YOUR CLUBYOUR CLUBBY THE NUMBERSBY THE NUMBERS

The The CMSCMS WayWay

The System That WorksA Biz •Trac module

Seven Deadly Sins

• DUMB- “Don’t understand my business”• Poor initial planning• Overly optimistic projections• Improper debt structure/capitalization• Poor cash flow planning• Lack of operating systems• Lack of accountability/reporting

Seven Laws of Profitable Club Management

• Law#4 The Law of Numbers–Much of what goes on in your

club is unable to be objectively measured. However, there are many numbers that tell you “How are we doing?”.

ADHERENCE TO ADHERENCE TO OPERATING RATIOSOPERATING RATIOS

30%30%

TARGET RATIOSTARGET RATIOS

20%20%

15%15% 10%10%25%25%

PayrollPayroll Rent/MortgageRent/Mortgage

ProfitProfitMarketingMarketing All otherAll other

KEYS TO SUCCESSKEYS TO SUCCESS

SALES PERFORMAMCE

MARKETING EFFECTIVENESS

NEW MEMBER ASSIMILATION

FITNESS STAFF PERFORMANCE

MEMBER SERVICE/ MEMBER RETENTION

COST CONTROLS

SALES PERFORMANCE

• TEL-TRAC SYSTEM IMPLEMENTATION

• CALLS>APPTS>SHOWS>CLOSE

• APPTS/WALK-IN RATIO

• SERVICE CALLS/REFERRALS

• TEL-TRAC DAILY/MONTHLY REPORT

MARKETING EFFECTIVENESS

• EXTERNAL– INCOMING CALLS– WALK-INS

• INTERNAL– REFERRALS– GUEST TRAFFIC

• SOURCES– PRINT, ELECTRONIC, TELE DIRECTORY,

REFERRAL, CAMP, NEIGHBOR

NEW MEMBER ASSIMILATION

• SALES SERVICE CALLS

• NEW MEMBER ORIENTATION

• NEW MEMBER SURVEY

• FIT-TRAC SERVICE CALLS

• FIT-TRAC SERVICE OPPORTUNITIES

• MEMBER USAGE REPORTS

FITNESS STAFF PERFORMANCE

• PERFORMANCE INDICATORS– # OF CLIENTS– INSTRUCTION RATE– INSTRUCTIONS/TOTAL HOURS– CALL RATE– ATTRITION RATE

MEMBER SERVICE/RETENTION• MEMBER FEEDBACK SYSTEM

– HEY TONY!– MEMBER SURVEYS

• WALK ABOUTS

• RESIGINATIONS– Why are you leaving?– KAM question

• PREVIOUS MEMBERS JOINED

• REFERRALS

COST CONTROLS

• PAYROLL CONTROLS– 30% RATIO– WAGE BANDS– APPROVE ALL INCREASES– BUDGET CONTROLS

• PROFIT CENTER PROFIT• APPROVE ALL EXPENDITURES• BUDGET VARIANCE REPORTS

DAILY REPORTS

• SALES, RESIGNATIONS, NET

• CASH FLOW- DEPOSITS, EXPENDITURES

• DAILY SALES REPORT– BY SALES PERSON

• MEMBER FEEDBACK

MONTHLY REPORTS

• MEMBERSHIP UNITS and $ PER UNIT

• SALES, RESIGNATIONS, NET

• TEL TRAC, FIT TRAC, R-TRAC REPORTS

• SURVEY RESULTS

• DEPT FINANCIAL STATEMENTS

• PAYROLL RATIO

• DEPARTMENTAL/PROGRAM BUDGET VARIANCES

REPORTING SYSTEMS

• FEED BAC- TRACKS ALL 3 SYSTEMS– TEL TRAC, FIT TRAC, R TRAC– YOU TRACK AND ENTER THE DATA– FEED BAC CALCULATES AND CONSOLODATES

• BIZ TRAC– PLAN YOUR WORK– WORK YOUR PLAN– REVIEW YOUR RESULTS

30%30%

IF YOU WANT TO MAKE IF YOU WANT TO MAKE YOUR NUMBERSYOUR NUMBERS

20%20%

15%15% 10%10%25%25%

PayrollPayroll Rent/MortgageRent/Mortgage

ProfitProfitMarketingMarketing All otherAll other

YOU HAVE TO KNOW YOU HAVE TO KNOW YOUR NUMBERSYOUR NUMBERS

REPS & SETS OR DOLLARS & CENTS

WHICH ARE YOU PAYING MORE

ATTENTION TO ?

FINANCIAL FINANCIAL MANAGEMENTMANAGEMENT

The The CMSCMS WayWay

The System That WorksA Biz •Trac module

THE END