Q/A Archives

January 2008

M T W T F S S
    Feb »
 123456
78910111213
14151617181920
21222324252627
28293031  

Related Experts


Sign-up for RSS

Sign-up for RSS

Conexion

Club Management Software

sponsored by Conexion

Membership and Operating Revenues 1
Posted by Carol from Morrestown, NJ, US on January 31, 2008

What are some of the key membership and operating ratios that I should be calculating on a consistent basis to measure performance in my facilities?

There are a number of ratios and statistics that are commonly used to measure membership and operating performance in the industry. While this is not a complete list of all possible ratios in this category, I recommend the following as key indicators and critical to your analysis as it pertains to membership and operations: Membership Attrition (measured on an annual basis for a more accuracy), Average dues payer (or average monthly dues), average initiation fees, revenue per square foot, revenue per member, memberships per square foot, cost of sale (sales and marketing cost per new member, payroll to/or as a percentage of revenue, dues as a percentage of revenue, operating expense as a percentage of revenue.

I also recommend the calculation of finance and liquidity ratios such as the current ratio and debt-equity ratio to measure the financial position of your operation(s).