Some Key Expense Categories

January 26th, 2012 by Jason
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Fitness facilities are trying to keep expenditures flat for maintenance and repairs with some obvious tactics: more bidding, longer warranties from manufacturers, more preventive maintenance with manufacturer training, and less outsourcing. Security challenges have required re-evaluation of alarm systems, cameras around the facility, better member photo ID systems and increased computer protections.

The supplies category has focused more on online purchasing, more oversight by supervisors, more bulk purchasing (and then locking up the inventory), reducing the number of choices of items per category, identifying preferred vendors, locking in prices for a year on a contractual basis and eliminating underused items.

Utilities have become more unpredictable after deregulation. Many facilities are using energy consultants, while others are contracting for multi-year deals.

Clubs are now re-setting HVAC settings, hot water temperature and room temperature levels, and investing in energy-saving capital expenditures.

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