As the economic pendulum swings…
For the fitness professional and business owner there is uncertain news and great news on the horizon.
Let’ start with the great news first. The fitness business has been growing at a rate of about 7% for the last couple of years and it looks to continue that trajectory.
Now for the uncertain news. The economy has been very strong but now there is talk of a recession everywhere. Some people even go so far as to predict it’s inevitable.
Here are a couple of indicators. Google searches for ‘recession’ have spiked and are the highest since 2011. Searches for ‘bear market’ have also reached a record high. Over 50% higher than July 2008. Similar trends are happening on other social media platforms.
At this point it’s mostly talk and where it goes depends on a variety of circumstances.
What does it mean for us? What can we expect in our fitness businesses? Perhaps most importantly, do we really need to be concerned?
The answer is a definite yes!
If the economy is strong, we will face more competition, especially from the big gyms. Our industry is already known for cutthroat price wars and price discounting. More competition will make it worse.
If the economy weakens and we experience a recession, people will have less discretionary money and will be selective with their purchasing decisions.
Interestingly, the best strategy to deal with either of these potential scenarios is the exactly the same.
That strategy is a well-designed and executed direct response marketing campaign. It will protect you from increased competition and the inevitable commoditization of fitness programs.
A good marketing program will protect you from a recession.
In the recession of 2008, I experienced tremendous growth in my business, based on my marketing program that cost me less than $500. That $500, and frankly, a lot of hard work, got me to over 90k of profit in 18 months during a terrible economy.
If I could do it then, certainly you can thrive in the coming 18 months.
In summary, given the growing interest and demand for fitness programs, there really isn’t bad news for the established fitness business.
However, the economic uncertainty should be an urgent, better yet, alarming, call to action to get your marketing house in order – NOW.
