YouSaid · the spoken record

Brett Maloley

lines on the record: 64
first: 2017-10-24
most recent: 2017-10-24
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“I have a very unique view on raising capital, especially from angels. Someone's giving you money that is theirs. They can do anything with it. So I don't necessarily get upset if people don't invest. What does cause people to go on that list is if they won't give me the time or the mindshare to actually consider the opportunity and give me feedback, good or bad. Because even if it's bad feedback, you have the opportunity to correct that and build a relationship. And I think that so much of this is about building a team and building a group of people that you can learn from and communicate with. So I guess the whole process is great. It's very competitive, which I love. I don't know that I could pick one specific thing or”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, it's just like the people that didn't give me at least the time to help, not necessarily with money, right? You try and raise capital and”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Or help, whether that's time or money. That's basically them saying, I don't think you're going to be successful, which, you know, you can get pissed or you can ask them why and try and learn, but I'd be lying if I told you that I don't have a list in the back of my head of people that”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“So that's tough. I honestly just love the process. Like the good stuff and the bad. This part of it and people that I spend a lot of time with often say like, don't forget these times because you'll never have them again, no matter how big the company gets. This will always be probably the most special part of the company. Because right now, ladder is not much more than an extension of my team and myself. One of the things on the fundraising side that I think is interesting is that before you have a product, so now we've gone through a few betas and we've got a few hundred users and we have a team. But at the very beginning, when you're telling people your dream and you're articulating the story, now people will tell you that business isn't personal, but it's so personal. Because if someone doesn't want to invest.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so I think brand is arguably the most important, though most difficult to create aspect of any business. And I think the brand is ultimately how people identify with who you are, what you're doing, and why you're doing it. It's interesting because in the fitness industry as a whole, both commercially and direct to consumer, we see brands market themselves in certain ways through bodybuilders and bikini models and there is so much low hanging fruit people care about their health and wellness or at least how they look. So at times it can be somewhat easy to transact opportunities into the space. And I think the result of that is a shortage of great brands. We definitely, I often say if you look at the health club spectrum with equinox on the far right and planted on the far left, we think we fit nicely in the middle.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Lives better and easier, we can stay the course and continue working with the industry because that's very important to us.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“The real mass of scale for a network effects to come into play, or they're not cool. They don't work like they can. So there isn't a gym or a gym chain that is big enough, in my opinion. With that said, there are a couple that I know are going to try and do it. And I think there's an asset to be created there that can potentially add value to the gym, but not necessarily as much value to the producer and or consumer. Because I always look at Instacart and what they've been able to do with Whole Foods though with the recent Amazon deal. Who knows what happens there? But the product at scale has to get inherently better to both sides of the fence. And I don't know that the gyms have access to enough scale to enable that. So I envision a lot of them trying, but I think if we build the brand that we're trying to build and transparently show these gym owners that we actually exist to make their”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“I think there will eventually be gyms that try and do this. We've already had some conversations where the gym owner says, well, why don't I just do this? My response is always go for it. Platform business models need.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Allowing coaches to work with their existing clients for free and then marketing to the consumer to drive them more clients first on a digital side and potentially on the in-person side as well. And doing that with the acceptance of an ability to work with the commercial fitness industry who has access to not only the majority of the coaches, but also the overwhelming majority of prospective users or consumers as well. So there are some competitors in the space. I believe our biggest competitor hasn't been born yet as a company that we'll see come about down the road, which we're excited for. I think that's something that's inevitable. But yeah, that's how we look at it.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so there's probably 10 different companies that are still in the space, maybe another 10 have entered it and since left. On the nutrition side, there are a couple companies, Vita, is doing a good job. Nume is doing a good job. They're both working with a different producer set. They're working with registered dietitians and nutritionists, photography is doing something similar. They were acquired about a year and a half ago, though they're not making commoditized matches. No one is working with the commercial fitness industry. Trainerize is cool. I like what they're doing. However, their business model is a lot different than ours. They charge the coach. So we don't necessarily think that's as scalable. We don't think coaches are the best salespeople. So if you're tasking coaches with selling the opportunity, we think you're taking them away from their core competency. So as it relates to our model, a lot of”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“We believe we have a unique opportunity to manage that better than most platforms. We can't just go gangbusters on the consumer side from the onset. So we do have a lot to learn at the beginning. We know, we believe we know what data points we should be paying attention to. And we've set up the product in a way that gives us an incredible amount of transparency to those things. But at the beginning, before we can actually take the training wheels off and let platforms do what they do, which is just scale and drive network effects and compound, we need to make sure the product is where it needs to be.