2014 Powerhouse Business Journal by Powerhouse Gym

POWERHOUSE BUSINESS

2014

JOURNAL

FUNCTIONAL TRAINING A NEW LEGEND IS BORN

BODIES AGAINST BULLYING

ANTI-BULLYING CAMPAIGN

LEGENDS ARE BUILT AT THE EAST COAST MECCA

IMPLEMENTING SYSTEMS FOR EXPLOSIVE GROWTH

BUSINESS DEVELOPMENT FOR PERSONAL TRAINERS

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taBleOFCONTENTS

2014 Powerhouse Business Journal

Bodies Against Bullying Fundraiser ..........................18 Pro-Shop Powerhouse ....................................................30 Donâ&#x20AC;&#x2122;t Let Your Club Become Exstinct......................34 Implementing Systems For Explosive Growth .........38 Personal Training For Profit ...................................42

POWERHOUSE BUSINESS JOURNAL 2014

The East Coast Mecca ................................................48 2013 Powerhouse Owners Convention ....................64 The Powerhouse Olympia Experiance.........................66 Cover story: Powerhouse FX .............................69

est. 1975

Co-Founder: William Dabish Co-Founder: Norman Dabish CEO: Henry Dabish

Powerhouse Business Journal is a publication that is dedicated to the owners, and staff members of all Powerhouse Gym locations. Powerhouse Business Journal PRODUCTION Published By: Sesi Design Group Creative Director: Joseph G. Sesi Graphic Designer: Jeff Robinson Editor-in-cheif: John Lepak Managing EDITOR: Jeff Robinson

Locations ……………………………………………….4 Preferred Vendors ………………………………..6 Dabish Report ………………………………………8

Copyright 2014, All Rights Reserved, Powerhouse Business Journal. Reproduction in part of whole is prohibited without the express written permission of the publisher. Opinions expressed herein are the views of authors. We recommend those starting an exercise or sports regimen do so under the supervision of a medical professional. Powerhouse Business Journal welcomes submissions: By submitting material to us, you warrant that use of the submitted manuscripts, photos or drawings by us will not infringe the copyrights of any third party and that the material may be published in print or online without any further permission. For more information email preferredvendor@powerhousegym.com.

Partner with Powerhouse: Powerhouse Gyms International offers a variety of options to best fit your business model and budget to reach our network of owners, staff and members. For more information email preferredvendor@PowerhouseGym.com

International News ……………..……………….13 PHG News …………………………………………….16 PHG Community………..………………………….18 Tech ………………………………………………………21 Les Mills ………………………………………………26 Pro-Shop …………………………………………….30

POWERHOUSE GYMS INTERNATIONAL 44125 W. 12 Mile Rd suite-118 novi, mi 48377 PHONE (248) 476-2888 Fax (248) 530-9816 info@powerhousegym.com www.powerhousegym.com

Marketing …………………………………………….34 Gym Upkeep ……………………………………….60

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locAtions INTeRNaTIONaL LOCaTIONs

aUsTRaLIa Queensland

BahRIaN Manama

BaNGLaDesh Bangladesh

BhUTaN Bhutan

BRITIsh wesT INDIes Grand Caymen Islands, BWI Grand Cayman Islands, BWI Express #1 Grand Cayman Islands, BWI Express #2

ChILe

POWERHOUSE BUSINESS JOURNAL 2014

Barnechea Concepcion El Bosque Norte Huechuraba La Dehesa Mall Plaza Norte Mall Plaza Vespucio Penalolen Club Rancagua Santiago Vitacura

ChINa

Beijing Changzhou, Jiangsu Province Chengde, Hebei Province

Chengdu, Sichuan Province Chongqing, China Cixi, Zhejiang Province Dalian, Liaoning Province Fuzhou, Fujian Province Hangzhou, Lvzhou, Zhejiang Province Hangzhou, Shuian, Zhejiang Province Kunming, Yunnan Province Ningbo, Zhejiang Province Pingxiang, Jiangxi Province Puâ&#x20AC;&#x2122;er, Yunnan Province Tianjin, China Olympic Center Tianjin, Gold Medal Tianjin, Hedong Tianjin, Hospital Tianjin, Teda City Tianjin, Teda Shanghai Shenzhen, Fujian Province Suzhou, Xinghai, Jiangsu Suzhou, Jinshi, Jiangsu Suzhou, Jiangsu Xiamen, Fujian Province Xian, Shanxi Province Xiangfan, Hubei Province Zibo, Shandong Province

eGYPT Cairo

eUROPe Lier, Belgium

GeRMaNY Pforzheim Stuttgart Wedel

INDIa

Bombay Central, Mumbai Borivali, Mumbai

Lower Parel, Mumbai Juhu, Mumbai Santacruz (West), Mumbai Vashi, Mumbai Vile Parle (East), Mumbai

