Moving Forward Strategic Plays for Constructing a Membership Model - - PowerPoint PPT Presentation
Moving Forward Strategic Plays for Constructing a Membership Model that Enriches the Member Experience and Drives Revenues Study Results and Accompanying Recommendations On Membership and Pricing September, 2015 Columbia Association Pricing
Columbia Association Pricing Study 1
Columbia Association Pricing Study
Patrick Campbell, CEO Price Intelligently
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Rates shown in this presentation reflect FY15 rates which were in effect when this study was launched
The price of an individual CA resident fitness membership inclusive of group exercise (PPP) is higher than the market average while its basic fitness membership (single fitness club with limited group exercise)
Howard County Fitness Clubs Visited: Anytime Fitness, Gold’s Gym, Lifetime Fitness, Quest Fitness , X-Sport Fitness and YMCA Five County Fitness Clubs Visited: Anytime Fitness, Gold’s Gym, LA Fitness, Lifetime Fitness, Merritt Athletic Clubs, Planet Fitness, Quest Fitness, Sport and Health, X-Sport and YMCA
Columbia Association Pricing Study 3
$24 $47 $68 $39 $78 $85 $10 $64 $225 $10 $77 $219 Minimum Average Maximum
Health/Fitness Club Individual Membership Pricing Comparison
CA Athletic Club CA Package Plan Plus Health/Fitness Clubs - 5 County Health/Fitness Clubs - Howard Country
An annual CA individual resident membership at Hobbit’s Glen is 90% above the market average for similar quality golf experiences without cart and Fairway Hills is 13% higher
Golf Clubs Priced: Bay Hills, Blue Marsh, Bowie Golf & C.C., Eisenhower, Glen Dale, Lake Presidential, Marlton, Renditions and Waverly Woods
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$3,168 $1,920 $1,691 Individual Annual Rate
Golf Club Pricing Comparison CA and Surrounding Five Counties
Hobbit's Glen Resident - 7 Day Access Fairway Hills Resident - 7 Day Access Competitive Golf Properties - 7 Day Access
When survey respondents were asked what they would be prepared to pay for a gym membership offering access to all three athletic facilities including treadmills…consumers indicated they did not place much value on a pure fitness experience (no group exercise) thus the low price
members!
Columbia Association Pricing Study 5
When survey respondents were asked what they would be prepared to pay for a membership offering access to all three athletic facilities and group fitness classes…consumers indicated they were prepared to pay twice as much for a fitness experience involving group exercise as it is
Columbia Association Pricing Study 6
When survey respondents were asked what they would be prepared to pay for a family membership offering access to the outdoor pools and indoor swim center…consumers indicated they were prepared to pay for the recreational experience beyond fitness…it has the ability to capture a greater share of market!
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0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% $240 $260 $280 $300 $320 $340 $360 $380 $400 $420 $440 $460 $480 $500 Annual Dues Price Sensitivity Annual Family Recreational Membership - Non-Members (Access to all outdoor pools, swim center, and sport park/skate park) too inexpensive inexpensive
Minimum = $285 Maximum = $308 Optimum = $300
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% $240 $260 $280 $300 $320 $340 $360 $380 $400 $420 $440 $460 $480 $500
Annual Dues
Price Sensitivity Annual Family Recreational Membership - All Responses (Access to all outdoor pools, swim center, and sport park/skate park) too inexpensive inexpensive
Minimum = $300 Maximum = $345 Optimum = $315
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Enhance Member Delight & Loyalty Restructure Membership (Packaging and Pricing) Packaging, Pricing and Sale of Additional Services Improve Facilities Restructure Sales Systems
Short-term opportunities Longer-term opportunities Columbia Association Pricing Study 9
the entirety of the research (in-depth interviews, focus groups, competitive shopping and survey).
as an individual, couple or family as well as there will be benefits for employees of CA-assessed corporations
determines what category of membership the family will have. No customization.
sub-categories: CA resident, CA Non-resident and income qualified
40% category (those individuals will now qualify for the 50% discount) and the 75% category for the pool (those individuals would now get a 50% discount).
stand alone offerings. Furthermore, access to HOL’s classes and healing environments are included with proposed group fitness membership and annual golf membership offerings.