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so our direct to consumer audience building strategy from the onset will be mostly through social, but also through a referral engine, given that we are letting our coaches work with their existing clients free of charge, we do believe that will turn into a viral coefficient to some extent. The average personal training or average personal trainer in the U.S. has about 18 clients at any given time, and they're only retaining them for like I mentioned, about 14 weeks. So if you look at a trainer that's been training for 10 years, they likely have access to a pretty significant pool of people. And we're working with them in a lot of different ways to seamlessly bring on not only their existing clients, but also their former clients as well. And then like any delightful product just trying to drive a referral engine through our satisfied users. So we do have to pay attention to the growth relative to consumers and producers.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“So we will have somewhat of a geographic approach in that we're Boston based, so the majority of our boots on the ground marketing initiatives will take place in Boston. And we're also very closely tied to New York. So we'll roll out there secondly. But we also have other parts of the country where we have health club chain partners like Little Rock, Arkansas, which we probably never would have gotten to in the first maybe couple years, but we have a relationship there with a health club chain that services the overwhelming majority of members and trainers in the given market so we can roll out their as well. So it's a combination of rolling out city by city, but also rolling out gym partner by gym partner.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“The audience building is just so important to me, right? I come from a background of buying something for one and selling it for two and not being an engineer or previously not being a technologist. I was always fascinated with people build these products and hope people use them. And that was never how we looked at it. We always knew the product had to be second to none, but we didn't believe that was enough. So the audience building strategy is fairly intricate for us. Working with the health clubs enables us to create a locally based supply and demand. And we know that in platform business models, that's incredibly important. You have the chicken and yank for Uber. If there aren't enough drivers at the beginning, the riders can't get picked up in an Ample amount of time. If there aren't enough riders, the drivers can't make enough money. So a lot of companies subsidize producer compensation at the beginning. We believe we have a very unique opportunity to solve this from the onset by partnering with the gym.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and they also, in most franchise situations, teach you how to run the business. They tell you what you should expect and work with you to actually operate. Whereas in CrossFit, you're buying the right to use the name and you're kind of sent off to your own devices, which in a lot of ways I think has accelerated the early growth because the franchisor, CrossFit, has learned a lot from their successful franchisees. But in doing that, they put a lot of other franchise or licensees in a position where it would have been tough for them to succeed. They probably didn't have the wherewithal to operate a business at that time. And I think that's tough. I've seen a lot of CrossFit box owners that have put a lot of money and effort and time into their businesses. And the passion wasn't enough to create a sustainable business just because they had never been in a situation like that and didn't have the operational expertise that they probably”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“There's really nothing more to it than that. Correct. You don't have to buy anything that they tell you to buy. You don't have to use any products they tell you to use.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“I think if they had gone with a franchise model where the barrier of entry was a little higher and there was some protection relative to territory and there was more structure relative to the operational structure of the businesses, they would have been able to create a brand that was a little more palatable to people. They don't give you a heck of a lot of guidance. You get a certification. You pay a certain amount of money and you get that CrossFit brand and you can put it on.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“That from a health and wellness business standpoint, the name of the game is retention because you have to keep people long enough so that they can see results. And there's a tipping point when people actually start to see physical changes to their body. They start to become addicted. And the question becomes, how can you keep them long enough to get them to a point where they can actually see those”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Buying yourself a job with a heck of a lot more exposure than you'd get if you were to just get a job. And there's a lot of liability there. So I'm not all that bullish on the long-term prospects on the business side. I think at last count there were just over a million and a half CrossFit users or members globally, which if you look at that against the rest of the commercial fitness industry is I think there's about that many gym members in Massachusetts alone. So it's not nearly as big as a lot of people think it is, yet we see the CrossFit games on TV and everyone knows what it is because it is so dynamic and it is so different when you see regular people push themselves to these crazy limits and the shape physically that it gets people in is undeniable. But