Guide to Developing a Profitable Personal Training Business System in Your Club Laurie Cingle, M.Ed., President, Laurie Cingle Consulting & Coaching

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1 Guide to Developing a Profitable Personal Training Business System in Your Club Laurie Cingle, M.Ed., President, Laurie Cingle Consulting & Coaching 28th Annual International Convention & Trade Show March 16-19, 2009 San Francisco, California Moscone Center International Health, Racquet & Sportsclub Association Seaport Center, 70 Fargo Street, Boston, Massachusetts Fax:

2 Guide to Developing a Profitable Personal Training Business System in Your Club Laurie Cingle, M.Ed. Laurie Cingle Consulting and Coaching To receive a copy of the slides and examples used in this presentation, provide Laurie with your business card at the end of the session or send an to

3 This session assumes: 1. You are here today because you have decided to implement a personal training program in a health club setting. In-home personal training will not be discussed. 2. You already understand the benefits of offering personal training to your club members. SETTING UP YOUR PROGRAM I. Decide what you want your program to be and its structure. A. Questions to ask 1. Will it be a profit center or service-only center? 2. Will the trainers be independent contractors or company employees? 3. If employees, will they be part-time or full-time trainers? 4. If employees, will you pay them -commission only? -salary only? -salary plus commission? -fixed rate per session? 5. Will you have a dedicated personal training director or will the director be in charge of multiple departments? 6. What will you charge for personal training services? Consider what the trainer is worth, what the service to members is worth and what the market will bear. 7. What percentage of the pt program revenues will you pay to the program director, if any? 8. What percentage of the program revenues does the club wish to retain? 9. What are the short and long term financial goals for the pt program? For the individual trainers? 10. Will you pay the trainer on what they sell or on what they deliver? 2

4 EXAMPLE: Full-time trainer s Monetary Compensation Monthly Revenue: $5,000 ($50/session; 25 sessions/wk) Commission = 60% $3,000 Meeting salary (2/month) 20 ETO (7 days/yr) 40 Employment Taxes (11%) 337 Health Benefit K (2% match) 60 Monthly education allowance 25 In-house education (15 attendees) 75 Uniforms/business cards 11 Total Trainer Compensation $3,643 Net = $5,000 less $3,643 = $1,357 (27%) LESS Admin support, supplies, equipment Estimated at 25% or $ ACTUAL NET = $1,018 (20%) II. Choose a Business Philosophy for your Personal Training program A. Functional? B. Holistic? C. Medical fitness? D. Science-based? E. Fun or high-energy? F. Sports-oriented? Philosophy helps in hiring trainers that have the necessary skills and credentials and creates a cohesive team. III. Establish who will be on the team A. Decide on the qualifications and credentials necessary for personal trainers. 1. Degree in a health-related field OR holds a current club-preferred certification OR is a certified athletic trainer OR licensed physical therapist AND/OR minimum of x years of experience as a personal trainer. 3

5 2. Certification by a nationally recognized organization. 3. CPR B. Develop a job description for the function of personal trainer* (Job description available on IHRSA website) C. Hiring the staff 1. Find the right person to manage the program. a. Just because someone is a great personal trainer doesn t mean they will be a successful team leader. b. Look for someone who can lead to team to achieve the goals established. c. Business-minded / money-motivated d. Compensate them well on performance of the team. e. Duties of dedicated personal training department manager: Drive pt revenues Recruit/hire/train personal trainers and administrative support staff Administer the business Match new clients with trainers (no up system, please) f. Business goals of dedicated pt manager: PT Revenue increased by % of gross revenue by. PT participation increased by %. Monthly trainer education that results in. Group training increased to % of personal training gross revenue. g. Duties of manager who is over multiple departments? h. Products of the function of manager of multiple departments related to personal training? 4

6 2. Hire the right trainers. a. Look for people with the following prerequisites. These are things that can not be trained. 1. initiative 2. ability to take ownership of clients 3. adaptability 4. goal orientation 5. attitude 6. motivated 7. career-minded Objectively evaluate your existing team for these traits b. Where to find trainers 1. Current staff and members 2. Job sites provided by certification orgs 3. Host workshops 4. Network at regional fitness events 5. Speak at schools 6. Offer internships 7. Look at other professions 8. Look for people wanting to change careers c. Trainers can be trained in 1. technical skills 2. exercise testing skills 5

