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The Climbing Wall Association's blog is a place for indoor climbing professionals to find useful and relevant information from industry and business experts. Stay on top of best practices, thought leadership, and trends by subscribing to Thrive - A Climbing Business Blog! www.climbingwallindustry.org/lines

 

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The CWA Requests That Congress Provide Stimulus to Climbing Gyms

Posted By Garnet Moore, Wednesday, March 25, 2020
Open Letter to Congress

On March 25th the Senate will be voting on what is likely the first round of stimulus for American businesses and individuals. While there are provisions for small businesses included that will help many of the climbing gyms in the US, we are encouraging legislators to pay attention to the fitness and recreation industry as a whole, and the climbing gym sector in particular.

 

The Climbing Wall Association has issued an open letter to key members of the US government to communicate what our industry needs, and to demonstrate the potential impact on the US economy should the nation’s climbing gyms suffer a severe financial toll directly caused by the COVID-19 pandemic.

 

This exact law is still being determined, but one potential area for industry specific support is in the way that the “Exchange Stabilization Fund” can be used to back any loans made to certain sectors. These allotments are controlled by Treasury Secretary Steve Mnuchin. As this resource is put into use, it is important that specific industries make their voice heard to ensure that they are not left out of any upcoming action.

 

This will likely not be the only legislation passed in response to COVID-19. And, the CWA will monitor the effects of any new laws being discussed that may impact our industry. There is also ongoing work to assemble a coalition of similarly positioned businesses to build a larger, stronger front as we continue to advocate for our members.

 

As local and state legislation develops, the CWA will work to influence new laws and communicate to our members any developments that could affect indoor climbing gyms. We also implore you to assist us in these efforts. The indoor climbing community is an amazing collection of talented individuals and by working together we can make sure that any forthcoming assistance is available to all gyms in the United States.

 

Garnet Moore Head ShotAbout the Author

Garnet Moore is the Director of Operations at the Climbing Wall Association. Garnet brings more than a decade of experience in the climbing industry, including his time as the COO at Brewer's Ledge.

 

Tags:  coronavirus  COVID-19 

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Membership Communications During Gym Closures

Posted By Laura Allured, Tuesday, March 24, 2020
Updated: Wednesday, March 25, 2020
Closure Messaging

As climbing gyms across the country and the world shut their doors to slow the spread of the COVID-19 virus, questions have emerged about how to communicate with members and customers. Here are a few tips and considerations…

 

Be Transparent

Develop a plan for your closure and clearly communicate it to your members. Things are changing rapidly, but you can avoid confusion by letting them know why you’re closing, how you made the decision, and how you’ll continue to evaluate the situation. Your plans will likely have to change as this situation unfolds, but people like to know that you have their best interests at heart.

 

Also, don’t be afraid to ask for what you need. Everyone’s financial situation is different, but many of your members will be happy to have an opportunity to support you. They want you to continue to exist after this crisis is over and many of them will be willing to put their money where their mouth is.

 

Opt-In vs. Opt-Out

The opt-in vs. out-out debate is tricky. Do you put your revenue on the line by asking members to opt-in if they’d like to continue their membership during the closure, or do you put your gym first and opt members into paying by default?

 

“One thing I considered in making our decision is our membership demographic as a whole and how our decision plays into a broader picture of income inequality. For example, by utilizing opt-out are we shifting the burden to those who most need the money? Those who may be more stressed during this time and aren't paying attention to Facebook or the hundreds of emails we're all getting everyday about the virus,” explains Dana Caracciolo, General Manager of Doylestown Rock Gym & Adventure Center.

 

Though income inequality is an important consideration, a downside to the opt-in approach is that you're relying on your member's bandwidth to respond to your request. This will inevitably have a negative impact on the proportion of members who keep their membership in place.

 

One way to address these competing priorities is to use your staff’s time - those that you’re able to keep on payroll - to call every member and ask for their support directly. You’ll get the opportunity to connect with your membership in a new way, as well as the peace of mind knowing that the members who are still contributing are in a financial position to do so.

 

Stay Positive

This may be a tall order in such an uncertain time, but try to keep a positive tone in all of your communications right now. Use an active voice instead of a passive voice, avoid overly negative phraseology, and don’t dwell on the circumstances for your closure.