the thing that I love about CrossFit is that”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Hundred people that were there at the peak, 50 of them became literally obsessed with CrossFit, and three or four of them opened their own box or store and they weren't willing to move to do so. So now all of a sudden, that actual group of 200 people is spread out between five different stores, and it's tough because there's no aftermarket, there's no liquidity or ending for an owner. If you're not willing to put the hours into operate it, there's not a heck of a lot of money to be made. So opening one up, you're kind of just”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so CrossFit is actually like a license model. So if it was a franchise model, I would be a lot more bullish on the long-term sustainability. But one of the issues that I've seen, and at my last company we worked with CrossFit facilities almost exclusively, and we were able to partner with about 25% of them in like a year and a half. So we got really into the weeds of how they run their businesses. And one of the issues that we saw is that the number of boxes or physical locations was growing exponentially faster than the number of CrossFit members. The barrier of entry to open a CrossFit box is very low. So the community is creating a tremendous amount of competition that is not great for any of the individual stores. So you take a CrossFit box in a certain location that was early and got up to a couple hundred members. And of those couple,”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Gems, in which case we're driving what could be an additional $5 per month, which for a health club that's charging twenty dollars per month, that incremental revenue could be incredibly significant. But more importantly, it's creating relationships that make the consumer more likely to buy in-person training. So potentially increasing the club's personal training penetration. And most importantly, it's just creating genuine engagement, which creates a much higher lifetime value member. We know that the average lifetime value of an engaged gym member is just over 60 months, whereas an unengaged member is just under nine months.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“and 200,000 people are data points that at one time they paid to acquire. But they're only monetizing 3,000 of them. So there's a huge opportunity for the gyms there. When you look at the health club business aside from real estate, the only KPIs that actually matter are average dues per month and average dues per member per month. So we know that a health club that charges an average order volume of $20 will likely have an average dues per member per month of around $23 and the majority of that delta comes from the 10% that are buying training because there aren't a heck of a lot of other revenue streams that account for much. We know that retail accounts for roughly 40 to 50 basis points. So the gyms have a very difficult time further monetizing their members above whatever the average dues per month is. Our platform includes a rev share to our partner.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so the relationship with the gyms is something that I paid really close attention to. I didn't believe that any business model even like this could work without the buy-in of the gym. So we were very thoughtful about how we approach the gym owners and how we were able to bring them into the mix. So where we're at now is we're creating partnerships with health clubs and we've partnered with some of the largest health clubs in the country who are giving us explicit access to their trainers, but also working with us to market our solution to their non-training members. So the 90% of their members who aren't working with the trainer, as well as all their former and prospective members. Assuming the industry average of a 50% annual attrition rate, a health club that has 3,000 members at any given time but has been in business for 10 years likely has access to between 170”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Train our experience. There's all these pre existing relationships that through productizing them, we now have access to a tremendous amount of data. And we just want to use it to make all of our existing stakeholders' lives easier and better.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“In a certain way relative to nutrition around mid morning on mid-week days, we can actually drive messaging to the coach that prompts them to drive communication to the consumer. So we're not yet really thinking about data and how it might be important externally, though in the digital coaching space in a variety of different verticals we've seen data plays where Pharmaceutical companies are buying digital coaching companies to drive communication that increases medication compliance, for example. Now, we will likely be put in positions where we have the opportunity to work with some companies like that, but that's not really on our radar. At the beginning, we just want to.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so when I think about data at this point, we have more and more access to it. And the question becomes, what are you going to do with it? Our objective is to use it to enhance the experience for all of our stakeholders, potentially drive more stakeholders into the equation. But we're very focused on the producers at the beginning. We think that health and wellness professionals are very underserved. One of our main core values is working for health and wellness professionals to enable them to better serve more people. So we're doing a lot of stuff with them on the scheduling front, making their lives easier. We're allowing them to work with their clients free of charge, which is great for us because hopefully it gets them in at more. But it also will likely be able to drive incredibly powerful trigger. So if we find out that you're trending,”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Two referring entities and potentially payers as well because we know that a large corporation or a physician group would be a heck of a lot more likely to use our platform as a referring agent if they actually have data and insight into who the coaches are going to be as opposed to just, hey, use this platform and the platform matches with you