The Fitness Industry Model

Edan Gelt Communications

At the beginning of 2017, I launched a social experiment, branding myself as a fitness mom and started a blog at http://www.edanjoygelt.com. My brand wasn’t far from the truth – I’ve religiously worked out for decades and fitness has always been a part of my life, I just wasn’t an expert athlete. At the start of my experiment, my goal was to understand the impact of social media and obviously reap the benefits from the exercise but what I also gained was a lesson in the advertising and psychology of fitness.

A communications strategist to the core, I was excited by what I learned and couldn’t wait to share.

Profit Model

It’s well known that the strategy behind the lucrative fitness organization includes a monthly membership fee and attendance. The more people that sign up + the more people that don’t show-up = the more profit the club makes.

This strategy has allowed many basic and full-service clubs to enter the scene at varying costs and still be wildly profitable. Clubs may offer bare bones equipment with long hours or great classes and equipment with an assortment of amenities.

Each club prices themselves low enough and provides sufficient value that members don’t find it worthwhile to cancel when they stop showing to exercise. Basic gyms to locations with more amenities range from $10 per month to $90.

SEXperience

Enter the premium fitness experience; these clubs offer fitness to the “who’s who” of society (or those who want to be seen as such). Just belonging to these types of clubs makes the members feel fitter and sexier without evening taking their first class. The shear elegance and notoriety associated with membership demands a higher membership fee and delivers more amenities, better quality trainers and ancillary benefits such as fancy child care, pools with slides, etc.

These clubs offer exclusivity with a member tag of $90 – $200 per month.

Down, Dirty & Real

These are the mom-and-pop shops dedicated to fitness for whatever reason they hold dear (maybe they were a boxer, dancer, yogi) and want to share their experience and train others. They are typically located in commercial districts where the rents are low and the space is plenty.

Value is in the trainers, owners and sense of community among students. These clubs/studios are about the sense of convergence and if done right, they are profitable, mostly affordable and targeted toward one area of expertise like CrossFit, Yoga, Boot Camps, etc. If they can excel in advertising, these models survive and thrive based on reputation and referrals.

Memberships, class packages or drop in rates – or a combination there-of are offered. Prices average about $60 – $100 per month or about $15 a class.

Designer Duds

Newer to the scene: designer duds. In the fashion world – designer duds are the hottest and trendiest gear. In fitness, these are the “popular kids” on the block and include chains like SoulCycle, Orange Theory, CorePower, Pure Barre, etc.

These are AMAZING CONCEPTS, don’t get the “dud” part wrong but there is something to that too. The clubs/studios are genetically engineered and optimized to mix the physical and mental component with SEXperience. Hyper-focused clubs such as these make fitness sexy, chic and popular. Each fitness experience is spun from a corporate web, which has spent mega bucks perfecting climate, fitness routine, music (even volume), and ambiance.

I call them designer duds for 2 reasons, one – they are super trendy and pricey, second – like fashion, they will likely over-franchise, lose authenticity in time and eventually fizzle (think True Religion Jeans) and live up to the “dud”. After all, how many years can you spin in a dark room without getting the itch to do something else?

I still haven’t figured out the lifecycle for designer duds but I don’t see them having a long-term foothold in the industry. Memberships are priced from $150 – $200 a month, or $20 – $40 per class.

Future of Fashion Fitness

As more Designer Duds enter the scene, the full-service SEXperience clubs are stepping up their game. They are changing their class offerings by emulating designer duds, offering smaller group training classes and enhancing private areas to provide a more intimate training experience.

It will be interesting to see what will survive and thrive and what will sizzle out in the next 5-years.

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Direct Mail Advertising

Contrary to its pricey reputation, direct mail is an effective and AFFORDABLE way to sell and advertise. Affordable was never a word attributed with direct mail but now it is one of the more cost effective mediums of messaging. When digital options first emerged, advertisers could reach consumers for pennies, which made direct mail seem like a fortune.

Times have changed and the cost of digital can range from a few cents to upwards of $20 for an impression. In addition, the digital environment is so saturated with pop ups, banner ads, sponsored feed and in-mail junk, consumers have become desensitized to the digital clutter appearing on their screens.

Enter the comeback of direct mail – or for some sales professionals (like me), it has never left.

Direct mail, when implemented correctly, can be the most impactful way of causing consumers to take action. At direct mail’s average bulk cost of $0.35 apiece, it is an affordable way to capture attention.