 

“Nobody needs to hear the world is falling right now,” says Kristin Horowitz of Ascent Ventures/The Pad Climbing. “Give them a reason to believe and they’ll keep supporting you because you’re giving them that.”

 

Be Authentic

“Communications need to match/mirror the relationship the owner actually has with their members, and the owner themselves,” advises Wes Shih of Sender One. Authenticity is key with all communications, so keep that in mind to avoid a scenario where your messaging comes across as disingenuous and backfires.

 

Communication Examples

Here are just a few examples of membership communications put out by climbing gyms from across the country:

5.Life Closure Messaging Example
Doylestown Rock Gym Closure Messaging Example
Sender One Closure Messaging Example
The Pad Closure Messaging Example

 

Laura Allured Head ShotAbout the Author

Laura Allured is the Marketing & Communications Manager at the Climbing Wall Association. Laura is the editor of the CWA's blog, Thrive, and also manages the CWA’s Industry Research Program, including the annual indoor climbing industry study. Originally from the Chicagoland area, she got her start climbing in 2012 at Vertical Endeavors and has been hooked ever since.

 

Tags:  branding  coronavirus  COVID-19  customer service  marketing  member communications  member retention 

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My Gym Is Closed, Now What?

Posted By Garnet Moore, Friday, March 20, 2020
Closed Now What

Whether you closed your gym voluntarily, or you are in an area where your gym was forced to close, you are dealing with some challenging questions at the moment. We want to remind you that you do have options and that the CWA is here to help in any way possible.

 

If you have not done so already, reach out to your insurance provider, your landlord, and any lenders to see what deferments are available. All of these providers know that this is not your fault and that indoor climbing, in general, is a viable business model. They will prefer to help you rather than see you go out of business. In some cases, they may be eligible in the future for aid in relation to any assistance they provide, and as the situation develops rapidly, they may even have restrictions on when and how they collect payments.

 

Many banks are offering 90-day deferments for loans. You may even be able to accumulate your principal and interest payments for the next 6 months and have them added to your final loan payment. The best course of action is to start the conversation as soon as possible. Similarly, your landlord may be willing, or mandated to, defer your rent payments and to wait to collect any rent owed until after the pandemic is over.

 

Likewise, insurance policies could be frozen, claims could be filed, and there may be some potential to renegotiate liability premiums to account for changes in your forecasted income. The CWA’s partner, Monument Sports Group, is working to negotiate with the insurance carriers on behalf of the entire industry. Mid-term policy adjustments, payment deferments, and extending policy terms are some possibilities to ease some of the pressure you are feeling. Monument has also contacted carriers outside of the CWA program to encourage that they explore similar options.

 

Possibly the most difficult decisions you will be making are around your employees. Assistance is coming rapidly and you should pay attention to your local department of labor for any changes they have made which could allow you to lay off or reduce the hours of employees knowing that they are eligible for unemployment benefits to make up for the lost wages.

 

On March 18th the Families First Coronavirus Response Act was passed and its provisions will help support those efforts. This act also will affect what leave you have to provide your employees and how you must pay them during extended leave. For a more thorough review, read our analysis of the Families First Coronavirus Response Act.

 

An often-overlooked area of savings is the benefits that you offer your employees. You can explore the option to suspend or cancel any non-essential benefits such as dental or vision insurance and retirement benefits. Discuss these options with your lawyer to make sure that you are not violating any employment contracts.

 

While the full range of assistance programs are being determined, the most immediate program you may have access to is the SBA Disaster Loan Program. If you qualify, you are eligible for a loan up to $2 million at an interest rate of 3.75% with a term of 30 years. To apply go directly to their website and begin the application.

 

The CWA will be here for you throughout this crisis and after. The long-term future of the climbing industry still looks very bright and it is vital to remember that your customers can’t wait to get back into the gym.

 

Garnet Moore Head ShotAbout the Author

Garnet Moore is the Director of Operations at the Climbing Wall Association. Garnet brings more than a decade of experience in the climbing industry, including his time as the COO at Brewer's Ledge.