MaLDIVes Maldives

MaURITIUs Mauritius

NePaL Nepal

PUeRTO RICO Guaynabo, San Juan

QaTaR Doha

UNITeD aRaB eMeRITes Dubai

RUssIa FeDeRaTION Ekaterinburg, Urals (Hohryakova Str.) Ekaterinburg, Urals (Serafimy Str.)

sRI LaNKa Sri Lanka

ThaILaND Chiang Mai

UNITeD KINGDOM Hyde, Cheshire

sT. CROIX, U.s. VIRGIN IsLaNDs Christiansted

Usa LOCaTIONs

JACKSONVILLE (ORANGE

BROWNSTOWN

MARLBORO

PARK)

CLARKSTON

PLAINSBORO

JACKSONVILLE (PARENTAL

CLINTON TWP

SOUTH HACKENSACK

HOME RD)

DEARBORN

New YORK

JACKSONVILLE (SAN

DETROIT GRAND RIVER

BAYSIDE

aLaBaMa

JOSE)

EAST LANSING

BRONX

ALBERTVILLE

JACKSONVILLE (ST. JOHNS

FENTON

CENTER MORICHES

HUNTSVILLE

BLU! )

FLINT

CORONA

CaLIFORNIa

JACKSONVILLE (WEST-

FRASIER

EAST SETAUKET

BURBANK

SIDE)

GAYLORD

MILLER PLACE

CHATSWORTH

WEST PALM BEACH

GRAND HAVEN

ROCHESTER

LANCASTER

PENSACOLA

HIGHLAND PARK

SYOSSET

PLACERVILLE

TAMPA

JACKSON

UTICA

OXNARD

TAMPA DOWNTOWN

LAKE ORION

YONKERS

REDWOOD CITY

GeORGIa

LINCOLN PARK

OhIO

SAN JACINTO

BRUNSWICK

MADISON HEIGHTS

BEREA

SANTA ROSA

WAYCROSS

MACOMB

CANTON

TORRANCE

hawaII

MILFORD

ELYRIA

YUCAIPA

AIEA

NOVI

NORTH OLMSTEAD

CONNeCTICUT

MAUI

OWOSSO

TOLEDO

NEW HAVEN

INDIaNa

SALINE

PeNNsYLVaNIa

DeLawaRe

KOKOMO

SOUTH LYON

PHILADELPHIA

SEAFORD

KeNTUCKY

SOUTHFIELD

sOUTh CaROLINa

FLORIDa

LONDON

ST. CLAIR SHORES

GREENVILLE

GAINESVILLE

LOUISVILLE

TROY

HILTON HEAD

JACKSONVILLE (ATLANTIC

MaRYLaND

WEST BLOOMFIELD

TeNNessee

BEACH)

CAMBRIDGE

YPSILANTI

COLUMBIA

JACKSONVILLE

HANOVER

MIssOURI

DICKSON

(BAYMEADOWS)

OCEAN CITY

JOPLIN

TeXas

JACKSONVILLE (BEACHES)

SALISBURY

NeVaDa

LAKE JACKSON

JACKSONVILLE (MANDA-

MassaChUseTTs

ELKO

PORT NECHES

RIN)

PLYMOUTH

New JeRseY

WITCHITA FALLS

JACKSONVILLE (MERRILL

WEBSTER

BLOOMFIELD

VIRGINIa

ROAD)

MIChIGaN

HAMILTON

SHENANDOAH

JACKSONVILLE (NORTH

ADRIAN

HILLSBOROUGH

WOODBRIDGE

SIDE)

BIRMINGHAM

LINDEN

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PreFerred vendors

Powerhouse GyM PreFerred vendors As a Powerhouse Gym Owner you get buying power! Powerhouse Gyms International has negotiated exclusive discounts and pricing structures with the leading companies in the industry…our Preferred Vendors. The following are companies that have gone through a stringent product approval process and have been invited to participate as Preferred Vendors and recommended suppliers for Powerhouse Gyms. Each company is committed to providing top quality products, superior customer service and special Powerhouse-only pricing. It is to your benefit to allow all Preferred Vendors a presentation opportunity in order to obtain a complete understanding of what the industry has to offer. 1.

You get a great price (savings from 10 to 25% on equipment and prices below wholesale list on various supplements) with fast, eﬃcient delivery. This alone can cover the cost of your first few years of license fees.

You get service. Tell them that you are a Powerhouse Gym Owner and they will know how to take care of you If there is ever a problem you know the manufacturer will get it taken care of fast because there is strength in numbers and as a Powerhouse Gym Owner, you are part of that strength.

You get quality. Since Powerhouse Gyms are known for being state-of-the-art training facilities, we are very particular about the equipment and products that are included in our gyms.