So how is a good campaign established?

Target Audience

Look at your CRM or your research. Establish whom your key customers are, what they look like (age, income, geography, etc.).

For consumer retention, use the list from prior targeted purchases. Specific lists may cost a little more in postage than bulk but it’s worth retaining previous purchasers.

For consumer acquisition, you can purchase a lists by specific attributes of each recipient or by carrier routes that have the qualifiers you are looking for. Usually, the more specific your list: the higher the postage rate. There are also shared mail programs like DAL cards offered by publications. DAL-like cards are cheaper (sometimes as low as $0.10 for print, prep and post) but you don’t get the freedom of choosing your target audience qualifiers.

Timing

Target your customers when they are buying. Look at your sales reports. When are your highest sales? This is the time your consumer is buying so this is the time you should be targeting them. Timing varies for different products and industries.

Message

Determine what it is your consumer values; then offer it. If you can afford to customize your message to each recipient, do it. If not, that’s okay too. Whatever you do, keep your message simple and make the headline appealing and relevant.

If you are a restaurant offering a free appetizer, make it pop. Don’t bury the offer in small writing amongst all the other entrees you are offering. Keep your offer clean, concise and engaging.

Edan Gelt DIRECT MAIL MARKETING

Design

Nothing is less appealing than receiving a mailer that has a ton of tiny images with small text telling the consumer everything about your business. I recently received a mailer with a message for deck cleaning, lawn care, painting, lighting and windows all on one 5×8 post card! That’s great if your company offers all of those amazing services but too much information and pictures can be overload and garbage material. Look at your sales – which service or services are the most popular? Feature the top one, maybe two.

Consistency

One mailer is not the answer to all of your advertising needs. Consistency is key and the rule of thumb is three times is a charm. It takes three impressions for a consumer to make a decision. You can reach out three times via direct mail or you can mix up your advertising mediums – maybe email, mail, engage them on social, or pay for the creepy ads that follow them around the net.

Direct Mail can be a profitableadvertising strategy if done correctly. The recipient has to look at your offer and register it before deciding to keep or toss your piece. That holds a lot of value in today’s cluttered digital environment.

By: Edan Gelt, CMD, MBA
Edan Gelt is an award winning, innovative, energetic, highly creative and consumer-centric advertising leader with successful results in increasing sales and traffic.

Her experience includes business-to-business and consumer advertising, media-buying, branding, public and community relations, strategy creation/implementation, budgeting, grand openings, trade shows, grass-roots advertising initiatives and special event planning.

Welcome to the Lock & Roll Organizer!

Edan Gelt

One of the greatest joys about my role as a Communications Consultant is that I get to work on several projects and see amazing ideas bloom from concept to rollout.

The latest project is Lock & Roll Organizer. The idea was born sometime before 2012 in Mark Tavolino’s garage. A builder by trade and an organization guru by nature, Mark built a unique organization system for gardening tools, golfing gear and his kid’s toys. The organizer is similar to a Lego system that locks together without tools and can be configured and customized based on consumer needs. A video about the project can be seen here https://vimeo.com/207562365.

I was invited to join Lock & Roll Organizer’s brainstorming team in 2012. At that stage, Mark had a wooden prototype and was raising funds, while determining how to position the product. The first thing I admired about Mark was his candor and his ability to recognize what he could and could not do. He was good at surrounding himself with experts in their field and stood firm in his belief in the product’s success, his ability to bring it to light and delivering a quality American-made product worldwide.

Marketing Consultant Edan Gelt

Fast forward to 2017 and Mark has produced several plastic prototypes, created advertising and packaging, raised funds and is having the product tooled. He is now in the process of negotiating with distributors and retailers. The Lock & Roll Organizer will hit the stores in August this year.

I attended the Hardware Show with Lock & Roll Organizer this past week and am excited to see Mark’s dream become a reality. Bed Bath & Beyond, The Container Store, Amazon and Ace all showed interest in the product and will be following up in the next few weeks.

Look for Lock & Roll Organizer in stores near you or visit their website to pre-order at www.lockandrollorganizer.com.

By: Edan Gelt
Communications Strategist

Originally published at www.edangelt.com.

Presentation or Content: What is more important?

