1. Rebuilding Iron House Gym
David Herber
Dave Herber, LLC
dave@daveherber.com
www.daveherber.com
2. Present Situation
As part of the Pine Tree Place plaza, 14
Youngstown Warren Road in Niles, OH has
been a gym since 1997.
It has changed hands 3 times, with the last
owner closing it’s doors on June 27, 2016.
3. Present Situation
Examining Iron House Gym’s Facebook page
we discover dissatisfied former members who
feel confused about the sudden closing and
the business practices of the previous owner.
4. Membership Records
935
Records
102
Duplicates
833
Members
254
53
71
479
24
3
6
1
3
2
14
1
2
1
21
1
No Length Of Contract
1 Month
2 Months
3 Months
4 Months
6 Months
10 Months
12 Months
13 Months
14 Months
15 Months
17 Months
19 Months
24 Months
30 Months
36 Months
60 No Start or Expiration Date
3 marked
“Renewal”
12 Month contracts were
the most common.
15 Month contracts were
2nd most common, probably
a 3 month free special.
1 Month contracts were 3rd.
Payment Method:
130 – Credit Card
105 – Cash
22 – Checks
27 – Gift Certficates
549 - ???
5. Membership Records
Problems:
• Most Members Paid Upfront, not Month to Month.
• - More than 1/3rd paid in cash
• No Electronic Funds Transfer (EFT) or Club Management system
seemed to be in place.
• Confusing varied membership types offered.
Solutions:
Standardize the membership offerings:
• Basic 12 Month - $24.95 / Month
• Month To Month - $40 / Month (Higher Price For No Commitment)
• Short Term Memberships - $99/ 3 Months
• SilverSneakers - $3/visit up to 12 visits a month.
• Install Club Management System: Gym Insight
8. Market Size
Total Eligible Population 48,607
1.25 % Penetration 607
3.75 % Penetration 1822
1st Year Membership Goal* 1637
*Based on membership list data of Iron House Gym
9. Membership Goals
Three Month Pre-Sale Period (Oct-Nov-Dec)
• October “Member’s Only” Open House for previous members.
• Previous member offer: $9 per month, no contract, as long as they want, EFT Only.
• November, “Friends and Family” of previous members can join for $14.95 per month, EFT Only, 1 year
contract.
• December, Soft Opening, New Members can join $19.95 per month, EFT Only, 1 Year Contract.
• Pre-Sales Goal of 800 members would give us $15889 on Re-Opening day.
Grand Re-Opening on January 2nd
• Pricing goes to normal, $24.95/ Month + $29 Join Fee.
• Using membership data estimate an average sign up rate of 66 members a month, bringing our year end
total to 1637 Members.
10. Other Revenue Streams
Small Group Training
Approximately 10% of Members would upgrade
to a Small Group Training Membership.
Personal Training
Approximately 5% of Members would utilize a
Personal Trainer.
Rental Income from Massage, Nutritionist,
Chiropractor, or other Wellness Specialist.
Rental Income from Learning Center.
Vending Machine, Shake, Supplements, Gym
Wear Sales.
11. Recommendations
Change Club Name
“Iron House Gym” now a tainted brand
Name Suggestions
• “Niles Fitness Center”
• “422 Fitness”
• “The Gym @ 422”
• “Gym 422”
Update Signage on Building and Plaza Marquee
12. Recommendations
Repaint the “Iron House Green” stripe that goes
around the machine and free weight area and
the green steel columns to a blue.
Club Architecture and Design
Remove old carpet, replace with new in Front
Desk/Lobby area, Main fitness floor, Men’s &
Women’s locker rooms.
Keep the rubber tile flooring in the free weight
areas.
Finish putting down rubber tile flooring in the
Functional Fitness and Small Group Training Area.
15. Front
Desk/
Lobby
Front Desk/Lobby Build Out
• New Carpet
• Convert Tanning Rooms into Personal
Trainer Office and Assessment Room.
• Make a door opening between store and
front desk.
• Convert Store into Assistant Manager
and Membership Office.
• Add Window to Manager’s office so he
can view the Fitness Floor.
• Possibly add a healthy vending machine.
Personal
Trainer
Office.
Assistant
Manager/
Membership
Office
Front
Desk/
Shake
Bar
Personal
Training
Assessment
Room.
Managers
Office
Lobby
Healthy
Vending
Machine.
Add
window
16. Women’s Locker
Room Build Out
Learning
Center
Women’s
Locker
Room
• Knock down wall between
Learning Center Bathrooms
and Women’s Locker Room.
• Put wall up to separate
Learning Center from
Women’s Locker Room.
• Create 4 Toilets and 4
Shower Stalls.
• New Carpet.
• Add 2 sink vanity and
mirror.
• Add 2 more locker banks.
Shower
Stalls
(Learning Center)
Toilets
Lockers
UtilityRoomAccessHall
17. Small Group Training
Area
Functional Fitness Area
Small Group Training and Functional Fitness Area Build Out
• Finish Rubber Matting The floor.
• Move Cardio Equipment To Front Window.
• Build Out Small Group Training Workstations.
• Move Some Weight Equipment To Functional Fitness area.
• Install Battle Ropes in Functional Fitness area.
• Remove wall if not load bearing.
C
a
r
d
i
o
Small Group
Training Area
Functional Fitness Area
18. Small Group Training Station
Small Group
Training Area
5 Stations Set Up for Small Group
Training.
Each station should have:
1) Dumbbell Tree with 5, 8, 10, 12
and 15lbs dumbbells
2) 20lbs Kettlebell
3) 15lbs Coreball
4) 15lbs Medicine Ball
5) Aerobic Step with Risers
6) Medium, Heavy, and Xtra Heavy
Resistant Bands (Wall Anchor)
7) Medium, Heavy, and Xtra Heavy
Resistant Loops
8) 55 CM Stability Ball (Wall Rack)
9) Exercise Mat
19. Men’s Locker Room Remodel
• New Carpet in Locker Area.
• Convert 3 Huge Shower Stalls into 6 Shower Cubicles.
• Make larger vanity and sink in Shower area.
• Add 2 urinals to bathroom area.
• Fix Lockers.
• Add an additional bank of lockers.
20. Assess Current Condition of Equipment
• Replace cracked covers and equipment pads.
• Perform preventive maintenance on Cardio
Equipment.
• Remove or resell equipment that is outdated or
broken. (Spin bikes, some Hammer Strength
Machines, Cardio equipment)
• Purchase 1 or 2 refurbished or remanufacture pieces
of cardio.
21. Reconnect With Old Members
Call the member list and invite them to a
“Members Only” Open House to see the
improvements.
Explain to them the new billing system and how
it protects them.
Direct mail special offers should go to past
members first.
22. Let’s Get To Work!
• Oversee and Schedule the construction and rebuild crew, and equipment
maintenance and repair person.
• Prepare Pre-Sale marketing pieces and plan.
• Prepare all Membership Forms, Gym Forms, Opening Checklists, Closing Checklists,
Standard Operating Procedures, Personnel Manual.
• Develop job descriptions and postings for Assistant Manager, Front Desk Staff,
Personal Trainers and Small Group Trainers.
• Interview for pre-sale open positions. (Assistant Manager, 2 Front Desk Staff)
• Call previous members with survey and special invite to “Member’s Only“ Open
House.
• Train Assistant Manager and Front Desk Staff.
• Set up all Social Media outlets for the new gym: Facebook, Twitter, Instagram,
YouTube.
• Reach out to YSU and Slippery Rock University Exercise Science students for intern and
personal training positions.