Personal training (PT) is an important revenue producer for IHRSA clubs, but very few facilities can claim the distinction -- as can the Equinox Fitness Clubs in New York City and the Cooper Fitness Center in DaIlas -- of generating nearly $1 million a year from PT.
The PT programs at Equinox and the Cooper Center share more, however, than the fact that they're so lucrative. Both operations, for instance: have all of their personal trainers on payroll; have a third party pair their clients with trainers; and have formal, in-house, continuing-education programs in place for their trainers.
This month, CBI takes a long, hard look at the Equinox and Cooper Center programs to discover what it takes to create a uniquely successful, club-based, personal-training business.
Equinox Fitness Club
In 1994, the two Equinox facilities in New York City generated $1.5 million from PT -- a figure that's expected to double in 1995. Equinox's success with PT is the result, in part, of huge point-of-departure numbers: Fitness Director Bob Esquerre, for instance, who oversees the PT program at Equinox, often works more than 100 hours a week; and, together, the two clubs employ a total of 120 personal trainers!
"Up until April, all of our personal trainers were independent contractors," notes Esquerre, who holds a master's degree in public administration/economics. "Given the growth and overall viability of our business, however, we opted to make them all employees. Before, they had no sense of stability; they were working all over town, and had no medical coverage or unemployment insurance. Now, we provide them with security, stability, and our commitment to them. In turn, of course, we expect them to completely commit to us."
To be as accommodating as possible, Equinox offers its members four levels of PT. The first level is called progressive training, costs $35 for a 45-minute session, and is designed for inexperienced exercisers. The second, called the elite level, costs $45 for a one-hour session, and commonly includes strength training and aerobic exercise, as well as a flexibility element. Third, the comprehensive level, which costs $55 for a one-hour session and is designed for the individual with preexisting medical conditions. Finally, the premium level, called elite plus, costs $75 an hour and is intended for "die-hard" exercisers, who often have very specific anatomical objectives, such as shaping their biceps or triceps a particular way.
"With each of those levels," explains Esquerre, "members have the option of buying bulk packages of 5, 10, 20, or 50 sessions, at about a 10% discount, depending upon the package."
Esquerre is convinced that Equinox's continuing-education program, or Fitness Training Institute, is fundamental to its success with PT. "The Institute was originally an entity without walls," says Esquerre. "We'd use aerobic rooms, or rent space outside the facility, in order to conduct workshops for our trainers. But we're now in the process of constructing an actual learning center, as part of a 12,000-square-foot expansion of our downtown facility; the center will include a conference room capable of holding 60 people, audiovisual equipment, overhead and slide projectors, and, of course, desks and chairs. The creation of the Institute was driven by the fact that, while trainers may have all the right credentials, there's not always a direct correlation between credentials and practical ability."
Equinox holds an average of 15 work shops a month for its trainers, addressing such topics as biomechanics, kinesiology, and anatomy; some workshops are mandatory, and some are optional, but, in certain situations, optional workshops may become mandatory. "If we discover that a trainer is doing something in a substandard way, we give him or her an opportunity to correct the problem by attending one of the optional workshops," says Esquerre. "If the trainer isn't able to remedy the problem, we're forced to let him or her go." Esquerre estimates that the cost of his continuing-education options is approximately $4,000 a month.
"When we bring new trainers into our organization," he points out, "we team them up with some of our senior trainers, who show them the ropes. Afterwards, they're regularly evaluated on their training and interpersonal skills. I'm on the floor every day, soliciting feedback from the manager, members, and the trainers themselves, and we also have a service-evaluation program that's available to our PT clients."
The fact that Esquerre matches trainers with clients is another major factor in Equinox's success. "A client may say, 'I want someone who's like a drill instructor,' so I have to choose a trainer with that type of personality," he explains. "Or a client may say, 'I want someone who's sensitive,' or 'I need a trainer who my husband will accept.' There are a lot of considerations that go into making the right match."
Using bimonthly productivity reports, Esquerre carefully tracks and evaluates the performance of his trainers -- a daunting task when one considers that, on average, some 6,600 personal-training sessions take place at the two clubs each month. The record month, in terms of PT revenues, came in February, when the numbers added up to $305,000!
