A New Mindset for Personal Training 2/12/2018 4:31 PM A New Mindset for Personal Training By John Platero Powered by: The National Council for Certified Personal Trainers (NCCPT.com) © 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Who is a Personal Trainer? 2/12/2018 4:31 PM Who is a Personal Trainer? Bureau of Labor Statistics – Fitness Trainers and Instructors for 2015 Quick Facts: Fitness Trainers and Instructors 2015 Median Pay $36,160 per year  $17.39 per hour Typical Entry – Level Education High school diploma or equivalent Work Experience in a related Occupation None On-the-job Training Short-term on-the-job training Number of Jobs 2014 279,100 Job Outlook 2014-24 8% (As fast as average) Employment Change 2014-24 23,400 © 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Pay Rates at 5 Popular Gym Chains Hourly Session Wage Hourly Floor Wage Equinox $23.00 - $28.00 at Tier I $8.00 $31.50 - $36.50 at Tier II $39.00 - $44.00 at Tier III Around $60.00 at Tier IV Bally Total Fitness $12.94 - $17.00 at Level 1 Minimum wage $15.54 - $20.75 at Level 2 $24.94 - $29.10 at Level 3 $34.40 at Level 4 $39.10 at Level 5 Gold's Gym $22.75 - $35.00 $8.00 - $8.50 (No official tier system) 24 Hour Fitness $13.50 at CPT 1 $7.25 - $9.50 $16.00 at CPT 2 $18.50 at CPT 3 $20.50 at EPT/Master LA Fitness $12.00 - $15.00 $0.00  

U.S. National Salary for Personal Trainers   Salary.com (2015) BLS.gov (2014) Lowest 10% Median Salary Top 10% Average Salary ≤ $27,300 $55,158 $79,217 + $39,410

IRHSA 52.9 million health club members 23.2 million (44%) use the club at least 100 times a year 22.1 million (43% or 2 out of 5) use group exercise 13.5% or close to 8 million members use personal training 58% of non-members said price was the largest barrier for joining a health club

Which way will the industry go? Lower prices and lower wages = more clients Advanced expertise/education and experience = higher quality trainers. Health Coaching, wellness coaching, life coaching? Baby Boomers Insurance reimbursement? American Specialty Health, Health Savings Account (HAS) Corporate Wellness, Cruise Ships, Resorts and Spas, Retirement Homes. Licensure --- national standards

What are our Outcome Goals? Commitment Consistency Results

Unlimited Training – Features & Benefits Members pay monthly and can train with a trainer whenever a trainer is available during certain hours, days and/or weekends. Trainers do first sessions, help people on the floor, work in and train with them or train them. Can only reserve a session 30 minutes prior. Sessions are 30 minutes…..but can run up to 60 to 90 minutes. Trainers earn floor pay. May upsell to paid sessions, small group etc. and earn more money. Retention: Trainers are actually training and not doing phone sales or other things they don’t like to do, which in turn saves time and money recruiting and onboarding new staff. Revenue: Makes it more affordable Outcome Goals: Commitment, Consistency and Results

Unlimited Training – The Numbers How many intros or first sessions are done a month (45 -55%) and of those how many people buy PT? (25 - 30%) Why didn’t they buy? Was it price? How many members cancel their PT because they can’t afford it? Add up all the “floor hours” (I believe that’s minimum wage) for the week/month of all the trainers. How long or what is the average time it takes a trainer to convert from floor hours to having clients? (this is your investment) Trainers floor time pay with matching taxes (cost of the trainer to the company) versus the gross from members purchasing the unlimited training. 10 members paying $200 a month =$2000. In CA, minimum wage is $10.50 an hour x the scenario (M- T 5am – noon, 3pm – 10pm Friday 5am – noon, 2-9pm, weekends 8am –noon and noon – 6pm)=70 hours a week x $10.50 =$735 x 15% matching taxes ($110.25) = $845.25 x 4.3 weeks = $3634.57 in costs. 20 members were to pay $200 a month = $4000 a month Must gauge the possibility of people cancelling their paid sessions and instead choose the unlimited PT membership

What is the current process? Free sessions Packages Monthly Cancellation Policies Semester

Semester Pricing Eliminates no pay for no-shows and 24-hour cancellation fees. Eliminates unused sessions or expired sessions. Eliminates letting people slide on the cancellation fee because of the fear they might cancel their PT sessions. Eliminates the possibility of someone entering sessions when the client never showed and the aftermath of explaining that to the client and reprimanding or firing the trainer. The client not reaching their goals because they miss too many sessions Insurance reimbursement.

What is the process in hiring a personal trainer? What is the recruiting process? How many interviews? Is there a hiring team?

Recruit Educate Onboard Certify

Efficient Onboarding = Quality Service Walking the floor Conduct fitness assessments Booking sessions (phone, emails, etc.) Follow up phone calls Gym etiquette and maintaining the weight room floor Documenting sessions Contacting inactive clients Asking for referrals Standing out in the crowd –entrepreneurial ideas: body fat, surveys, etc.

New Mindset We are educated fitness professionals who play an important role in the healthcare continuum, particularly valuable in the preventative aspect of injury and illness. Employed or self employed will depend on the person and their stage of their career. www.medifit.com www.plusonehealthmanagement.com www.hfit.com www.corporatefitnessworks.com www.healthpromotionadvocates.org

Thank You! Johnplatero@verizon.net www.SmartFitness.com