which is aligned with present market offerings and practices. Columbia Association Pricing Study 10
Proposed Recreation Proposed Athletic Proposed Aqua- Athletic Proposed Group Fitness Proposed Aqua- Group Fitness Proposed 5-Day Golf Proposed New Annual Golf Individual CA Resident Price
$30
(family price)
$47 $61 $77 $97 $125 $225
Access to outdoor pools, swim center and skate park
Access to all athletic/fitness facilities (no group exercise)
Access to tennis courts complimentary
Access to treadmills
Access to all group fitness classes , including HOL
Access to Hobbits Glen and Fairway Hills 7 days a week
Access to Hobbits Glen and Fairway Hills 5 days a week
Access to HOL healing environments
Columbia Association Pricing Study 11
Proposed Membership and Access Offerings Proposed Benefits Sub-categories
Athletic Membership Individual over age 21 Options to add another adult individual or child under age 21. After two kids are added there would be no additional cost This membership would provide an individual the following core benefits:
Center)
plan plus rooms and making all equipment available)
Group Fitness Membership Individual over age 21 Options to add another adult individual or child under age 21. After two kids are added there would be no additional cost This membership would provide an individual the following core benefits:
conducted at any of the three athletic facilities and Haven on the Lake
Aqua - Athletic Membership Individual over age 21 Options to add another adult individual or child under age 21. After two kids are added there would be no additional cost This membership would provide an individual the following core benefits:
Center)
plan plus rooms and making all equipment available)
Aqua - Group Fitness Membership Individual over age 21 Options to add another adult individual or child under age 21. After two kids are added there would be no additional cost This membership would provide an individual the following core benefits:
conducted at any of the three athletic facilities and Haven on the Lake
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Proposed Membership and Access Offerings Proposed Benefits Sub-categories
Recreational Membership Family only but individuals can use This membership would provide the following core benefits:
Golf Memberships (5-day and 7- day) Individual membership with add-
family member and another for each child under the age of 21. This membership would provide an individual the following core benefits:
day membership)
HOL Refresh Individual over age 21 Options to add another adult individual or child under age 21. After two kids are added there would be no additional cost This membership would provide the individual the following core benefits:
HOL Revive Individual over age 21 Options to add another adult individual or child under age 21. After two kids are added there would be no additional cost This membership would provide an individual the following core benefits:
HOL Restore Individual over age 21 Options to add another adult individual or child under age 21. After two kids are added there would be no additional cost This membership would provide an individual the following core benefits:
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* HOL credit for the spa benefit would need to be negotiated with the Still Point
Columbia Association Pricing Study Core Membership Pricing Categories = the foundational categories from which all other membership packages are built including HOL Membership Pricing Sub-Categories = unique variables used to create different membership permutations such as resident, non-resident, income qualified, individual, couple or family. Total Membership Pricing Categories (TMPC) = total number
core categories with the sub-categories 14 18 8 241 10 3 91
Number of core membership categories Number of membership sub-categories TMPC
CA Existing CA Proposed
Existing CA Memberships (propose eliminating) Proposed Category Membership
Individual Resident Pricing
Columbia Gym $47 Columbia Athletic $47 Supreme Sports $47 Athletic $47 Group Fitness $77
Access to all facilities at
Access to facilities at three clubs
Access to treadmills
Access to group fitness classes (limited)
Access to locker rooms
Complimentary guest pass each month per individual
Complimentary access to women’s fitness center
Complimentary Unlimited Access to all group exercise classes (including HOL)
Complimentary Kidspace with child add-on
Columbia Association Pricing Study 15
Existing CA Memberships New Proposed Existing CA Memberships New Proposed
