|
Post by Dale on Jan 18, 2017 17:27:45 GMT
Form's been put together by our attorney, so now all 30 day free loaders will be required to sign it. This ensures that those taking advantage of the program are properly vetted since snap corporate refuses to do it. They'll also be required to provide billing information. Now, another point our attorney brought up is that this looks to be a "theft of services" on the part of snap's corporate hq. If so, with the extent that they have committed this crime, it would be a felony. The fact that they're a franchisor doesn't give them the right to steal services from their franchisees and sell them to the general public. So now this is something else we're pursuing. I like this course of thought! Please let us know what your legal folks determine on this. What I wouldn't give to get rid of this horrible, horrible program. They can talk all about how many people it drives through the door (which no one believes their numbers) but let's face it we are the only fitness industry giving away a whole month! Why, why, why? They gave examples of Netflix and Pandora as companies that do this. They obviously can't give any companies in OUR industry. Plus Netflix and Pandora's equipment doesn't get wear and tear. Thiefs.
|
|
|
Post by veryfrustrated on Jan 18, 2017 17:39:13 GMT
Form's been put together by our attorney, so now all 30 day free loaders will be required to sign it. This ensures that those taking advantage of the program are properly vetted since snap corporate refuses to do it. They'll also be required to provide billing information. Now, another point our attorney brought up is that this looks to be a "theft of services" on the part of snap's corporate hq. If so, with the extent that they have committed this crime, it would be a felony. The fact that they're a franchisor doesn't give them the right to steal services from their franchisees and sell them to the general public. So now this is something else we're pursuing. I like this course of thought! Please let us know what your legal folks determine on this. What I wouldn't give to get rid of this horrible, horrible program. They can talk all about how many people it drives through the door (which no one believes their numbers) but let's face it we are the only fitness industry giving away a whole month! Why, why, why? They gave examples of Netflix and Pandora as companies that do this. They obviously can't give any companies in OUR industry. Plus Netflix and Pandora's equipment doesn't get wear and tear. Thiefs. Plus Netflix and Pandora are single, private industries, not franchisees. Not even a valid comparison.
|
|
|
Post by supercool on Jan 18, 2017 19:03:51 GMT
I've brought that up before. Imagine if McDonald's corporate office started selling customers, directly, coupons for 50 cent Big Macs, and required all of their franchisees to honor it, indefinitely. It would never hold up.
|
|
|
Post by determined1 on Jan 19, 2017 0:38:10 GMT
More like McDonald's "Try a Big Mac for free every day for a month" Pay us $8.95 and we'll mail you a coupon you can use at McDonalds once a day for 30 days for a free Big Mac. If you decide you like it you can start buying Big Macs, and if not, oh well.
|
|
|
Post by snaplongtimer on Jan 19, 2017 0:38:31 GMT
Corporate will always promote this programs as a huge hit. Remember on the portal they used to do that with everything they put out there in order for you to take interest? The gadgets, the marketing materials, new programs. They play mind games with us. If they say it's popular and a huge hit, more people will jump on board. Same with the trial.
|
|
|
Post by snaplongtimer on Jan 19, 2017 0:41:58 GMT
You guys bring up some great points I must say. I think I'm going to raise my online prices in preparation for the fit pass program whenever that starts. Then I'll make note about signup discounts in club.
|
|
|
Post by determined1 on Jan 30, 2017 17:02:17 GMT
So we've had 12 30 day trials over the last 60 days and 8 7 day trials. Of those 0, absolutely NONE of the 30 day trials converted and 6 out of 8 of the 7 day trials converted. So explain to me again how this is a good program?
One other problem with this program is that it eliminates one more opportunity to make a sale. With the 7 day trial they pay $0, but leave a cash deposit for the access card. When they come back to get their deposit and give us back the card it gives us an opportunity to talk with them. With the $8.95 free loader program they just stop coming in and ignore any phone calls. So with the new auto-enroll do they need to stop into the club to cancel or can they do that online?
|
|
|
Post by Dale on Jan 30, 2017 17:48:01 GMT
determined1...The only "honest" answer to your question on how this is a good program that corporate can provide is that it is a tremendous money maker for Peter. It certainly is not a good program for the clubs. *Snap is the only club in the industry giving away a Free Month *Prospects for this trial may need to wait up to 15 days to actually receive the card (up to 10 business days plus weekends) *Wouldn't an improvement to this dismal program be to direct the prospect to go to the club that way they could start that day. Oh yeah, actually they do. They say if they would like to get started sooner than the 10-15 days to to get their card to go to the club. WHY NOT JUST HAVE THEM DO THIS IN THE FIRST PLACE!!!!! BECAUSe THEN PETER WOULD NOT GET HIS $$$$$$ *While it is clear that many if not most would prefer the 7 day pass a compromise & drastic improvement to this giveaway would be to direct the prospect to the club to 1) get the card as early as that day 2)sign the paperwork 3)get a tour *Bottom line is for Peter to get his money corporate thinks its ok to have the prospect wait up to 2 god damn weeks!!! Isn't the decision to join a gym typically an emotional one? Ugh.
|
|
|
Post by determined1 on Jan 30, 2017 18:53:04 GMT
So how about this? Customer calls (or we call customer) asking for access right away. We inform them that we can do that, all they have to do is email snap fitness
If you wish to cancel this contract, you may cancel by providing written notice to our corporate office by emailing memberships@snapfitness.com. The notice must say that you do not wish to be bound by the contract and must be sent to the corporate office before midnight of the third business day after your purchase of the 30 day trial pass. If you cancel, the corporate office will return, within ten days of the date on which you give notice of cancellation, any payments you have made. All refunds will be by credit or check – there are no cash refunds.