with a coach. The referring entity, whether it's a gym, a physician group, a corporation, can actually pre-vet the trainers that will be available to the people being referred now that gets really special when we start to talk about different subsets of critical care conditions, for example, when we can actually prove that Cecilia has proven track record of working with people who are at risk of getting type 2 diabetes or who have lupus or digestive discomfort, for example. So that's where, you know, we believe that the data compounds and gets”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“So we're not looking at just a general rating. We think that's a little too vague to really pull out any valuable insights. We are paying very close attention to certain dynamics of the relationship, like response time, like time in app, like a rating of a plan, for example. As we grow, we'll be able to again make better matches. So if we find out that the consumer wants response time of two minutes, we will then be able to match them with a coach who has an average response time of two minutes. Whereas if a consumer is more concerned with the complexity of a workout plan than they are with response time, then we know that and we can do that as well. We think that's super important for just driving utility, the consumer, making it worthwhile for the coach, but also as we get bigger and as the opportunity expands, giving more information.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“For any of our gyms to join the platform, but only if referred from one of our existing coaches. So we're definitely trying to maintain a level of exclusivity for our coaches. And we believe that depending on how much time the coach has, a coach can service roughly 40 to 60 consumers in a given month, again, depending on their schedule and how much time they have, but that's just on average. It should take a coach about 60 minutes to service a consumer in any given month, all of which is undevoted time for the most part. And that will go down exponentially at scale because the coach is able to actually store workouts they're creating. So not all workouts will be built from scratch per se. If I'm training Patrick and I have a new client who has similar wants and needs to Patrick, I might just amend Patrick's plan to work for Tom, for example. So the time it takes to”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Start off just to go over the existing ecosystem a little bit. There are about 350,000 health and wellness professionals in the US. And believe it or not, they're making just $11.57 per hour when you account for the fact that they're working over 11 hours per day. And they have on average about four hours of unused time during the course of any given day. So with that said, we firmly believe that a personal training certification doesn't make a good personal trainer. It definitely doesn't make a good digital coach. We don't yet know what personality traits and types make up a good digital coach. We'll find out. It won't take us that long. But at the beginning, we're getting our coaches from our partnerships with the gym. So gyms that we're partnering with are giving us explicit access to their coaches. We're also enabling non or coaches or trainers that aren't partnered or don't work.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“And that's what's going to drive the accountability So we're constantly trying to find ways to prompt engagement and spark engagement, we like to say, because we think that does the two most important things for us. It makes the process more customized, right? Because the more the coach knows, the more information they have, the more data they have, the more coachable the consumer becomes. So the process becomes more customized, but you're also driving the strength of relationship. the compliance to process likely increases exponentially. So at the beginning, you know, we're really trying to work with our coaches to ask certain questions and we don't necessarily know what all those questions are, but we're paying close attention to which questions are getting better answers. And we believe the sky is the limit relative to how we can offset the human-to-human engagement through different variations of machine learning and AI that make it easier for”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“How the consumer looks at the promise and they might need to reinforce that. So as I think Alex talks about in your podcast a bit, rules and regulations are incredibly important to platform business models. So you think about certain things that at the beginning and from the onset of companies might seem crazy like Twitter's character limit or the fact that you couldn't zoom on Instagram photos early on. But things like that ultimately go on to identify the model and drive the brand. And for us Promise is incredibly important. I believe it's the most important aspect of the overarching promise or process and always will be even when we add other stakeholders potentially and other modicums of coaching such as nutrition and so on and so forth. Driving engagement is everything because that's what's going to accelerate the relationship.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Of a healthy lifestyle. Nutrition, sleeper stress management. From there, we're tracking all the data we can, both through wearables, Apple HealthKit, self-entry, which populates a producer dashboard. And the producer is driving communication, answering questions, giving feedback, encouragement, modifying workout, so on and so forth throughout the course of the month. The process or plan lasts for one month and then it repeats itself. So that's the as basic as I can put it user flow. I believe that one of the most important things that a coach has to do is insert themselves in the decision making pattern before the depletion of willpower reserves. So in the event that you don't live up to a promise, the coach is learning a lot, right? The coach is learning whether the promise was too strict or too hard. The coach is learning”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“The interactions which drastically increases the time it takes for a producer to service a consumer in any given month. Anything that requires undevoted time on behalf of either the consumer or the producer drastically increases the volume relative to time of that relationship. Now that's not to say we won't look at adding those back down the road, but it would likely be an add-on where you're paying more for the time or you're getting face time at the beginning of every month, for example. But back to the user flow, when the engagement is driven, the coach is then building a monthly fitness plan for the consumer and assigning a weekly promise. The promise is designed to drive keystone behavioral changes. So I either will or will not do something for one week actually five days. And that is usually not geared towards exercise, but towards one of the other pillars.