In recessionary times, business owners typically find that revenues are less predictable. This translates into concerns that new member acquisition may not increase at the same rates as in the past. It also may trigger less additional member spending in non-dues categories.
And it may challenge the historical retention levels, as more existing membersmay cut back personal discretionary spending.Given these challenges, businesses turn inward and focus on costs.
After all, cost is much more controllable than revenue.
Expense creep
The expense areas with recent increases include payroll, rent and real estate taxes. In addition, expected increases are likely in business insurance, employee health insurance, utilities in certain regions and security costs.
