionally, we stopped taking checks, which reduced our administrative costs and collections.
Think about it this way: Can you drop your kids at the movies and pay after they enjoy the show? We don’t think so.
7. Be transparent with your leadership staff through open book management
Sharing the inner financial workings of your business is an educational endeavor that yields enormous returns. This levels the playing field by informing key leaders on how things are going financially, thus equipping our decision makers with vital information they need to be successful.
8. Performance Compensation for staff based upon overall results
We are a team. We are all in this together. If one side of the boat is sinking, we all need to bail. We have made several attempts to break apart our organization into mini-segments and assign percentages of fixed costs – all of which failed. Our team approach is just right and keeps everyone rowing in the same direction.
9. Freezing accounts during summer months
The process of freezing is basically a withdrawal and re-enrollment form built into one. We allow members to hold their spot in a specific class for up to eight weeks between June and August.
The majority of members who freeze their membership do so for 4-6 weeks. We do not charge for the freeze but do begin charging their tuition when their freeze has thawed.
10. Weekly Reporting of KPI’s
We report weekly our Key Performance Indicators (KPI’s) to our leadership. Measuring our KPI’s weekly provides valuable data we use to manage our programs and evaluate our performance. KPI data includes enrollment, instructor hours and class/program efficiency.
Bonus: Only surround yourself with people that have a quality you admire
We spend a lot of time with our fellow staff members. Let’s make the most of that time by picking the very best people to share our days. This is my quick-test to see if we have the right people on our team!