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The weight loss business is one of the fastest growing businesses around.
Americans spend an estimated $30 billion a year on all types of diet programs
and products. Health club memberships topped $14 billion in 2003.
With health being one of the number one concerns of Americans, the dieting
industry will only grow over time. As a franchise, health club membership
produce a steady stream of revenue, since most customers are locked in an
agreement of some kind for an extended period of time. The average health
club member only uses the gym 3-4 times a week, so this is a very profitable
business. If a customer pays by the month and never even uses the
facilities, your health club has made money without even doing any work.
Since your revenue stream will be relatively consistent each month, there is
less risk involved with this type of business. You will be able to project
your income for the year and possibly expand your business.
It's difficult to open your own health club because you need some kind of
brand image. Most people want to know that they are using a world class
gym, so you will have the reputation of the franchise to make sure that you will
succeed in this business venture. Franchises have tested strategies that
are very successful, or else they wouldn't still be in business.
There is a lifestyle image that people wish to project when they are a club
member. People want to be part of something exclusive, and health clubs
provide the image, along with the prestige that people want. In order to
promise that kind of quality to your customer, you should join a franchise which
already has a brand image, so you don't have to spend so much money on marketing
to create an unique brand image of your own. In addition, you can also
have a turn key business. You won't have to find your own vendors so you
can negotiate with the power of the franchise name.
Based upon your location, you can target your demographic as you see fit.
You can serve an underrepresented demographic in your town or city. Most
gyms target men and women ages 21-40. You may want your health club to
serve older Americans who place more of priority on their health and well being.
A location near a hospital can also be to your advantage since you might be able
to generate sales for people in physical therapy.
Possible Demographic:
- Athletes
- People in physical therapy
- Older Americans looking to get fit
- Men and Women looking to lose weight
- Pregnant Women / Prenatal Fitness
- Young adults interested in lifestyle fitness such as yoga.
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