Tonight, I attended the first SWAT Town Hall meeting along with about thirty-five other members. When I saw the signs go up around the gym announcing this meeting, my initial reaction was to be nervous...were we going to get bad news?
Marta began the meeting by introducing the four owners: Jill, Juan, Kris, and herself. She explained that they had called this meeting to address some issues they felt were important, mainly some rumors that have been floating around since they were given ownership in January. She asked what rumors people had heard, and various members said they had heard the following:
-The gym is moving locations.
-The building has been sold.
-The owners of SWAT are trying to sell the business.
-The gym is closing.
Jill allayed some fears immediately by saying SWAT is not moving, closing, or for sale. She explained that the actual building, which is for sale, is owned by a bank in California and managed by a company in Grand Rapids. Working with the management company has been tricky; the SWAT owners are well aware of the physical issues that need to be fixed within the property, and they are constantly trying to work with the property management company and the bank to get things accomplished (for example, getting the air conditioning and steam rooms fixed for good!).
A member posed these questions: is the business sustainable in its present state, and what are your plans for the future? The short answer from Marta was YES, it is sustainable. In fact, for the first time in about seven years, membership showed growth in June and July, which are historically the slowest months!
As far as plans for the future, this was a much more complicated answer. Marta began by explaining that when the four of them were gifted the gym, the previous owner had given them a choice: either accept this gift and run the business, or it closes immediately. The four owners were not a pre-formed group with a pre-formed vision for the business; in reality, although they already worked together, it was sudden and unexpected that they would become business partners. So, they are constantly working to form a vision and realize that vision together, and they're learning a great deal in the process.
One of the lessons they have learned is that they really do want and need to hold the management company responsible for the upkeep of the property so SWAT's funds - our money, since it comes from our monthly membership fees - can be directed toward marketing, equipment maintenance and repair, new equipment, and group fitness. When they first became owners, they took member suggestions as far as what to improve immediately, but they spent a lot of funds doing things the property owner should be doing. They have shifted their focus now, and they are moving forward in marketing the gym. Someone had commented to them once that SWAT was the "best-kept secret" as far as fitness clubs in the Kalamazoo area; they'd like to change that so new business is pouring in! There are lots of community businesses that want to partner with SWAT, so the future looks bright.
Another question from a member was, if the building is sold, what are your contingency plans? They reassured us that if the building is sold to someone who is not interested in being a landlord to SWAT, we will all have plenty of notice before the gym is relocated. For now, however, the plan is to remain in this building.
Another member asked this: to bring in new members, the business has to look its best (for example, having non-working treadmills may be a deal breaker for a potential member) - how do we address without a lot of funds? Again, the short answer is that the owners are learning to direct funds into the business instead of into the building, which will help. They are also taking a hard look at where money is being spent. Someone brought up towels. That is one service the owners are considering discontinuing (or at least changing; perhaps we will rent towels, or perhaps they will have them available for members to buy). Not only does each towel cost $2 just to purchase, but the cost of laundering each towel (think electricity, water, and labor) drives that cost up. This year, they've already purchased 10,000 towels...that's $20,000 that could have been used to upgrade or repair equipment!
The owners reassured us they are doing everything they can to go forward. They are committed to the business completely and will do their best to meet the expectations of the members.
If you have thoughts or suggestions, PLEASE VOICE THEM!! Use the suggestion box, tell owners directly, comment on the blog. They'd like to start a newsletter soon, and they are working to develop a mission statement.
There are a few things that struck me as I sat in this meeting. First, this is the only large gym I can think of in the area that is owned by people who are passionate about fitness, not by a corporation with a bottom line. Second, the owners have incredible passion for SWAT and its members and truly do this because they care. Third, the members in the room at the meeting tonight all support the owners and think the right people were chosen to take over ownership. We are all so fortunate to be part of this SWAT community, and I'm so proud of and grateful for Marta, Jill, Juan, and Kris undertaking this huge responsibility!!!
