Small Group Training Is Your Key to Competing with Low-Price Clubs

by Greg Maurer (Associate partner New Paradigm Partners)

The low-price/high-volume club model is highly successful and here to stay because their value proposition is clear to the consumer. Unfortunately for the other club types (large, multipurpose family fitness models and results-driven programming models), these low-priced clubs have not expanded the market but rather are pulling members and potential members from them.

The average club advertises discounts on membership and enrollment fees. The sales staffs are not usually trained to do a “needs analysis” properly, and the clubs don’t offer specific program options that consistently provide results. They have no compelling value proposition because they are neither low-priced nor do they provide consistent results. They are being hurt by the rise of low-priced clubs, but they have no strategy to deal with them.

For these clubs, small group training can be a lifesaver. Small group training programs can differentiate clubs by providing all the benefits (accountability, guidance, motivation, and accelerated results) of personal training at an affordable price. At the same time, clubs and trainers both can make more money. These clubs are thriving in competitive markets because selling and providing results works. For most consumers, what counts is not how much they pay but the results that they get.

Successful small group training programs require a results-based marketing and sales strategy along with retraining to provide small group programming that is fun and produces results. Small group training is not the same as personal training. Most trainers have not received the instruction necessary to be effective in this role.

Several important steps are required to make small group training work. The first step is clearly defining your target market for the new program. Who is the ideal customer you want to attract (age, gender, profile, member, non-member)? Why will this particular program appeal to this group?

You also need to consider what type of program pricing model you want to adopt.