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Going the Distance
With 23 clubs and counting, Sport & Health is the largest fitness chain in the Washington D.C. metropolitan area. Locally owned and operated for more than 30 years, the company is led by CEO Jonathan Adler and President and COO Mark Fisher, two dynamic leaders who have created a plan that will allow the company to grow systematically over the next five years, while also improving its existing locations.

Left to Right: Jonathan Adler, CEO; Mark Fisher, COO and President, Sport & Health Clubs, in the virtual cycling studio at Old Town Sport & Health fitness center in Alexandria, Va.

Anyone who has been lucky enough to live in or visit our nation’s capital knows that it is truly unlike any other place in the world. Brimming with diversity and steeped in history, the Washington Metro Area is comprised of innumerable neighborhood enclaves that often retain unique identities within the larger construct of D.C. Recently, Washington was named the “fittest city in the USA” by the American College of Sports Medicine – a distinction that happens to perfectly coincide with Sport & Health’s plans for expanding its presence and upgrading its clubs.The network underlines a prejudice.

THE HISTORY

Adler happens to be a native D.C. resident, with a background as diverse as the metro area he serves. A true entrepreneur with a head for sales and marketing, Adler has achieved success in publishing and Internet start-ups over the years. He began working full time in the publishing business at the tender age of 19, while studying business at the University of Maryland. In December 2005, Adler was already a member of Sport Health when he jumped at the chance to buy the company with four other friends and colleagues who were real estate partners and fellow club members. “I was looking for a business with recurring revenue and, more importantly, one that would allow me to positively impact people’s lives,” he shares.

As the other half of this executive team, Fisher brings a wealth of industry-specific experience to the table. Having worked in clubs since graduating from college in 1982, his first real gig was at U.S. Swim and Fitness – a growing company that also served as a training ground for Bahram Akradi of Life Time Fitness and several other industry veterans. The company was eventually purchased by Bally’s, prompting Fisher to open his own club. After locating a strong market in Wichita, Kan., he opened six clubs in the area over the course of 14 years. In 1996, he decided to take some time off and sold the clubs to private parties. By 2002, after several years of owning a hospitality-based business, Fisher was ready to jump back into the industry. He knew the CEO of Sport & Health at the time from his involvement in the exclusive Young President’s Organization (YPO), and opted to take a position upon joining the company that was beneath his real experience level in order to become familiar with the many changes that had occurred in the industry. By 2006, after several promotions, Fisher had assumed his current role and was deeply involved in making the company the best it could be.

PUTTING MEMBERS FIRST

Over the years, Sport & Health has capitalized on the unique makeup of the Washington Metro Area by tailoring its approach to doing business accordingly — from programming to marketing, the clubs choose options that will appeal directly to those who live and work within a three-to-five mile radius of each location. The result is a wide variety of sports, mind-body and fitness programming for members.

“Our clubs are not cookie-cutter,” says Adler. “We choose the programming for each club by analyzing extensive demographic information which outlines the preferences of each club’s membership base – and the surrounding community as a whole.” For example, programming in one club may be more family-oriented, while programming at another location would be more focused on attracting active businessmen and women. According to Adler, being a locally owned and operated company allows them to more easily manage this variety, especially since both he and Fisher believe in getting out of the office and into the clubs on a regular basis. “I don’t manage from my office – our entire management style is very inclusive,” states Fisher.

Technology has also played a leading role in allowing Adler and Fisher to properly evaluate the performance of the clubs’ many programs. When Adler assumed his position at the helm of Sport & Health, the company was still using an outdated DOS system that was very slow to generate reports. They turned to CSI for help, and systematically updated the company’s hardware and software. Now, they are using a real-time system which everyone has access to, that can easily track and determine member preferences – an essential component in managing multiple locations that offer such a wide variety of programming. “We can look at the percentage of our membership that is engaged and determine how it is affecting retention,” Adler says.
Perhaps one of the most important ways Sport & Health stays in contact with members and keeps a finger on the pulse of the communities it serves is through systematic communication with members when they are outside of the clubs. “We are big believers in e-mail and using online technology for keeping in touch with our members,” says Fisher. According to Adler, they reach out to all members on a monthly basis – either to let them know what’s going on in the clubs, or to ask them for feedback, or both. In addition, spot surveys are conducted quarterly and every member is surveyed annually using in-depth metrics designed to measure all aspects of each club.

