How Do Gyms Make Money from Multisport Cards?
How Do Gyms Make Money from Multisport Cards?
Blog Article
The Multisport Card is a popular employee benefit that allows access to a wide range of fitness centers, yoga studios, and wellness facilities. While users enjoy the perks of unlimited visits, how do gyms truly benefit from the program? How much do they earn when someone swipes their Multisport Card?
This article explores the financial side of the Multisport Card program, how gyms earn money, and the hidden costs involved. Whether you’re a gym owner or someone curious about how the system works, keep reading to get the full picture.
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What Is the Multisport Card?
The Multisport Card is a benefit provided by companies like Benefit Systems. It allows employees to access a network of gyms, pools, and wellness centers across the country, often at no additional cost to them. The cardholder simply swipes their card for entry, and no extra payments are made during the visit.
Why Do Gyms Join the Multisport Program?
You might wonder why gyms allow people to use their facilities for free or at a reduced rate. The answer is exposure. Being part of the Multisport network helps gyms attract new members who might not have considered joining otherwise. It boosts visibility and foot traffic, which is a key reason gyms participate.
How Do Gyms Make Money from the Multisport Card?
Gyms earn money each time a Multisport member checks in, but it’s important to note that the amount is generally lower than the cost of a regular membership. Typically, gyms receive between 5 PLN and 10 PLN per visit from the program. While this may not seem like a lot, the volume of visitors can add up over time.
Costs Involved for Gyms
Though gyms receive payments for Multisport visits, they also face additional operational costs. These include utilities, cleaning, maintenance of equipment, and more staff hours. When gyms experience an influx of Multisport users, these costs increase, which may reduce their overall profitability.
Regular Memberships vs. Multisport Card Visits
A traditional gym member generally pays a set monthly fee and might also purchase additional services, like personal training, classes, or merchandise. In contrast, Multisport users do not typically spend extra money during their visits, meaning gyms can’t capitalize on upselling opportunities. This makes Multisport users’ lifetime value much lower.
Example: Earnings from Multisport Card Users
Let’s imagine a gym that receives 1,000 Multisport visits per month at 7 PLN per visit. That would generate 7,000 PLN in revenue. However, after accounting for expenses like rent, utilities, and equipment maintenance, the gym’s profit is significantly reduced. Compare this with 100 regular members paying 100 PLN each—this would generate 10,000 PLN in revenue with lower operational costs.
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Maximizing Revenue with Multisport
Some gyms use creative strategies to increase revenue from Multisport users. They offer premium services like specialized classes, wellness workshops, or personal training sessions that are not covered by the Multisport Card. This allows them to make additional income.
The Upsides and Downsides of Multisport for Gyms
Pros:
Increased foot traffic and visibility
Opportunities for upselling services like personal training
Potential for converting Multisport users into regular members
Cons:
Low per-visit earnings compared to regular members
Higher operating costs due to increased usage
Difficulty in upselling services to Multisport users
Conclusion: Is the Multisport Program Profitable for Gyms?
The Multisport Card provides great value to users but can be a challenge for gym owners. The exposure and increased foot traffic are appealing, but the low earnings per visit and higher operating costs can make it hard for gyms to earn substantial profits. For many, the key to making the program work is using it as a way to bring in new customers, while finding additional ways to monetize their services.
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