 

Tags:  coronavirus  COVID-19  financing  human resources  leadership  management  operations  risk management 

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The Impact of H.R. 6201 “Families First Coronavirus Response Act” on Indoor Climbing Gyms

Posted By Garnet Moore, Friday, March 20, 2020
Families First Coronavirus Response Act

On March 18th Congress passed the Coronavirus Response Act. In this bill there is assistance for you and your employees. Here’s a brief overview of some of the key laws that you will need to pay attention to.

 

Emergency Paid Sick Leave Act

  • If you have fewer than 500 employees, you must now provide 2 weeks of paid sick leave.
    • If your employee has been advised to self-quarantine, is experiencing symptoms, or is subject to an isolation order, you must pay sick leave at the regular rate.
    • If they are caring for someone who has been advised to self-quarantine, is experiencing symptoms, or is subject to an isolation order, or if they are caring for a child whose school or care provider has been closed, you must pay sick leave at two-thirds the regular rate.
  • Full time workers are eligible for up to 80 hours of sick leave and part-time workers are eligible for sick leave based on their normal work hours over a two-week period.
  • If you have less than 50 employees, the Department of Labor may exempt businesses from this requirement if it threatens the viability of the business.
  • Employees must have been employed for 30 days to be eligible for this benefit.
  • If you have an existing paid leave policy, you must also provide this emergency paid sick leave.
  • You could be subject to civil penalties if you violate this law.

Tax Credits for Required Paid Sick Leave

  • You will receive a refundable payroll tax credit equal to 100% of qualified paid sick leave wages for each quarter.
    • This credit is claimed on your quarterly employment tax returns. To assist with cash flow, employers can fund the family leave pay by accessing employment taxes that have been withheld and set aside for deposit with the IRS.
    • The credit is capped at $511 per day for employees personally affected, and at $200 per day for employees who are caring for others.
  • If you are self-employed and you are diagnosed or have to comply with an isolation recommendation you are able to claim up to 100% of the qualified sick leave equivalent, if you are self-employed and you are caring for someone you can claim up to 67% of the sick leave amount.
    • The credit is refundable and will be credited against your income and self-employment taxes.
    • The credit is capped at $511 per day or the average daily self-employment income for the tax year.
    • You must retain documentation to establish eligibility for the credit.

Emergency Family and Medical Leave (FMLA) Expansion Act

  • If you have fewer than 500 employees your employees who have been working for at least 30 days are entitled to take up to 12 weeks of job-protected leave under the FMLA if they are caring for a child whose school or care provider has closed.
    • The first 10 days of this leave can be unpaid, but an employee could choose to use vacation, personal leave, or any other paid time off available.
    • After the first 10 days employers must provide two-thirds the normal pay rate.
  • Family leave pay is capped at $200 per day and $10,000 in total and is limited to 12 weeks in one calendar year.
  • If you have less than 50 employees the Department of Labor may exempt businesses from this requirement if it threatens the viability of the business.

Tax Credits for Required Paid Family Leave

  • You will receive a refundable payroll tax credit equal to 100% of qualified family leave wages paid.
    • This credit is claimed on your quarterly employment tax returns. To assist with cash flow, employers can fund the family leave pay by accessing employment taxes that have been withheld and set aside for deposit with the IRS.
    • The credit is capped at $200 per day and $10,000 dollars per calendar quarter.
    • The credit is triggered only after an employee has taken more than 10 days of paid sick leave.
  • If you are self-employed and you are caring for a child whose school or care provider has closed, then you are eligible for a tax credit equal to 100% of the qualified family leave equivalent.
    • The credit is refundable and will be credited against your income and self-employment taxes and it can be refundable against an employer’s payroll taxes.
    • The credit is capped at $200 per day or the average daily self-employment income for the tax year and is capped at 50 days.
    • You must retain documentation to establish eligibility for the credit.

 

Garnet Moore Head ShotAbout the Author

Garnet Moore is the Director of Operations at the Climbing Wall Association. Garnet brings more than a decade of experience in the climbing industry, including his time as the COO at Brewer's Ledge.

 

Tags:  coronavirus  COVID-19  human resources  leadership  management  public policy  regulations 

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