Tuesday, September 6, 2011

RESPONDING TO CONSUMERS HELPS YOUFIT HEALTH CLUBS THRIVE

This article, about one of my clients, is reprinted from the South Florida Sun-Sentinel, which ran it on May 27, 2011. - Steve Winston, President, WINSTON COMMUNICATIONS, www.winstoncommunications.com


'If we're doing everything right, the clubs sell themselves.'-Rick Berks, owner Youfit Health Clubs
May 27, 2011|By Cindy Kent, Sun Sentinel

Who: Rick Berks

What: Berks is founder of the Youfit Health Clubs chain. There are about 25 locations in Florida, including Margate, Pompano Beach and Boca Raton. Customers pay a flat $10 monthly fee.

Understanding the market, demographics and responding to consumers has kept his business plan healthy, fit and on track, says Berks.

Berks based the Youfit profile on his decades-long experience in the health club industry. He owned and operated multiple Gold's Gyms before opening the first Planet Fitness location in 1993.

This time, he's tuned into the growing sector of average consumers looking to be healthy, rather than those focused on body sculpting and bodybuilding, says Berks.
The back story: Berks compiled lessons learned to launch the streamlined Youfit model in 2008.

He rebranded his facilities, upgraded equipment and created smaller footprints with fewer amenities like classrooms and babysitter spaces. There are no sales people pushing membership fees or long-term multiyear commitments; spinning classes or group aerobics.

“The market is shaping itself," said Berks.

People want to spend less money but still have access to an exercise venue, he says. Consumers want flexible hours. They want an offering of equipment that matches their own level of proficiency and interest.

At the same time, businesses have to find ways to cut expenses, too, says Berks.
The clubs are retrofitted with newer energy-efficient air conditioning, LED lighting and tankless water heaters. The floors are made from recycled sneakers.

"Doing the things we are doing isn't just idealistic," said Berks. "It's economics as well. The upfront costs are savings in the end."

Though Berks maintains corporate control of the clubs, "the idea is to make a simple reproducible model," he said. The marketing platform is pretty simple, too, says Berks. The company utilizes direct mail, multimedia and social media.

The take away: "As an entrepreneur, you have to be optimistic or you can't be an entrepreneur," said Berks.

"I've had good times and I've had bad times," says Berks, who once asked a mentor what separates successful people from "non successful" people.

"He answered, 'Persistence. If you stick with it, you'll figure it out.'" said Berks.

Knowledge
Achieve mass appeal. Rather than focus on a niche group of fitness consumers, Berks caters to customers that know what they want, a comfortable, low-pressure gym environment while achieving their goals. "Our typical consumer is more committed to being healthy by doing a 45 minute workout," said Berks. "They want to know they will fit in."

Calculate trial and error. Beta test a product or location, says Berks. That way you can be aggressive trying out an idea and at the same time limit potential loss. Expand on what works. "Good judgment comes from a lot of bad judgment," said Berks.

Details: Go to youfithealthclubs.com, 954-968-3481

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