court profitability


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GOOD NEWS ... The Sporting Goods Manufacturers Association [SGMA] recently released survey figures for 2001, citing an upswing in racquetball. Press releases: On the Move | Five Million Strong 

PRIME REAL ESTATE 
By Luke St. Onge, USRA International Relations Director

It was an "aha" moment. We learned that we've been speaking the wrong language. We found that the most important message for racquetball has been lost in the translation between assigning value to a single court over an annual period and the return on investment in terms of simple square footage. Guess which bottom line works? You do the math ...

Racquetball Members (#      )  _______
x Monthly Dues ($       )  _______
x 12 months  _______
divide by # of courts (#      )
 _______
divide by 800 (sq. footage)  _______
Total = return per sq.ft.  _______

For quite some time now, the USRA and AmPRO have been showing how a club with a good racquetball program can earn as much as $70,000 per court, per year. 

It's an impressive number, but club owners and managers evaluate their facilities on the basis of square footage revenues when making decisions regarding fitness investments. 

So our best promotional example of the sport's value had been lost in the translation, and we've had to adjust our thinking. 

When International Health, Racquet & Sportsclub Association [IHRSA] Executive Director John McCarthy referred to the dollar return per square foot in presenting an example for "fitness" -- he cited that the return for fitness had increased from $42 per square foot to $45 per square foot in the preceding year. Aha!

Using a per-square-foot formula, even marginally successful racquetball programs can yield numbers that come out ahead of fitness ... for example: 500 members pay $50.00 per month to utilize eight courts [or 63 players/court] (500 x $50.00 = $25,000/month). Not much of a stretch with an active program (not to mention a programmer!). Multiply by 12 months = $300,000.00/year. Divide by your eight courts: $37,500.00/court per year. Divide by 800 square feet per court: $46.87/per square foot. 

That's without spending a single penny on stairmasters, treadmills, spinning bikes, elliptical trainers, free weights, steps, slides, boxing dummies, stereos, Nautilus equipment, or tanning beds. And the value per square foot goes up simply by getting more racquetball members to utilize the existing space [re-do the math with 550 members ... for a result of $51.56 per square foot]. And how does that happen? Through programming!

Racquetball courts can be just as profitable as any fitness venture, with far less capital expense. Use this method the next time this subject comes up, and see what your club racquetball program is worth. We'll be campaigning with this formula from here on out, with special emphasis on the potential that could be realized by an AmPRO programmer who could "max out" capacity at 100 players per court!

Let's begin to use the corporate language of fitness to sell the sport. On a level playing field, with a program commitment that maximizes court usage, racquetball can hold its own against any challenge. Use your "army" of playing members to increase the value of your courts!

EXCLUSIVELY YOURS
By Linda Mojer, USRA Associate Executive Director
If your club isn't a bustling hotbed of tournament activity, it's a common mis-conception (driven by competing fitness interests scrambling for floor space) that the best use of occasionally-empty courts is to fill them with something other than racquetball players! But before club management goes this route, please consider ... 

Does the facility experience down-time in its existing weight/machine area, or is it completely filled-to-capacity throughout the day? Granted that it takes little or no "human intervention" to enable an individual to sit on an exercise bike or lift a free weight, "mechanical" workouts are just that: mechanical -- and notoriously dull.

Research offered by the SGMA and IHRSA indicates that fitness clubs WITH racquetball courts find that their racquetball members yield the highest-retention rates over time. Why? Racquetball members take part in their chosen fitness routine because it is, quite simply, FUN! And that particular environment is impossible to simulate in a spare room at home -- thereby bypassing club membership fees.

On the other hand, anyone can duplicate the "mechanical" work-out experience offered in clubs, simply by purchasing fitness equipment for home use (a multi-million dollar industry in itself). Racquetball courts are a bit harder to come by ... in fact, they're exclusive to your club facility.

The "racquetball real estate" at your club is singular, unique, valuable and holds the greatest potential for offering something that members want and need, which is ... a singularly unique fitness and sport activity that has consistently held its base of enthusiasts over three decades. 

New gadgets and fitness methods are developed everyday, and their popularity comes and goes. Racquetball lasts -- with players well into their 80s -- as a lifetime sport. Don't turn your "exclusive" (and costly) hardwood courts into mere floor space for machinery.

With a far more modest investment in personnel to drive club racquetball programs, that square footage can yield dividends far greater, over time, than any short-lived income derived from "spreading out" hardware into your court space. Management can spend a little to make the existing court space profitable, or spend a lot on equipment that may become obsolete in a matter of months. We'd like to think that a shrewd business owner would consider the former.

Maximize your beautiful, hardwood courts, rather than turning them into cubicles. Re-evaluate your club's racquetball assets to determine their true worth, then realize the valuable, long-term potential they hold in your overall business plan. It's definitely worth a second look.

Want more Information?
USRA Demographics
Find a Court Club in your Area [www.courtsport.com]
International Health, Racquet & Sportsclub Association [IHRSA]
Sporting Goods Manufacturer's Association [SGMA]
"Growing the Sport, Growing the Club" [article]  
2001 IHRSA "Racquetball Programming Award" Winners [article]

Club Resource Directory
Make your inquiries direct, to these successful club owners/managers:
Marianne Alonzi, Lakewood Athletic Club [Denver, Colorado]
Annie Muniz, Northwest Racquet & Fitness [Houston, Texas]
Julee Nicolia, Nautilus Fitness & Racquet Club [Erie, Pennsylvania]
Jan Stelma, CourtsPlus [New Bern, North Carolina]

Willing to share your success stories? Send us your email/contact and club information and we'll list you as a resource.


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