ccd news update - California Clubs of Distinction
Transcription
ccd news update - California Clubs of Distinction
CCD NEWS N UPDATE Second Quarter • 2014 Thank You Sponsors Of The IHRSA Regional Associations Reception GOLD SPONSOR Jonas Fitness: Adam Zeitsiff, Jan Harms & Barry Bleuer GOLD SPONSOR GOLD SPONSOR Star Trac: Rick Nelson, Mike Westcott & David Summers Precor: Jason Blair, Jarred Willis & Adam Guier GOLD SPONSOR INSIDE THIS ISSUE Hanover/Fitness Pak: Tony Posas, Ken McKay, Jim Foley & Matt Bauer ABC Financial: Steve Ayers & Clay Whittaker INSIDE THIS ISSUE SILVER SPONSOR Power Systems: Justin Driver, Emily Currence, Patty Daugherty & Jason Eason 4 6 8 10 12 14 Transforming Selling Systems In Fitness Facilities Club Industry Financials: A Continuing Story Managing Your Workers’ Compensation Risk Stop Member Churn...Turn Your Club Into A Lifestyle Implement A First Aid Program To Reduce Workers’ Compensation Costs Mindful Movement: A New Era In Fitness GOLD SPONSOR 2 Legislative And Regulatory Round Up CA Senate Bill 766 Club Babysitting is bill will not advance in 2014. e bill would have expanded the TrustLine requirement for clubs, added additional training, minimum age requirements for club staff, staff-to-child ratio requirements, and mandate the presence, at all times, of at least one care provider who is 18 years old or older. ere is a chance that Lin Conrad Executive Director legislation on the issue may still be introduced in 2014. IHRSA’s lobbyist will continue to closely monitor the proceedings in Sacramento and keep us informed. CA Senate Bill 443 Child Care For Camps At Clubs SB 443, which proposed to regulate children’s day camps differently than traditional “resident” camps, failed to receive any further consideration after a hearing on the bill was cancelled at the request of the sponsor in late August. e bill, which also failed to advance in the 2011-2012 session, faces an uphill battle to enactment in 2014. CA Department Of Social Services (DSS) Reveals New Guidelines For License-Exempt Childcare DSS recently revealed draft guidelines for unlicensed childcare providers. IHRSA’s California lobbyist and CCD member clubs are continuing to work with DSS to provide necessary clarity for health clubs that operate kids’ camps to ensure that the state is consistent in its enforcement of the law. e guidelines should appear on the DSS website soon. Because DSS must rely on the Health and Safety Code Section 18897 “camp” definition, none of the exemptions apply to camps at your club. Until that definition includes our industry, your club could be operating in violation of the regulations of licensure and could be subject to a $200 per day fine. Please share your concerns with Tim Sullivan at IHRSA, ts@ihrsa.org. What Is License-Exempt Child Care? License-exempt child care is a child care program that can legally operate without a license, and licensing standards do not apply to them. DSS lists types of license-exempt categories. Among them is “Organized Camps” as defined in Health and Safety Code Section 18897, which reads: “Organized camp" means a site with program and facilities established for the primary purposes of providing an outdoor group living experience with social, spiritual, educational, or recreational objectives, for five days or more during one or more seasons of the year.” Most of our club camps do not meet that definition. If you are approached by DSS regarding your club camps, please let IHRSA know. I would personally like to thank Janine Williams, VP of Human Resources at Leisure Sports, for her persistence in negotiations with the Department of Social Services on this subject. She continues to be my heroine. Did You Know The Affordable Care Act Imposes A Tax On Indoor Tanning? In 2010, the Internal Revenue Service revised the federal tax code to include a ten percent excise tax on indoor tanning services. Congress enacted the tax as part of health care reform legislation to help offset the cost of insuring more Americans. e tax is estimated to raise $2.7 billion by 2019. Health club operators were understandably concerned about the tax, not only because it impacts their bottom line. Some clubs bundle tanning services in with membership dues, which poses an administrative challenge in calculating the tax. e IRS recognized this difficulty and provided an exemption for “qualified physical fitness facilities.” is exemption remained unchanged when the revision was finalized in June 2013. It is not a blanket exemption, however, and clubs are advised to verify their status. If you provide tanning and need clarification, contact me and I will send an explanation. CCD Webinars To learn how the Affordable Care Act can work to your club’s advantage, join us for a webinar on June 11, 12:00 – 1:15 PM by Mike Rucker. You can register for all CCD webinars by going to www.califclubs.com, click on “Commit to Learn”, click on “Calendar of Events”, choose a webinar and click on “Register”. CCD Members $39, Non Members $109. Last But Not Least If you didn’t make it to the IHRSA Regional Associations Reception at the IHRSA Convention, you missed a spectacular event. It was a great venue, we had super food, plenty of drinks and provided a good opportunity to meet other club owners, managers, and vendors. is event is not possible without the generous sponsorship of our associate members. My sincere thanks to ABC Financial, Fitness Pak Insurance & Hanover Insurance Group, Jonas Fitness, Power Systems, Precor and Star Trac. Next time you speak with a rep from these companies, please let them know, you, too are grateful for their support. ●●●● CCD News Update is published by California Clubs of Distinction 5382 Coach Dr. • El Sobrante, CA 94803 Editor: Barbara Mathew (707) 483-4444 barbcalifclubs@gmail.com Art Director: Corrine Lane (916) 952-7837 corrine@lanecreative.net CCD DISCLAIMER: CCD News Update contains facts, views, opinions, statements, recommendations, advertisements, and other content not owned or controlled by CCD or any of its affiliates. CCD uses reasonable efforts to include accurate, current information in this publication. However, CCD makes no warranties or representations as to the accuracy, safety or value of any content in this publication, nor shall CCD be responsible for any non-factual information. CCD assumes no liability or responsibility for errors or omissions in this publication. The content in this publication does not necessarily reflect the views, opinions, or recommendations of CCD, its employees, officers, or directors. The opinions expressed in the articles are solely those of the authors. Nothing in this publication may be reproduced in any form without express written permission from CCD. All contributors must ensure the accuracy of their claims and that they are submitting original work. CCD does not tolerate the practice of plagiarism. Any persons attempting to earn credit for work that is not their own will lose all publishing privileges with CCD. Contents of this publication cannot be reproduced without written permission from CCD. The Trade Association of Health, Racquet & Fitness Clubs in California 3 Come see us on the web at www.califclubs.com 4 Transforming Selling Systems In Fitness Facilities A history of selling in health and fitness facilities would be rather brief and highly repetitive. Why? It’s been pretty much the same for over three decades. e norm for the industry, generally regardless of club size, type and price, has been “greet; tour; present; try to close the membership sale.” is is an outdated, ineffective method of selling which should have gone by the wayside a long time ago. But it persists. By Michael Scudder Why? For years, this type of selling has had an inappropriate focus. at focus has been“selling memberships.” Let’s start at the beginning. Assume that the “modern era of health clubs,” began in the mid-1970’s. is is a generally-accepted time frame. In those days, people responsible for sales were still involved primarily in the selling of racquet court time. As the early “fitness centers” began to evolve, sales personnel were busy trying to sell “exercise.” Membership was, by-and-large, on a prepaid three-month fee basis. Occasionally, clubs would sell a one-year prepaid option - but not often. In the early 1980’s - when Electronic Funds Transfer came into the industry - the game changed, and so did the emphasis. Clubs started to concentrate on monthly-fee, automatically-collected “memberships.” e sales processes switched from the attempt to get interested persons to buy into the concept of “exercise inside four walls” to techniques of getting people to commit to the purchase of annual memberships in clubs, paid on a monthly basis. So, what’s the difference between selling exercise and selling memberships? I often explain it this way. In the 1940’s a young newspaper reporter interviewed Henry Ford, the man who single-handedly transformed the personal-transportation industry with the introduction of the assembly line process of building automobiles. e interviewer kept asking Mr. Ford, who was known to be a somewhat petulant soul, various forms of the same question: What was it that he envisioned that would sell so many cars? Finally, fed up and out of patience, Ford blurted: “Young man, you do not understand. It was never my intention to ‘sell cars.’ It was to provide the average American with the opportunity of affordable, comfortable, reliable transportation.” I hope the parallel point is made. We are in the business of providing people with safe, affordable, reliable, professionally-guided exercise options. We are not in the business of selling memberships. If that is all we’re doing, we should take a hard look at our intentions and commitments. If our concentration, as an industry, continues to be only membership sales, in this highly-competitive, price-sensitive modern consumer era, the winner will dominantly and always be the facility with the lowest prices. Like it or not, proof-positive of that statement is the phenomenal rise of Planet Fitness, with growth in just ten years from 4 clubs to over 700 and 300 more in the pipeline. ey have already spawned “clones” of several varieties that account for an additional 500-plus clubs nationally. ere are several misconceptions that accompany the present selling techniques. Among these are: (1)Selling is really about having a prospective member tour the facility and overcoming their objections. (2) Anyone who shows interest in what we have to offer is a prospect. (3) ere are “techniques” for getting the customer to decide to buy. Transformative selling is not about promoting the club and its “stuff”, nor about showing off your facility, nor about defeating price objections. Transformative selling is a “discovery process” - for both the buyer and seller. It is about fact-finding, relationship-building, and assisting a prospect to the correct decision for him/her. In the selling process (and it is a process), it should be remembered that a person has to exhibit four definite characteristics during the interview. ey’re often referred to as N-T-M-U. (1) Need: the person considering buying genuinely has to know he/she needs/wants this product or service. (2) Time: the person considering buying is willing to devote specific time to participate in and use the product or service. (3) Money: the person considering buying has funds to pay for the product or service, either up-front in full or on a continuous/ scheduled payment basis. (4) Urgency: the person considering buying determines enough value to want to buy now. The Trade Association of Health, Racquet & Fitness Clubs in California 5 If any of these four qualifiers is not satisfied in the sales interview, you do not have a prospect! What you have is someone who’s interested - but not interested enough to buy. (I call them “suspects.”) A realistic appraisal of the current industry-pervasive selling methods would ascertain that, of every 100 people who respond by either walking in your door, calling on the phone, or filling out an interest form on your website, approximately 70% of them at best will participate in a sales interview. Of those 70, approximately 60% will buy in that interview. So the reality is that of every 100 people showing some interest level, about 42 will end up being members! Hopefully, what the reader likely recognizes now is that this process has to change. Why? ere has been little real growth in net memberships in the national health club industry since the beginning of the recession six years ago. However, there has been over 15% growth of facilities in the same time period. e law of supply and demand has been countermanded. Fewer people are responding to the average club’s advertising. Retention efforts have been successful, but are topping out. Some experts even say that our industry has “reached maturity” and suggest that demand will wane in the near-future. If so, concerned club operators will seek more effective ways of selling…and that means “smart selling.” What Might Transformed Smart Selling Look Like? (1) Interview: with every prospective member or client; no tour until the interview has been accomplished. (2) Fact Find: with no assumptions, ascertain why they’re here, what motivates/demotivates them, what are their “feeling-importanceresistance” levels regarding their possible participation. (3) Relationship Building: match up their needs with your services; establishing baselines from “where to begin;” what will “progression” and “follow-up” be for them? How will your systems support them? (4) Solution Seeking: arrive at the appropriate vehicle for them; what should they buy? (It might be a short-term premium-priced guided program, rather than initially a membership.) One of the flaws in current fitness facility selling is what I label “verbal vomit.” at is: too much presentation, over-reliance on personality, and non-attention to the essential question-response format of dialogical interaction. Health club sales personnel actually think that they are the ones making the decisions, not the person sitting in front of them! ey do not recognize that an effective salesperson asks questions and then shuts up. Often, because so many salespersons in our industry are young, they don’t have the confidence to do this. Over-talking is often the killer of a sale. Smart selling emphasizes the prospective buyer, not the seller. Smart selling includes use of visual aids which assist the prospective buyer in his/her decision-making process. (I recommend Visual Fitness Planner as a tool to professionalize a club’s sales process; for information contact Ron Alterio (ron@myvfp.com www.vfp.us) Smart selling integrates the new member into the club. Present selling methods usually schedule the new member for one or two “orientation” sessions which are usually equipment demonstrations. is approach actually segregates members. is is devastating when considering the necessary social aspect for which over 80% of people join clubs. CONTINUED ON PAGE 16 Come see us on the web at www.califclubs.com 6 Club Industry Financials: A Continuing Story Many leaders in the club industry have put the recession behind them and are trying to figure out the new norms going forward. No one is expecting to see the 2007 values any times soon. For many, 2013 was a better year than the previous one. ere were a few clubs that closed, fewer than in previous years. But, the number of new builds continued to escalate in all segments. Generally, the By Rick Caro club industry was still hopeful for an overall improvement in the U.S. economy and a consistently upward trend in consumer confidence, but that has not occurred. 2013 Headlines Once again, the trendline for key club metrics was upward, but only slightly. IHRSA’s Index showed that same club sales were up slightly as well as overall net membership totals. e real disappointment was with ancillary revenue categories, which has been regularly growing in recent years. In 2013, they were flat compared to the previous year. e challenge still has been the lack of predictability of new club membership sales which still does not follow a consistent pattern. Attrition levels now seem to be under control for most clubs. EBITDA (Earnings before taxes, depreciation and amortization) margins are increasing slightly over 2009-2011 levels but are not reaching the 2006-2007 margins. e number of total club members for the overall industry grew slightly over the last year along with an increase in the number of total clubs nationwide. e club industry has already had an ease of entry, so the ability to create even a small niche club has not been difficult. A Continuing Saga With the number of new builds growing, several segments saw substantial increases. e studio category, often featuring single-activity offerings including boot camps, barre classes, boxing/kickboxing, yoga, Pilates, group cycling and small-group training, grew substantially. Many of these are part of franchise companies. e proven franchise companies in other segments (high-volume/low-price and all-access) saw consistent growth in 2013. Landlords have recently wooed club operators with more attractive real estate deals, even for the small operator. For many, the cost of construction remained flat. Debt financing exploded last year as existing clubs often re-financed given very low interest rates. e availability of cash-flow based lending soared and with a higher leverage opportunity than seen previously. For start-ups, there still were challenges in gaining local bank and SBA approvals and often with less attractive loan-to-value terms. Club leaders of existing clubs are returning to previous levels of capital re-investment again. More Club Deals For years the club industry has heard financial pundits talk of its highly fragmented nature and the need for consolidation. In 2011, the first signs of such activity occurred. It continued through 2012. In 2013, most of the club deals involved either financial entities buying club companies or buying out previous financial investors. Some of the most attractive stories involved franchised companies. Most involved club groups with significant numbers of existing clubs and a proven business model. A few club companies fully exited the industry. e challenge is that independents still are hoping for values last seen in 2007 and are not committed to transactions at lower levels. ere are few buyers willing to overpay, so overall there are fewer club transactions than expected at this point in time. Also, the independents have not been successful in marketing their story to outsiders who are currently not immersed in the club industry. Club Corp had an IPO in 2013, so there are now three public companies (LifeTime Fitness and Town Sports International). No others are likely candidates in 2014. No major club owners from outside the U.S. have entered the market here. Only Equinox has ventured outside the U.S. into the United Kingdom with a clubowned business. Several franchisors have continued to grow overseas. e market seems to be ripe for regional players to expand both by new builds and local acquisitions, especially with the availability of growth capital. e industry has yet to see any meaningful investment by strategic partners from analogous industries. Other Related News e club industry is always worried about the quick-fix solution to weight loss. But, commercial diet centers are still lacking long-term success without an exercise component. e proverbial diet pill has not been serious threat, as several have gained FDA acceptance or have gone through various trial stages. Many in the industry feel the threat of competition from the non-profit sector. But, during these recent years many of the components from that sector have seen little to no growth, including hospital wellness centers, local parks and recreation centers, JCCs and military base recreation centers. Few new YMCAs have been built but they have taken over the operation of other failing non-profits in certain local communities. e one category with meteoric growth is the advent of the on-campus university fitness centers. ey often involve $60-$90 million facilities, which are overbuilt for today’s size of student population. e concern is whether they will then open them up to the local community at below-market rates. e key question for the club industry is the potential impact of the Affordable Care Act (ACA). All elements of the local community are trying to figure out the opportunities, including insurance companies, employers, medical practices and hospitals. e club industry may have a role, but it is not yet clear how it will benefit. e legislative challenges for the club industry are continuing, especially at the state level. All clubs need to monitor pending legislation which may impact them negatively. CONTINUED ON PAGE 20 The Trade Association of Health, Racquet & Fitness Clubs in California 7 Come see us on the web at www.califclubs.com 8 Managing Your Workers’ Compensation Risk Workers’ compensation insurance coverage is mandatory in the State of California and is included in the State’s Constitution. Without appropriate intervention and oversight, the costs associated