As well as doing the expected things better, FitBox has been designed to address several of the fundamental challenges we see gyms and personal trainers facing.
Your revenue is steady each month but your expenses seem to come in big lumps. As a subscription business, your gym can quickly build a steady stream of recurring monthly or weekly income. However, many of your business expenses come in larger capital hits, resulting in a much bumpier expense line related to your revenue line.. This also makes cashflow a challenge when these expenses come up. As a result, the required reinvestment into your facility often takes a back seat
Unless there is consistent investment back into the facility, with new and updated equipment, the relative value of your product decreases over time. As your membership numbers grow and equipment gets run down, the relative value to your members starts to go down with it.
The FitBox 'Investment Plan' model soothes out this expense line and allows you as a gym owner to pre-plan for this continuous investment back into your value proposition.
As a gym with a genuine desire to improve people's health and fitness, one of your biggest challenges is demonstrating your effectiveness in helping members/clients achieve their goals. FitBox gives you and your coaches multiple avenues to do just that. Though our sophisticated range of data collection, machine learning and analytical technologies, you will have a wealth of insights into your members/clients wellness & performance, no matter what their goals are.
Through our payment partner Stripe, transactions are just 1.75% + 30c for credit cards. The is no setup fees, no management fees and most importantly, dishonour fees are just $2.50. Saving on average, you $3 per dishonour or saving your member up to $20.
Many gyms are small to medium businesses and as such often have limited financing option. Particularly in the first few years as try to invest ahead of thier membership growth. Once you have been on the FitBox platform for 6 months our system will calculate and make an offer for financing your next equipment purchase. You will then be able to choose how quickly you pay it back based on a percentage of your membership fees collected.
Get Functional Fitness is a fictional gym, created for the purpose of this example.
As a Group Functional Fitness Gym just 18 months old, Get Functional has 100 members. Facing several of the issues above, they made the decision to move to the FitBox platform.
After signing up to FitBox, Get Functional was assigned a FitBox Concierge to help to migrate their members across from their previous member management software. The role of the concierge is to make the migration process as seamless as possible for Get Functional and their members.
Once on the platform, each member was given instruction to migrate their historical benchmark results from Beyond the Whiteboard.
Get Functional standard membership is $200 per month and the members are billed monthly. As part of the on-boarding process, Get Functional was asked to choose their per user investment plan amount between $3 and $10.Based on their existing plans for additional equipment, they set their plan at $5 per member per month.
As members are charged this payment is split three ways. Transaction fees go to the payment provider, $5 to Again Faster with the balance going to the gyms nominated bank account. 100% of the $5 collected by Again Faster is then added to Get Functional's Again Faster Account Credit. Once cleared, these payments are batched into a weekly transfer to the respective accounts.
This means with 100 members, $500 of store credit is being added to Get Functional's account each month.
Along with credit from their membership plan, Get Functional also earns around $100 credit per month from the Again Faster Referral Program. When members are on-boarded to FitBox, they are also set up with an Again Faster website account. Automatically, when these members purchase Again Faster accessories and apparel from our site, the gym receives a 10% referral in the form of store credit.
Of this $600 credit that they receive each month, around $100 of this credit is spent on consumable products for the gym. e.g. Toilet paper, floor cleaner, sanitising wipes, chalk etc
$159 goes toward Get Functional's managed website and marketing plan from FitBox Sites to help them acquire new members. Another $100 per month is used to top up their Again Faster Reseller Rack, where they earn between 35% - 50% gross profit margin on anything they sell at RRP. Get Functional received this rack for free when they signed up to FitBox.
This leaves $241 per month to be put towards replacement equipment. If nothing is in need of replacing that month, Get Functional will carry this balance over for upgrades or new pieces equipment in the following months.
When the owner/admin for Get Functional logs into the FitBox dashboard, along with products from FitBox, they see a range of offerings from our Platform Partners. Although investment plan credit cannot be used on Partner offerings, they are still able to pay for these from the membership fees as they are collected. For example, Get Functional can subscribe to a FitBox partner to provide the programming for their classes. Once subscribed to this service, the workouts from this partner will appear in the coaching section of FitBox. The subscription fee for this service will be deducted automatically from membership fees.
Now that Get Functional has been on the FitBox platform for over 6 months, when the owner logs in to FitBox they will see a standing loan offer for additional Again Faster store credit. If they want to take up the offer, they will then be asked to choose how much of it they want to borrow and how quickly they want to repay it. e.g. they can choose to repay with between 2% - 10% of membership fees. Based on the options they choose, a fee will be calculated and added to the amount to be repaid. Once set, the repayment percentage stays the same, regardless of whether your membership goes up or down. For example;
Get Functional gets an offer of $4,000. They choose to access $3,000 of it to purchase two more ski ergs for the gym. They choose to pay it back at 3% of membership fees. The total amount to be paid back will be $3159.41. If their membership doesn't change they will have it paid of in 6 months.