Your Membership Growth Plateau's
As an independent operator, to build your gym member base, you create as much interest from the community by marketing your club via your current members and through external advertising.
Eventually your income covers your overheads and then finally, you return a profit. In time, your growth slows and then eventually stops and from here, although your income fluctuates seasonally, your profit remains much the same.
CFM Campaign Profit
The extra profit a CFM campaign provides your club is generated from a segment of the market that you are currently not utilising, the inactive, non-exercising members of the community.
To better understand how a campaign will help you grow profit, see the graph below.
Within this, the horizontal dotted line represents the costs of running your business and any additional revenue beyond this point is profit.
As you know, some costs associated with owning a health club are fixed, like rent, and others are variable, such as utilities and staff wages. Importantly, these variable costs remain mostly constant, even after the incremental member growth a campaign delivers, thus allowing the extra income to purely grow your profit margins.
This campaign income isn’t going to triple your revenue or get you rich quick. However, as this graph illustrates, it has the potential to double or even triple your profit by creating income from a previously unreachable segment.
This is your opportunity for extra profit and growth for your club. This is your profit advantage.