Community involvement is another key component of staying in touch. Sport & Health has raised more than $1 million in the last few years for charity, and managers and employees are expected to get out into the community where their clubs are located. This grassroots approach also applies to the company’s guerilla marketing choices, which Adler says have driven down the cost per sale while driving up closing ratios. And, the company’s record sales the last few months are solid proof that this technique is working. “Our member referrals are up because we are actively encouraging members to bring new people in, while our employees’ involvement in the communities has gone a long way to build trust,” Fisher shares. Adler agrees, stating, “With my business and marketing background, I’m a big believer in the power of the Internet and using marketing techniques that involve an unconventional approach, relying on time, energy and imagination instead of a big marketing budget,” he says.

HANDS-ON MANAGEMENT STYLE

According to Adler and Fisher, another major component to the success of Sport & Health has been the company’s outstanding Senior Leadership Team, general managers and employees – basically, the people who are out in the clubs running the show every day. “The most important thing to remember is that companies are always driven by the people who work there,” says Adler.

When asked how they have been able to locate and foster such a strong team, Fisher says they looked for “drivers” and were fortunate to find many already within the company. “We want to be the premier employer of fitness personnel in the region,” he shares. Adler agrees, stating, “We are both a great place to work and a tough place to work – our interview process is very detailed; our general managers typically go through seven or eight different interviews prior to joining our team.” In addition to exceptional management, Sport & Health prides itself on the quality of its personal trainers; they accept fewer certifications than many other clubs, and all new hires must do an audition and interview with multiple general managers.

According to Adler, they also pay above average in order to attract and retain the best employees. This has allowed them to feel comfortable empowering managers and giving them real responsibilities – they are expected to understand what it takes to operate all aspects of the business. “We expect them to know members’ names and to spend three hours a day at the front desk, but we also expect them to be involved in discussions on marketing, pricing, compensation, etc.,” says Adler. “Our managers have a very strong influence and can really impact their club’s performance,” adds Fisher.

Neither Adler nor Fisher believe in a “top down” management style. Instead, both prefer to have as many heads as possible contributing to the betterment of the company. “You have to align your goals and expectations by developing a clear purpose, mission and value statement,” Adler shares. Fisher agrees, adding, “We have shifted the focus of the company culture and now everyone is committed to, and focused on, being a progressive, driven, energized health and fitness corporation.” To them, this means becoming better than they were last year, last month, last week, even yesterday. In practice, having regular inter-club competitions is a key part of this philosophy. Achievements like having the highest retention rates, the best member surveys or breaking a sales record do not go unnoticed, and rewarding positive change creates urgency and fosters a dynamic, high-energy environment.

More than 20 years ago, Fisher’s mother gave him a book that has now become an integral part of the culture at Sport & Health. An outwardly unassuming volume, “Rhinoceros Success,” by Scott Alexander is often mistaken for a children’s book at first glance. Its content, however, illustrates the importance of being “like a rhino” in life by taking charge and staying focused on your goal, while also being unafraid, thick-skinned and unstoppable in the face of challenges. “Today, this philosophy is enmeshed in the company – our screen savers are rhinos, clubs that “crash through” their sales goals get “Rhino Awards” and our conference room is called the “Rhino Room,” says Fisher. And it’s obvious that both he and Adler are willing to walk the walk. “Everyone needs to know what good performance looks like,” Adler says. “We are in front of them enough and are consistent enough to set the example.”

FIVE-YEAR PLAN

In case you haven’t heard, Sport & Health received $25 million in financing through PNC Mezzanine Capital and CMS Mezzanine Fund earlier this year, which has allowed the company to restructure senior debt — enhancing its capacity to grow and improve its network of clubs. Over the next five years, Sport & Health will continue to upgrade existing locations and has plans to acquire or build three new clubs per year in the D.C. area. For new clubs, they have a 20,000 square foot urban model and a 40,000 square foot suburban model, both of which have the capacity to provide the variety members have grown to expect. – CS

Keys To Success:

BECOME incredibly efficient at managing expenses, but always make sure that any changes will not have a negative effect on the member experience. Instead, focus on getting better terms from vendors and doing away with unnecessary waste.

