October 2008
The UK’s No 1 fitness industry magazine
Gym owner claims unfair treatment By Nicola Hyde AN INDEPENDENT gym owner has launched a legal campaign with the Office of Fair Trading to put private gyms on a level playing field with subsided council-run facilities. Ian Williams, of Empress Health Club in Mexborough, wants to set a precedent for other gym owners in the country who face the same problem about VAT payments. Private health club members have to pay VAT on subscriptions where council leisure centres are VAT free. Ian says while private clubs have to fork out thousands for business rates, council and trust-run gyms get heavy subsidies and grants for new kit. He added: “It’s unfair and I want a level playing field. These gyms are getting subsidised out of rate payers’ money. I get stuck with a bill for £6,900 in rates while the gym down the road gets grants because it is a leisure trust. “I don’t get the same treatment because I am a sole trader and, right now, there is nothing I can do about it. I think it’s diabolical and my letter to the Office of Fair Trading states that it is clearly an
unfair business practice. There is something wrong when you are unable to compete with other companies in the same business, something has to be done.” Ian hopes his campaign will allow every privately owned gym in the country to be VAT exempt. He hopes the move will bring membership prices down, even winning heavy subsidies from the government. He added: “I haven’t got a problem with things like free gym membership, subsidised gyms, or no VAT – as long as it’s the same for everyone. We do the same job that they do, we can help tackle the obesity problem in this country, so why can’t we have the same treatment?” Empress offers membership for £28-a-month – but when a leisure trust gym opened just a mile away it matched that price and is now even lowering it for certain groups. He added: “I have just had two members who have been with me seven years leave because they save £7 a month. If I were to add on the 17.5 per cent VAT and then 26 per cent in business rates I would be way above their prices and people would not pay it.”
No 181 £3
Social website advice for operators
Independent gyms should train staff in how to be more personable to retain members, according to fitness guru Rosemary Conley. In an exclusive interview with Workout, the businesswoman – who spent just £8 on her first fitness club which was run from her kitchen – says the biggest improvement managers can make is ensuring they have a personal touch. Rosemary’s weight loss empire now has an annual turnover of £14m but she says the credit crunch is just another challenge. For more turn to page 22
GYM operators will be taught how to use social websites like Facebook and MySpace to attract new members. The seminar will be held at Leisure Industry Week as part of the Major Moves conference and will show how platforms like social networking sites, as well as video games, can be used to get people involved in exercise projects. Organised by SportEx, the event will feature a line up of speakers demonstrating how to create ‘exergames’ including how to send activity regimes to mobile phones, using Google’s pedometer as a motivational tool and the best ways to include Facebook and Second Life in active lifestyles. The keynote address will come from Biray Alsac, who specialises in teaching fitness professionals how to integrate technology and social media into their work.