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Post by determined1 on Jul 18, 2016 13:32:41 GMT
This program has been active for 4 or 5 years now. I'd like to get people's thoughts on how this program is working for them. What percentage of trials are converting to memberships? I'll save my opinions for later so that I'm not biasing things one way or the other.
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Post by Enough Is Enough on Jul 18, 2016 13:43:17 GMT
Hate it. Corporate will tell you the conversion rate is 30+/- %. That's great but our free week trial conversion rates were as good or better and we didn't have to give away 3 extra weeks! That's 3 more weeks of mileage being put on our cardio & wear & tear on our equipment with NOTHING to show for it. The bottom line is corporate (peter) is making about $7 for each and every one of these. With a free week he could not get this cash. Pure & simple money grab.
Do you see any other fitness clubs/franchises doing this? Nope. And talk about stale...great marketing guys using the same offer for 4 years now...real fresh & exciting. I say that with real concern though. I'd hate to see what brilliant offer they will come up with next to screw us and line peter's pockets? My guess is 60 days free!!!
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Post by Circling the Drain on Jul 19, 2016 19:32:17 GMT
Our 8.95 trials very greatly. Some month's we DO get the 30% conversion rate, but most months it's way below that (we've actually had a couple 0% months too!). I agree with Enough; our 7 day trials are more successful as these are people actually looking for a gym to join and are ready to make a quick decision. Our 30 day trials seem to be students home for the summer, out-of-town visitors, or people who just bounce around to all the gyms using all the free trials they can without committing. This just puts more use and abuse on our cardio (and all equipment) by people who had no intention of joining anyway. Plus, I've had people sign up 3 different times for the 30 day trial (ie. as James Smith, Jim Smith, and JR Smith), so apparently the system doesn't search for any matching criteria other than name! NO ONE needs 30 days to make a decision on a gym membership!!
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Post by Amy on Jul 20, 2016 14:26:03 GMT
Enough & Circling...you both nailed it. NO ONE NEEDS 30 DAYS & NO OTHER COMPANIES DO THIS. Why does Snap? Oh yeah...for the 4-6 hundred thousand dollars annually they take.
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Post by Pissed off Snap owner on Jul 20, 2016 19:25:05 GMT
Its a profit center for corporate. we should start a class action law suit for making us adhear to a pricing structure.
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Post by determined1 on Jul 20, 2016 19:48:48 GMT
Unfortunately you signed away the ability to file a class action when you signed your franchise agreement. The best solution I see is to create a snap franchisee association, similar to what Gold's franchisees set up years ago to deal with the policies being put upon them by Gold's corporate office.
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Post by determined1 on Aug 2, 2016 19:44:28 GMT
The $8.95 program is an awful program for many reasons. I'll list just a few
- 7 days is plenty of time to determine whether you not you like a club. When it was originally put out there it was touted as being a new idea. Well, after 4 or 5 years it's no longer a fresh idea. I'd argue that 30 days isn't a trial, ir's a 1 month membership. Snap is simply skirting around this because there's no hard and fast rule as to what comprises a trial and what's a membership. If that's the case then the only memberships we'll sell are 10 year memberships. Everything else will just be a trial. Would you like to do a 1 year trial? Ok, great. It's free, there's just a $900 administrative fee, which can be paid off in monthly installments. Therefore there are no new member fees, because they're just on a trial and there are no active membership fees, again because they're not members, they're just doing a trial.
- I hate being lied to. Peter tried telling zees that snap makes almost nothing on this program, that the cards are $5 and the shipping is $3. Do you really think we'd run this just to make $.95 per transaction? The truth is that the cards cost less than $1 when purchased in bulk and are mailed at standard postage rates. So round it up to $1.50. That's a profit of $7.45 for each temporary membership. Does he really think people don't realize he's lying? Also, they changed it from $8.95 to free, but with $8.95 shipping. That way they don't have to refund anything if the person decides they don't want it.