Let them cancel however they want. If it's after 3 days then they can dispute it with the credit card company and we'll back them up. They can also refuse shipment by writing return to sender and dropping it in a mailbox.
I still think to 30 day trial program is stupid, but if we cut off the revenue stream for corporate and they wind up spending more to run the program than what they collect then maybe they'll put an end to it.
|
|
|
Post by snaplongtimer on Jan 31, 2017 16:56:44 GMT
If they signed up for a trial online and want immediate access, I tell them sure during staffed hours only till they get their key. I want to get that trial over asap. They can wait for their card.
I am not sure the 3rd business day for cancellations would also apply for the membership to follow as well. I would like to hear legal input for that.
The customer won’t need any backing up for disputing a charge. They can easily get that we know.
The whole idea for this trial is for corp to make money obviously. They don’t make much in sending out a key card with shipping, but there is no loss for them in doing so. People are allowed to come beat up our equipment for a month charged to us with no cost to corp. This is a no lose proposition for the corp office.
I still think our best and most immediate action is to change our wording on the front page welcome message with the initial words stating something to not purchase anything online, but rather in the club….or at least “Call the club before you make a purchase!” Then tell them on the phone that “…better deals are made in the club than online..” Point being…get the script down, talk to them like a friend via phone and ask they come in to get that trial if they insist on having it. Many times I have convinced people to come in to buy my 30 day trial for 18.95 instead of paying 8.95 online. There are benefits to doing it this way you would tell them and make up some to talk about.
So if we have to live with this trial, sell it to them in the club at a higher price and make a couple bucks. Hey…I just had a guy signup in club for a trial (rather than online) and was confused why the website says he’s allowed to use any club he wants on the trial, but our guest contract says one club only. I am confused also. One thing is for sure….they CAN use any club they want during the trial and when the 30 day trial ends and the smoke clears, corp wins no matter where they sign up.
|
|
|
Post by Dale on Jan 31, 2017 18:03:06 GMT
snaplongtimer...you can guarantee Peter is making $6-7 for EACH & EVERY 30 day trial. Corp. pays around $1 per access card; say .75 for each mailer and another .50 postage (remember can take up to 15 total days for prospect to get the card so they are paying the least amount they can).
|
|
|
Post by snaplongtimer on Jan 31, 2017 19:31:11 GMT
Touché. I'm just trying to take the sting out of the 30 day freebie we all dislike so much..
|
|
|
Post by fishstyxx on Feb 8, 2017 16:09:10 GMT
Well, get ready for this...
Member comes up to the front desk and tells me she got an email about a month for $8.95. "I guess you guys are starting to feel the heat from planet fitness". Confused, I tell her that it's just a promotional thing that corporate is running for non-members and people who have never been members. Then it gets into the whole thing about why we're giving special pricing to non-members, but not to loyal, existing members. Of course I know that argument, I've made it with the satellite TV providers and switched carriers when they wouldn't offer me the same pricing as a non-member.
So, I'm sure she misread the email, but the big question is why are they sending this out to current members. I've yet to see this franchisor makes things easier for the franchisee. Their actions almost always lead to more work and more pain for franchisees. It should be easier to be a franchisee compared to being independent, not harder.
|
|
|
Post by snaplongtimer on Feb 8, 2017 17:01:36 GMT
It's the same old story with every company. Once you are a full fledged member/customer, you pay full fledged pricing..if that makes any sense. As far as planet goes, we respond with, "except for the hidden costs" such as equipment fees or yearly renewal fees fit 19 would apply. I used to have an employee that started making up hidden fees about planet and fit 19 to talk about at the sales desk. He actually prevented, on 2 separate occasions, shoppers from going to check out those gyms and sign with us immediately. It was actually funny how that happened.
Corp doesn't care about the existing members seeing deals. Maybe they are hoping the member would tell a friend at the risk of giving us more grief. I worry about that member I just signed at full price and then suddenly they get an email about 8.95. I've been asked before why I haven't told them about that trial before they signed up....ugh.
|
|
|
Post by greenergrass on Feb 8, 2017 18:39:16 GMT
"Back in the day" we were able to charge joining fees and this helped us financially. Now instead of getting money up front from a new members, the prospect has an option to join cheaply, with the month for $8.95 and no joining fees. So we have to implement this annual enhancement fee mainly because of this.
But here is an alternative. I believe the best way to deal with this is to offer a higher rate online for those who will join using this fitpass. Then, when the existing members complain, just tell them they have a better rate monthly, discounted for the way they joined. Those on a fitpass could get that lower rate once they have been a member for 12 months.
I don't know yet if it is possible to selectively charge the enhancement fee. But I think we should have this option.
|
|