Opportunity: Exploring Alternative Sources of Revenue
Catic Wellness did everything in its power to keep paying its 1,000 employees, and took the shutdown as an opportunity to explore alternative sources of revenue.
New sources came from the increased use of digital platforms and apps as a new way to provide training and nutrition as well as focusing on the medical benefits of exercise. Wang admitted, “I think we are better off than other clubs because our products we have here and also we have the doctor...working with our [members].”
Another stream of revenue that Catic Wellness made available directly to employees came from selling the company’s pre-existing skincare products.
“We asked … our employees if they can sell [the skincare products] and then we give their commission to them,” said Wang. “So, they have some revenue and income for their salary.”
Not only did these alternative sources of income help their employees, it also provided more cash flow for Catic Wellness—that’s a win-win.
Opportunity: Working Together with Other Trainers
“We needed [members to] come and to give [a] service,” said Wang. “So we needed to find some solution.”
To keep a steady flow of cash coming in, Catic Wellness introduced their trainers to outside trainers. The goal was to learn from one another and share members, so that both trainers could be compensated for their work.
Wang said, “I find [it] is a good result because you can [get to] know each other and the [members] they can share.”
What Comes Next for the Fitness Industry
How do we preserve the future of the fitness industry? Wang says, “We need to, step-by-step, take care of our customers.”
Continuing to take care of our members is so important for any gym to be financially successful.
Right now, the safety and health of members, staff, and the community is the number one priority for all health and fitness facilities—regardless of where they are in the reopening process. The fitness industry relies on consumers to keep it afloat. During this pandemic, we have to keep chugging along and provide members with the best services possible.
This brings us to the next topic: membership retention.