More Business Models for Skateparks

Some skateparks try to work like Golds Gym but they often don't go all the way.  Patrons pay a monthly fee, a membership, and skate when they want.  Unfortunately this model is not very successful for skateparks because of the high cost often asked for up front.  With a 12$ session fee versus a $50 monthly fee (I've seen more), kids, teens, adults and their parents are wary about how much they will use this service.  Unlike Golds Gym where anyone with a pulse can sign up, skateparks are in a smaller market to attract people to their service.  Because Golds Gym can get so many people in, and the industry has accepted their 25$ or so cost, they are able to make money with lower monthly premiums.  But in many ways, skateparks can operate like this too, it just takes someone to start.  First a park would have to eliminate sessions, and thus also eliminate $12 fees.  The only way you can get in the gym is pay the monthly fee, with a credit card.  If the market can support this idea, then the skatepark can run like a gym.  But since no parks are doing this now, an owner would take some risk to pull it off. Why?  Basically gym style pricing schemes would offer the skatepark more financial security because it collects money on a monthly recurring basis.  These memberships are tied to credit cards that are automatically charged each month.  So say that 500 members all pay $50 a month to skate for as much as they want, the skatepark is looking at a $25,000 revenue stream per month.  This revenue can be taxed differently too as it is not "entrance" fees which often are taxed like concert tickets.  Within this scenerio, planning becomes easier because revenues are relatively constant.  Added emphasis and efforts are given to keeping the membership going and happy.  I am sure a few parks out there would like to know that this sort of money was coming in monthly.  Even without food or other sales, revenue of $300k per year would be welcome in many parks.  So Golds Gym is not the worst way of looking at your business structure, but you should see what your market can take before you change your current park's finances.

Value Added Membership

As we look for ways to get more business, one way that can work is adding value to the membership. When a patron asks why get a membership, the most obvious reason is for cheaper entrance rates. Usually skateparks charge $13 for non-members and $8 for members for a 2 hour session. This sort of pricing would leave money in their pockets for food or drinks. The $5 difference in price would then pay for itself in 10 visits or sessions. So once the 100 or so local kids have bought a membership, how do you get the ones further outside your range to buy a membership? One idea is to add value.

There are many ways to add value that don't really cost you anything. Discounts on gear is a traditional way of adding additional benefits. This gives the added bonus of enticing a sale for the skate shop. Fee differences for camps and comps is another way of helping the cause. Free or discounted friend passes, party rentals or special nights are other ways of adding value to those that might not see themselves coming around for 10 times over the year. I would consider adding in some times or days that you don't do good business as a perfect way of adding value to your membership. If a park is empty most Monday or Tuesday evenings this could be a great opportunity to add value to membership. Give them 1/2 off or even free sessions once or more a month and advertise the heck out of this. Sell the idea that in a month they could get the value of their membership back with these "Member only" sessions. While they don't have to bring money to the park and some won't, I bet sales of soda and drinks during these times will more than make such a freebee worth it. Add in a special friend of the park dj (read as free dj) and you now have an event. Cost: lights and staff. Sure when budgets are tight this might seem like a large expense but in the end will it help you sell memberships?

The deal is it can start this off as a trial to see if works. Plan it as a campaign with the staff. Offer prizes to the person who is able to sell the most. Make up posters and flyers, cards to put in with your sales receipts etc. to let everyone know that this is worth it to be a member of the park because of all the benefits they get. In the end it is about generating a feeling that this business cares about its people, and those who show their support are rewarded.

Another idea that needs immediate adoption by park owners is offering reduced rates to other skatepark members. If you have a park in Oakland and your prices are similar to all those other parks around you, it makes sense to let members come to your park and skate at the reduced price. If you work out a similar deal with the other parks you have added value to your membership for the price of a phone call. This is a win-win slam dunk. The more you all can add to your park without incurring costs the better. You will attract members from another park to stop by on their way through town generating income with little effort. Start making friends with the other park owners and start making connections that keep you adding to what you offer your patrons.

Good luck