Powerhouse GyMs international weBsite, eMail: newsletter & soCial Media Powerhouse Gym website and email: Sam Sheild Phone: 248-476-2888 phgemail@powerhousegym.com

office depot Mark Bratto Phone: 586-746-7691 Email: Mark.Bratto@officedepot.com

Powerhouse GyM sPortswear, MerChandisinG and ProMotional iteMs

sesi design Group Joseph Sesi Phone: 248-594-7800 Email: joe@sesideisgn.com

weiGht and CardiovasCular traininG eQuiPMent

POWERHOUSE BUSINESS JOURNAL 2014

exterior & interior siGnaGe and BrandinG

Powerhouse Gym social Media Jeff Robinson Phone: 248-476-2888 socialmedia@powerhousegym.com

Powerhouse Gym licensed apparel Krystal Dabish Phone: 248-530-3623 Email: krystal@powerhousegym.com

uMax strength Steve Gelbond Phone: 916-276-1840 Email: sgelbond@umaxstrength.com

Free Motion Fitness Ryan Anderson Phone: 866-290-7770 Email: ryan.anderson@freemotionfitness.com Precor Ray Quivey Phone: 317-691-4446 Email: Quivey@precor.com life Fitness/hammer strength David Young Phone: 800-543-3880 Email: david.young@lifefitness.com Matrix Fitness Andy Richters Phone: 949-212-3322 Email: andy.richters@matrixfitness.com

insuranCe american specialty health Phone: 619-557-2235 korotkin insurance Group Matt Warsh Phone: 248-352-5140 Email: mattw@korotkin.com Janitorial, CleaninG & MaintenanCe Cintas Lisa Luttrell Phone: 513-701-2011 Email: luttrellL@cintas.com Jani-king Elena Williams Phone: 972-991-0900 Email: powerhouse@janiking.com

GyM ManaGeMent soFtware, BillinG, ColleCtions & MerChant serviCes aBC Financial Nikki Layke Phone: 508-889-9845 Email: Nikki.Layke@abcfinancial.com twin oaks software Carole Oat Phone: 860-829-6000 x 281 Email: coat@tosd.com Cash Flow Generators Adam Shapiro Phone: 646-755-3375 Email: adam@cfg123.net nutritional ProduCts & suPPleMents europa Justin Weeks Phone: 800-447-4795 Email: justinweeks@europasports.com sPorts drinks & Cooler drinks europa Justin Weeks Phone: 800-447-4795 Email: justinweeks@europasports.com Pepsi-Cola Company/aquaﬁna Melissa Hernandez Phone: 248-914-0733 Email: Melissa.Hernandez@pepsico.com Personal eleCtroniCs l2 electronics headphone Michael Paladino Phone: 516-567-6453 Email: mikey@l2electronics.com

External Marketing & Advertising; Direct Mail / Email: Valassis Thomas Storch Phone: 734-957-0336 Email: storcht@valassis.com Constant Contact Elliot Grossman Phone: 781-482-7090 Email: egrossman@constantcontact.com Muscle Up Marketing David Vail Phone: 770-837-9628 Email: david@muscleupmarketing.com Internal Marketing Promotions & Advertising ClubCom/Powerhouse TV Kelly Truman Phone: 1-866-CLUB-ADS Email: kellytruman@clubcom.com TAC On Hold Systems Vince Koegle Phone: 800-613-3197 Email: vince@taconhold.com Textmunications Nick Miniello Phone: 925-777-2111 Email: nick@textmunications.com Juice Bar City Blends Stephanie Suddarth Phone: 877-525-3637 x 201 Email: Stephanie@cityblends.com Group Exercise and Training ACcesories Biospace Daniel Park Phone: 323-932-6503 Email: daniel@biospaceamerica.com Les Mills International Julie Riker Phone: 949-349-9168 Email: julie@lesmills.com Polar Electro Inc Jesse Harper Phone: 800-841-8333 Email: jesse.harper@polarusa.com SPRI Jonna Pento Phone: 847-224-7364 Email: jonna.pento@spri.com Wellness Mats Katie Burlge Phone: 248-740-0713 Email: katie@wellnessmats.com

Office Supplies / Print and Documents

Supplement vendors

Office Depot Theresa Samonie Phone: 248-277-4055 Email: Theresa.samonie@officedepot.com

Cytosport Brook Claibourne Phone: 707-751-3942 Email: brook.claibourne@cytosport.com

