January 2008

Ensure the Fitness of Your Fitness Facility

According to recent research from the Sporting Goods Manufacturers Association (SGMA), nearly 43 million Americans are members of health clubs—which is twice the number who were members in 1990 (20.7 million). But reports from both Consumer Reports and the Better Business Bureau serve as a warning to fitness facilities, particularly privately run, for-profit clubs: Make sure you are putting smart business practices in place, or you may risk losing your patrons.

Some 10,000 Consumer Reports readers were surveyed by the magazine and gave lower marks to many big fitness chains, rating YMCAs, community centers and office gyms higher. And the Better Business Bureau reported that complaints received for fitness clubs have increased more than 90 percent in the past five years.

In Consumer Reports' first-ever survey about workout facilities, readers who have used a gym in the past six months were asked to respond to questions about various aspects of the club, including staff, equipment, classes, crowds, cleanliness, locker rooms and billing. In addition, the magazine sent mystery shoppers out into the field to get the real-world experience of the effort involved in joining a major chain health club in nine states.

Life Time Fitness was the only big chain fitness club that landed closer to the top of the ratings outscoring most of the other big chains. Also outscoring the big chains were studios for yoga, dance or Pilates; work gyms; community centers; school gyms; and nonprofit facilities like Jewish Community Centers (JCCs), YMCAs and YWCAs.

The report from the Better Business Bureau confirmed Consumer Reports findings that showed patrons having difficulties with their contracts and payments, as well as cancellations. The most common complaints reported to the BBB are focused on two areas: contract disputes (41.5 percent of complaints) and billing issues (31.7 percent of complaints). The majority of the billing complaints centered on members being billed after their felt their contracts had expired. Many of these consumers assumed their contracts would not be renewed, or they filed paperwork to cancel membership but still had fees withdrawn from their accounts. While contract disputes varied, they typically had to do with a disagreement over promises made by salespeople compared to what the membership actually included, as well as policies for getting out of the contract due to relocation. A relatively high number of consumers also reported signing up for a gym membership, only to discover the gym going out of business a few weeks later.

All of this negative press points to the need to ensure your business practices are sound. Train your staff well to handle customers, and be sure you encourage potential members to read the fine print on their contracts. Bad press like this is not good for anyone in the fitness industry—consumers who need health clubs and their staffs to partner with them in their fitness goals, and fitness clubs that need to run as successful businesses.

For more information, visit www.consumerreports.org and www.bbb.org.