The annual Industry Data Survey (IDS) conducted by the International Health, Racquet & Sportsclub Association (IHRSA) has been collecting essential key performance indicators (KPIs) from leading health club companies for over thirty years. The resulting Profiles of Success report contains a compilation and analysis of key metrics, as well as best practices such as club reinvestment and pricing.
This invaluable reference provides insights for both market-leading club companies and those aspiring to reach the top, allowing them to measure their clubs against the best in the business.
One notable section within Profiles of Success is the pricing data, which serves as a guide for developing an effective club pricing strategy.
Before drawing insights from Profiles of Success, it is crucial to define the type of club being operated, whether an independent club, part of a chain, a fitness-only facility, or a multipurpose club. Understanding what sets the club apart from competitors is essential.
Based on the data collected from the Industry Data Survey, clubs reported a median monthly membership fee of £61 and an enrollment/initiation fee of £74. However, conducting a relevant comparison based on club type is essential for a more accurate understanding of the club’s pricing strategy relative to similar facilities.
For example, multipurpose clubs charge a median monthly fee of £75, reflecting the wide range of services and facilities they typically offer. In contrast, fitness-only clubs charge a median monthly fee of £45, the lowest among all segments observed in Profiles of Success.
Chain clubs and independent clubs also show variations in pricing, with chain clubs charging a median of £64 per month, and independent clubs £57 per month. Notably, recent data indicates that independent clubs are now charging less than chain clubs, contrary to historical trends.
While Profiles of Success provides valuable data for comparing club pricing strategies against similar businesses, conducting independent market research and analysis remains crucial. This data can help club managers understand the benchmarks and KPIs of leading clubs and identify their own competitive advantage.
As clubs develop and revisit their pricing strategies, conducting a competitive analysis can provide a better understanding of where the club stands in the market.
In conclusion, a thorough understanding of the market and competition is essential for the development of an effective pricing strategy for fitness clubs. By utilizing the insights from IHRSA’s Profiles of Success report and conducting comprehensive market analysis, club businesses can position themselves as top-tier in the industry.