Individual Club Membership (except pool and PPP) Pool Family $19.00 Individual $28.00 family Tennis Recreation $30 Family (no individual) Package Plan $50.50 Individual $75 family Package Plan Plus $79.50 Individual $114 family Group Fitness $77 Individual $131 family Aqua-Athletic $67 Individual $109 Family Aqua-Group Fitness $97 Individual $161 Family Complimentary access to outdoor pools and swim center X X X X X X X Complimentary access to outdoor tennis courts X X X X X X Family membership X X (recreation
X (recreation only) Complimentary access to all group exercise classes X (very limited) X (limited) X X Access to treadmills X X X X Access to women’s center X X X X Complimentary access sport park X X X X Member advantage X X X Discounted green fees X X Complimentary monthly guest pass limited limited X X X Complimentary Kidspace with child X X X
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Existing CA Memberships Proposed Category Existing CA Memberships Proposed Category Membership Individual Resident Pricing Hobbit’s Weekday $169 FH Weekday $103 Golf Weekday $125 Hobbit’s Annual $264 FH Annual $160 Golf 7-Day $225
Complimentary green fees weekdays (one course)
X x X
Complimentary green fees seven days (one course)
X X X
Complimentary green fees weekday both courses
X X
Complimentary green fees seven days both courses
X
One complimentary guest pass each month
X X
Four guest passes annually
X X X X
Complimentary handicap fees
X X Columbia Association Pricing Study 17
Existing CA Eliminate Proposed Category Existing CA Eliminate Proposed Category Existing CA Eliminate Proposed Category Existing CA Eliminate
Individual Membership (PPP) HOL Refresh Add-
$10 HOL Refresh Free Standing $30 HOL Revive Add-
$89 HOL Revive Free Standing $77 HOL Restore Add-
$109 HOL Restore Free Standing $89 HOL Rejuvenate Add-on NA Complimentary access to healing environments
X X X X X X X
Complimentary access to locker rooms
X X X X X X X
Complimentary access to all group classes at HOL
X X X
Complimentary access to all group classes
X
Quarterly credit
X
Monthly credit of $15
X X X
Monthly credit of $20
X X
Monthly credit of $25
X
Complimentary spa treatment each month*
X X X Columbia Association Pricing Study 18
* HOL credit for the spa benefit would need to be negotiated with the Still Point
Athletic Recreation Group Fitness Aqua-Athletic Aqua – Group Fitness Golf 5-Day Golf 7-Day First Adult $47 $30 $77 $67 $97 $125 $225 2nd Adult $24 $0 $39 $30 $49 $63 $113 First Child (under 21) $5 $0 $8 $6 $10 $13 $20 Second Child (under 21) $5 $0 $8 $6 $10 $13 $20 Individual Income Qualified (50% discount) $24 $15 $39 $30 $49 $63 $100 Couple $71 $30 $116 $97 $146 $188 $338 Family ( 2 adults and 2 or more children) $80 $30 $131 $109 $161 $213 $383 Columbia Association Pricing Study 19
Athletic Recreation Group Fitness Aqua-Athletic Aqua – Group Fitness Golf 5-Day Golf 7-Day First Adult $59 $60 $96 $84 $121 $156 $250 2nd Adult $30 $0 $48 $42 $60 $78 $125 First Child (under 21) $6 $0 $10 $8 $12 $16 $25 Second Child (under 21) $6 $0 $10 $8 $12 $16 $25 Couple (2 adults) $89 $60 $144 $126 $181 $234 $375 Family ( 2 adults and 2 or more children) $101 $60 $164 $142 $201 $266 $425 Columbia Association Pricing Study 20
Existing Categories Upgrade Stay Same Downgrade or Leave
Athletic (Single Club) 75% to new athletic 20% to new aqua- athletic 0% 5% leave Package Plan 25% to new aqua- athletic 15% to new group fitness 5% to new Aqua- group fitness 50% to new athletic 5% leave Package Plan Plus 35% to new aqua- group fitness .5% to new golf 40% to new Group fitness 10% to new athletic 10% to new aqua-athletic 5% leave Pool 95% to new recreation 5% leave Fairway Hills 25% to new 5 –day annual 75% leave Hobbit’s Glen 95% to new annual golf 5% leave Kidspace Inclusive in couple and family memberships NA 100% of dues lost
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19,548 18,340
Existing CA Member Count New CA Member Count (after transition) Net Members
CA Membership Count Before and After Transition (exclusive of HOL)
$17,527,057 $20,200,167 $2,673,110 Existing CA Annual Dues Line New CA Annual Dues Line (after transition) Net Annual Dues Gained
CAl Annual Dues Before and After Transition (exclusive of HOL)
Columbia Association Pricing Study
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Glossary for Abbreviations R = Resident Individual NR = Non-Resident Individual RC = Resident Couple RF = Resident Family (based on two or more children) R/RC/RF= Income qualified individual, couple or family NRF = Non-Resident Family Columbia Association Pricing Study 24
$47 $59 $24 $71 $35 $80 $40 $47 $68 $24 $59 $29 $66 $33 $50 $77 $25 $69 $34 $75 $38 $67 $76 $31 $97 $46 $109 $52 R NR R-50% RC RC-50% RF RF-50%
Old PP, Old Fitness, New Athletic and Aqua-Athletic
Athletic Club (all three) - New Single Athletic Club - Existing PP (3 athletic and pool) - Existing Aqua - Athletic - New
