Financial & Operations Research

 

IHRSA Enters into Strategic Partnership with STR

Continuing IHRSA’s tradition of tracking club performance, IHRSA has partnered with STR to gather and analyze data and information about the health club sector in the U.S. STR has an established track record as a leading provider of information services and competitive benchmarking products, having served as the primary resource for data on the hotel industry for nearly thirty years. 

Read the full press release.

 

IHRSA Research Portal

Building on IHRSA’s long-standing commitment to provide its members with timely and useful data on the state of the health club business, the IHRSA Research Portal is the club operator's ultimate tool for financial and operations benchmarks.
IHRSA members receive FREE reports by participating in surveys. Just go to the IHRSA Research Portal at IHRSAResearch.com and login or create an account.

 

Get the edge over your competition with IHRSA's financial tool!

IHRSA's computer-based Financial Management Tool is an easy-to-use system that automatically compares your numbers to industry benchmarks, provides staffing data, analyzes profit centers, allows you to re-project quickly, sets up the Industry Standard System of Accounting, and much more. Learn more

 

Research Studies

Quarterly Index
The Index establishes a set of benchmarks for member companies' revenue growth as well as track the progress of the industry as a whole. The survey results provide benchmarks that will enable you to determine whether your revenue growth and profitability are in line with the industry norms each quarter.

IHRSA Profiles of Success
Purchase as an entire PDF or in sections!
The 2014 Profiles of Success provides detailed information about health and sports club operations including data for club revenues, expenses, pricing, equipment purchasing, and more. This year’s report includes expanded analysis on the fitness club industry, club operating benchmarks, financial performance, and more. New workbook pages allow for a comparison of your club’s financial performance with norms from similar participating clubs. Purchase Report

Employee Compensation and Benefits Report
Purchase as an entire PDF or in sections!
The 2015 IHRSA Employee Compensation & Benefits Report is the most comprehensive survey of the North American health club industry's compensation and benefits practices. New to this year’s report are two features: a human resources round table article and expanded data analysis. In the round table article, CEOs and HR directors from leading clubs share insight into HR challenges club operators face. A new executive summary provides analysis into job requirements and compensation data for industry-related job titles. This report provides employee compensation information for 50 common job titles (ownership, management, and staff), commission rates, and benefits practices (health benefits, retirement plans, vacation/sick leave, and other benefits). Purchase report

 

Financial & Operations FAQs

* Unless otherwise noted, the answers below are taken from IHRSA’s Profiles of Success.

1.     How much is spent on sales and marketing costs for a member?

Costs for sales and marketing per member are on average $118.65. This varies with the club type, but varies more by the club size. For a club that is less than 20,000 square feet, they spend on average $88.26 per member. Larger clubs (those over 60,000 square feet) spend on average $197.59 on sales and marketing costs per member. 

2.     How much does payroll cost a mature club?

Total payroll, including salaries, wages and employee benefits, is on average the 41.7% of a club’s total revenue.

3.     How much should I pay my personal trainers?

According to the IHRSA Employee Compensation & Benefits Report, select clubs pay full-time personal trainers an average of $29.55 per hour when conducting a training session. 

4.     How much of club revenue should be derived from non-dues sources?

In 2013, leading clubs reported a median of 31.7% of total revenue being derived from non-dues sources. This percentage varied between 29-39% depending on club size and varied between 24-39% depending on club type. 

5.     What are some of the profitable non-dues revenue sources at leading clubs?

In health clubs, more than one out of four revenue dollars are linked to non-dues services such as personal training, spa services, racquet sports, nutritional counseling, food and beverage, etc. Personal training generates a median of 7.5% of total revenue among leading clubs, while spa contributes 4.9% of total revenue. Leading multipurpose clubs generate as much as 10% of total revenue from the racquet department.

6.     How much should be reinvested into fitness equipment and other capital expenditures at your club?

In 2013, leading clubs invested roughly 5.4% of total annual revenues, resulting in a median of $140.101. Clubs also reported that 1.6% is reinvested on fitness equipment, while the remaining part is mostly used for facility and ground purchases or improvements. Only 0.4% of revenues are designated for office equipment.

7.     How much revenue do leading clubs generate per member?

The benchmark for revenue per member in 2013 was $793.4.