INCLUDE key employees in the decision-making process. Get them involved in finding solutions to your club’s challenges – they are on the front lines of your business and will have important insights to share.

MOTIVATE your staff by creating inter-club competitions and rewards for outstanding achievement.

KNOW your community and service its needs. More people today are joining clubs that are conveniently located close to home or work, so understanding what your club’s dominant demographic really needs will help you keep members happy.

FIND ways to get managers and employees involved in community events. This is a great way to earn trust, and remember: You get what you give!

ASK your members to tell you what they think. Staying in touch with members and actively engaging them in the direction your club takes is paramount to remaining relevant in their lives.

Sponsored by: Fitness Life Marketing 1-888-541-0714 ext2

Article Research Contributor: Amerishape Weight Loss

Gym Sins…Send us your “Gym Sins”

Fitness club managers dish about their members’ most obnoxious habits.

Please add your “Gym Sin” to the list

Send a good “Gym Sin Comment” and we will add it to the post .

It was perhaps the most extreme case of gym rage—ever. While taking a Manhattan spin class last August, Christopher Carter became so annoyed by the unrelenting grunts and shouts of a fellow spinner that he tipped the other guy right off his bike and into a wall. The grunter was hospitalized for two weeks after the incident. Carter was acquitted of assault charges in June. Hopefully, the acquittal won’t inspire a rash of altercations, as other exercisers decide that they too have had it with obnoxious gym behavior. Because any gym rat can tell you, grunting isn’t the most irritating thing people do in fitness clubs. From making lunch in the sauna to sporting unsavory yoga attire, club managers report that some of their patrons are clueless when it comes to gym etiquette, or general decency. Here are nine of the most outrageous fitness club offenses.

1. The Sauna Stovetop: A manager at a New York Sports Club was walking through the women’s locker room a few years ago when she smelled cheese. Puzzled, she opened the door to the sauna, where a woman had placed bread and cheese on the hot rocks to make a postworkout grilled cheese sandwich. “Not only was it a health code violation, it was not really respectful to the other people in the sauna,” says NYSC PR director Linda Hufcut. “She said, ‘I do this all the time.’ That was, obviously, the last time she ever did it.'”

2. Nude Fitness? A couple of visitors to a Gold’s Gym in Paramus, N.J., decided to get naked and weigh themselves before they started working out. The two men didn’t seem daunted by the fact that the scale was outside the locker room. They hung out by the scale, in full view of the other, clothed patrons, until a manager asked them to put some clothes on. They told Mike Epstein, the gym’s owner, that they did that sort of thing all the time at their home gym. Perhaps they meant “home gym” as in the one in their basement.

3. Creative Blow-Drying A man in a California Crunch gym decided that the best way to dry out his sweaty shoes was to stick a hair dryer in each of them while he took his after-workout shower. He was shocked when managers asked him to cease and desist. “He said, ‘I didn’t even realize I shouldn’t be doing this’,” says Keith Worts, chief operating officer of Crunch, a national fitness chain.

4. Downward Dog? At another Crunch location a man had a habit of taking a yoga class while wearing shorts without underwear. He was more than happy to correct his faux pas as soon as managers made him aware that other members were uncomfortable with the view they were getting.

5. Work Out, Sleep In: Some people get a little too relaxed at the gym. Gold’s Gym managers have reported finding customers who fell asleep in the tanning facility and didn’t wake up until the gym was closed, as well as customers who fell asleep on the bench press in between sets.

6. Killer Karaoke: It’s common and profoundly annoying: gymgoers get carried away listening to their music players. Before they know it they’ve treated everyone in the room to an off-key rendition of “…Baby One More Time.” “I call it karaoke gone bad, because there is no background music and they’re singing at the top of their lungs,” says Harry Reo, a regional vice president for 24 Hour Fitness.

7. Talking (Too Much of) the Talk: Fed up with people gabbing on their cell phones as they used the elliptical, many gyms have banned cell phones around workout equipment and designated areas for patrons to make calls. Still, people forget. “There’s nothing worse than running on the treadmill and having someone next to you conducting an extremely loud conversation,” says Hufcut, who’s seen some people use walkie-talkies while on the treadmill.