Glossary for Abbreviations R = Resident Individual NR = Non-Resident Individual RC = Resident Couple RF = Resident Family (based on two ore more children) R/RC/RF= Income qualified individual, couple or family NRF = Non-Resident Family Columbia Association Pricing Study 25
$77 $96 $39 $116 $58 $131 $65 $97 $121 $49 $146 $73 $161 $80 $79 $85 $40 $109 $55 $114 $57 R NR R-50% RC RC-50% RF RF-50%
Group Fitness - New Aqua-Group Fitness PPP
Glossary for Abbreviations R = Resident Individual NR = Non-Resident Individual RC = Resident Couple RF = Resident Family (based on two or more children) R/RC/RF= Income qualified individual, couple or family NRF = Non-Resident Family Columbia Association Pricing Study 26
$30 $60 $15 $30 $15 $30 $15 $60 $19 $40 $5 $27 $13 $28 $7 $53 R NR R-50%/75% RC RC-50%/75% RF RF-50% NRF
Recreation (New) Pool (Existing)
Glossary for Abbreviations R = Resident Individual NR = Non-Resident Individual RC = Resident Couple RF = Resident Family (based on two ore more children) R/RC/RF= Income qualified individual, couple or family Columbia Association Pricing Study 27
$125 $156 $63 $188 $94 $213 $106 $266 $169 $203 $85 $270 $135 $270 $135 $203 $103 $124 $52 $162 $81 $157 $78 $184 R NR R-50% RC RC-50% RF RF-50% NRF
Golf 5 -Day (both courses) - New Hobbit's Glen 5-Day Individual - Existing FH 5 - Day Individual - Existing
Glossary for Abbreviations R = Resident Individual NR = Non-Resident Individual RC = Resident Couple RF = Resident Family (based on two ore more children) R/RC/RF= Income qualified individual, couple or family Columbia Association Pricing Study
$225 $281 $113 $338 $169 $383 $191 $264 $300 $132 $340 $170 $340 $170 R NR R-50% RC RC-50% RF RF-50%
Golf 7-Day Comparison
Golf 7 -Day (both courses) - New Hobbit's Glen 7-Day Individual - Existing
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Glossary for Abbreviations R = Resident NR = Non-Resident RC = Resident Couple RF = Resident Family R/RC/RF= Income qualified individual, couple or family Columbia Association Pricing Study
$30 $38 $10 $10 $77 $96 $89 $89 $89 $111 $109 $109 R NR
HOL Refresh - New stand alone HOL Refresh - Old add-on HOL Revive - New stand alone HOL Revive - Old add-on HOL Restore - New stand alone HOL Restore - Old add-on
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HOL Old Add-on: Presently CA charges one rate for PPP to add-on HOL and another if they purchase without being PPP. Since the vast majority of HOL members are PPP add-ons and because we propose there be no add-on category going forward it is proper to compare what people actually pay now and would be required to pay under the new structure.
ClubIntel is member and brand insights firm that is focused on helping businesses understand, appreciate and leverage the needs, wants and personal journeys of employees and members. We have worked as a team for more than 20 years, spanning multiple brands across the globe. Our Team Mark Williamson Co-founder and Principal Mark has more than 20 years experience in market research, and consumer insights, including 17 years within the club and hospitality industry at ClubCorp, which comprises an elite collection of private golf, country, business, sports and alumni clubs. He also lead Consumer Insights teams for industry-leading restaurant brands such as Applebee’s, Chili’s, Maggiano’s, On The Border, Romano’s Macaroni Grill, and Corner Bakery. Outside of the hospitality industry, Mark led the consumer insights team at match.com and owns his own small research consulting business, Retention Measurement Solutions. He is a guest lecturer at national conferences and frequent panelist on a series of webinars. Mark was part of the team that spearheaded the
Stephen Tharrett Co-founder and Principal Stephen worked both domestically and internationally across nearly every segment, including health, fitness, golf and country clubs both public and private. From 2008 to 2010 Stephen served as the Chief Executive Officer for the Russian Fitness Group, a privately held health/fitness club company that was at the time the largest in Russia. He spent 20 years with ClubCorp, a billion dollar private club company based in Dallas, Texas, where he served in several roles ranging from director of athletics to senior vice president for operations, as well as serving on the company’s leadership cabinet and business planning committee. In addition to co-founding ClubIntel, Stephen is the owner and president of Club Industry Consulting, a global consulting practice serving the club industry since 2006, and is a former president of the International Health, Racquet and Sportclub Association, having served as president of the international association from 1996-1997. Stephen is presently on the advisory board for Club Industry Magazine and the Association of Fitness Studios. Columbia Association Pricing Study 30