The battle lines have been drawn in the gym industry with the countries’ two gym industry players beginning to eye out the niche that has traditionally belonged to the independent gyms owners.
I am talking about the budget gym or low cost health club.
This has been a battle a long time in the making. Planet Fitness and Virgin Active have both blasted out of the starting blocks with the same concept.
As usual both companies have made grand claims about how many gyms or health clubs they will be building around the country.
But what, if any advantage will this offer to the cash strapped, overdrawn, underpaid South African Fitness enthusiast?
What is a Budget Gym?
Of course budget gym is not a new concept, there have been some exceptional health clubs owned by independent health club operators for many years.
A budget gym is a health club stripped of the unnecessary frills. The budget gym offers workouts on quality gym equipment for clients who want only a workout. Some of these budget gyms may also be referred to as an express gym
What is an Express Gym?
An express gym is a smaller gym, and may also be a budget gym, however is not necessarily cheaper than a normal health club. The idea behind express gyms is that they are exceptionally convenient and may be found in locations that are traditionally too expensive for a full facility health club.
The first that comes to mind is the exceptionally well designed and facility packed venue in East London called Body Classique. Body Classique is operated by the well know East London Swanepoel family and has gained a reputation as being one of the best and most efficiently run gyms in South Africa.
Another independent health club that springs to mind, also from that ghost at the coast is the incredible Body Culture Health and Wellness Centre in Beacon Bay.
What is interesting about both these clubs is that they both not only survive but thrive and prosper within a few hundred meters of Full facility Virgin Active health clubs.
Virgin Active, Planet Fitness or one of the Independent Gyms
Consumers used to believe that there was safety in numbers. Of course when we think about the big supermarket chains and how “Scruffles” the loyal Labrador had somehow ingratiated himself into my South Africa Champion Boesrwors, that belief does not seem as solid anymore.
The situation with gyms and health club groups is somewhat different.
Because I have a very intimate knowledge of the costing of these gyms and the equipment that goes into them I know that the independent operator can always give you a better price. However if you are unlucky enough to be in an area where a gym has a monopoly then the owner is most probably charging way in excess of what he or she would be of there were some healthy, price leveling competition. That is perhaps where the group expansion will be good for the consumer.
Health Club Chains are More Expensive to Run Than Private Gyms
All health club chains have two major costs that the independents probably don’t have
1. Sales teams and significant marketing budgets.
Sales costs, cost of sale or cost of sales are accounting formulae and can therefore be diluted by different interpretations of profit and income.
However the truth is that there are significant marketing costs associated with running a large company. Sales teams and cost of sale can account for up to 20% or gross turnover and more than 50% of total costs.
2. Head office and associated senior management costs
When I ran a group of gyms in Johannesburg some years ago, out of a R3 million turnover at least 10% of that was paid out to head office and associated costs. in Bad months that fixed cost could become 25% of turnover. Yes gym membership turnover is that seasonal.
So should you join a gym or buy gym equipment for your home gym?
The biggest issue that most people face is that of motivation mind power: that is they need to maintain the necessary drive and motivation to consistently achieve their fitness goals. For many people their belief is that you either have it or your don’t have it.
That could not be further from the truth.
Motivation is a skill that can be taught and learnt. We are all motivated to do something, it’s what you are doing right now that you are motivated to do.
Home gym equipment purchases are generally better value in terms of long term investment. In addition unless you are a dedicated gym bunny, then training at home will always offer more convenience and therefore results.
Consistency is far more important than just having the odd tough gym workout.
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Conclusion about Health Clubs and Gyms in South Africa
Quality Home Gym equipment, (chosen with the help of an experienced Home Gym Design Consultant) may be a better investment than either a budget gym or major gym membership.
Independent gyms may offer far better value than some of the new budgets gyms being offered by the large gym group chains. Don’t run to the big chains without examining what some of the smaller independent operators have to offer.
Buy Mid Priced Gym Equipment Not the Cheapest Gym Equipment
Buy into medium priced treadmills, upright bikes, rowing machines, elliptical trainer, steppers and recumbent bikes. Don’t go for the cheapest gym equipment, it will always end in tears.
Buy cheap and get cheap results. I recently had a client who had a bough one of these cheapy treadmills to try out. She only unpacked it after a year, (very common) to find it did not last one week. She then brought me R30 000 and said, Miles, please just help me find something decent, long lasting. I did that by helping her with a treadmill with a 20 year warranty and on the frame.
Consider all the Options When Transforming Your Life with Gyms and Gym Equipment
Consider all of your alternatives when planning how you are going to make a decision on improving your fitness and transform your body. Begin by getting your goals in alignment with your values.
Create your map to success by looking over one of the Motivation Mind Power Programs. Remember 90% of people don’t achieve the states goals and most of the time that is simply because they didn’t create their mental map.
Free Gym passes: Before you join the gym, grab a free trial to test whether the new fitness regime’s for you.
Pay-as-you-go: It’s possible to pay as you go – consider paying a little more for a few months until you’re sure you’ll continue. Plus no-frills and council gyms often let you pay per visit too.
Short-term memberships: If you’re a newbie, it’s better to use short-term membership at first, even if you pay slightly more per use/month until you’re sure you’ll stick. Also, no-frills and council gyms will often let you pay for a month at a time.
Work out without a gym, Yes You Can Achieve the same results
You don’t need to join a gym to get buff. If you’re on a budget, read these quick tips on working out without a gym. That’s right home gym workouts with minimal gym equipment and the right advice for less than R2000. Call me to found out more.
Call me now to help find that life map to success
Miles Harrop is a gym equipment and gym industry expert. He ran and operated gym in South Africa for more than 20 years and now consults to the fitness and gym industry. Miles is a key note speaker and teaches element of motivation and Neuro-Linguistic Programming and is a practising Certified Hypnotherapist.
You can call Miles cell: 071 863 7398, or email miles@holisticgym.co.za