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so you'd have the ability to pick between coaches, right? So like you order an Uber, you want to get from point A to point B, you don't necessarily need to know who your coach or who your driver rather is, but probably most famously we've seen what happened with TaskRabbit and their transition from a commoditized platform to a non-commoditized platform. There are a lot of reasons core to our business model and core to the consumer experience that we believe the commoditized feature will be very important for us, not only at the beginning but down the road. Anyway, once the match is made, the engagement is driven from the coach to the consumer purely through an in-app messenger. It took us a while to get there. We started with some variations of other communication vehicles, streaming and call. And what we realized is that they require undevoted time, which drastically increases the logistics behind.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so I guess we'll start with the interaction and then I can speak specifically to the consumer and then the producer. So the way that the product works now is when a consumer or I guess a prospect at that point comes to the platform, they go through an assessment and the assessment should take between 60 and 90 seconds. And it includes a wants-based assessment. So what type of coach the consumer is looking for, old, young, male, female, more of a cheerleader type or more of an analytical type. And then we do our very best to leverage cognitive behavioral therapy geared questionnaire to uncover the needs of the consumer relative to their surpluses and or deficits as it relates to exercise nutrition, sleep, and stress management. We use that information in combination with location to make a commoditized match. So we're using that information to match a consumer with one coach, the coach that we feel is best for them.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, it makes a lot of sense, and it's one of their key drivers from a revenue standpoint, whether or not it's sustainable, who knows. But you find Planet Fitness franchisee that might have 5,000 ellipticals paying the same price for them as the guy on the corner who might have 25 ellipticals”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, I wrote an article when Planet IPO'd, I think it was 43% of their total gross revenue comes from the resale of commercial fitness equipment. So having been in the commercial fitness industry and selling commodity commercial fitness equipment for years, you know, at the beginning, I'm like, why is this stuff purple? This is like really ugly. And what I came to realize is that as a franchisee, you're mandated to buy equipment that falls in line with the franchise or guidelines. In the case of Planet Fitness, it requires you to buy purple equipment. Well, the purple elliptical machine that costs $34.99 is the exact same as the non-purple elliptical that costs $29.99. It just so happens that you're buying it from planets, so planets making $500.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“On Fridays, the getting rid of dumbbells over 55 pounds, but they know who their beach head user is and they market to that user.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“So, you have those people, and then you have the people that literally just, it's not worth their time to cancel at $10 a month or they forget. But it's working. I don't know that it's great for the industry as a whole. For a long time, the industry from an organizational standpoint, the Ursas of the world, were kind of trying to shut out the planets of the world and the lower cost providers. But now they can't. Now the lower cost providers are such a big part of the market where they're approaching being bigger than the rest of the market combined. So we'll see where it goes. I think for a lot of people, Planet Fitness is great. I mean, to the naked eye, it doesn't appear to be much different than most other facilities. The thing that I love about Planet is the somewhat cheesy a lot of people would say branding that they've done. They've done a lot of things over the years that people were like, why would they do that? Yeah, the purple, the pizza.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so we've talked about retroactive narratives in the past. So the retroactive narrative for planet is that they knew more than everyone else and they were able to drive more volume at a price point, understanding an activity with a facility that could still handle all those people. The reality is they had a couple failing facilities and were trying to get as much out of them as they could. And they tried that first 1999 and then $10 a month. And I think what they realized was that, or this is what I think, I don't know that anyone really knows why they work, but they are working and planet is doing great. For most people, the only thing they have in their lives that is working towards a healthier lifestyle is that gym membership. So the question becomes, is it worth more to the member to continue paying the $10 a month than to just give up on their quest for a healthier lifestyle?”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“30 right now. We've seen that decrease massively. When Planet came out with the $10 a month clubs, the ones in the middle, the golds, gyms types that were charging anywhere from $40 to $60 a month had to decide whether they were going to try and add more value and go up or whether they were going to succumb to the competition and go down. Unfortunately, we saw the majority of them go down, and now there's kind of a tier of $10, a tier of $20, and then there's still some of the mid-market regional players that are in that 30 to $50 a month. And then you run into your sport club types with pool and basketball and stuff that is likely closer to 100.