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| CBI Interview |
To be successful in this niche, you we expect a slowdown—perhaps four As a service provider, we’re graded
have to understand several things. For to six openings. The pipeline for new on penetration, utilization, program-
one, it involves a different sales model. business that we’d normally expect to ming, customer complaints, and
With corporations, you don’t sell hard; hit this year or next has dropped off whether or not we stay on budget. In
you sell with your expertise and credi- by about 40%. Some of the bids we’ve terms of penetration, anything above
bility. For another, it doesn’t rely on submitted have been put on hold for 30%-35% is regarded as quite good.
standard member sales and retention anywhere from six to 12 months. In terms of demonstrating value,
practices, though those play into it in a we also offer Flex, a new member-
different way. You have to work through management system that captures
the business cycle. Sometimes, for
CBI: Today, companies are scruti-
results and makes them available to
instance, your contract may go back out
nizing their expenses more closely
both the member and our clients. With
to bid, and, then, you have to refine it.
than ever. Given that, how do you
Flex, users can view the facility, check
Membership sales, general managers,
continue to convince them of the
out its features, integrate with our
how you compensate employees—all of
value of your services?
strategic partners, and enroll. They can
those things are different. MM: They are cutting expenses; that’s pay, if the program costs anything, fill
In essence, you have to be able to true. However, whereas 15 years out their PAR-Q, and track participation,
successfully master and integrate ele- ago, many people regarded fitness results, and progress toward goals.
ments of two different business models. programs as an executive perk,
now most consider it a “must-have”
offering. Firms may look for discounts,
CBI: For a management company
CBI: What type of sales cycle is
or trim their programs a bit, or, even,
such as Plus One, what’s the
involved? And what have you been
take them inside, but they aren’t
biggest challenge?
seeing recently with respect to the
eliminating them. Some clients want MM: Client satisfaction! You can do
pace of business?
the same service for 10% less; or well in two out of three categories,
MM: It can take as long as four years for decide to offer 15 classes instead but your client will focus on the third.
a new building and, therefore, its fitness of 20; or are interested in having You can have 2,000 members who
component to come online. Up until their staff teach classes. We have are very happy, but, if a top manager
now, our business has been very robust: to be nimble—that’s what the has a bad experience, then you’ll be
last year, we had 18 openings. This year, market demands. on the defense for months. You can
hire people carefully and train them
thoroughly, but they’ll still make
“As a service provider, we’re graded on occasional mistakes. We sign their
penetration, utilization, programming,
paychecks, but our employees have
to adapt to the culture of the client
customer complaints, and whether or not company, which may have tight secu-
we stay on budget.”
rity requirements. These big compa-
nies are used to getting what they want!
PRO FORMA: PLUS ONE HEALTH MANAGEMENT, INC.
CBI: Who are the other principal
• Headquarters: New York City
players, your competitors, in this
segment of the market?
• Locations: 117 programs in 17 states; 104 corporate, 5 hotel/resort, 8 other MM: There are three or four national
(commercial, multi-tenant, private club). Some facilities are clustered in New York
players. The biggest in our market
City, Boston, Chicago, Houston, metropolitan New York, and Northern and South-
is the Health Fitness Corporation,
ern California.
of Minneapolis, Minnesota. MediFit
Corporate Services, Inc., based in
• Clients: A wide range of Fortune 100 companies and hotels, including five of the
Florham Park, New Jersey, is second
top 10 U.S. investment banks, two of the largest technology companies in the
in terms of facilities managed. Club
world, and luxury hotels in New York, Chicago, and California.
One, Inc., in San Francisco, is big on
the West Coast. Proactive Partners,
• Number of employees: Approximately 1,500 full- and part-time
part of TCA Holdings, LLC, manages
facilities in Chicago and in the South
and on the East Coast.
• Growth: Plus One was named one of Inc. magazine’s fastest-growing private
companies (Inc. 5000 List) in 2007, 2008, and 2009. —|
32
Club Business International | JANUARY 2010 | www.ihrsa.org
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