You likely have never given this much thought, but one of the most time-consuming and difficult aspects of running a health club is keeping track of the club’s finances. Health clubs have to keep track of every member’s monthly payments (who’s paid, who hasn’t), how much money they’re spending on staff, how much they’re spending on equipment repairs or the purchasing of new equipment, how much their facility rent is, what they’re spending on insurance, how much they’re spending on software and computers, and how much they spend on miscellaneous things each month, such as a repair to the facility’s roof or a remodeling of a specific part of the gym. If the health club wants to ensure that it’s able to continue operating, it needs to track every single source of revenue and every single source of spending to determine whether the facility is in the red or the black.
Up until recently, most gyms and health clubs would hire accountants to help them track their finances. They would simply give the accountant all of their receipts and member information each month, and then the accountant would prepare a report for them. However, this process only works if the gym or health club owner is able to provide all of the necessary documentation. Even if they are able to find all of that documentation, it’s rather time-consuming to do so, which takes time away from them actually running their health club. On top of that, most accountants are rather expensive, so it’s just another source of spending, which reduces their overall revenue.
Fortunately, companies like TSG have created software that makes it easier and more affordable for health clubs to keep track of their finances. This software, known in the industry as health club revenue management solutions, completely removes the health club owner from the equation by tracking all of their finances for them. Rather than the health club owner having to track individual member payments or what they’re spending on equipment each month, the software does it all for them. The software is in charge of billing member accounts each month, it’s in charge of reaching out to members who haven’t paid and notifying them, it’s in charge of dealing with customer service requests from members, and it’s even in charge of keeping track of how much money the health club is spending on employee salaries, maintenance, and facilities. It tracks all of this information for the health club owner and puts it into a nice report at the end of each month that allows the health club operator to see how much revenue they’re producing.
The great thing about gym revenue management systems like these is that they do all of the things an accountant can do but for a fraction of the cost. In addition, they also almost entirely remove the operator of the health club from the equation, which allows them to focus on club improvements that will enhance the experience of the gym’s members. There’s simply no reason for gym owners to use any other systems for their revenue management.