What more can I say about Peloton? It is “the Netflix of fitness” according to one market analyst. Peloton Spin Machines are “the best cardio machines in the world,” according to Men’s Health.
For years Peloton’s business thrived from supplying fitness equipment to community workout rooms. Apartment communities would offer Peloton bikes at a fair membership fee ($20 to $40 a month).
Today, the company is gearing up for a significant transition. Before going public in late September 2019, Peloton had an important major announcement. They would stop the sales of commercial products to focus on personal gear.
About two years ago, Peloton shook the industry with its futuristic bikes. These bikes came with programmable software, social media connectivity, and touchscreens. Peloton bikes had everything attractive to Millenials.
What do apartment operators think of Peloton’s latest business decision?
A perplexed Chad Christian, the Regional Manager (Avenue5), had this to say, “These bikes are greatly popular among our residents. My fitness centers have a bike or two, and I get constant requests to add more.”
“When we acquired one (Peloton bike), one resident fell in love with the equipment,” Julie Rossini, Property Manager, says. “When the others noticed, the bike began to get more use.”
Sarah Greenough thinks that Peloton’s decision is a move to make more money on sales.
“An apartment building has about 200 households,” Greenough says. “Those are 200 potential customers. Not a few commercial bikes in a fitness center.”
Responding to the Terrain
Clay Hicks, the President of TDC Management, inquired about Peloton’s commercial sales. He received this response fro Peloton’s Sales Representatives.
“The commercial sales team commits to placing our bikes in areas where our clients work and travel. We partner with multi-tenant office developments, corporate wellness facilities, country clubs, and hotels. Our members can stay committed to their workout routines while away from home.
Our showroom employees, commercial team, and web store no longer sell equipment to multi-family housing developments. Our decision returns the focus on our initial model, bringing top-shelf, instructor-led fitness solutions into the homes of our members. The best Peloton experience begins when our members purchase and exercise on a personal bike.”
A month before apartment community sales ended, Cristian purchased for his Avenue5 fitness room two bikes. He spent $2,750 and $2,499 on the bikes plus a monthly subscription of $55 on a commercial membership — commercial models of the bike feature a multi-user interface and a dual pedal system.
“They ‘promised’ to still service the bikes, but I learned otherwise,” Christian says. “Constantly told, ‘we no longer service multi-family bikes. Not to say that Peloton bikes are problematic, but we have to call for service at least once every month.”
What Others are Peddling
The tech industry is a dynamic and competitive battlefield. Expresso, Technogym, and Hydrorider are all competitors within the virtual cycling space. These players and the membership-based FitterClub and viable alternatives to property managers.
“At the end of the day, our industry will be fine,” Greenough says. “Technology is always evolving. Products come and go. There are many options for on-demand streaming fitness. We liked the prestige and prominence that Peloton’s brand offered, but we have to move on.
Now, residents can experience on-demand virtual fitness programs in many ways. Synchronized phone apps, virtual fitness kiosks, and commercial display panels can deliver countless hours of self-selected training sessions. These are viable alternatives to the dynamic fitness industry.
We all know that motivating yourself to hit the gym several times a week doesn’t come easy. In any health club, there are three primary spaces. The strength training areas (for free weights and machines), the cardio part and the group fitness studios. Each of these can truly help improve your workout routine.
Group fitness programs not only offer standard health-related benefits but can also augment key aspects of your social life. A study conducted by the Nielsen group indicates that 36 percent of people who exercise regularly prefer to do so within groups or class activities.
That’s why having groups or gym-wide fitness challenges can help increase retentions of customers like:
- Allowing customers to compete with their friends or peers
- Recognizing individual and group progress and success
- Leveraging the competitive nature as a way to motivate members
Most of the attrition in the fitness industry comes from individuals who leave the program before they get started. The goal is to retain them from the first day, and the secret is good customer services. Study shows 81 percent of members are more likely to come back to a company after good service.
Most fitness facilities transform the orientations process from a single-day activity to daily, weekly, monthly, or even yearly challenges. This includes different activities and milestones such as introduction to the facility, a thorough fitness assessment, and opportunities for social interaction.
Fine-Tuned Programs for Business Growth
Nearly every fitness center, large or small has personal trainers to help in creating realistic and customized exercise plans that help clients achieve their goals safely and effectively.
With a member’s body compositions result such as their health profile, interests, and fitness goals, then the fitness coach can develop a personalized small group training plan that works for them.
By designing personalized workouts that match the current body composition of your customer, they will be able to form a regular workout schedule and achieve the expected results faster.
When members achieve their goals, they create huge trust in what your program. You create excellent customer service, which 86 percent of customers are happy to pay up to 25 percent more for, which leads to reputation growth. They are also likely to recommend their friends, which translate to more revenue from members subscription.
Occasional social nudges such as text messages, phone calls, social media, and face-to-face communication can help increase attendance among members. In addition to social connection, most gyms offer special discounts and coupons for new and existing members as a retention’s strategy.
If you want to build a group campaign with outstanding group fitness equipment and workout programs that are built around members interests, contact Opti-fit and explore the available offers for California and Nevada areas.