| IHRSA Report | Member News Value Proposition Octane Fitness
The founders’ passion for cardio products and singular, uncompromising focus on elliptical trainers has kept this company growing
At the time, the two realized that they shared a passion for developing original, breakthrough, low-impact cardiovascular products. It was an ambition, they finally decided, that could best be realized if they teamed up to launch their own enterprise. Today, according to Lee, Octane
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Fitness, based in Brooklyn Park, Minne- sota, has a single mantra: “A focused approach forces a company to dig deeper into what they’re focused on.” It’s a principle that’s proven appealing,
practical, and profitable. Since the company introduced its first
product, a standing elliptical machine, in November 2000, it’s sold a total of more than 120,000 units, and created
n 2001, Dennis Lee and Tim Porth, the cofounders of Octane Fitness, LLC, were working at Life Fitness in, respectively, sales and product-development capacities.
this year, we’ve seen 28% growth in our commercial business and 70% in our international business.”
Unwavering focus, fresh ideas In discussing the history, game plan, present fortunes, and future prospects of Octane Fitness, Lee uses the word “focus” frequently. “We’re the only com- pany that has focused exclusively on ellipticals—that’s a very specific business strategy: a strong emphasis on low- impact cardio products,” he explains. “And what we produce reflects that. Because it’s all that we do, we can dig a little deeper with respect to features and functions. As a result, we’ve been able to do things that haven’t been done before, such as providing converging arms for the upper body on ellipticals.” That singular obsession has facili-
What’s New at Octane Fitness: 4700 Standing Elliptical
The 4700 features Octane Fitness’ proprietary SmartStride technology; Converging Path handlebars, which mimic natural movement and expand range of motion; and patented MultiGrip handlebars, which offer extra comfort, greater variety, and greater muscle involvement. Other features that enhance convenience and comfort include fingertip controls on the moving handlebars, soft-grip pedals, and a personal fan. The 4700 also introduces several new workouts.
tated spectacular growth for the company in the club channel over the past five years. Octane Fitness has cultivated core partnerships with such brands as Equinox, Snap Fitness, and Life Time Fitness, to name just a few. “But,” Lee points out, “we still have a lot of runway left.” To help it extend its
reach, Octane Fitness recently introduced the xR6000 xRide, a
an annual revenue stream exceeding $40 million. It currently has 45 employ- ees in the U.S., an office in the U.K., and an international subsidiary in the Neth- erlands. And it’s still going and growing. “In fact,” notes Lee, “through June of
108 Club Business Internat ional | OCTOBER 2010 |
new seated elliptical machine. “With this new line, we’re able to tap into a new group of customers who need a great workout, but may not want to, or be able to, stand for 20-30 minutes,” explains Lee. “The seated elliptical
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Founders Tim Porth, l., Dennis Lee
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“IN OUR BUSINESS, YOU’RE ONLY AS GOOD AS YOUR LATEST NEW PRODUCTS. WE’VE CONSTANTLY FOCUSED ON THE EQUIPMENT ATTRIBUTES THAT PEOPLE WANT AND ON PRODUC- ING PRODUCTS THAT MEET THEIR NEEDS—THAT’S WHAT’S HELPED US TO CONTINUE TO THRIVE.”
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