A communications strategist for more than two decades, Edan Gelt has often debated with colleagues and clients about which is more important, presentation or content. This argument has covered everything from RFPs and presentations to advertising campaigns and website development. On one hand, you want to present the importance of your concept but on the other hand, a ton of data does not entice someone to consider you.

Decisions

The best way to describe the presentation and content is to relate it to the way children make choices.

It’s a holiday, you offer two equally sized packages to your child and tell him/her to choose one to open. One of the packages is wrapped in sparkly paper with a beautiful bow – the other a brown beat up, raggedy box.

In the brown box sits a brand new iPad, the other sparkly package contains a blank old notebook of the same weight. The child doesn’t know what each box contains. Which box will be chosen?

Plan Ahead

Before you create your presentation, RFP, website, etc. – know your target audience. According to Edan Gelt, if you don’t know your audience, you won’t know how to engage them. For example, my son would want something wrapped in blue where my daughter would immediately go for the sparkly wrapping.

Are you presenting your ideas to clients, partners, or colleagues? Do you want to encourage, inspire, or persuade them to take action? Knowing your audience and your goals will help you craft your content and presentation. What package do they want to open and what do they expect to find?

Edan Gelt

Content with a Kick

This involves gathering data and supporting information about your content and including visuals to make your message clear. Consider what your audience needs to remember after you deliver your message. Begin by removing all the information that isn’t important or may be confusing.Then add color, pictures, metaphors, examples or whatever it takes to make the content visually appealing and relatable

Designer Delivery

If you are emailing an RFP or delivering a speech – connecting with your audience doesn’t just depend on the presentation itself. The delivery is just as important – the introductory email, the passion that shines through when you talk, or the platform you use to introduce a new product.

If you are emailing your RFP, relate to the person you are emailing. Learn about them and express interest before adding the “attached, please find”.

If you are giving a speech, be dynamic, use body language and facial expressions to engross the crowd – show the passion behind the product.

If you’re promoting a website through an online platform – engage with the audience with information they find relevant that relates to your website.

Using snail mail? Consider packaging that entices the recipient to open the package.

Conclusion

While many professionals prioritize content, the presentation should never be neglected in lieu of great information. You may have the most relevant and groundbreaking information or product of all time, but an uninteresting delivery will bore your audience or may never reach them.

According to Edan Gelt, a fancy package or dynamic presentation might dazzle the audience but will achieve nothing if your content is lacking. This only proves that presentation and content are equally important to a successful end result.

Originally published at http://www.allperfectstories.com/author/edangelt/

The Fun of Rehabbing an Old Building

All of the shows on TV make flipping homes very attractive but once you purchase an old building, what in the world do you do with it?

When we purchased our first building, it was built in the 1890’s and came equipped with gas space heaters – we had no idea of what they even were.   This means no central heat.  The contraptions looked like large space ships in the middle of the room.  The joy I thought I would feel starting the project suddenly felt overwhelming.

Given below are some highlighted points that help you decide how to approach rehabbing:

Vision

The first thing that you need to decide is if you are rehabbing to hold or rehabbing to flip – this can impact your budget and expectations.  Obviously if you are going to flip, you are going to spend less and will be more focused on aesthetics and may not invest much in mechanicals.

Edan Gelt Communications

Renovation

Think kitchen and bathrooms – this is where the value is.  This is what your potential buyer or renter will be most focused on.  If you are renovating to hold, you will have to address not only the cabinetry, appliances, floors and counters but also make sure that the plumbing is updated and the electrical systems are addressed.

Also consider curb appeal, sometimes just painting old siding can give an old home a fresh look.

Electrical

Many homes that were built in late 1800’s or early 1900’s are not equipped to handle today’s electrical load.  They were built with only 30 – 60 amps for the entire home, using a just a few circuits. Combining old circuits with today’s electrical load, the circuits can overload and become hot, sometimes catching fire, according to Edan Gelt

To add central A/C, you will at least need to add a 220VAC Circuit if you are not updating all of the wiring.

Problems

You never know what you will find once you start opening walls to update electric or plumbing, you can find mold issues, structural issues, roaches and more.  It is important to ensure you have reserves to cover the unexpected.

According to Edan Gelt, finding a good inspector before you purchase the property may help you forecast some issues but some won’t be discovered until after your start construction.

 Edan Gelt and her husband have rehabbed apartments and homes with a rent and hold approach.

Originally published at http://www.allperfectstories.com/author/edangelt/