Increasing Ancillary Sales is a Targeted Approach
Creating or updating the ancillary revenue sales strategy for your clubs may not always be at the forefront of your operation’ s practice, but it should be reviewed on a semi-annual basis. These products are intended to benefit both the provider and customer by representing added value to enhance the customer experience, while also contributing to your bottom line.
Weekly sales, staff education, instore displays, Black Card discounts, internal marketing emails and add-a-friend offers are all tactics most PF ® club owners use to encourage sales, but how to fine-tune these offers for the greatest effect is not always clear cut. Alex Choquette, franchisee of Anchor Management Group, Inc., and Brad Driver, a franchisee based out of North Carolina, focus on different products as their greatest sale items and have offered advice on what they discovered.
Choquette advises that fellow club owners should hire merchandise managers, only sell high-profit items, focus on inventory controls, give staff large discounts for merchandise and bring in outside vendors to offer additional services with a face-to-face introduction to members on pizza night. Anchor Management Group also provides a monthly membership page
that is part of the new member packet, which is explained with each new signup.“ The member pages highlight our monthly themes and sales, and help to promote our raffles and initiatives. The raffles are supported by whiteboard displays in clubs and creative displays showcasing the by Kristen Perez various prizes available as a visual aid in the club’ s lobby areas,” Choquette said.
To reach those likely to purchase ancillary products, you should define the target market for each product, the demographics of the group and their club usage based on their objectives.“ Our job is to create the greatest experience for the customer and to help them reach their goals,” explained Driver.“ The more we get to know them and the more we offer them – that is what gives them the experience they want. We ask them what their goals are and then we suggest products that fit those goals.”
As economic conditions evolve, the demographics of your target market are likely changing, and it is a good practice to run updated demographic profiles for your local target market at least
2016 Issue 2 | GearedUp
Presentation is a key element in encouraging ancillary sales, however, engaging the customers with these products through questions and conversation about their goals is a critical element in their sale.
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