Profit and loss situation
The economic benefits of commercial sports clubs are mainly measured by profits. Profit is the balance of income minus cost. The results of the questionnaire survey show that 39.4% of clubs are profitable and 30.3% are flat losses, which means that 60.6% of clubs are unprofitable at present. The survey results also show that most clubs that invest less than 500,000 yuan in 200 1 year are flat or profitable, but the general situation is that the profit is very small; The profit and loss trend of clubs with investment between 500,000-/kloc-0,000 yuan is not obvious, while the profit and loss trend of clubs with investment above 20 million yuan is polarized.
According to the breakeven point analysis
In the investigation, the specific amount of profit or loss is regarded as a trade secret in general commercial sports clubs, so it is impossible to obtain the return on total assets and the profit rate of sales, which are two indicators to measure the profitability of clubs. Because the fixed costs of most sports clubs account for a large proportion, it is more reasonable to analyze the profitability of clubs of different sizes with the breakeven point.
Break-even analysis, also called break-even point analysis, refers to the relationship between cost and income when profit is zero. Revenue = cost+profit. If the profit is zero, revenue = cost = fixed cost+variable cost, while revenue = sales volume × price, and variable cost = unit variable cost × sales volume. In this way, from sales volume × price = fixed cost+unit variable cost × sales volume, the calculation formula of breakeven point can be deduced as follows:
Break-even point (sales volume) = fixed cost/contribution difference per unit measurement
In the formula, fixed costs refer to fixed expenses such as equipment, managers' salaries and advertising expenses, while variable costs refer to hourly wages and sales commissions. Contribution difference refers to the amount of money left after deducting the variable cost per unit from the price per sales unit to offset the fixed cost.
Commercial sports clubs with small investment are concentrated in small gyms in ordinary communities and some commercial sports clubs for outdoor sports. Often buy lower-priced equipment and auxiliary facilities, provide less services and account for a small proportion of fixed costs, so the number of members is more likely to be above the breakeven point. In addition, consumers' choice of fitness at this level is easily affected by the price. After the number of members of small commercial sports clubs reaches the breakeven point, the strategy adopted is to attract more customers and gain profits by lowering the charging standard or charging different fees at different times. As far as Beijing's current mass consumer market is concerned, small commercial sports clubs are flexible in operation and low in price, which is suitable for people's current needs. Therefore, most clubs with an investment of less than 500,000 yuan per 200 1 are flat or profitable; In the long run, due to the lack of business characteristics, it is not in line with industry rules, which is not conducive to promoting the healthy development of the club. Medium-sized commercial sports clubs are targeted at middle-income people. They began to segment the market according to gender, age and events, highlight their business characteristics and pay attention to improving their services. Most of these clubs are unprofitable because of the uncertainty of consumers. The profit point of medium-sized clubs is to gain the patronage of members through accurate positioning and unique management. Clubs that invest more than 20 million yuan are generally high-end fitness clubs or comprehensive clubs and golf clubs. These clubs have very high fixed costs, long payback period, slow market start-up and high risks, so their marketing strategies are very important. Because most of these clubs have annual membership fees of tens of thousands or even hundreds of thousands of yuan, the members who can spend here are limited after all. Therefore, its profit point lies in high prices and value-added services, so that members who spend here can enjoy distinguished services, reflect social status and identity, broaden their horizons and make celebrities. In fact, at present, clubs of three sizes are facing the problem of small number of members. Because of the contradiction between effective demand and effective supply and the low cost-benefit ratio, most clubs are unprofitable.
Profit and loss analysis
The above analysis of the profit and loss balance of commercial sports clubs is only a perspective to analyze the current situation of profit and loss. A comprehensive analysis should be further analyzed from a wider and more angles. Commercial sports clubs in Beijing vary in scale, grade and profit and loss. Generally speaking, the profitability of the whole fitness and leisure industry is low, which has both objective and subjective reasons.
(1) objective reasons 1. The objective law of market mechanism
Fitness and leisure industry has just started in China. What is shown in the market is that operators lack in-depth understanding of the fitness and leisure market and blindly invest. So, they paid an expensive tuition fee to understand the laws of the fitness and leisure industry. On the other hand, the market is lagging behind. Although the income, knowledge and fitness awareness of Beijing residents are among the highest in the country, many factors such as leisure time, consumption habits and cultural background of young and middle-aged people are also restricting them from becoming club members without hesitation.
2. The market is not standardized and the competition is disorderly.
The benign operation of commercial sports clubs must follow the rules of market games. Without rules, there would be no Fiona Fang. For the emerging fitness industry, what is lacking is perfect rules and tacit understanding of rules. The evaluation standards and accreditation of commercial sports clubs have just been implemented, and even some commercial sports clubs simply don't know that they need accreditation. If there are fewer rules, there will be less industry protection, especially some low-end clubs. In order to attract more consumers, they will cut prices at will and form disorderly competition.
Business is like a gourd painting gourd ladle, lacking characteristics.
Some high-end clubs in China take similar well-known foreign clubs as samples and copy them. Some low-end clubs use famous domestic clubs as models and sketch. To make matters worse, shine on you is not better than blue, but the East is good and the West is bad. Visiting clubs, or browsing their business projects, price strategies and marketing strategies online, always feel deja vu, and there are few things that belong to a club's personality.
(2) Subjective reasons
1. The business philosophy is unclear.
Is the business philosophy of commercial sports clubs culture, brand, profit or return to society? The effect of club management under the guidance of different management concepts is quite different. The problem is that the concept of club operators is unclear, and as a result, eyebrows must be caught together, which is not effective.
2. Dislocation of market positioning, market segmentation and market strategy.
Facing the consumer market, the management of the club should be targeted, targeted and clear-cut. Most commercial sports clubs have rough management, unclear market positioning, aimless advertisements and discontinuous marketing strategies, so it is difficult to form a fixed consumer group.
3. The contradiction between setting prices and attracting members
Price is the key factor that affects consumers' consumption in clubs. The impact of price changes on the number of consumers depends on price elasticity. The response of the consumer market to price changes is sometimes subtle, and the impact of price reduction on new and old consumers is often inconsistent, so if the price strategy is not skillfully used, one will lose sight of the other.
Write a good prescription
From the break-even point analysis, clubs with different investment scales will adopt different business strategies to obtain profits, and the key is to handle the relationship between price and the number of members absorbed.
Beijing commercial sports clubs have great development potential and low profitability. The main reason is that in the early stage of industry development, it takes time to fully start the consumer market of commercial sports clubs, and Beijing commercial sports clubs should cultivate the consumer market through various channels.
The potential of reducing costs lies in improving management, and the key to attracting members lies in improving management. Therefore, commercial sports clubs should highlight club characteristics, improve management, improve operational efficiency and gain the loyalty of consumers.
The market of commercial sports clubs is not standardized in the early stage of development, so the government should introduce corresponding laws and regulations to standardize the market, provide policy inclination in the early stage of club development, and start and cultivate the consumer market.