Elgin's Centre getting stiff competition from bargain gyms
Memberships at the Centre of Elgin have declined in face of competition from private health clubs and the effects of the recession.
But the city-run family recreation center has tried to market itself as much more than a gym, and revenues generated by the facility's programs, from swimming lessons to banquet facilities, suggest that's the case.
While the Centre's membership costs yielded about $100,000 less in 2009 than the year before, it more than made up for it with increased revenue from programs more than $160,000.
The drop in memberships started in 2008, said Wayne Carlstedt, the Centre's associate manager of operations.
“Unfortunately when people lose their jobs and have to cut costs, they can't afford to keep fitness club memberships,” Carlstedt said.
While revenue figures are known, the actual number of memberships lost isn't yet available because the staff is switching to new software, Carlstedt said.
“Basic bare bones” health clubs that offer lower fees may have been able to take away some of the Centre's members, said Randy Reopelle, Elgin's parks and recreation superintendent.
“We cant go head to head at that price point,” Reopelle said. “When you're in a downturn in the economy, (those clubs) are going to be more appealing now than five years ago when they opened. They're having a greater impact now.”
Centre membership prices are not expected to change for 2011.
Reopelle and Carlstedt said the Centre's advantage is that it offers amenities fitness centers don't, like hosting birthday parties, youth sports and senior activities.
“Parents may say, ‘I'll fore go my fitness membership, but still send my kids to preschool.' We know how parents work. They give things up so their kids can do things,” Reopelle said.
The Centre was built in 2002 to anchor downtown Elgin and spur economic development in the area, which had little going for it a decade ago.
“It brings people to downtown Elgin to see what's going on here. They didn't place it here based on maximizing revenues,” Reopelle said. “If they wanted to (do that), they would've put it at I-90 and Randall Road.”