Prime
Real Estate
Exclusively
Yours
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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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