How Do Gyms Profit from the Multisport Card Program?
How Do Gyms Profit from the Multisport Card Program?
Blog Article
Have you ever wondered how gyms make money when you use your Multisport Card? The Multisport Card, a popular employee benefit in Poland and some European countries, grants users access to a variety of fitness facilities, including gyms, swimming pools, and yoga studios. But how do gyms actually earn money from this program?
In this article, we’ll break down how the Multisport Card works for both users and gyms, explain how gyms are paid, and explore whether this system is truly profitable for gym owners.
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What Is the Multisport Card?
The Multisport Card is a popular employee benefit provided by companies like Benefit Systems. It offers cardholders free or discounted access to hundreds of gyms, wellness centers, swimming pools, and other sports facilities. Many employees receive the card as part of their benefits package, which means they can visit a variety of fitness locations without having to pay extra fees at each one.
Why Do Gyms Join the Multisport Program?
From a gym's perspective, joining the Multisport program can be a strategic move. While gyms don’t get paid the full amount of a regular membership fee, they gain exposure and visibility. Many gyms participate to increase foot traffic and attract new members who may have never heard of them otherwise.
How Do Gyms Make Money from the Multisport Program?
Each time a Multisport member visits a gym, the gym receives a payment from Benefit Systems, the company behind the program. This payment is usually a small fraction of what a regular membership costs, typically ranging between 5 PLN and 10 PLN per visit. While this amount may seem low, the high volume of visits can help gyms stay busy and potentially increase long-term membership.
Costs Incurred by Gyms
While gyms do receive a payment per visit, there are costs to consider. These include increased utility bills, the need for additional cleaning, more staff time to manage the higher volume of visitors, and maintenance costs for the gym’s equipment. The increase in visitors can also lead to higher wear and tear on gym equipment, making maintenance a more significant ongoing cost.
How Do Earnings from Multisport Visits Compare to Regular Memberships?
A regular gym member typically pays a fixed monthly fee, which can be much higher than the earnings a gym receives from a Multisport visit. For example, a regular member might pay 100 PLN per month, whereas a Multisport member might only generate 5 to 10 PLN per visit. If a gym receives 1,000 visits from Multisport members in a month at 7 PLN per visit, that’s 7,000 PLN in revenue. However, regular memberships would generate more consistent and higher earnings over time.
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Challenges for Gyms in the Multisport Program
Low Profit Per Visit
One of the most common complaints from gym owners is the low earnings per visit for Multisport members. Even though these members help fill up the gym, the revenue they generate is far less than what regular members pay.
Increased Operational Costs
The more people who use the gym, the more resources are needed—whether it’s electricity, water, or staff. Plus, there’s the added cost of maintaining equipment that sees more frequent use, such as treadmills and weights.
How Can Gyms Maximize Their Earnings with Multisport Members?
Some gyms choose to upsell additional services to Multisport members, such as premium classes, personal training, or health supplements. While Multisport members can’t be charged extra for their basic gym access, these upselling opportunities can help gyms boost their overall revenue.
Pros and Cons of the Multisport Program for Gyms
Advantages:
Increased Visibility: Being listed as a Multisport partner can attract new customers and build brand awareness.
More Foot Traffic: The volume of visitors can keep the gym active and vibrant, which may lead to new memberships.
Opportunities for Upselling: Some gyms manage to make extra money by offering premium services that Multisport users can pay for.
Disadvantages:
Low Earnings Per Visit: The payment per Multisport visit is significantly lower than regular membership fees.
Higher Operational Costs: More visitors mean higher costs for utilities, cleaning, and maintenance.
Crowding: An influx of Multisport users, especially during peak hours, can lead to overcrowding, which may discourage paying members.
Is the Multisport Program Worth It for Gyms?
Ultimately, the decision to participate in the Multisport program depends on the gym’s goals. For smaller gyms or those looking to build their brand, the exposure and foot traffic can be a major benefit. However, for larger gyms or those relying heavily on membership fees, the low earnings per visit might not be enough to justify the additional costs.
Gyms that succeed with the Multisport program often find ways to balance the influx of visitors with their long-term financial goals. They may focus on upselling additional services or targeting new members who eventually switch to full memberships.
In conclusion, the Multisport Card offers users a fantastic benefit, but gym owners must weigh the pros and cons to determine if the program aligns with their business model. By understanding the financial aspects of the program and making strategic decisions, gyms can maximize the benefits of being part of the Multisport network.
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