with defending workers’ compensation claims can skyrocket to the point that some employers consider it to be cost prohibitive to do business in California. e best way to manage Workers’ Compensation risk is to prevent injuries. Based upon the definition of what an accident is, this is not always going to be possible. However, there are ways to effectively engage in loss control and prevention measures to limit injuries from occurring. By Robyn Freiberg Safety First First, make your work environment safe. is is done by instituting common sense policies, like putting a “wet floor” sign out if the floor is wet, stacking weights or materials to the appropriate height, and removing equipment from public walkways. Just as important is enforcing the policies you have worked so hard to create like instituting disciplinary action. ese actions can be positive, by having a company picnic or catered lunch if there are 100 days without a work injury. Please note that one never wants to give an impression that work injuries should not be reported if they have occurred, rather the emphasis is on safety. Hiring Practices Second, keep in mind who you are hiring. Instituting careful hiring practices can serve to limit the likelihood of injuries. ere are many red flags that may be demonstrated during the hiring process that may be harbingers of future workers’ compensation claims. Examples include those with many short term stints at various places of employment or employment candidates who have mysterious employment gaps. ese could be signs of individuals who do not possess the work ethic or other characteristics you desire from your work force. Other concerns discoverable during the hiring process include past histories of disciplinary problems. If the candidate has never gotten fired from a job it is more likely due to the personality of the person seated across from you. Workers’ Compensation Benefits Once an injury has occurred, your role is vital in managing the costs that will be incurred in the provision of benefits and defense of the claim. In exchange for the benefit of quick delivery of compensation and medical care, Workers’ Compensation is a no-fault system. Your employees do not need to prove negligence or fault in order to secure benefits. ey only need to prove that their injury occurred in the course and scope of their employment for you. is is why an attorney is not mandatory in Workers’ Compensation claims. e trade off of the no-fault system for an employee is that their exclusive remedy for a work related injury is the Workers’ Compensation Appeals Board. ey are prohibited from filing a claim in civil court where they could secure a higher award, but would have to then prove duty, negligence, breach of duty, damages, etc. is trade-off benefits both parties. For employees they have a much easier burden of proof and a prompt delivery of medical care and wage replacement benefits (temporary disability benefits). For the employer, the risks of high civil awards are eliminated. e Workers’ Compensation system is codified in the California Labor Code, wherein statutory benefits are outlined. It is your insurance company’s responsibility to administer benefits after first determining if the claim is compensable. Your participation and investigation is crucial to this initial determination. Once the compensability of the injury has been determined, your insurance company will then assess what benefits your injured employee is entitled to receive. e core workers’ compensation benefits include medical care or treatment to cure or relieve the effects of the industrial injury; temporary disability benefits which compensate them two-thirds of their wages tax-free while they are unable to work; permanent disability if they are permanently impaired as a result of the injury; and a supplemental job displacement voucher to assist in returning to work. Your Role – Investigation Once the appropriate safety and loss control measures have been instituted, make sure that all incidents and injuries are promptly reported to trained supervisors. ese supervisors are considered your agent. ey need to be educated regarding use of the correct The Trade Association of Health, Racquet & Fitness Clubs in California 9 forms, questions to ask, and ultimately the number to call to immediately report the injury to your workers’ compensation insurance carrier. Once the injury is reported, a meeting with the supervisor, HR person and the injured worker should ideally occur as part of the initial investigation. An incident form is completed by the employee to lock in the story. ese questions should be answered: What happened? What equipment was being used? When did the injury occur? Where? What parts of the body have been injured? As part of this investigation, identify and question any potential witnesses to help verify the story. If a person has been identified as a witness to the event, find out what he/she saw. Compare this version with the version provided by the injured employee. Make a note of any discrepancies. In addition to finding out who, what, when and where, make sure the investigator and claims adjuster receives any and all information that comes to you throughout the claims process. For example, it would be important to find out that the injury occured on Monday morning 15 minutes after clocking in and after a weekend of playing football; the employee was just disciplined last week; or that he/she has a second job. Finally, obtain full details regarding how the injury occurred and if it could be prevented in the future. We must prevent a re-occurrence of the accident. Have the injured employee provide input on how his/her injury may have been prevented. Consider a modification of safety protocol or consultation with a loss prevention expert to address the safety issues raised following the incident. Most importantly, make sure that your insurance carrier is aware of the results of your hard work. Many of these details can help shape the tone and tenor with which the claim is handled and defended on your behalf. Direct Medical Care Once the claim is reported, the injured employee should immediately be offered medical care at the designated occupational or urgent care facility. Make sure this information is posted, consistent with your legal obligation, and readily accessible. DO NOT CALL AN AMBULANCE, unless there is a concern about the injury being life-threatening, as the bill from the trip to the hospital alone will cause you heart failure – just wait until your insurance carrier receives the Emergency Department bill from the local hospital. DO NOT LET THE EMPLOYEE GO TO HIS/HER OWN DOCTOR – medical control is the most important component of controlling costs once an injury is reported. It is the physician who determines: if an injury versus an incident has occurred; if there is a industrial causation for the injury; if your employee is going to sit at home and watch TV commercials advertising Workers’ Compensation attorneys or return to work; and ultimately if there is a permanent disability. Succently put, it is the physician who determines the cost of the claim. Asserting and maintaining medical control is crucial to the management of Workers’ Compensation costs. Offer Modified Duty Often, injured employees may not be able to do their regular job while they are recovering from their injuries. However, they may be able to perform less physically arduous tasks, known as “modified duty”. e quickest way to increase the cost of a claim is to pay your employee tax-free wage loss benefits CONTINUED ON PAGE 16 Come see us on the web at www.califclubs.com 10 Stop Member Churn...Turn Your Club Into A Lifestyle Attrition rates are hitting almost 22% according to the 2013 IHRSA Health Club Consumer Report. Attrition, more commonly referred to as “churn”, is the ongoing loss of membership numbers. ough this number is improving (meaning going down) over previous years, the competition to replace these members at your club is not getting any easier. Consumers are turning their attention and membership dollars to clubs that offer By Stacey Penney more than just fitness. What can your club do to retain current members and attract (and keep) new members? First, do you know your clubs churn number? How many new members do you sign up per month compared to how many leave? According to the numbers cited by IHRSA, for every five new members you gain, you are losing at least one. One doesn’t seem like much in this example. Your club could handle that economic impact, but now expand that to 10 out of 50 or 22 out of 100. It’s a lot of work and financial investment to bring new or potential members to your doors, and the consumer pool to pull from seems to be getting smaller. Speaking of financial investments, according to Health Fitness Management (M. Bates, Human Kinetics), it costs four to six times more to get a new member than it does to retain an existing one. Once you get one or more new members, reach out to them at regular intervals as they navigate your club. Just like a new employee, orientation is a crucial aspect that will set the stage for the new member’s relationship with your club. Make them feel welcomed and connected from the start. Within the first week, if not days, contact them by phone (and an email if you didn’t actually speak with them) and personally invite them to schedule a tour of your club. Introduce them to the personal training team and set up a complementary fitness evaluation. Show them the other amenities and services your club has to offer them, beyond just fitness. is includes how your club can be a part of their lifestyle and wellness pursuits. If their goals include weight loss, do you have nutrition consultations with an RD(registered dietician) available or perhaps monthly healthy cooking seminars they would find worthwhile? Follow up with new members to see what they are enjoying, what questions they may have, and even what criticism they may offer of your club. Show you care about their experiences at your club, and what you can do to make them even better. is interaction extends your marketing efforts through these satisfied members as up to 80% of new business referrals could be coming from their word of mouth recommendations (Health Fitness Management). A member is not considered retained until he/she has been with your club for at least a year. More than 25% of members have been with a club for less than a year, rather short term The Trade Association of Health, Racquet & Fitness Clubs in California 11 when it comes to relationships. On the other end of the spectrum, five