The Originator of Budget Clubs The Success Story
Presented by
Kenny McAndrew
1. History
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2002
2004
2006
2007
2007
2008
2008-10
2011
The shock of the 15€ membership
Going it alone
1st Budget Club opens
July – FitSpace doubles to 2 Clubs
October – doubles again to 4 Clubs
February – doubles again to 8 Clubs
Consolidation to profitability
Expansion
Big Gyms
With loads of kit...
What do you get?
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150+ pieces of gym equipment
Separate free weights areas
Virtual spin classes
Stretch areas
PT (reps level 3) conduct
Inductions
• Duty Manager (1st Aid qualified)
on duty
• Join Zone
• Other areas (Ladies only / quite
area / PT area)
Now the Smart bit...
FitSpace Solution
Home/Office
2. Customer fills in personal
details and accepts
membership rates
2
1
1. Customer logs
onto website
3. Customer fills in preexercise
questionnaire
3
4
4. Joining fees included as
part of 1st DD
5.
10
10. Customer
enters gym via
turnstile
5
Central Server
(Hosted?)
9. Customer issued with
proximity
membership card

9
8. Customer goes to gym
and enters PIN number
into the kiosk
6
8
7
Customer fills in
Direct Debit form
(via Harland's
Gp)
6. Customer books
an induction
session
7. Confirmation screen
displays all details
entered and issues a
PIN number
The Who question?
Food for thought...
•10-12% of the local population are members of a health Club / gym /
sports centre at any one time.
•There is a direct correlation between obesity and low income.
(Low income diet & Nutritional Survey 2007 for Foods Standards Agency)
•Private health Clubs and Gyms (and a number of local authority leisure
facilities) are based in the majority, in middle to higher income areas
Experience of Gyms
Past = 45%
New = 20%
Current = 35%
Marketing Warfare
Flanking - High
Guerrilla
Guerrilla
Defensive
Offensive
Guerrilla
Guerrilla
Flanking - Low
The Future
Slide with permission from Ray Algar
Low-Cost Gym Sector report 2010.
1. Segmentation of the Budget sector (Europe)
Premium Budget
– Big Fitness + Classes & other facilities.
20-30€ (£15-20)
Budget
- Big Fitness, clean and simple
15-20 € (£10-15)
Hard Budget
- Smaller Fitness, basic and hard core
10-15 € (£7.50-10)
Grunge Budget
- Warehouse, temporary & basic fitness
5-10 € (£4-7.50)
2. More Automated
Full height turnstiles
with Biometric entry
Automated Electronic
Marketing & Programmes
Summary
•Budgets Gyms are the fastest growing sector of the Fitness Industry
•They can offer fantastic value for money to the consumer
•They need large investment, a sound business plan and robust and
sophisticated IT.
•They open up Fitness to those who have never been able to afford it before.
Future
•They will squeeze the middle market
•They will become segmented
•They will become more automated.