- It makes it extremely easy for our competitors to gain access to our club. There are all sorts of issues with this. We've had a razor blade taken to several pieces of equipment, but the movement is so slight that it can't be identified on the cameras. It also gives them a chance to talk up their club and down our club to members during non-staffed hours. Fortunately we've had members bring it to our attention
- It's extremely easy for someone to get more than 1 free 1 month membership. All snap checks is the email address. If the email address you enter is in the system just change it and **presto** you get another free membership. Your name, address and date of birth can match exactly with someone in the system, but change the email and you're in. It also allows someone to sign up at one snap, never go in and use another snap. All that club ever sees is visitor. They have no idea what that person's status is.
- It puts us in a position of weakness from the get go when trying to sell a membership. We have to give up a month right off the bat. Many time people, in the middle of signing up, will ask, oh what was this 30 day trial thing you guys offer? Why should we be subject to this.
- If we wanted to give away free months we could do it very easily, we don't need corporate to do it.
- I also find it hilarious that in one of corporate's posts they said that they would take feedback from zees on the program, but only if you had something like a 50% conversion rate, because if it was less than you must not be running the program correctly. This provides a lot of insight on how statistics which corporate provides
- As someone else mentioned these programs should be opt-in programs and home club memberships.
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Post by FedUp on Aug 7, 2016 13:29:19 GMT
FWIW, what we do with this "program" is to turn the status of all new trial members to COLLECTIONS so their card will not work at the door. We email the new trial member a welcome email and include that their first visit must be during staffed hours and they must bring photo ID. Since we began this, about 50% of them never show up. Those that do are a little more serious as to trying out the gym, although some are still there for just the free month. We offer them a discounted SIGNUP option IF and ONLY IF they sign during the 1st week of their trial.
The only way they get around this is to sign up for the "free trial" at another club, which a few will do.
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Post by Dale on Aug 9, 2016 0:14:20 GMT
FedUp...thanks for the ideas. We will be implementing tomorrow.
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Post by Dale on Aug 9, 2016 0:16:07 GMT
FedUp...thanks for the ideas. We will be implementing tomorrow.
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Wish I Was Independent
Guest
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Post by Wish I Was Independent on Aug 10, 2016 13:14:29 GMT
Just because it is written in the franchise agreement does not mean it will stand up in mediation or a court of law. Just like when we have members sign the liability waiver, that does not mean we can not be held liable.
We will be hiring a lawyer in the very near future to go through the franchise agreement with one clear assignment. See if we can either get our of the current agreement and continue to operate independently or continue operating independently at the completion of the agreement.
We all know that corporate does nothing to help its clubs. Maybe they did at one time but not now. Now its useless and expensive mandatory programs. They do not listen or take any zee feedback into account in their decision making.
Just think about how much easier it would be to make it in this industry without all of the fees we pay. We could finally get access cards for under a dollar vs. $5/each!!!!!!!!!!!!!!!!!
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Post by fishstyxx on Aug 12, 2016 19:32:02 GMT
Here's a problem... You spend $300/month on advertising and instead of getting memberships get people wanting to do 30 day trials, or as I call them, 1 month prepaid memberships. That's fine if snap corp is paying for the advertising, but we are and don't get $.01 from them for it. It's ridiculous that we're spending all that money and they're reaping the rewards.
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Post by Independent on Aug 15, 2016 22:56:47 GMT
hey fishstyxx...yes it is ridiculous! Unfortunately just one of the many with this franchisor that does not listen nor value any feedback from its zees. I mean who the hell is going to the convention? Why??? They will spew garbage from their mouths and will not care or listen to us. Why go? ?
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Post by thatkidfromjersey on Aug 18, 2016 18:56:34 GMT
The program is garbage... for all the reasons previously mentioned. But Pete is making money so chances of it changing is slim to none. Like someone else said, he can't seem to see the forest through the trees. Unfortunately, we may have to wait for a new CEO to see things improve.
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Post by John V on Aug 18, 2016 21:54:15 GMT
here is the answer over the past 4 years of the program about 1/3 join 1/3 try the club and don't join and 1/3 don't ever step foot in you club. over 80% of the people that do join do it within the first week and the average person using it in total less them 7 times. i have looked at this very closely over the years and i dont no of a single case where this has actually hurt anyone's business. you can still collect a 20 dollar global access fee and if you are doing the 3 path preso correctly you can and should still be getting a program fee, selling PT, supplements, My Zone... if you struggle with this contact your BPS for help so we can get you converting these into memberships.
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