years seems to be a critical time when members become disillusioned with their club relationship and it ends. Don’t lose sight of the regular member’s changing needs and interests. If a member no longer has a fitness goal to attain or a specific reason to keep coming to your club, why would he/she keep their membership with you? As with the new member, maintain communication with your “regulars” and check in with them when their attendance habits change. Find out why they aren’t using the club as often, or at all. Is it you or is it them? Consider if there is something your club could do to save the relationship. Programming is also a key factor in slowing churn. Offering a variety of programs concurrently allows members to explore and grow their skills and interests, but can also offer something familiar and safe. Adding seasonally themed programs (summer slim downs, resolution goals), fitness standards (aerobics, boot camp, yoga, strength circuit classes, TRX, Silver Sneakers), or a progression of programs (introductory, intermediate, advanced) can keep members involved and interested in what your club offers. If you have the right type of facility, adding a bit of friendly competition with sport leagues could be another tactic to slow churn. In California, clubs have to contend with our incredible weather and year-round outdoor activities. Instead of lamenting about the annual migrations to outdoor activities, embrace the opportunity to offer programming that accents non-traditional gym activities. For example, golf, tennis, hiking, stand-up-paddle (SUP) boarding, surfing, skiing and snowboarding fitness programming can improve members performance and make these experiences that much more pleasurable! Start by hosting a free introductory workshop for any of these activities and use it to promote a four to six week training program that gets members ready to try the activity or take it to the next level. is can be a great opportunity to introduce members to the many benefits of group training, including social interaction with other members and economic pricing, not to mention, an aspect of fun (Who says exercise has to be all work!). At the end of the program, bring the participants together for a “field trip” to the local marina with an afternoon of SUP’ing or a designated time at the golf range to see who has improved their drives the farthest. is is also an opportunity to partner with the other venues your members may be utilizing and foster these relationships that can benefit both organizations. There are many educational programs available that can give you and your staff the tools to build these types of successful add-on programs. NASM has specializations that can meet these needs and get your club up to speed in just weeks. Consider the Group Personal Training Specialist (GPTS) that takes personal training beyond the one-on-one model and applies a structured and progressive training format to effectively meet the needs of participants (which also increases hourly revenue while simultaneously decreasing member out-of-pocket fees). ere’s even a Golf Fitness Specialist (GFS) to lower game scores and increase the drive distance, and the ever-popular Mixed Martial Arts Conditioning Specialists (MMACS) CONTINUED ON PAGE 16 Come see us on the web at www.califclubs.com 12 Implement A First Aid Program To Reduce Workers’ Compensation Costs By Jennifer Weathersbee e Worker’s Compensation market in California is hardening. Rates have been increasing on an incremental basis and are expected to continue to rise as the cost of medical care increases. Employers can reduce their insurance costs by instituting strong safety measures and preventing losses from occurring. In the event of a small claim, employers can minimize their costs and reduce their experience modification factors by implementing a first aid program. Under the new experience rating formula instituted by the Workers’ Compensation Insurance Rating Bureau (WCIRB) as of January 1, 2010, all claims under $7001 now go into the modification on a dollar-for-dollar basis, which means that these claims now impact employers more heavily than they did in the past. Claims under $2001 have always gone into the formula at full value. When we talk about instituting a first aid program, we are focusing on these small claims. e medical costs for any claim that meets the legal criteria for “first aid” can be paid by the employer, rather than by the insurance company. California Labor Code Defines First Aid Section 5401 states, “any one-time treatment and any follow up visit for the purpose of observation of minor scratches, cuts, burns and splinters, or other minor industrial injuries, which do not ordinarily require medical care. is one-time treatment, and follow-up for the purpose of observation, is considered first aid even though provided by a physician or registered professional personnel.” e distinction between first aid and a “medical claim” that MUST be paid by the carrier is based on the type of treatment that an employee receives, not whether or not a physician was seen. It is generally accepted in California that the OSHA guides for recordable injuries can help define what claims can be considered “first aid.” is Cal/OSHA information can be found at: http://www.dir.ca.gov/ dosh/dosh1.html If a claim meets the definition of “first aid” and there is no prescription medication and no lost time or work restrictions beyond the date of the injury, the employer may pay the claim costs directly. However, it is still recommended that these claims be reported to the insurance company even if the employer pays the medical costs. When a physician is involved in treatment of a first aid claim, the California Department of Insurance, in conjunction with the Department of Industrial Relations and the Division of Workers’ Compensation reminds employers and physicians that they must comply with Labor Code Section 6409(a) which states that a physician who treats a first aid injury must complete and submit a Doctor’s First Report of Injury or Illness (Form 5021) with the insurance carrier within five (5) calendar days. With this requirement, a claim will be reported by the physician or the employer via the Doctor’s First Report of Injury or Illness, so it is good practice for employers to be proactive in reporting all claims to their carrier, especially since claims can escalate at a later date. Many employers are concerned about the impact of frequency on their insurance rates if they report all of their claims, even first aid claims, but a good broker will present a strong case to the carrier at renewal that there were no costs to the carrier associated with those claims (because the employer has a good first aid program) and further that the employer is an even better underwriting risk because they report all losses to the carrier so there are no surprises down the road. Remember that all claims under $2001 are grouped together and submitted to the WCIRB by the carrier at the unit statistical filing date. e claims go into the experience modification calculation on a dollar-for-dollar basis and are factored into the experience modification for the next three years. If there are no costs paid by the insurance company for some or all of these claims, an employer can dramatically reduce the modification points associated with these small losses. As one mod point can equate to one percent of premium, there is a strong incentive for employers to reduce their experience modification by paying first aid claims whenever legally permissible. In an ideal situation, the carrier will review the claim to ensure that it meets the first aid criteria and can forward any bills to the employer for payment upon request. Unfortunately, many carriers do not have the time and resources to do this on consistent basis so it becomes incumbent on employers to take a proactive approach to working with their medical clinic and carrier to implement a successful first aid program. Although it takes some time and coordination, the financial reward for implementing a First Aid Program is worth the effort. You can start by discussing the issue with your insurance carrier and your designated medical clinic. Your broker can also be a resource to facilitate communication, provide education and help to ensure the success of your first aid program. Jennifer Weathersbee is Director of Claims at InterWest Insurance, Inc. She has been with the insurance company for 11 years. Jennifer can be reached for questions at jweathersbee@iwins.com ●●●● The Trade Association of Health, Racquet & Fitness Clubs in California 13 Come see us on the web at www.califclubs.com 14 Mindful Movement: A New Era In Fitness By Ken Endelman One of the questions I get asked a lot by club managers is if Pilates is still growing. I tell them that it has progressed from “hot trend” to “here to stay”. While you’ll always have members who will wander off to try the latest fad, Pilates has built a rock solid foundation in many clubs. Once members really give it a try, they’re hooked – the health benefits and results are that obvious. All in all, Pilates isn’t going anywhere. Yet, as any club manager knows, diversification in business is the key. And for some clubs the word “Pilates” may be limiting. Some members may see it as gender-specific, expensive or even intimidating. While those are all misconceptions, they can be hurdles to implementing a successful program. So, over the last couple of years, Pilates equipment and education providers have been thinking: “How can we expand what we do? How can we diversify and bring the benefits of mind-body exercise like Pilates to more people and different demographics?” e answer is ushering in what we hope is a new era in commercial fitness: the era of mindful movement. What Exactly Is Mindful Movement? We think of it as exercise with a focus. It can contain components of strength training, cardio, core training, balance training and more, but with a mental approach that requires members to think about how they are moving in order to maximize the body’s potential. Pilates obviously falls into this category, but now Pilates equipment providers are developing many other programs that take mindful movement in a lot of different directions. Here are some of the mindful movement exercise categories being developed, all of which can be a source of non-dues revenue in a group exercise or personal training setting. And for many of these programs, training can be done on-site over a single weekend, so your instructors can get going quickly. It also doesn’t take up much