Video: Ralph Rajs, VP of Education at Club Solutions Institute, shares insights from the 2025 Club Solutions Leadership Retreat.
When we talk about maximizing member value, dues are only one piece of the puzzle. The real growth opportunity for most health clubs lies beyond the dues line — in what’s known as profit centers or non-dues revenue departments.
These are the parts of your business that generate income through programming, services or retail sales. Think personal training, Pilates, swim lessons, camps, spa services, or even in-house leagues. Each one carries its own P&L, its own rhythm, and its own potential to elevate both revenue and member experience.
The goal isn’t just to add new programs — it’s to build strategic, sustainable profit centers that enhance your club’s value proposition.
1. Identify and Prioritize High-Value Departments
Every club has unique opportunities based on its space, demographics and community. Ralph Rajs pointed out that seasonal programs like youth camps often outperform year-round departments in profitability.
“Our camps made more money in three months than some departments did in twelve,” he explained. “The combination of strong pricing, manageable staffing ratios, and thoughtful planning created incredible margins.”
The takeaway? Audit every department with an investor’s mindset. Identify which areas are underperforming, which are ripe for expansion, and where the club can innovate around experience, accessibility or community connection.
2. Align the Team Around the Strategy
Profit centers thrive when everyone understands the mission. Rajs emphasized the importance of transparency and ownership: “Bring the team in on the strategy,” he said. Let them know the initiative, why it matters, and how you’ll measure progress.”
Creating a baseline — last year’s monthly performance, current numbers and growth targets — turns financial goals into a shared game plan. From there, use regular updates and team meetings to keep the initiative alive. If it’s not discussed, it fades.
3. Train for Service-Driven Sales
Upselling doesn’t have to feel pushy. In fact, Rajs reframes it as “service through suggestion.”
“It’s really about servicing and suggestive selling,” he said. “When it’s done in the name of service, it feels better for both the staff and the member.”
Simple examples — like offering a bottle of water with a sandwich, or introducing a member to a complementary class — build trust and improve satisfaction while boosting revenue.
4. Rethink Pricing and Cost Structures
The most profitable clubs test assumptions regularly. Pricing, in particular, should be dynamic, informed by perceived value and market positioning. Ask:
- Are we priced too low for the value we deliver?
- Could lowering the price increase volume and total revenue?
- Are we aligned with our competitors or underselling ourselves?
Rajs also recommends reviewing cost inputs: “If we add cost, can it generate more revenue? If we cut cost, will it impact quality?” The goal isn’t just cutting — it’s optimizing.
5. Measure, Celebrate and Refine
Profit center growth is a marathon of micro-adjustments. Monthly recaps, feedback loops and visible tracking systems are key to sustaining engagement.
“If you’re not talking about it regularly, people assume it’s not important,” Rajs noted. “Celebrate the wins, re-strategize when needed, and keep the focus alive.”
Recognition fuels momentum — and when staff sees results tied to their efforts, they become invested stakeholders in the club’s success.
Final Thought
In today’s competitive fitness landscape, thriving clubs think beyond dues. They operate like diversified businesses — each profit center contributing to the whole.
Whether it’s a bustling kids camp, a high-touch spa experience or a revamped personal training program, the key is the same: build intentional, data-driven profit centers that deepen member loyalty and fuel financial growth.
When your team aligns behind that purpose, your club becomes more than a facility — it becomes an ecosystem of value.
Want to explore how the Club Solutions Institute can help your team? Request a free demo.
