Friday, March 30, 2012

Long Term Contracts Got a Bad Rap!

Today’s tip isn’t so much a tip as it is an explanation and hopefully with it some clarity and guidance toward the correct exercise path.  Like most things I write about, I never really thought it was a big enough issue to address, but also like most things, I notice it’s something that comes up A LOT and therefore is a topic on which we should expand, perhaps.

Today’s topic is long term gym contracts.  What does a long term gym membership have to do with your results?  Glad you asked…

Over the last few years long term gym memberships and contracts have taken a bad rap.  This is due (once again) to corporate Globo-Gyms and their inability to deliver results.  Yet, as dumb as they are when it comes to fitness, the owners and operators of Globo-Gyms pay close attention to the numbers that dictate their bottom line. 

One of the things they noticed, is that a typical gym member lasted about six weeks on average.  We all know why – the member liked the look of the place, signed up and started going.  Then somewhere along the line, they noticed that they weren’t getting results and the truth was the gym sucked despite it’s good 1st impression.  So they would stop going – and stop paying.

Corporate Globo-Gym’s response was to offer only long term contracts.  This way, when the member says “This place sucks – I’mma bounce, yo’”, the gym’s answer would be “Sorry, you signed a contract and you’re going to pay us anyway, even if it’s our fault you aren’t getting results.”

Consumers then became very leery of long term gym memberships and rightfully so – they wouldn’t get results and would have to pay for it anyway.

As a result of the backlash against long term contracts, another business minded response became prevalent: that’s the “No Long Term Contracts” advertisements from fitness facilities – both large and small.  It was announced as a badge of honor that they would never take your money if you didn’t come in and train.  The member could go month to month on the agreement, or in the case of personal training, could buy sessions and pick and choose when to use them, etc.

Guess what that led to?  Members never came in and trained.  And members that don’t train don’t get results either.

If you’re a fitness and exercise consumer, I hope you don’t this as a personal attack, but if I’ve learned anything in my decade plus in this business, it’s this:

As a fitness facility, letting the member decide when, where, and how they will be working out is a prime example of letting the inmates run the asylum.  If the consumer could do this on their own and succeed then they (sit down for this one),  would do it on their own and succeed – they wouldn’t need you in the 1st place! (Duh…)

More specifically, here’s what we’ve learned at The Training Rim:

Awhile ago, we switched to long term memberships only (we have a 3 month option and a 12 month option – 1 month trials are only for people who are new and aren’t sure if it’s for them or not).  And yes, because I’m a business owner as well, I track the numbers that drive my business too.

Here’s what we found: Members’ training frequency almost doubled when we switched to 3 and 12 month memberships only.  No, that’s not a misprint.  Members were almost TWICE as likely to train on a consistent basis than they were prior to the switch.

The reasons for this of course, are multi-factorial.  There’s obviously a psychological and financial aspect to it among other things.  But the reality is we don’t care about the “why”.  The ONLY thing we care about at The Training Rim is getting people results.  And here is what statistics have told us:

1. People who make commitments are more likely to train consistently.

2. People who train consistently are more likely to get results.

3. People who get results are happier and healthier.

So guess what?  We’re going with this “We’re going to need you to make a commitment, thing”!
Unlike the long term model offered by Globo-gyms, you’re going to like coming here and you’re going to get results.  Our training is backed by years of evidence that it works, and when surveyed about why TR members liked coming to the TR, “It’s fun!” was the overwhelming number 1 answer.

And unlike the “train whenever you want” reactionary trainers who let the inmates run the asylum, we’re going to ask you to make a commitment to us.  Not because we have some overactive ego, but because we know if you make a commitment to us you’re going to get results.  We’re going to hold up our end of the bargain, and we’re going to ask you to do the same.

So when you see a fitness facility that only offers long term contracts, don’t offended by that aspect of their business.  Instead, get offended that they suck at their job.

And when you see the short term, come when you want facility, don’t jump all over it just because there’s no commitment.  Because as we’ve all learned: no commitment = no results.

Instead, find a place that expects you to make a commitment and will hold you to it, assuming their team will hold up its end of the bargain, as we do.

No need to be afraid of this guy - as long as he has a TR logo somewhere on him...

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