There are only three ways to grow revenue in any business: get more customers; get customers to buy more frequently; and get customers to make bigger purchases. Adding recovery services to your facility is something that can accomplish all three revenue generation goals! More importantly, recovery services are a perfect adjunct to any fitness facility, because they are a natural extension of the existing client base. Furthermore, many “recovery” devices are also used in wellness facilities, which provides operators the potential to market to a wider population. The question I am most often asked is, “What device/s should I add?” My response is, “It depends.” Let’s explore the variables that must be considered when making intelligent recovery equipment decisions.

Member Base

Although there are plenty of niche-market facilities (like a CrossFit or Barre), the vast majority of fitness operators run multi-purpose facilities that attract a fairly wide audience. That said, every club has distinct demographics. Perhaps, the club has a huge free-weight area and attracts a younger, male population. Or maybe they have a super popular group exercise program that is geared toward middle-age women. Who knows, your facility may be in a community with a large percentage of retirees who have age-related recovery issues. Every demographic has recovery needs, but the types of recovery services will differ among the various populations. For example, compression therapy does well with male athletes, but the average middle-aged woman doesn’t get excited about slipping on boots, pants or sleeves that multiple others have used, even when you follow strict cleaning guidelines.

When you have clearly outlined the avatar of your “ideal recovery member,” making equipment and service-offering decisions becomes much easier and more objective.

Available Space

Your recovery “market” may be perfect for an infrared sauna, but those units can take up more space than you have available. Furthermore, the available space where an operator could add a recovery area may have limitations. Common space issues include less than ideal access, not enough privacy or inadequate electrical outlets or capacity that might be cost-prohibitive to retrofit. An ideal space has enough visibility that members easily “see” the availability but also provides the necessary privacy or quiet that allows for a positive user experience.

A less common but still problematic issue is having too much space. A case in point was a client who discontinued childcare post-COVID because their returning demographic changed dramatically. That space, however, was almost 1,000 square feet. Their budget was limited so filling the room with recovery devices wasn’t an option. The result was the challenge of figuring out what to do with the space that wasn’t needed for the launch of their recovery room. It may sound like a good problem to have, but that’s not always the case.

The bottom line is that some devices take up more space while others are quite efficient. Identifying what spaces could be utilized and then matching them with the most ideal recovery product may take some creativity.

Staffing

Of all the criteria to consider, in my opinion, this is one of the most important. You can spend thousands of dollars to build a recovery center, but without the right staff, it could fail. Similarly, you can have great employees, but the wrong choice of recovery product could create unhappiness. One example was a club operator who invested in a cryotherapy machine because he had gotten such incredible results from the technology. Although there were plenty of long-term employees on staff, none of them were bought into the technology. A key employee felt it was not only a potential liability for the club but resented having to promote it and became stressed over monitoring users. After many thousands of dollars spent, the operator eventually removed the machine and took it to his house!

To help clients make better choices, I teach them a mantra: “High touch, low labor.” Meaning, when considering any recovery device, always try to find something that provides a great experience at the lowest possible staffing need. Following this rule of thumb will result in reduced training time and happier employees.

Finally, when possible, find a recovery modality that resonates with at least one key staff person. Having a “Champion” will help to get both staff and members excited. Getting off to a strong start and building momentum is critical.

Pricing and Model

It may seem unreal to have a sales-focused individual like me say the price is important, but let’s be clear on the context. When referring to pricing, I’m talking about matching the product to your market. If you are located in a more economically sensitive area, it won’t make sense to bring in a super expensive device that demands a high session price. Conversely, if you bring in a relatively inexpensive product that only costs a few hundred dollars, many members who initially try and enjoy the product will simply go buy their own and stop paying you for usage! The key is finding an ideal product for your existing client base that can be priced to result in strong sales and a relatively quick ROI.

In the same conversation as the price is “Model,” which pertains to how you will package sales. Will you sell individual sessions, packages, or perhaps, monthly subscriptions? Will you bundle various offerings or only offer a la carte? Will you allow non-members to purchase, and if so, how will that work within the facility? Are there ways in which you can integrate the recovery offerings into existing programs or create entirely new ones? Of all the considerations, choosing the right model can be the most challenging.

Competition

The second to last consideration is evaluating your competition. Do any of your competitors offer this recovery service? If so, is there a way to improve or differentiate yourself in the marketplace? If no direct competitor is offering what you are considering, are any other vertical markets in your area offering the same or similar products/services? Competition isn’t always a bad thing, but it certainly needs to be taken into consideration.

Investment

Finally, what is the total investment you will make? In addition to the recovery device, you must consider all other associated expenses. It is only by answering all the previous questions does the investment become a final determining factor. At that point, you can run various revenue projections, and ultimately, make intelligent decisions on how to proceed with adding recovery offerings to your facility.

● ● ●

Recovery is a multibillion-dollar industry that continues to grow. More and more large chains have added recovery rooms and centers as well as independent operators. Most telling is the explosive growth in stand-alone recovery businesses and franchises. As I tell my clients, “You can bring recovery and wellness into your club, or you can watch your members give their money to someone else!”

Next month, we will explore various recovery modalities every fitness operator should be considering.