"I think the key to a great PT program is that it is, indeed, personal with a capital 'P'," Esquerre concludes. "A client comes to a trainer with a list of defined objectives, and it's up to the trainer to determine how realistic those goals are. Together, they have to achieve a meeting of the minds and establish a collective objective. But the way you really make the training personal is by getting results for your clients, and that, of course, ultimately depends on the quality of your trainers."
Cooper Fitness Center
As the fitness director of the Cooper Fitness Center, one of the most highly regarded fitness facilities in the country, Mike Caton regularly receives resumés from top-notch personal trainers, allowing him to be extremely selective when hiring. And Esquerre and Caton agree that, more than anything else, the quality of one's trainers determines the quality of one's program. The screening/hiring process is absolutely critical.
"Our hiring process is a rather grueling one," concedes Caton, who's also the 1995 IHRSA/Cybex Fitness Director of the Year. "I collect resumés and conduct interviews throughout the year, but, when I feel there is enough demand to hire a new trainer, I narrow the field down to the or four individuals on the basis of their resumés, an initial interview, and a written test. The finalists then have to undergo a panel interview, which involves me, the general manager, and a few directors firing questions at them for about an hour. After all's said and done, it's generally clear who's best suited for the position."
When Caton assumed his current position at the Cooper Center, he implemented some of the systems he'd formerly utilized as the owner of his own PT business; and, in less than two years, he's managed to increase average, monthly, PT revenues from $18,000 to $60,000.
"Before, new members received a fitness assessment and a weight-room onrentation," he notes. "I decided to modify that and, in addition to the assessment, give all new members three, free PT sessions. Because many people associate PT with individuals who are either wealthy or injured, I find it's helpful to give them a taste of what they're missing." As a result, at the Cooper Center, 50% of all new members retain their personal trainer, to some degree, after completing their orientation.
Unlike Equinox, which has more personal trainers on staff than most clubs have employees, the Cooper Center has only 12 trainers (who earn, on average, $40,000 a year), doesn't offer any package deals, and basically charges only one rate for a PT session. "A one-hour session costs between $40 and $45, and I'm the one who sets the rate, and pairs the clients with trainers," explains Caton. "The only exception is my busiest trainer -- a veritable PT machine -- who can charge new clients $60 an hour."
What sets Caton's busiest trainer apart from the rest? "He probably possesses more fitness-related knowledge, than any one person I've ever met, replies Caton. "He's very likeable, is very good at marketing himself, and always leaves his clients with the conviction that he really knows his field. And, as a former Mr. Colorado, he looks like a personal trainer. He was our top producer within a month of joining the Cooper team."
Like Equinox, the Cooper Center places a great deal of emphasis on continuing education for its trainers. All of them must be certified by a nationally recognized organization, have at least a bachelor's degree in a fitness-related field, and have some training experience; moreover, they must attend a two-hour, in-house training session each month. "This month, the focus is on biomechanics because there's a lot of new information in that field," notes Caton. "But the sessions can be on anything -- from nutrition to designing an exercise program."
Over the years, Caton has spent countless hours evaluating the PT business from the standpoint of both the club and the trainer, and has discovered what he considers to be a number of inherent flaws.
"Two of the drawbacks of being a trainer are that it's an occupation that generally provides little management experience, and there aren't that many related job opportunities," he points out. "That's why I'm now in the process of creating a higher-level position -- that of senior trainer -- for those who have management potential. These trainers will be given additional, management-related responsibilities, like hiring, training, and member retention, and will be responsible for all new-member orientations/evaluations. This should solve another inherent problem -- that is, our best trainers usually have their own select group of clients who they see regularly, which leaves our newest, least-experienced trainers doing all the new-member evaluations. Well, that doesn't make good business sense.
"So I'm going to have the senior trainers do all of the assessments, evaluations, and exercise prescriptions, which should make a very good impression on new members from the outset," concludes Caton. "I'll also be modifying the trainers' benefits package, and capping the percentage of the fee that they receive at 60% -- changes that will significantly help our bottom line." In short, an examination of the PT programs at Equinox and the Cooper Center reveals a simple truth -- it's the fundamentals that, as usual, are most important. By paying close attention to the most basic concerns -- such as hiring quality employees, providing them with room to grow, and fostering team spirit -- Equinox and the Cooper Center have managed to produce two of the most successful PT programs in the country.