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Correct. The average attrition rate relative to the personal trainer-client relationship is right around 13.5 to 14 weeks. And that's on average. We have a huge Spectrum of facilities, right? You have your $9.99, your, they call them high volume, low price, whatever. You can call them whatever you want. But those are the $10 a month clubs that came about as of one of those. Like a Planet Fitness. Planet Fitness is a little different because they don't have personal training in the Northeast, a workout world potentially is probably the biggest one. And then they charge a little bit more for other things, group exercise, childcare gets you up around 20 to 24. 99 per month is the average order volume. And then on the other end of the spectrum, you have the equinoxes of the world that are upwards of $200 a month. The sweet spot is around.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so there's about 35,000 commercial fitness centers in the U.S., but that's only for profit facilities. So that doesn't include YMCAs, JCCs, college rec centers, community centers, which we don't really know how many of those there are. Best estimates are there's probably around 55,000 facilities that a human being would say is a gym. Of those facilities, they average about 2,500 members, and roughly 10% of those people work with a coach. They pay about $68 per session in train about $1.22 times per week. The average attrition rate is right around 50%. The average for the job.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“So there have been variations of gyms around since Roman times, but gyms as we know them came about in the For all intents and purposes, he kind of invented it, right? Or he was one, there are other people doing similar stuff at the same time, but he actually created the first type of curriculum. And guys like Aggie Niedo, who started Life Fitness, my dad bought one of the first ever life cycles. And he tells the story of buying it and not being able to pay for it in full. So Agi left the machine but took the battery with him. And then when my dad sent the rest of the money out to Irvine, he sent the battery back and Life Fitness went on or life cycle went on to be life fitness, which is a subsidiary of Brunswick multi-billion dollar company. So it's all I know.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“And actually, make it less expensive to be healthier, which I believe will happen. With that said, there isn't a health club chain or even group of health club chains large enough to provide enough data or enough access to users or members to really drive any dynamic paradigm shift at any level of scale unless you can actually create an entity that works in lockstep with the commercial fitness industry. So core to our model was finding a way to serve the commercial fitness industry and help them in the interim, but also help them potentially down the road and really allow these guys that put guys and gals that put their blood, sweat, and tears into building an industry that is so special. It's such a small community. You know, we have our few trade shows every year and everyone knows each other and it's a very tight-knit group. And, you know, we think about health clubs.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“To create what could be the most dynamic and impactful platform business model that we've seen. And I think the commercial fitness industry for a long time has been ignored for the most part by technology and furthermore finance because it's a very asset-like space. And it's very fluid and there are a lot of ups and downs, but it's still here and it's getting bigger and it's massive. The fact that people go to these facilities multiple times a week and actually spend time at them is very special. I just don't know that anyone's ever been able to create an entity that brought them together. So there isn't a, or if you look at the golden goose for the industry is healthcare subsidies. We know that one of the best ways to get more than 16.5% of people to belonging to a gym or more than 22.5% of the population to be active is to have it affect their wallet.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Or Airbnb has their host producers, guest consumers. Again, we have our coaches, producers, people who need or want to be healthier consumers. The one thing that I think is a little bit different about what we're doing is I actually believe that in executing this model that provides a better widget essentially, we also are expanding the amount of people that can access health and wellness. With what we're doing, I think that the hybrid of digital in person is a far better solution for people. But I also think that it opens up the door to get more people into it. So I don't know if we're going back to reasoning by analogy, if there's actually a platform that has had the ability to do that. Maybe Airbnb has to some extent, I think, maybe more families are taking vacations. And obviously that's one of the most special companies that exists. So I think that we have every opportunity.”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source
“Which is mind boggling. And with that said, the industry really relies on that inactivity, which is good for now, but it's not necessarily sustainable. And as more competition comes about, there are more things available to consumers. I just don't believe that you can rely on a model that lacks utility. So we set out to change that, and we thought the best way to do that would be through a true platform business model where we're literally just productizing the existing ecosystem, connecting coaches, our producers with people who need or want to be healthier, our consumers, in a way that removes the logistical inefficiencies that currently exist and in a way that reduces the barrier of entry to the consumer and in a way that monetizes unused time to the producer. Big picture, just like Uber has their drivers, producers, riders, consumers,”
2017-10-24 · Invest Like the Best · Brett Maloley - Ladder: The Fitness Marketplace - [Invest Like the Best, EP.60] · IDENTIFIED FROM THE TRANSCRIPT · source