Fitness Life Marketing

(no subject)

Q: “I work as a GM in a 4 clubs company, I’ve been in charge of the
pre-opening and the first couple of month of operation of three of them. We are
planning now open the 5th club, in a different location (all 4 actual clubs
are in different cities) all 4 clubs are doing fine. What should I look for
in the next location? I have tons of demographics and marketing
statistics, besides analyzing this info, is there any advice I can get form the
experts in expansion?”

Bryan O'Rourke, CSO & Principal
Fitmarc
_bryan@fitmarc.com_ (mailto:bryan@fitmarc.com)
_www.bryankorourke.org_ (http://www.bryankorourke.org/)

A: A great location may depend on the type of club you have and how much
you are willing to pay for that location. If a given location is known for
driving traffic to your door, then the lease is going to reflect that.

A large, multipurpose club can require thousands of members so you may ne
ed a busy area in town. If you have a small or mid-size club that relies on
word of mouth marketing, you may not need the busiest area in town.

Demographic data is important (population density, household income
levels, etc.) but nothing can replace your eyes. Get to know the neighborhoods
around a proposed location--drive 10 minutes in every direction at rush hour.
Talk to a real estate agent. They will know the demographics but they will
also have a good "feel" for the area. Is there retail shopping? Are they
building new schools (is the area growing--will your club appeal to
families?). Is it a retirement community? Are there a lot of storefronts for rent?
This might make it easier to negotiate a lease but it might also indicate
that the local economy is struggling.

You location doesn't guarantee success, but it can make things a little
easier.

Rob Bishop, Owner
Elevations Health Club
_rob@elevationshealthclub.com_ (mailto:rob@elevationshealthclub.com)
_www.elevationshealthclub.com_ (http://www.elevationshealthclub.com/)

A: My advice is to not reinvent the wheel. By the sound of it your
company is having success with a business model that is working. My question back
to you is…Do you have a good understanding of why it is working? Are they
working for the same reasons (same type of customers and similar types of
locations?), or are they four unique types of businesses?

If you look at all the successful club chains (e.g. Life Time Fitness,
Curves, Gold’s, 24-Hour Fitness) the two things that all these businesses are
very confident in is who they serve (current customer
demographics/identity) and where to find them; because, the goal in any new business opportunity
is to eliminate as much guessing as possible.

If you haven’t done so already, look at the company’s four successful
clubs and gather all the information that identifies your customer type. Then
use the demographic and marketing research you’ve gathered to determine the
best location(s) for your type of club. Finally, create a business plan
and/or pro forma to help you decide which area(s) give you the best chance(s)
for success.

Brad Wilkins, Vice President & General Mgr.
Cooper Fitness Center
_bwilkins@cooperfitnesscenter.com_
(mailto:bwilkins@cooperfitnesscenter.com)
_www.cooperfitnesscenter.com_ (http://www.cooperfitnesscenter.com/)

A: You look to have done your homework on the new city you plan to open
another club in. If you have a site (or specific area) selected and you have
completed a comprehensive competitive analysis then you may be getting
close to pulling the trigger on the project.

Debt financing can be very hard to come by in the current economic
climate, and even more difficult to secure without in-depth projections that have
as an integral part a proven, existing cash flow in your business plan's
model. That being said, before building a new club or leasing a new space,
consider the potential of buying an existing club that fits or can be
relatively easily retro-fitted into your particular type of operation. You would
be buying a known cash flow and it is possible that you could finance the
project largely from the existing operation's future cash flows versus the
long ramp-up and capital intensive nature of a build-to-suit.

Chris Evans, Partner
The Atwood Group
_www.healthclubconsultants.com_ (http://www.healthclubconsultants.com/)
_cevans@atwoodconsultinggoup.com_ (mailto:cevans@atwoodconsultinggoup.com)

Campaign for a Healthier America

_Campaign for a Healthier America_
(http://www.ihrsa.org/home/2010/7/1/campaign-for-a-healthier-america.html)

The Campaign for a Healthier America is a national grassroots project
bringing together exercise enthusiasts to make healthy lifestyles a priority
for all Americans. The Campaign seeks to bring the fitness industry together
with government, employers, medical and public health professionals,
insurance providers, schools, and each of us individually.
Join the Virtual March on Washington
You know how important exercise is to you and your members. Now it’s time
to let your legislators know. You can become the change for a healthier
America. Here’s what you can do:
* _Send an e-mail_
(http://www.votervoice.net/Groups/IHRSA/Advocacy/?IssueID=16866&SiteID=-1) to tell legislators your story that epitomizes
how exercise and living healthy have impacted your life and the lives of your
members.
* Get your members involved. Hang up this _poster_
(http://download.ihrsa.org/publicpolicy/campaign4health/campaign4health_poster.pdf) in your
club.
* Download a brochure. Distribute this educational _brochure_
(http://download.ihrsa.org/publicpolicy/CHA_Brochure.pdf) from your front desk and
locker rooms.
* Create a 2-3 minute video message to legislators illustrating your
story and e-mail it to IHRSA.
* Share your photographs promoting a healthier America. We will
upload them to _flickr.com/campaign4health_
(http://www.flickr.com/campaign4health) .
What is the Campaign for a Healthier America?
The Campaign for a Healthier America is a national grassroots project
bringing together exercise enthusiasts to make healthy lifestyles a priority
for all Americans. The Campaign seeks to bring the fitness industry together
with government, employers, medical and public health professionals,
insurance providers, schools, and each of us individually.

What We Are Working Towards
We must work as one to create a culture and environment of wellness. To
achieve this, we will:
* Encourage regular exercise and healthy eating for people of all
ages and physical conditions
* Engage Americans in grassroots efforts to make their communities
healthier
* Ask policymakers to encourage exercise by creating tax incentives
and removing financial barriers
What Federal Legislation Means for Your Club
A healthy lifestyle starts with exercise; and exercise starts at a health
club. Health clubs provide a community that fosters the adoption of healthy
lifestyles. As a fitness professional, you are helping to build a
healthier America.

_Federal legislation_ (http://www.ihrsa.org/federal-activity) supporting
the WHIP and PHIT Acts, as well as anti-obesity legislation and tex
incentives will make exercise affordable for more Americans.