| CBI Interview | Tom W. Behan, Sr.
Owns and operates two independent clubs in one of the hardest-hit regions of the country and has managed to increase their profitability
By Patricia Amend
CBI: First of all: how and when did you happen to get involved in this business? TOM BEHAN: I’ve been active all of my life. Prior to opening two health clubs, I’d operated my family’s interior design business, while ski racing, running half-marathons, and teaching martial arts. My wife and children are also very active. So, when a small, shuttered club, built in 1974, came up for sale, we were interested. We bought it in March 2006, and, after redesigning, reconstructing, and expanding the entire building, we reopened it as Bay Tennis & Fitness, a 60,000-square-foot club with five indoor tennis courts, the following November. We built our second club, Petoskey Health & Fitness, a 10,000-square-foot fitness-only facility, in November 2007.
CBI: You mentioned that your entire family is physically active—what sorts of things do they do?
TB: I’m 60 years old, and I’ve always believed in cross-training. Downhill ski racing was my sport for 45 years; now it’s cycling and mountain biking. In the off-season, I do my cycling indoors and focus on sport-specific strength training. My wife, Mary Jo, works with a trainer frequently; my 33-year-old daughter, Julie, and her husband, Chandler, cross-train regularly; and my son, Tom, who’s 34, is an ultra-fit competitive cyclist.
CBI: What are your two clubs best known for in your market?
TB: While there are several small gyms in this area, none of them have the experienced tennis pros, fitness instructors, and personal trainers; or the classes, clinics, tourna- ments, yoga and Pilates programs; or the high-quality customer service that we offer. We also provide free orientations for our tennis, fitness, and class activities, which drive business in all of our departments.
CBI: Are any of the other members of your family involved in the business?
TB: Mary Jo and I own the business, but our children aren’t involved on a day-to-day basis. Whenever I confront a challenge or face a difficulty, I turn to her first because she knows me best. Then, I turn to my business associates. However, we often talk strategy with the kids, and they’re constantly helping us to tweak or change our programs.
CBI: Membership pricing can be a critical factor for independent clubs. What’s your approach to initiation fees and monthly dues?
TB: We don’t charge any initiation fee. Our top sellers are our one-year fitness, tennis, and tennis-and-fitness combo memberships, which begin at $69, $59, and $76 per month, respectively. We also offer shorter-term memberships at a higher rate. Our rate structure is unique in that family members can choose either tennis or fitness, and specify the number of months, all under the family-rate structure. Some classes
Highlights » Walking the talk » Strategic pricing » Membership options » Industry outlook
A native of Petoskey and Harbor Springs, Michigan, Tom Behan, 60, has been athletic most of his life. He’s participated in competitive ski racing, the martial arts, half- marathons, and amateur bike racing to keep fit. A natural salesman and talented math- ematician, he began selling products on commission while in high school, and was mentored by several entre- preneurs that he met. In 1985, he expanded his family’s interior-design business, which he still operates. In 2006, he and his wife, Mary Jo, purchased, renovated, and expanded a local club in Harbor Springs, and reopened it as the 60,000-square-foot Bay Tennis & Fitness in 2006. They launched the 10,000-square-foot fitness- only Petoskey Health & Fitness nearby in 2007. The Behans and their children work out regularly at Bay Tennis & Fitness. —|
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