7 3. hands-on training techniques 4. sales presentation skills 5. listening skills 6. other - D. Training the staff 1. New employee orientation program to familiarize with all areas and functions of the club. 2. Detailed job training manual specific to personal training* 3. Provide technical skills and exercise testing skills training in-house. a. Equipment use b. Basic science physiology, kinesiology, anatomy c. Physiological and functional assessments d. Program design basics e. Certification preparation f. Updates on current research g. Technology and your systems 4. Outside resources for training a. Contract with industry experts b. PT-on-the-net c. NASM s online subscription d. Regional seminars e. Industry conventions 5. Provide sales presentation skills training a. Most trainers can t sell b. Suggestion: use software designed to sell services. E. Retaining the staff 1. When you hire the right people, retention is less of an issue 2. Offer benefits like health benefit, earned-time-off, educational stipend, etc. to full-timers 6

8 3. Conduct regular performance appraisals to provide feedback on what they have accomplished and to set goals for what they should strive to accomplish 4. One-on-one weekly accountability meetings 5. Provide regular, on-going education 6. Ensure that their book is full a. Recommendation: Hire only full-time trainers b. Recommendation: Set a quota based on # of sessions or dollars generated. c. Recommendation: require a minimum of 25 paid one-hour appointments each week d. Recommendation: Guarantee them a base salary for at least 90 days plus small commission e. Set daily, weekly and monthly targets f. Focus them on activities that will result in pt sales g. Cut them loose if not hitting quotas 7. Compensate trainers based on production c. Establish trainer rates and commissions paid d. Require minimum number of weekly sessions or monthly $ e. Keep score EXAMPLE commission structure Monthly quota = $5,000 gross revenue (assume $50/session, 25 sessions/wk) $0 - $3,499 40% $3,500 - $4,999 50% $5, % 7

9 IV. Establish the facility and equipment needs. A. Questions to ask 1. Will you have a dedicated space for personal training? 2. Will you need special equipment for personal training? 3. How and when will the equipment and facility be maintained, repaired, and cleaned? Who will be responsible? B. At a minimum 1. Provide a central desk for trainers 2. Create a matted stretching area and install inexpensive functional equipment (stability balls, BOSUs, bands, etc.) C. Ideal 1. Centralized Trainers desk 2. Functional/Core Training area 3. Create a visible space on the fitness floor dedicated to training 4. Locking file drawers for client info IMPLEMENTING THE PROGRAM I. Marketing and selling your personal training program. A. Member Integration system 1. New member integration involves sales presentation for training services offers a solution 2. Recommendation Implement a structured sales system for presenting Personal Training to members 3. Identify a dedicated Member Integration Specialist * responsible for program sales, not a trainer 3. Examples of different ways to integrate new/existing members a. Traditional physiological assessment b. Functional movement screen assessment 8

10 c. Equipment orientation d. 3 Free PT sessions e. Jump Start pt package sold at p.o.s. f. One-on-one private sit-down consultation with integration specialist g. Intro classes to group ex, racquet sports, etc. B. Create printed materials 1. Client testimonials 2. Pictures and bios of staff posted on the wall in frames and on website 3. Flyers/posters for group programs and special packages 4. Club newsletter include articles and exercise tips 5. Personal training program brochure 6. Appointment cards 7. Standardized forms for the business of training 8. Standardized workout card (color coded) C. Publicity/Advertising outside of club 1. Guest on a radio show 2. Newspapers and magazines 3. Articles and columns in local papers and magazines 4. Press releases 5. Television and radio 9

11 D. Referrals 1. Word of mouth from existing clients 2. Professionals - physical therapists, physicians, health and fitness professionals, chiropractors, nutritionists, coaches 3. Organizations - schools and corporations E. Volunteer your services 1. Speaking engagements 2. Educational institutions 3. Community health fairs F. Staff uniforms with club logo G. Dedicated Trainers desk or area H. Special website in addition to club website I. Connecting clients and trainers 1. Trainer generates the client themselves 2. Potential client inquires about training 3. Client is sold a package at point-of-sale or at member integration 4. Client is sold package by Member Integration Specialist #2, #3, #4 Client is matched with trainer by PT Director. No up system. II. Pricing and collection of payment A. Questions to ask 1. Cash/check/credit card only? 2. Payment to club membership account and collected through monthly invoicing? 10