space. Portable Barres are easy to transport if your area is needed for something else. On the flip side, you can fit about 3-4 members on a 6’ Barre. So with just five barres you can have a high-volume class of up to 20 participating members. Rope Suspension System/Training Made famous by the fitness company TRX, suspension training is a form of strength training using ropes that allow members to work against their own body weight. Exercises include a variety of multi-planar, compound exercise movements, with the ultimate goal of developing strength, balance, flexibility, and joint stability simultaneously. Suspension system training develops physical strength while using functional movements and dynamic positions Up until now most suspension systems have been “two point” systems,” meaning that there is one anchor point for the rope and two suspension points for arms or legs. However, our company will shortly introduce an innovative mind-body program with a “four point” system having two ropes and four suspension points. e two independent ropes ensure that the joints are in optimal alignment when working against the resistance of the ropes and gravity. And the four suspension points can allow the entire body to be suspended, resulting in an increased variety of exercises. Suspension systems can be mounted either on the ceiling or wall so they do not take up a lot of room. (Door-mounted options exist but are not recommended for commercial use.) Combination Programs or Apparatus With the rise of circuit and interval training there has been an effort on the part of Pilates manufacturers to bring a mind-body element to these types of workouts. A single piece of easily portable equipment is highly desirable, as many clubs either can’t fit or can’t afford all of the equipment needed for circuit/interval training. Barre Most clubs have heard of Barre by now, but just in case - a Barre is a stationary handrail originally used during ballet warm-up exercises. ese days Barre refers to group exercise programs to music performed at the Barre and on the floor. Barre studios are popping up everywhere and now many fitness facilities are offering Barre classes as part of their group programming with a lot of success. A lot of its popularity stems from the fact that it is a fun way for members of all sizes to move and groove along to fast-paced music. It is a dynamic high-energy class, and now Pilates companies like ours are taking Barre and incorporating both a mind body element and dynamic functional movement within the program. is makes a well-designed Barre program a safe, effective workout. e mind-body element can be a great marketing tool to attract and retain members. Balanced Body’s new offering is called MOTR. The Trade Association of Health, Racquet & Fitness Clubs in California 15 Balanced Body’s new offering to meet this need is called MOTR, and will be available in early summer. It looks like a roller but it has a detachable arm that sets into the end of the roller. Each end of the arm houses a cord that can be adjusted to different levels of resistance. is allows users to do a large variety of exercise categories that focus on functional training, balance, core work, and strength training to name just some. You can also use it for self-massage and myofascial release, like a traditional roller. Products like MOTR are a good fit for clubs because they give group exercise instructors and personal trainers a large mix of exercise options, and also the ability to mix and match these categories in a single workout depending on what the instructor or the member wants to work on that day. is is a valuable programming tool that, in the hands of a seasoned instructor, always keeps the program fresh for members. Rehab And Post-Rehab Tools Pilates has always been a natural extension of orthopedic physical therapy so it is not a surprise that many Pilates equipment manufacturers have created equipment that can be used both as a method of rehabilitation and as a post-rehab method of sustaining a desired fitness level. Many clubs now partner with physical therapists to provide a 1-2 referral rehab/post-rehab punch. e Pilates Reformer is a great piece of equipment that both therapists and clubs use for this reason. But now, new products are available that don’t take as much floor space. One of our newer tools in this category is the CoreAlign. e CoreAlign frame encloses two tracks and carts, which move independently with smooth resistance (or assistance) created by six elastic resistance bands on each cart. ere are literally hundreds of functional movement exercises. ese exercises facilitate musculoskeletal rehabilitation by stimulating core stability muscles to fire in perfect timing while performing challenging gait exercises, very deep stretches and core-controlled aerobic training – meaning it can work equally well in a physical therapy, group exercise and personal training setting. Most CoreAlign exercises require a ladder. We offer wall-mounted and free-standing ladders, or you can provide your own. For clubs, wall-mounted ladders may be the best option if storage is a concern. You can just pick up the carts and stack them out of the way. We are very excited about mindful movement and we hope clubs will be, too. Mindful movement will let fitness facilities offer programs to their members that not only provide a killer workout, but simultaneously train the body so that it moves optimally through everyday life and everyday tasks. at’s a win-win for everyone. Ken Endelman is the founder and CEO of Balanced Body. Balanced Body thoroughly believes that mindful movement can change people’s lives and provides clubs and fitness facilities with industry leading Pilates equipment and education services. ●●●● Come see us on the web at www.califclubs.com 16 Stop Member Churn... Managing Your Workers’... CONTINUED FROM PAGE 11 CONTINUED FROM PAGE 9 program that helps trainers create fun, high-spirited workouts for those interested in improving their physical performance inside the ring or out. while they are at home. Statistically, an employee recovers faster from the effects of an injury if they do not lose any time from work. From my own member experience, going from regularly using the club five days per week for over three years, to not stepping foot inside their doors for eight months, I felt abandoned by my club. Seems odd to say since it was me who stopped going, but I felt that they really don’t care as long as I paid my monthly dues. If they really cared about me, the member, there should have been some sort of scheduled outreach for members who are missing in action. Do they fear that I’ll cancel my membership? Possibly? But they should be more worried about my feelings of abandonment and that I would share those with anyone who asked me for a club recommendation (the 80% word of mouth potential referrals won’t be going to that club). Stacey Penney, Contributing Content Strategist with the National Academy of Sports Medicine (NASM), holds a master’s degree in exercise science and health promotion from California University of Pennsylvania, a degree in Athletic Training from San Diego State University, along with credentials in Health Promotion Management and Consulting (UCSD), and Instructional Technology (SDSU). She holds certifications from NASM and ACE in personal training, corrective exercise, sports performance, group exercise, fitness nutrition, and health coaching. Stacey.Penney@NASM.org ●●●● ey will also not be exposed to television ads or statutory language in benefit letters advising them of their right to retain an attorney, or neighbors who discuss their settlements and fill your employee’s eyes with dollar signs. Emotionally, your employees will have an increased sense of job security as they are still participating and contributing to the work environment. eir position, promotional opportunities and senority are all preserved if they stay working. is in turn serves to motivate their physical recovery. Squeaky Wheel Once the claim is reported and your employee is in the system, stay in touch with him/her. Find out how he/she is doing. Is he/she doing better? Does he/she like their physician? Is the claims examiner answering their questions? Likewise, keep in close contact with your insurance carrier. Make sure you are informed with regard to the claim’s progress and key events. Just like your employee has a right to choose their attorney, so do you. is article is not intended to be a substitute for legal advice and is informational only. Robyn is a senior associate with Manning & Kass, with over 17 years of workers’ compensation experience. In her workers’ compensation practice, she regularly advises insurance carriers, claim professionals and business owners on litigation and claim management, loss control, the interplay between personnel and human resources with industrial injuries and risk management concerns. She also is a former claims examiner, thereby affording her a well-rounded perspective of all aspects of workers’ compensation systems including reserving and addressing employer concerns. Robyn is in the San Diego office of Manning & Kass. For specific questions contact Robyn at rpf@manningllp.com. ●●●● Transforming Selling Systems... CONTINUED FROM PAGE 5 e 3 M-I-S’s (Most Important Systems) that best integrate members into the club, and provide greater participation and infinitely more ongoing ancillary sales are: 1 to 1 Personal Training, Small Group Training, and Group Exercise classes. Sixty five percent of 1 to 1 “on-boarded” members will stay in membership far longer than traditionally-oriented customers. Ditto to nearly 80% of Small Group on-boarded members. Members who are on-boarded into GEX classes will be among the highest-retained members annually (over 70%). Yet sadly, only a minority of national clubs point prospective and new members in these directions. Smart selling, as contrasted with traditional selling, is customercentric and will provide a greater benefit to consumers and clubs. It is outcome-based interactivity, not a “menu” or “features” based one-way selling. Clubs need to to embrace the twenty-first century paradigms of offering participation opportunities to consumers. Michael Scudder is Founder and CEO of Fitness Business Council - an independent-clubs-only national management education/advisory network of nearly 1000 U.S. facilities. Michael can be contacted at mss@fitnessbusinesscouncil.com and 575-751-1212.) ●●●● The Trade Association of Health, Racquet & Fitness Clubs in California 17 Come see us on the web at www.califclubs.com 18 The