8. Sweat Sins: It seems basic, but enough people forget to wipe down their equipment after using it that this was one of the four deadly gym sins included on an informational video NYSC taped a few years ago. During the segment a careless gymgoer didn’t dry off his machine; when he stood up, the entire machine was covered in dripping goo.

9. Scrimmage to Scuffle: It’s only logical that testosterone can run high at the gym, and sometimes managers need to break up altercations on the basketball court, says Nancy Pattee Francini, co-founder and president of the Sports Club/LA, which has 10 locations around the country. “Those guys, when they’re playing basketball, can get into fights,” she says. “They’re not terrible fights—we’re a high-end club.”

These are, of course, the worst offenses, not the norm. Obnoxious behavior can usually be curbed with a little etiquette education, say gym owners. “Most of the time it’s really an awareness issue with members,” says Worts of Crunch. “We have to remind them that they’re in a shared public space.” Nonetheless, it might not be a bad idea to look over the list and make sure you’re not committing any gym sins.

Health Club Newsweek….This article has been brought to you by courtesy of www.fitnesslifemarketing.com

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When it comes to retention, too many clubs aren’t concerned enough with the person

When it comes to retention, too many clubs aren’t concerned enough with the person who just signed up. Instead, they are still keeping all eyes on the next person walking through the door; after all, membership sales are most important, right? Just sell, sell, sell!

Frankly, I’ve never believed in that approach, and now more than ever it may be time to reevaluate your club’s strategy. It’s like a degenerative disease; too often, people don’t worry about doing the right things nutritionally until they become sick. Once they wind up in a critical situation, they finally begin eating the right things to try and get better – the very things they should have been eating all along. If we listen, it almost seems like our bodies are trying to tell us to start doing the right thing… or else! Similarly, our economic woes are much like a degenerative disease – they are an illness that is affecting us all. Perhaps it is time to reevaluate.

Ask Yourself
Why do members stick around? There are many reasons, but they all are interconnected. Here are some of the big ones:

• Achieving performance goals

• State-of-the-art equipment

• Relationships

• Habit

• Ancillary services like personal training, group fitness, youth programs and juice bars.

Believe it or not, you are in control of most of the points mentioned. For example, when it comes to building relationships, cultivating good habits and helping members to achieve performance goals, including a juice bar in your facility can have a strong positive impact. I have been giving nutritional seminars for a decade, and there is always one common denominator that seems to be present everywhere I go; from Aberdeen, S.D. to Miami, people are confused about diet and continue to make poor food choices that either slow or completely halt the progress of performance goals. The lesson: Nutrition is indeed up to 80 percent of the battle.

Juice Bars in Transition
Juice bars have come a long way since the 70s. The stigma that was attached to juice bars back then was present largely because gyms primarily catered to individuals who wanted one thing – to be like Arnold. So, they willingly bellied up to the bar to drink synthetic, scientifically engineered protein drinks. Taste didn’t matter because results were what they were looking for – that is, until their bodies began to reject all of those chemicals.

Today, many clubs still offer the synthetic drinks made from a pouch or automated blender system, but more and more clubs are also making healthier versions out of ingredients that you can recognize and, more importantly, your body can recognize. If you are considering a juice bar, don’t take the easy route; do some research. Know that this is just like any other business and it is necessary to do a business plan and ROI.

Follow These Simple Guidelines:

• Do not try to circumvent the Health Department. Clubs with a “build it and they will come” attitude often wind up having to rip out some of all the work they’ve done in order to make necessary adjustments.

• Use the healthiest products available.

• Develop a simplistic approach to preparing and serving the drinks.

• Make the product in front of the customer; it shouldn’t be a secret what’s going in his or her beverage.

• Educate members about nutrition.

Benefits

• People are gregarious by nature; they want places to hang out and socialize. The more this happens in your club, the more they will buy and the more others will join in.

• Profit – if done correctly, juice bars can increase your bottom line.

• Members can achieve their performance goals more quickly by adopting a healthier diet.

As the demographics of health clubs continue to become more diverse, with whole families joining and folks becoming increasingly more educated about health and fitness, choosing to offer a healthy nutrition option can help clubs retain more members by supporting one of the most important aspects of fitness.

Dan young is president of Performance Food Centers Corp.