New Year's Membership Rate Change Announcement: Here Comes the GST
2024 was a bit of a slap in the face. Despite our growing membership and a corresponding 25% increase in gross revenue, Empower has seen a 25% decline in net profit over the past 12 months. It is not isolated to us as other local small business owners are reporting similar results due to the inflationary pressures which have driven up operating costs.
For example, the BJJ school Leon and I train at which increased membership rates by 15% in 2024 is increasing them again in 2025 by another 15%. This year a swimming pass for Vancouver Parks & Rec has increased by 17%. Businesses are being forced to increase prices or face insolvency. For Empower this goes beyond just the cost of goods and services and extends to our lease renewal rate increase as well as this year’s 400% increase in CrossFit affiliation fees. Unable to negotiate a lease renewal with our landlords, our neighbours at iDance are closing their Jericho Village location. We successfully negotiated a 5 year extension so Empower is staying but it comes at a price!
To compound our challenges, our coaches have not seen a pay increase since we opened on Dunbar Street in March 2013. Yes, we are still living on the same wages as 12 years ago despite the increased cost of living. Since Shaft’s departure our team has been stretched very thin covering classes but recruiting and retaining good coaches at $25 per group class in this neighbourhood has proven challenging as our coach compensation is no longer competitive with other fitness facilities.
It is our goal in 2025 to offer more competitive CrossFit Group Class compensation to qualified coaches. To that end, our team has been developing a set of Empower coaching standards and an evaluation tool so that we can progress our best group class coaches to a more competitive pay rate. We hope that this will help us attract and retain the best of the best. Leon and I have been hard at work recruiting and training new talent and hope that our newest Empower Team coaches live up to the standards of our existing coaches.
And of course, as always, there are facility improvements we hope to make in 2025. In 2024 we expanded the lifting platform, produced our documentary Celebrating Heroes and hosted our Annual Awards Gala at the Dunbar Theatre. In 2025 our big mission is to replace our worn out plyoboxes. The estimated cost before shipping is $6000. We could get wood or metal replacements for about $100 apiece but as always, we would rather invest in your health and safety as wood and metal boxes account for most CrossFit injuries. Don’t believe us? Ask Big Boss to tell you his gruesome story.
The cynics always assume that every rate increase is motivated by greedy business owners looking to line their pockets. And maybe that’s how some companies operate. I wouldn’t know. Leon and I are paid by classes coached and hours worked the same as the rest of our coaching team and at the same rate. We take home $25 per group class coached and $16 per hour of admin work (minimum wage is currently $17 per hour). So, no need to worry, The Touch and I won’t be driving a Mercedes to the gym anytime soon. He’ll continue riding to work on his second hand bike and I’ll continue walking.
No one wants a rate increase. It feels a bit like stuffing your stocking with coal right before Christmas time. But, we would rather give you a heads-up now than spring it on you like a nasty New Year’s surprise on January first. Without rate adjustments, we will not be able to continue to serve this community that we love so much.
For a long time we have endeavoured to buffer loyal Empower members from increasing costs. In addition to grandfathering you at membership rates set in 2018, all along, we have been paying your GST.
Effective January 2025 we will be adding GST onto the old memberships. This will affect members on the Empower Old School membership, Discounted 12-month Group Class membership and Month-to-Month membership. All other members already pay GST so members on the Fit Pass, Accelerated or Champions’ memberships will not see any rate change in 2025.
We are grateful for your understanding and appreciate your commitment to Empower. As you are committed to us, so are we committed to being here for the long run to serve you. We will continue to make the necessary adjustments to ensure that the Empower community continues to thrive.
Yours in Health,
The Empower Team
Friday Make Up Day
1) 1-2-3-4-5-6-7-8-9-10 reps for time of:
Sumo deadlift high pulls
Ring dips
2) 4 minutes of overhead squats
4 minutes of rope climbs to 15 feet
4 minutes of thrusters
4 minutes of wall walks
3) Empower Reset #5-0
1 min Belly Breathing
30/30 sec Head Nods/Rotations
5 mins
20 Deadbugs
20 Windshield Wipers
20 Shoulder Pullovers
20 Egg Rolls
5 mins
20 Bird Dogs
10/10 Kickstand Rocks
10 Plank Bird Dogs
10 Judo Push Up Rocks
5 mins
10 Get Ups
20 Ring Row Squats
20 Alt Ring Row Reverse Lunges
2 Rounds (2 mins each):
Hollow Rocks
Skin-the-cats
Headstand/Tripod with knee tuck and extend
Bar MU