The International Health, Racquet & Sportsclub Association is the fitness industry's only global trade association representing over 10,000 for profit health and fitness facilities and over 600 supplier companies in 75 countries.

 

 



From educational tools and events to promotional programs and public policy initiatives, IHRSA brings you success... by association!

Join | Renew
Pledge Your Support

 
Search IHRSA Blog
« The Foundation of Fitness | Main | On the Move: IHRSA 2016 »
Wednesday
Oct282015

What Would Happen to Your Health Club if...

 

What would happen if dues at your club went up by 8% but every penny of the increase went to the government not the club? 

When the government imposes a sales tax on your dues, the cost of joining your club goes up, but you don’t see any of that revenue. Given all the problems caused by inactivity, you would think that governments would not impose a tax on membership dues since it is a barrier to healthy exercise, but states (and cities) continue to consider taxing health club dues and services.

Think this isn’t likely? Think again.

Last year, despite widespread public outcry, Washington, DC City Council voted to approve a tax on health club dues. Even in states where we’ve defeated a tax, efforts to impose the tax keep coming up. In Pennsylvania, a sales tax was defeated in 2014, but is again a threat. In both cases, IHRSA worked with clubs and fitness consumers to oppose the short-sighted tax on membership dues. IHRSA is working to repeal the DC ‘tax on wellness’. For more information, visit ihrsa.org/sales-tax.

How much revenue does your club earn from personal training? Imagine what would happen to that revenue if your personal trainers were no longer ‘legally qualified to work in your club’? What would that do to your revenue?

Lawmakers propose bills that would require your personal trainers to be licensed by the state/city. These bills impose stringent requirements for licensure that are expensive and limit the pool of personal trainers available to work in your state. This licensure would make personal training more expensive, result in fewer available trainers and a major loss of revenue for clubs. Read a case study on the dangers of bad personal trainer legislation.

What if you were no longer able to automatically renew your membership contracts? Or collect dues via EFT? 

While the proposed restrictions vary, lawmakers have proposed bills that would prohibit or restrict the use of automatic renewal provisions; apply outdated, expensive and unnecessary renewal notification requirements; or restrict your ability to collect dues via electronic fund transfers (EFTs).

When asked what would happen to membership rosters if any of the above were implemented, a sample of IHRSA members replied: My doors would close. My membership would go down by 30%. My member base would drop off the ledge. I would not be in business. It would be a disaster! Loss rates would increase significantly. My retention rate would definitely drop, since more than half of our members are on open contracts that automatically renew. For more information, visit ihrsa.org/consumer-protection.

That's Why You Have IHRSA! 

IHRSA works around the clock to protect health clubs across the country from threats like these (and many more) every day. It takes tracking, strategic thinking, proactively educating city and state legislators, and working with engaged health club operators in every state.

We cannot do this alone! 

These efforts are supported by the voluntary contributions of club operators and industry suppliers like you. These contributions help to ensure that IHRSA has the much needed resources to protect clubs and your bottom-line from harmful legislation.

New Call-to-action

100% of the funds contributed go directly to IHRSA's efforts to promote and protect the industry and your business. To contribute, download a pledge form, visit ihrsa.org/pledge or contact Meredith Poppler at 800.228-4772 ext.129 or mpoppler@ihrsa.org.

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.