Topic:Creating Demand for

Presented by:

Doug Werner

Vice President of Operations

                                                                                                 

Agenda1. Who are your members2. What members want3. What members fear4. Evolution of XPRESSline (Circuit Training)5. XpressLine 8-week study6. What the company wants7. What the staff wants8. Membership sales benefits9. Benefits of XpressLine training10. How to profit from XpressLine11. PT sales benefits12. Effective training with XPRESSline13. Questions

60% of TSI members are over the age of 35 –

Mean age is now 40 and 16% are over the age of 55

Source: “100 Million Members by 2010”, IHRSA and The Fitness Products Council of The Sporting Goods Manufacturing Association.

The “aging baby boomer” market

What members want

Source: “100 Million Members by 2010”, IHRSA and The Fitness Products Council of The Sporting Goods Manufacturing Association.

Source: “100 Million Members by 2010”, IHRSA and The Fitness Products Council of The Sporting Goods Manufacturing Association.

What members want

What members want

What members fear

1. Fear of feeling stupid

2. Fear of being isolated

3. Fear of looking and feeling like a klutz

4. Fear of “physique anxiety”

5. Fear of getting hurt

6. Fear of getting “too big” (female)

Source: “100 Million Members by 2010”, IHRSA and The Fitness Products Council of The Sporting Goods Manufacturing Association.

8-week study

XpressLine only Individualized choice

8 exercises – 1 set 12-15 exercises, multiple sets

22-minutes/workout 60+ minutes/workout

27 new members (66%) 14 new members (34%)

21 completed study 8 completed study

78% adherence 57% adherence

“Strength Training for New Members” – Westcott & Hatten, 2003

Group A Group B

Source: “100 Million Members by 2010”, IHRSA and The Fitness Products Council of The Sporting Goods Manufacturing Association.

What members want

What members want

Source: “100 Million Members by 2010”, IHRSA and The Fitness Products Council of The Sporting Goods Manufacturing Association.

Group A: XpressLine (N=21) Group B: Individualized (N=8)

ParameterParameter BeginningBeginning EndingEnding ChangeChange BeginningBeginning EndingEnding ChangeChange

BODYWEIGHT

BODYWEIGHT 165.0 lbs.165.0 lbs. 165.4 lbs.165.4 lbs. +0.4 lbs.+0.4 lbs. 156.4 lbs.156.4 lbs. 154.5 lbs.154.5 lbs. -1.9 lbs.-1.9 lbs.

23.3 percent

23.3 percent

20.8 percent

20.8 percent

21.3 percent

21.3 percent

19.1 percent

19.1 percent

-2.2 percent

-2.2 percent

38.8 lbs. 38.8 lbs. 34.5 lbs. 34.5 lbs. 34.6 lbs. 34.6 lbs. 30.7 lbs. 30.7 lbs. -3.9 lbs. -3.9 lbs.

126.2 lbs. 126.2 lbs. 130.8 lbs. 130.8 lbs. 121.7 lbs. 121.7 lbs. 123.7 lbs. 123.7 lbs. +2.0 lbs. +2.0 lbs.

Systolic BP

Systolic BP

114.6 mmHg

114.6 mmHg

118.3 mmHg

118.3 mmHg +3.7 mmHg +3.7 mmHg 116.6

mmHg

116.6 mmHg

116.1 mmHg

116.1 mmHg -0.5 mmHg -0.5 mmHg

Diastolic BP

Diastolic BP 74.0 mmHg 74.0 mmHg 77.6 mmHg 77.6 mmHg +3.6 mmHg +3.6 mmHg 73.3 mmHg 73.3 mmHg 75.6 mmHg 75.6 mmHg +2.3 mmHg +2.3 mmHg

- 2.5 %

- 4.3 lbs.

+ 4.6 lbs.

% Fat

Fat Weight

LeanWeight

What the company wants

1. Better member retention as a result of better member service and member results

2. Personal training revenue growth as a result of higher client penetration rates

3. Improved product value as a result of better programs and services (membership sales advantage)

4. Reputation for results oriented programs and services

5. Reputation for staff development and career advancement

Why members quit

Source: “100 Million Members by 2010”, IHRSA and The Fitness Products Council of The Sporting Goods Manufacturing Association.

What the staff wants

1. More opportunities to make more money

2. More opportunities to advance career

3. Pride of workplace

4. Recognition for a job well-done

5. Self-satisfaction of lifestyle influence on members

6. Continuing education

7. Referrals

Membership sales benefits

1. Uncrowded facilities

2. A “beginner” exercise program

3. Time efficient exercise

4. Safe exercise

5. Effective exercise (results)

6. Non-intimidating environment (semi-private)

7. Professional supervision and instruction

8. Professional relationship with staff

60% of all new members want:

Benefits of training

Improved joint flexibility Improved body composition Improved resting metabolism Increased physical capacity Injury prevention Improved bone density Improved cholesterol levels Improved resting blood pressure Reduce pain of arthritis Improved gastrointestinal transit

How to profit from

Avg. presentations/month = 100

Avg. sales/month = 50

Avg. number of lost sales/month = 50

Close 50% of those selling benefits of XpressLine

Equals an extra 25 sales/month

Avg. commission/sale = $50

Equals extra $1,250 in commissions/month

Equals extra $15,000/year

PT sales benefits

1. Uncrowded facilities

2. A “beginner” exercise program

3. Time efficient exercise

4. Safe exercise

5. Effective exercise (results)

6. Non-intimidating environment (semi-private)

7. Professional supervision and instruction

8. Professional relationship with staff

60% of all new members want:

“After nearly two years of exhaustive and diligent consideration of nearly a dozen

strength equipment companies, we chose Nautilus Nitro for our new core fitness

program…Xpress Line, and we’re glad we did!”

Ed Trainor,VP Fitness Operations TSI/New York Sports Clubs