Success Story: Club One
Firmly seated at the cutting edge of fitness, Club One had implemented Pilates in its 17 California sites several years ago. However, the expenses of the program were exceeding the profit it generated. In October of 2004, the company hired Adrienne Straub as Regional Program Director, with the mission of creating a successful Pilates program - one club at a time.
Straub relished the challenge: “I had managed twenty-nine clubs at my previous position and I knew Pilates could be a lucrative revenue generator. “ She started with 6 Club One sites in San Francisco. After inspecting the facilities she formulated a plan and pitched her strategy to the club directors. The directors agreed with her and she began to implement her plan.
Club by club she installed new equipment the studios (sometimes creating new studios by refurbishing existing squash courts), made the studios aesthetically pleasing, implemented a rigorous training program for her instructors and tightly managed the budget. She also heavily marketed the classes to the clubs’ existing member base with flyers and an innovative demo program - members new to Pilates were invited to try the equipment for free. These free demos hooked many members into signing up for the fee-based classes. Immediately the clubs’ group classes and personal training sessions began to fill up.
In October 2004 (when Straub took over), total Pilates revenue the 6 clubs was $37,000. Her last quarter returns were over $100,000 with a 29% profit margin. This next quarter promises to be even better, as revenues approach $117,000. “In less than a year we’ve gone from losing money to generating a 33% profit margin for the quarter,” says Straub.
Straub says that Pilates can clearly turn a profit, but it needs to be managed properly. “You definitely need quality control – good equipment and well-trained instructors are key. Remember, your members are paying extra for this service. They need to have a positive experience not just once but every time.”
By the numbers:
- Total Pilates revenues near $117,00 per quarter.
- 25-35 group reformer classes per week (usually 4-6 people per group) offered at 6 facilities.
- Members pay an average of $20-$25 a class. Club One also provides personal sessions at $63 each.
The Balanced Body Advantage
When Straub needed new equipment she knew exactly where to turn.
“Definitely Balanced Body,” she says. “Their Studio Reformer® is the best Reformer in the world – and it’s an absolutely beautiful piece of equipment.”
Currently, Club One has over 30 Balanced Body Studio Reformers, several Balanced Body Trapeze Tables (Cadillacs), and a variety of accessories at its six San Francisco area locations. And more is on the way. “Some of these clubs have just exploded and they need more equipment,” says Straub.
In addition to the quality equipment, Straub also appreciated that Balanced Body joined her at the meeting when she pitched her new strategy to Club One directors. Balanced Body representatives made a presentation on profitable Pilates programming that supported the moves Straub wanted to make. “We have a very good relationship – I will always be a Balanced Body customer,” says Straub. “That’s just the way it is.”
About Club One
Headquartered in San Francisco, Club One is one of America’s leading club companies specializing in design, development, and operations of high quality, convenient fitness, sports and wellness centers. Club One has over 68 club sites throughout the United States and in Canada.