Can the Fitness Industry Survive?

“Economic crisis, global credit crunch, financial catastrophe, potentially the worst recession of our lifetime, market meltdown”.

These are just some of the phrases used during the GFC by the media and “experts” to describe the state of economy. Whilst we should treat this situation seriously, and tackle it head on, unfortunately headlines like these instill unnecessary fear in the minds of many people, including both clients and fitness professionals. In a recent article in Business Review Weekly (BRW) it was suggested that consumer spending on fitness will halve in this new financial year. Similarly an article on domestic budgeting in the Herald newspaper in New Zealand recommended people to “give up the gym membership” as a way to reduce household spending.

During a presentation I gave at the 2008 National Franchising Convention in Sydney, I was asked what impact I thought that the “Economic Crisis” would have on the Fitness Industry. My response was straight forward. “It will sort out the men from the boys. It will establish which clients / gym members truly value the level of service provided by their personal trainers and / or other fitness providers and those who do not. If clients do not receive outstanding service, they will use the ‘economic situation’ as a convenient excuse to either cancel their gym membership and / or terminate the services of their personal trainer”.

Recently one of our Franchise Owners at Vision Personal Training was confronted with such a situation. A client, spooked by what she read in a paper, suggested that she needed to cease training due to the economic downturn. When asked how it has impacted her, she indicated that she only wanted to use the money to pay off her mortgage. After the Franchise Owner pointed out that interest rates had actually fallen significantly as a result of the crisis, leaving more money in her bank account at month’s end, and established that her job situation was not affected at all, she ‘came clean’ and confessed that the real reason for wishing to cease training was that she felt de-motivated by a lack of goal setting provided by her trainer. Subsequently, the franchise owner was able to help her establish some more compelling goals which lead to her actually choosing to increase the amount of Personal Training that she does at the studio.

The Australian Fitness market is still relatively immature and untapped. Our society is more deconditioned and stressed out than ever before, meaning that our services have never been more needed. However, unfortunately like many clients make excuses for their failures, I have recently heard many fitness professionals too use the “credit crunch” as the excuse for their lack of their success.

I believe that a fitness professional’s success is largely determined by their self belief during such times. In my opinion, it is professionally unacceptable to allow most clients stop exercising during times. As previously mentioned, they need it now more than ever, as I see healthy eating, exercise and personal training as a necessity not a luxury. Those who view it as a luxury will unfortunately allow themselves to be swept up by all of the media hype.

The opportunity for success even in this climate is made apparent by number of large overseas fitness chains that already have or are planning on entering the Australian market within the next 5 years. I believe that the landscape of the fitness industry in Australia will change dramatically shortly. I don’t wish it was easier, I wish I was better. I am looking forward to tackling these times head on and forced to become better. By doing so, imagine how fast I can grow when we turn the economic corner once again. Those leaders who possess positive attitudes to these times, are committed to outstanding customer service and are focused on constant improvement, will rise to the top and achieve greatness in the most rewarding industry in the world. I can assure you that Vision Personal Training will be amongst them.