12 3. Electronic Funds Transfer (EFT)? 4. Will you restrict size of package? 5. Will you discount sessions 6. Prepay sessions? 7. Pay-as-they-go? 8. Invoice at the end of the month for sessions during month? 9. Clients pay the club and the club pays the trainer? 10. Clients pay the trainer and the trainer pays the club? 11. PT packages EFT d (like dues)? B. Setting trainer s fees 1. Establishing level of trainer example, Fitness Trainee, Personal Trainer, Elite Trainer, Master Trainer C. Examples of packages and pricing Level Trainee - CPR - Holds current entry level certification - <6 months from obtaining club preferred certification - <6 months work experience in club setting - Enrolled in in-house pt-wanna-be program Rate: $40.00 for one hour session; $25.00 for 30-minute session Level Professional - Current preferred certification OR bachelor s degree OR certified Athletic Trainer OR licensed physical therapist - Current Gravity or Kinesis certification - <6 months from attaining preferred certification - CPR - Deliver minimum of 25 paid sessions/week Rate: $55.00 per session Level Advanced - Same as professional plus: - Attained 15 contact hours of education (CECs) over past 2 years years experience working as pt Rate: $65 per session 11

13 Level Elite - Same as Advanced plus: - 3 years experience as pt (if have both bachelor s and preferred certification) OR - 5 years experience as pt (if have either bachelor s or certification, not both) Rate: $75 per session Level Master - Same as Elite plus: - 5 years experience as pt (if have both bachelor s and preferred certification) OR - 8 years experience as pt (if have either bachelor s or certification, not both) - Must have performed Fitness Industry Service within past 2 years Rate: $80 per session D. Use club management software to generate reports of sales and # of sessions delivered. OPERATING THE PROGRAM I. Personal Training Operations Manual Index 1. Job Description 2. Personal Trainer Policies 3. Fees for Personal Training Services 4. Matrix of Personal Training Fees 5. How To Properly Completing the Training Services Charge Ticket 6. Uniform 7. Payroll 8. Generating a sales revenue report 9. Salary structure and benefits 10. Monthly team bonus package 12

14 11. Termination of employment 12. New client procedures 13. Working with clients with special health considerations 14. Cancellations by clients 15. Record keeping requirements for trainers 16. Trainer meetings 17. Certification, education and on-going training 18. Advertising your PT services 19. Contraindicated and illegal exercises II. Personal Training Operations Manual Attachments (at back of manual) 1. Job Description 2. Pre-Exercise Questionnaire form 3. Informed Consent for Personal Training form 4. Physician Referral form 5. Assumption of Risk form 6. Personal Training Charge Ticket form 7. Sample Sales Revenue Report generated from club management system 8. Workout Card (blank) 9. Weekly Trainer Sessions Report worksheet 10. Matrix of Personal Training Fees/Categories of Trainers 11. Policy for Personal Training Non-Members 12. Personal Trainer Blank Bio Form 13. Club Guest Pass Procedures 14. Any other attachments you want to include like important memos, club Emergency Procedures, etc. QUALITY ASSURANCE I. Ensure on-going quality of personal training services. A. Conduct client satisfaction surveys 13

15 B. Annual club surveys C. Randomly call clients by phone to discuss satisfaction D. On-going review and update of job training manuals for personal training E. On-going continuing education for personal trainers F. Regular auditing of client files to ensure proper procedures and documentation G. Regular auditing of staff certifications to ensure they are up-to-date H. Regular staff performance appraisals to assist in staff retention I. Observation of conduct and technique with clients on the floor and within the team MOST IMPORTANT FOR SUCCESS Hire strong Director and compensate them monthly on success of department Implement a formal system for selling personal training as part of new member integration Hire full-time career trainers rather than hobbyists Compensate trainers in a way that motivates them to generate more revenue Create a dedicated area for trainers that will enhance profit To receive a copy of the slides and examples used in this presentation, provide Laurie with your business card at the end of the session or send an to 14

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