Our strategy depends on our position as the only climbing gym in the area. Although this gives us an advantage, with fewer direct competitors, it also means we are introducing a new sport to the area and will have a high PR/marketing burden to promote the concept.
We will offer a variety of membership levels and short-term passes, so potential customers can try out the services without having to make an immediate commitment. We will also give special deals to churches, schools, and other groups with children, to create a demand for the climbing experience among young people.
Igneous Rock Gym plans on leveraging its unique position as the only climbing gym in Igneous to gain early positive PR. In addition, Igneous Rock Gym will capitalize on word of mouth to gain new clients. Occasionally a print ad will be bought in the local paper.
Literature will be passed out at local schools emphasizing the ability to host birthday parties at the gym. Staff members will volunteer at local charities, in order to build strong relationships in the community. Igneous Rock Gym will also build community awareness by being present at local events, such as street fairs.
Igneous Rock Gym's initial pricing strategy will be based on climbing gyms in other similar markets. This makes the most sense, because after the initial start-up costs climbing gyms have extremely low cost of sales. By using other gyms as benchmarks for pricing, Igneous Rock Gym can benefit from the the learning curve of others.
Group pricing will begin at $100 for up to six people and $15 for each additional person. This will include all equipment, and belay instruction for the designated belayers. In addition, each group will have the option of paying $30 to have an employee spend the entire two hours rental session with them.
Individuals will pay an entrance fee with an additional fee to rent equipment. The following are prices with the total price with equipment rental in parentheses:
Introductory classes will be $45 and include a week's membership with equipment rental. Advanced classes will be offered for $45, but will not include the free week. Those only wanting a quick belay lesson will be charged $12.
Children's classes will be offered Monday through Friday. One class a week for children 7-10 years old will be $60 for four consecutive weeks. One class a week for children 11-15 will be $225 for three months, and the price will include equipment rental as well as a three month pass to come into the gym during normal business hours.
A climbing gym's membership growth depends on good word of mouth. This is why groups are vital to the success of a gym, because they bring in people that would not normally try climbing.
The key to the success of a climbing gym lies in the fact that climbing is both addictive and more fun when done with others. This creates a situation where one member will bring in many other people to try the sport. This leads to new members who in turn bring more people in to try it.
In addition to word of mouth, Igneous Rock Gym will take advantage of its position as the only climbing gym in the Igneous area to gain access to free press. Television, radio, and print media are constantly looking for new and exciting subjects to bring to their customers. The climbing gym's uniqueness can be leveraged to create opportunities for press events.
It is also important to approach schools, churches, and scouting groups to educate them on the possibilities of bringing groups to the gym. By showing them the advantages of having field trips and group outings at the climbing gym, many children will be given the opportunity to try climbing. This will lead to more birthday parties and individual memberships.
Igneous Rock Gym will pursue three types of revenue streams: Groups, individual members, and classes.
Groups will include birthday parties, boy scouts, church youth groups, and corporate team building. By being the only climbing gym in the area, Igneous Rock Gym offers each one of these groups a unique venue in which to meet. Trained staff will ensure that groups are properly outfitted and trained in order to fully enjoy their time at the climbing gym. By providing a safe and fun time to customers, Igneous Rock Gym will be able to grow business exponentially as individual group members decide to bring other groups to the gym. This is also an excellent way of driving individual membership sales.
Not every person has the same financial resources. In order to accommodate the most people, different forms of memberships will be offered. These will include day passes, punch cards, one month, three month, annual, family, and college memberships. In addition, annual memberships will be sold on a monthly installment plan with a signed Electronic Funds Transfer (EFT) agreement.
Classes will be offered to those wanting to gain new skills and, more importantly, for children wanting to be part of a weekly climbing group.
Customer service and providing a unique experience will be the hallmarks of Igneous Rock Gym.
Sales are based on climbing gyms in similar markets. We expect that numbers will continue to grow significantly in the second and third years of business. Dollar amounts in each category reflect an average of the fee with and without gear.
The first month of business is expected to be slow. The novelty of the climbing gym will cause word to spread quickly and sales to increase rapidly the first couple of months. However, November and December are often slow months, as people try to save money for Christmas. January is typically one of the busier months with people looking for ways to exercise.
The most important goals and deadlines are shown below in the Milestones table and chart.