Trade Association of Health, Racquet & Fitness Clubs in California 19 ASSOCIATE MEMBER SPOTLIGHT Well it’s been a year now and for both our software and billing although the Jonas Fitness brand services. is company has always might still be somewhat new been considered the leading provider to the industry, its predecessor, of EFT processing and billing CheckFree/Club Solutions, sure isn’t. solutions in the health and fitness In March 2013, Toronto-based Jonas space, and Jonas Fitness will now be Software acquired the assets of what considered the leading software was once CheckFree/Club Solutions provider in this industry as well.” from Fiserv, Inc. and formed a new company called Jonas Fitness Inc., Jonas Fitness will continue to Adam Zeitsiff - President, Jan Harms - Senior Sales with offices in Houston, Texas and integrate and continuously expand on Executive, Barry Bleuer - Regional Sales Consultant Columbus, Ohio. Jonas Fitness the assets that were once part of maintains the Compete and i4 Club Solutions throughout 2014 software brands, as well as all the unique payment processing, billing and beyond. Changes or additions already implemented over the last and member-facing services that have made them a leader in the 12 months include but are not limited to: industry for the last few decades. • Hired over a dozen new R&D, Training and Customer Support employees. Jonas Fitness and Jonas Software are part of Constellation Software, a • Expanded our Managed Billing Services department to compliment leading provider of software and services to a select group of public the services we offer to our clients through creating partnerships to and private sector markets. Constellation acquires, manages, and handle billing and member inquires. builds industry-specific software businesses that provide specialized, mission-critical software solutions that address the particular needs of • Recently relocated and expanded our R&D office in Ohio. its vertical market customers, encompassing such industries such as • Just wrapped-up the first phase of re-investing in our i4 software fitness, golf and private club, construction, food service, public system to add much-needed functionality and enhance its lifespan. transit, asset management, utilities, health care, amusement, and other is first phase includes all new mobile portals and online services. segments. “We have 30,000-plus customers in more than 30 • Invested significantly in our flagship product, Compete, to ensure it countries, and a proven track record of solid growth in all those becomes the leading product for health and fitness clubs. industries,” says Jonas Fitness president Adam Zeitsiff. • Relocated and expanded our PCI-compliant data center to support Beyond building brand recognition and awareness over the last year, the long-term expansion needs of our customers. we have been implementing a range of plans to both integrate and grow this business. “At our core, Jonas is a vertical market software As you can see, Jonas Fitness will continue to be seen as a dominating company with 20-plus years of experience to draw upon in order to force in the club management software and billing space, along with help improve the overall quality, functionality, and reliability of our being a trusted advisor in the fitness industry as a whole for many software systems at Jonas Fitness,” explains Zeitsiff. “We have spent years to come. the last 12 months applying best practices and proven systems in order to enhance the capabilities of our systems to ensure that we meet the For more information on Jonas Fitness, its 30+ year history and how we needs of our clients long-term. We have also been working hard to are a trusted provider of "Software For Life" please visit us at: listen to our customers and react in a nimble fashion to their needs, www.jonasfitness.com. ●●●● Come see us on the web at www.califclubs.com 20 Club Industry Financials... CONTINUED FROM PAGE 6 Key Conclusions From IHRSA Financial Panel ere were a wide range of insights from TSG Consumer Partners, Piper Jaffray, GE Antares Capital and TZP Capital Partners. TSG owns Planet Fitness, an HV/LP provider (high-volume, low-price). 2014 Event Calendar All 1 Hour Webinars Begin At 12 PM Register Online At www.califclubs.com May 14 May 23 June 11 Sept 10 Oct 8 Oct 29 Nov 12 Dec 10 Legal Webinar: Conducting Workplace Investigations Jeffery Long, Partner, Prout-LeVangie LA North Valley Club Meeting Stevenson Fitness, 12:00 noon – 2:00 p.m. All Welcome. Webinar: Using Affordable Care Act To Your Clubs Advantage Mike Rucker, Director of Digital Products, Club One Webinar: Managing Relations - Interactions With Members And Employees Rod Heckelman, Owner, Mt. Tam Racquet Club Legal Webinar: Managing Your Workers’ Comp Risks Robyn Park Freiberg, Senior Associate, Manning, Kass, Ellrod, Ramirez, Trester Legal Webinar: Code Compliance - “Know e Laws at Govern Your Industry” Anthony Ellrod, Partner, Manning, Kass, Ellrod, Ramirez, Trester Webinar: Designing And Delivering On e Membership Enrollment Process Bill McBride, BMC:3 Legal Webinar: Membership Termination: How Not To Spread e Risk Jeffery Long, Partner, Prout-LeVangie Most clubs will need to retrain supervisors on "Avoiding Sexual Harassment in the Workplace for Supervisors”. is is required every two years. If you are in need of a training and have a minimum of 7 workers to be trained, Lin Conrad will travel to your club. If you would like to volunteer your location for a training but don't have 7 workers call Ms. Conrad to establish a date. In-class training has been proven to be the most effective means of subject comprehension. It allows for lively discussion and questions. Contact Lin Conrad for information and registration: 510-243-1532, linconrad@califclubs.com Webinars are $39 for CCD members and $79 for non-members. CCD Webinars sponsored by ey now have over 750 clubs open and serve over 5 million members. With their existing regional franchises, they see growth of over 175 new clubs in 2014. Piper Jaffray studied some of the macro trends. It focused on the 25-54 year old, which represents 67% of the memberships in the club industry. ey noted that this demographic segment was growing less in employment than other sectors. However, disposable income was growing. Consumer confidence was lagging. eir own primary research indicated that those who did not belong to a club went elsewhere for cycling, yoga, swimming and group weight training on a more “pay as you go” basis. ey highlighted the increasing trend toward wearable technology. Piper Jaffray emphasized that strong cash flows, high margins on membership dues and the lack of need for working capital were all club strengths. However, they also noted the challenges involving high initial capital costs, high attrition rates and high ongoing maintenance capital needs. GE Antares Capital saw the club industry as an attractive source of borrowing, as it currently lends to 7 of the larger club companies. It is impressed with the industry’s recurring revenue, strong free cash flow and positive EBITDA at mature locations. It accepts the fact that the industry is recession resistant. It highlighted the huge availability of funds and the need to deploy them. Multiples of EBITDA were rising, allowing for more debt availability for larger club companies. TZP Capital Partners bought SNAP Fitness as well as three other brands (9 Round, Kosama and Steele). ey saw a variety of advantages in investing in the club industry (e.g., growing market, investment in different sub-sectors, brand identification, free cash flow and capitalizing on the entrepreneurial spirit). Some of their issues involve the lack of consistency of product, an ever evolving industry, expansion via company-owned stores, need for an active social media presence and potential safety and liability concerns. ey liked the amazing trends in small group training, flexible membership options and technological innovation. Conclusions Most financial experts see the club industry as likely to benefit from a slightly better 2014 than the recent past. However, until unemployment levels really decrease and until clubs find meaningful ways to take advantage of the Affordable Care Act, there are no likely home runs expected. Singles and doubles are more likely. ere is optimism but no expectations that the industry as a whole will return to 2007 levels. Rick Caro is President of Management Vision, Inc., a club consulting company with expertise in helping clubs with club financials, club valuations, market feasibility studies, expert witness testimony, member surveys and club sales/purchases. Management Vision, Inc. can be reached at (800)778-4411 or mgmtvision@gmail.com ●●●● To be placed on the email list for notification of these events contact Lin Conrad, tel:510-243-1532 mail to:linconrad@califclubs.com. The Trade Association of Health, Racquet & Fitness Clubs in California 21 CCD Associate Members Architects/Interior Design/Club Art Joel B. Cantor - AIA Architect 415-957-9755 • jcantoraia@aol.com• www.jcantorarchitect.com Serving the fitness industry since 1977, offers a full range of architectural, planning & consulting services for new facilities, additions & extensive remodeling. Fabiano & Associates • www.fabianodesigns.com Rudy Fabiano • 973-746-5100 • Rudy@fabianodesigns.com Architects and interior designers providing smart, efficient and creative designs that will help your club’s project or renovation to be successful and within your budget. Our services are affordable and our experienced staff of 20 years will develop design solutions that will satisfy your business plan as well as your programming needs. Our spaces are designed to keep people motivated, happy and most importantly healthy. Maxion Design • www.maxiondesign.com Cindy Maxion • 619-668-5678 • cindy@maxiondesign.com Maxion Design has designed more than 300 fitness facilities across the country and abroad. Relying on our vast experience as artists, interior designers, graphic artists and color specialists, we make clubs real showstoppers. New technology makes it possible to present everything electronically to our clients from anywhere in the world. Clients can see what they're buying before they buy it. We have printed on vinyl, sheer fabric, paper, window film, wood, metal and acrylic. Our art can come in any size, style or color. It can be three dimensional, integrating play or fitness equipment, cutting edge lighting and movement. Associations FISA (Fitness Industry Suppliers Assoc.) • 858-509-0034 Dave Dinerman, Ex. Director • info@fisana.org ★ IDEA Health & Fitness Association Kelly Nakai • 858-535-8979 • nakaik@ideafit.com • For info visit www.Ideafit.com e world’s leading membership organization of fitness and wellness professionals with over 23,000 members in over 80 countries. Since 1982, IDEA has provided personal trainers, group exercise instructors, fitness program directors, mind-body teachers, health club owners and fitness center managers with pertinent information, educational opportunities, career development programs and industry leadership. ★ IHRSA • 800-228-4277 Pam O’Donnell, Member Services • info@ ihrsa.org • www.ihrsa.org e international non-profit association of Health, Racquet and Sports Clubs. Certification ★ ACE (American Council on Exercise) Camron Yahyapour • 800-825-3636 ext 771 • camron.yahyapour@acefitness.com ACE is the world’s largest non-profit fitness certifying organization and provider of fitness education. ACE sets standards and protects the public against unqualified fitness professionals and unsafe or ineffective fitness products, programs and trends. Call about our certification classes or contact www.acefitness.org. National Academy of Sports Medicine (NASM) 800-460-6276 • info@nasm.org Brad Tucker, VP Sales • brad.tucker@nasm.org David Correia • 818-595-1210 • david.correia@nasm.org NASM also offers a progressive career track with access to specializations in FitnessNutrition (FNS), Sports Performance (PES), and Injury Prevention (CES), Continuing Education courses and accredited Bachelor and Master Degree programs. Merrithew Health Fitness/STOTT PILATES Carol Tricoche • 800-910-0001 ext 203. See full listing under Fitness Equipment. Consulting/Training Bill McBride (BMC3) 415-299-9482 • BillMcBride@BMC3.com • www.BMC3.com BMC3 is an agency specializing in consulting, coaching & club management. We focus on operational strategy, operational excellence, sales & marketing, fitness program design, class schedule optimization and staff training. Additionally, we are building a full club intranet to deliver everything operators need to know about optimally running their businesses with content and video trainings. We have strategically partnered with affiliates to deliver a turnkey solution for new and existing clubs. Our online community offers membership for $15 per month (Leadership Council) that gives full access to all materials and training programs as well as a complimentary monthly consult to Leadership Council Members. ★ CCD Partnership discount Come see us on the web at www.califclubs.com 22 CCD Associate Members Consulting/Training Faust Management Corp. • 858-674-2400 Dr. Gerry Faust • gerry@faustmanagment.com Management consulting, executive coaching, speeches and seminars, management development programs, GM and Club Owner Roundtables, all that help leaders and their teams succeed. Premium Performance Training • 303-417-0653 Karen Woodard-Chavez • karen@karenwoodard.com Karen has owned & operated clubs since 1985 and now consults and trains club staff worldwide in marketing, selling, service and management skills. Services available on-site, online, by phone, books, tapes, and manuals. Court/Club Equipment Athletix Products • 610-659-9924 John O’Donnell • jodonnell@contecinc.com Disinfectant Wipes and Sprays (kills MRSA), Equipment Cleaning Wipes, Lubrication and Maintenance Wipes, Odor Neutralizers for locker room environments. ★ First Service • 800-227-1742 Dan Goldblatt • firstservice@clubstuff.com First Service is privileged to be a longstanding CCD associate member and preferred supplier. Look to us for top quality athletic equipment (tennis, basketball, volleyball, wall padding, gym curtains and scoreboards), specialty flooring (weight room, gymnasium, aerobic, water draining, locker room and protective floor covers), and club furnishings (lockers, bleachers, benches, stools, outdoor tables and benches). Take advantage of our 35 years of industry experience! Diet/Nutrition Communication Consultants WBS, Inc. Take It Off weight loss • Casey Conrad 401-932-9407 • takeitoffweightloss@yahoo.com is is a complete, turn-key, in-club weight loss program. Diet-to-Go • 800-743-7546 Lauren Hartung • lhartung@diettogo.com Jennifer Schwarzbach • jschwarzbach@diettogo.com 818-486-9883 Diet-to-Go is a food based, turnkey, nutritional program offering everything a premier fitness club needs to launch a lucrative profit center. With commercial kitchens in Virginia and Los Angeles, we have a 22 year proven track record of providing an effective and affordable nutrition option for customers nationwide. We offer Low Fat, Vegetarian or Low Carb menu options. Diet-to-Go partners with fitness clubs to deliver their food options to members at the club. Fitness Equipment Balanced Body Pilates • 800-Pilates (745-2837) Dave Littman • Dave.Littman@pilates.com Tony Tran x206 • tony.tran@pilates.com Balanced Body® believes that mindful movement can change your members’ lives. We are the leading resource of Pilates and mindful movement equipment, information and training for CCD member clubs. Start or expand your program with high quality on-site training. Mat, Reformer, apparatus, CoreAlign® and additional courses are available. www.pilates.com Commercial Fitness Exchange, Inc. Justin Fortune • 415-246-7841 info@commercialfitnessexchange Fitness equipment dealer offering new, used and remanufactured equipment. Keiser Equipment • 800-253-6568 Gary Klein • garyk@keiser.com Keiser air powered exercise machines create the power in human performance via strength training and functional training. We offer group cycling rear wheel drive bikes, the Total Body Trainer, M5 Strider, M3+Megnetic bike with front to back adjustable bars and back-lit display, Air Power Racks, special programs for senior training (STEP) and athletic performance plus power testing for athletes. Keiser is known for our Institute on Aging and Xpress 30 minute workouts. Life Fitness Jon orsell ,VP of Sales 800-449-6017 • jon.thorsell@lifefitness.com Joe Harris, Sales Rep Northern California 925-584-5077 cell • 530-550-8977 office joseph.harris@lifefitness.com Michael Pooler, Sales Rep Southern California 714-224-6866 cell • 562-694-0075 office michael.pooler@lifefitness.com Nathan Green, Sales Rep Southern California 619-550-6788 cell • nathan.green@lifefitness.com Over 30 years of research, development and expertise in the fitness world has put Life Fitness in the unique position to offer you what no other company can innovative products with unparalleled support. As the leader in commercial exercise equipment, we’re able to provide over 300 different cardiovascular and strength-training products, including the renowned Hammer Strength brand. Nautilus® Commercial Fitness/Med-Fit Systems, Inc. Bruce Kaplan, Director of National Accounts and GSA • 760.814.7513 • bkaplan@medfitsys.com www.nautiluscommercial.com For over 40 years, Nautilus® commercial fitness equipment has been known for superior biomechanics and better, safer results. Today, we continue to be the #1 name in fitness equipment. With numerous international patents, our passion for innovation and our pursuit of perfection is unmatched by any other fitness equipment manufacturer. Our commercial strength and cardio products combine cutting-edge technology, superb craftsmanship, heavy-duty club quality materials and are made in the USA. Nautilus® strength frames carry a lifetime warranty. We apply permanently bonding, EPA registered antimicrobials to all strength and cardio equipment surfaces to prevent cross-contamination by multiple users. Contact us about our innovative equipment and programming. Paramount • 800-721-2121 Chris Babecky, Director of Sales North America cbabecky@paramountfitness.com Evan Darling, West Coast Sales Mgr. • 206-715-8739 edarling@paramountfitness.com After 56 years, the leading manufacturer of commercial strength products: single, dual and multi-station machines; plate-loaded and modular systems; free weight benches and racks plus functional training equipment. ★ CCD Partnership discount Power Systems • 800-321-6975 ext 7893 Patty Daugherty • pdaugherty@power-systems.com www.power-systems.com Power Systems was founded by Bruno and Julie Pauletto over 25 years ago and we are a leading supplier of fitness and sports performance training equipment. Our product line covers over 2000 strength and conditioning products for Health and Fitness Clubs pertaining to Group Fitness, Functional Training and Personal Training. We are located in Knoxville, TN and utilize over 300,000 sq. ft. of office and warehouse space. Our Mission is to advance health, fitness and physical performance for everyone. Precor Jason Blair (Central Calif ) 866-205-2063 • jason.blair@precor.com Jarred Willis, Sr. Key Acct Mgr 503-528-6061 • willis@precor.com Adam Guier (Southern Calif ) 619.315.9914 • adam.guier@precor.com Precor designs and builds premium fitness equipment for effective workouts that feel smooth and natural. Our equipment is chosen by health clubs, hotels, spas, universities, and individuals all over the world. For nearly three decades, we've driven fitness forward with a passionate focus on ergonomic motion, proven science, and superior engineering. We constantly study and anticipate the needs of the people and organizations we serve, and continually redefine the levels of innovation, quality, and service necessary to deliver the very best fitness experiences – all with the goal of improving the ways people improve themselves. Star Trac Rick Nelson, Dir. Western Regional Sales 714-801-5527 • rnelson@startrac.com Mike Westcott, Nor CA Territory Manager 714- 936-1027 • mwestcott@startrac.com David Summers, So CA Territory 480-584-9638 • dsummers@startrac.com Complete line of best-in-class commercial cardio equipment including treadmills, bikes, crosstrainers, steppers and Spinner® bikes, and a full range of strength training equipment. Total Gym Bonnie Lee • 858-764-0004 • blee@totalgym.com www.totalgym.com Total Gym® is the world's leading privately-held manufacturer of functional and bodyweight training equipment for home consumers, fitness professionals, athletic trainers and rehabilitation specialists. Founded in 1974, the San Diego-based company's Total Gym® equipment is used in 14,000 physical therapy clinics, athletic training facilities, hospitals, universities, professional sports teams and health clubs worldwide. Total Gym continues to lead the industry with innovative functional training products and the award-winning GRAVITYSystem® commercial fitness program. TRX (formerly Fitness Anywhere) Roy Lin, So Cal, NV, AZ, HI Territory Sales Manager 415-230-6030 • rlin@trxtraining.com Mike Cole, No Calif Sales Manager 415-983-3260 • mcole@trxtraining.com TRX produces and sells Suspension Training equipment and programs to trainers, clubs, athletes, physical therapists and the military. Suspension Training bodyweight exercise develops strength, balance, flexibility and core stability simultaneously. The Trade Association of Health, Racquet & Fitness Clubs in California 23 CCD Associate Members Health Assessment & Equipment Fit3D • 888.428.0001 info@fit3d.com • www.fit3d.com Greg Moore • 650-275-3483 • greg.moore@fit3d.com Are you looking for a turnkey technology to help you differentiate your services, drive more personal training sales and retain members? Finally, do you want this without a heavy operations burden on your already taxed team? Fit3D is the only safe, affordable, and absolutely motivating 3D Imaging technology and online platform that gives your club a leg up on your competitors. With our technology you can give your users a unique set of anthropometric based risk assessments, track their progress, and literally show them how their body is changing as a result of your great services. You can't afford not to differentiate your club in this competitive market! Find out how to become a Fit3D partner today!! MicroFit, Inc. Rob Rideout • 559-475-7007 • sales@microfit.com www.microfit.com For over 25 years quality fitness centers around the world have used MicroFit fitness assessment products to offer a unique member service program not found in most low cost exercise shops. A MicroFit fitness/wellness assessment allows trainers to meet new members, gain their trust, understand their goals, recommend programs, and track their progress. is experience helps members achieve better health. Our fitness assessment software measures over 30 physical fitness characteristics and can be interfaced to the testing equipment for computer-controlled assessments of weight, body fat, blood pressure, flexibility, strength and cardiovascular fitness. Insurance ★ FitnessPak: CCD Endorsed Provider Jim Foley • 800-873-3725 • jfoley@iwins.com Ken McKay • 800-444-4134 • kmckay@iwins.com Tony Pozas • 530-895-1010 • tpozas@iwins.com Matt Bauer • 800-873-3725 • mbauer@iwins.com Club insurance specialists. ISU Insurance Brokers of San Diego Bart Castellitto • 858-391-0282 bcastellitto@isugroup.com ISU Insurance Brokers of San Diego is a full service insurance broker providing all lines of insurance products with over 25 years of experience in the fitness industry. Allow us to be your “risk coach”: we will have your insurance program in shape in no time. Legal Bradley & Gmelich • 818-243-5200 Tom Gmelich • tgmelich@bglawyers.com Gary Bradley • gbradley@bglawyers.com General counsel for health and fitness centers throughout California. Bradley & Gmelich specializes in membership agreements, employment matters, business counseling and litigation, and general liability matters. Our holistic approach to practicing law benefits your entire operation. Please call for a free consultation. General Legal Counsel • 925-558-2786 Joseph Freschi recently opened his own law practice after 15 years of representing two of the largest fitness companies in the US - 24 Hour Fitness and Planet Fitness. After successfully growing and guiding both companies through majority buyouts, Joseph is available to represent fitness and health clubs. Joseph's fitness experience spans three decades and all aspects of the industry, including owning and operating health clubs. Joseph can provide a wide range of practical legal advice including out-sourced general counsel services. All CCD members are entitled to a free consultation. Manning & Kass, Ellrod, Ramirez, Trester LLP Anthony Ellrod • 213-624-6900 • aje@manningllp.com • manningllp.com Legal counsel with a focus on the health club industry, including drafting membership agreements and other contracts, providing risk management and general counsel services, and advising on and litigating business, commercial, personal injury, employment, and workers compensation matters. Offices in Los Angeles, Orange County, San Diego, San Francisco, and Phoenix. ★ Prout, LeVangie LLP: CCD Endorsed Provider 916-443-4849 Jeffery Long • jeffery.long@proutlaw.com Specializing in conducting risk management analysis for health clubs, preparing valid waiver and releases, and general health club litigation. Locker Room Amenities ★ Petra Hygienic Systems: CCD Endorsed Provider John Mickelson • 877-888-6655 ext 3 john@petrasoap.com Matt Anderson • 877-888-6655 ext 6 matt@petrasoap.com Personal care products for the locker room and club. Marketing Pronto Marketing Alma Rodoni • 800-270-3440 sales@prontomarketing.com www.healthclubs.prontomarketing.com We create and manage all the moving parts of your internet presence without it costing a fortune. Pronto manages a website, social media and all of the components that go into a well orchestrated internet presence to meet your business goals. We set up and take care of all aspects of your online presence: Website Design and Copywriting; Search Engine Optimization; Social Media Management; Local Business Directory Listings. Reach Sports Group James Brough 916-716-0316 • jim.brough@reachsportsgroup.com W. Brent Arnold 541-915-8428 • brent@reachsportsgroup.co Reach has its own digital signage network that is in over 500 athletic, health and fitness clubs, university fitness and recreation centers, ice arenas, YMCAs and JCCs throughout the United States. e advertising-supported Reach Network features large high-definition flat screen digital televisions, with flash screen technology, that inform, entertain and educate members and visitors at partner facilities. Susan K Bailey • 888-349-4598 • www.clubads.com MaryBeth Bradley • marybeth@clubads.com Creates effective direct marketing pieces that cut through the clutter and let you target market. Advertising that works out! Programming TRX (formerly Fitness Anywhere) Roy Lin, So Cal, NV, AZ, HI Territory Sales Manager 415-230-6030 • rlin@trxtraining.com Mike Cole, No Calif Sales Manager 415-983-3260 • mcole@trxtraining.com TRX produces and sells Suspension Training equipment and programs to trainers, clubs, athletes, physical therapists and the military. Suspension Training bodyweight exercise develops strength, balance, flexibility and core stability simultaneously. Retention & Reward Programs Retention Management • 800-951-8048 John Heppenstall • JohnH@RetentionManagement.com Retention Management helps fitness centers increase retention, ancillary revenues, sales and profitability. Our Email Services deliver automated email targeting every segment of their membership and marketing broadcast emails to promote club services and program utilization. Our Social Media Services create and actively manage a club’s Social Media presence; maximizing fan recruitment and interaction, marketing initiatives and profitability. Software/Internet Programs ABC Financial Services • 800.622.6290 ext 1166 Steve Ayers, Vice President of Sales & Marketing 501.515.5066 • steve.ayers@abcfinancial.com ABC Financial is the leading service provider of key financial services including software, billing, payment processing, and merchant services for the health and fitness industry. In addition, ABC provides comprehensive on-site training and club marketing. Jonas Fitness Jan Harms • jan.harms@jonasfitness.com 801-501-9673 A comprehensive and scalable solution that combines the best of club management software, managed member data services and payment services. When these three vital club functions are fully integrated, your club reaches the peak in profitability and operational efficiency. MembersFirst • 508-310-2360 Dawn Taylor • 401-289-0745 dtaylor@membersfirst.com Internet-based marketing and member communication solutions to the Health & Fitness Industry. We build, design and manage club web sites to support all aspects of membership from acquisition, activation, engagement and retention. Twin Oaks Carole Oat • 860-829-6000x281 • coat@tosd.com We developed software and services from a unique perspective — yours. As former club owners and operators, we’ve lived through the rewards and challenges of running a facility, the tedium of processing billings, and the fine line you walk trying to collect on declined EFTs while keeping those members, well… members. Come see us on the web at www.califclubs.com ★ CCD Partnership discount 24 California Clubs of Distinction 5382 Coach Drive El Sobrante, CA 94803 PRSRT STD U.S. Postage PAID Petaluma, CA Permit #138 Membership Application Membership in CCD is open to health, racquet, and fitness facilities which pay property taxes and do not accept tax-deductible contributions of capital or operating costs, e.g., 501 c(3)’s, government agencies and their subsidiaries. Applicant facilities must sign the Pledge below to activate a membership. Your club will be reviewed by the Executive Director upon application, change of ownership, or if a questionable ethic is brought before the Board. If you have any questions, please contact Lin Conrad, the Executive Director, at 510-243-1532. CCD reserves the right to make final decisions on applications for membership. Membership Pledge As a member of CCD, I agree to operate my club in the best interest of the consumer and the industry by: • Assuring that my club is a service driven club • Abiding by all federal, state, and local consumer protection laws and all other applicable legislation • Engaging in a positive sales approach • Opening membership to persons of all races, creeds and places of origin. I agree to abide by this Membership Pledge: Signature: Please mark the appropriate box for annual dues: Club Name: Street Address: City: State: Owner: Zip Code: Manager: e-mail address (for CCD use only): q q q q q Date: 1 club with 2,000 sq. ft. or less = $225 1-4 clubs = $360 each facility (all clubs must be members) 5-9 clubs = $300 each facility (all clubs must be members) 10-14 clubs = $280 each facility (all clubs must be members) 15+ clubs = corporate membership (contact CCD for dues) IHRSA Members receive a 5% discount. Web site: www. Telephone: Fax: Number of Clubs: Amount enclosed: $ Mail check to: CCD, 5382 Coach Drive, El Sobrante, CA 94803 CCD, a non-profit association, is the voice of the club industry in California. CCD’s purpose is to promote responsible growth of the California club industry and to enhance the professionalism, effectiveness and profitability of its members through networking, education and positive legislative change. The Trade Association of Health, Racquet & Fitness Clubs in California