Payroll Processing & Human Resources

Cellucor Justin Roberts Phone: 979-450-4702 Email: jroberts@cellucor.com

ADP Brenda Baldner Phone: 313-845-6999 Email: Brenda_Baldner@adp.com Audio / Visual Supreme Audio, Inc. Bill Hymen Phone: 800-445-7398 Email: bill@supremeaudio.com Flooring Centaur John Donati Phone: 800-536-9007 Email: john@centaurfloors.com Thor Performance Products Albert Mandell Phone: 800-348-5815 Email: albert@thorpp.com Architecture / Designs Hubert Fixtures Betsy Henkel Phone: 800-543-7374 Email: bhenkel@hubert.com Optimal Design Systems International Bruce Carter Phone: 954-385-9963 Email: bruce@optimaldsi.com Education/Information Club Industry Mark Betz Phone: 203-358-3713 Web: www.clubindustryshow.com IHRSA Merideth Poppler Phone: 800-228-4772 Web:: www.ihrsa.org

Gamma Labs Cliff Morgan Phone: 631-755-1080 Email: cliff@gammalabs.net ABB / Optimum Nutrition Jon Mckillop Phone: 630-740-2268 Email: jmckillop@optimumnutrition.com VPX Dave Wisdom Phone: 954-641-0570 x297 Email: Dave.Wisdom@vpxsports.com Gaspari Tom Hoops Phone: 732-364-3777 x17 Email: Thoops@gasparinutrition.com GAT Chris Evangelista Phone: 631-804-2409 Email: Chris@teamgat.com ONNIT Courtney East Phone: 512-501-6325 Email: Courtney@onnit.com Tanning International Tanning Equipment - HEX Linda Bommarito Phone: 989-792-6119 Email: Info@itehex.com Member feedback Listen360 Mindy Golde Phone: 678-352-3023 Email: mindy.golde@listen360.com

National Academy of Sports Medicine(NASM) Angelique Collins Phone: 800-460-6276 Email: angelique@nasm.org Meal management systems Six Pack Bags Geoffrey Clausen Phone: 888-240-7009 x2 Email: gclausen@sixpackbags.com

Powerplate Tony Swain Phone: 949-491-8532 Email: tony.swain@powerplate.com

If you have any questions regarding the Preferred Vendor Program, please contact (248) 476-2888 ext. 114. To reach by email, preferredvendor@powerhousegym.com.

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daBishREPORT

recent study by fitness industry advocate IHRSA, has shown that the fitness industry has been rated the fi fth fastest growing franchising trend in 2013. In fact, health club memberships have grown by an average 4.6% annually in the past decade and continues to outpace overall franchising among the 1,500 franchise systems in the United States. Powerhouse Gym has been helping entrepreneurs achieve success for over 39 years and we continue to be one of the most recognized names in this explosive 15.9 billion dollar industry. One of the primary benefits of being associated with the Powerhouse Gym brand, is the ability to network with your fellow Powerhouse Gym owners, as well as with our corporate office. I believe the key to success is establishing and maintaining relationships, while effectively networking with all people within the brand. As owners and employees, we have the opportunity and resources to significantly impact the lives of our members. We assist them in creating balanced, healthy lifestyles by actively nurturing the body from the inside out. It is essential that we set a good example for those who are inspired to better themselves and their lives. Our mission is to educate our customers by utilizing what we already know and exploring different avenues in which we can help them achieve those individual goals. Our Annual Powerhouse Gym Owners’ Convention is a great opportunity for owners and affi liates to meet with existing licensees as well as prospective gym owners. Last year, over 150 Powerhouse Gyms were represented from Cairo, Egypt to Redwood City, California. Many of the workshops were conducted by veteran Powerhouse Gym owners, which created opportunities for new licensees to learn from individuals who actually operate facilities, instead of consultants who typically do not. This past year we introduced our latest concept, Powerhouse FX. Powerhouse FX is a functional exercise studio designed to compliment a traditional Powerhouse Gym and/or be a self standing business model. The trend towards semi-private group training and functional exercise has really launched our new concept, and we look forward to developing additional locations within our network. According to business experts, the success rate of an internationally recognized trade name can be many times that of an independent, non-licensed or nonfranchised business. As a Powerhouse Gym, you can capitalize on the success of an established name that is known, recognized, and respected throughout the fitness industry, while enjoying the pride and privileges that come from owning your own business. It is one of the best methods of combining the independence and initiative of individual ownership with the strength, leadership, and experience of an organized group, dramatically increasing your opportunity for success. The majority of Powerhouse Gym’s growth is due to our licensees, many of which have been electing to move their existing membership base to a larger facility in order to detour competition and to service a broader demographic. In 2013 alone, over 20 Powerhouse Gyms each over 30,000 square feet in size, opened throughout the world. Powerhouse Gym recently opened in Dubai, UAE and Cairo, Egypt. The importance of these facilities is not of their size, but the global attention that Powerhouse Gym will generate in these new regions. Many of these new markets lead to increased marketing and brand awareness. The long lasting relationship between the Weider and Dabish families has always led to benefits to our organization. The AMI subscription program allows Powerhouse Gym owners to offer their members 12 issues of their favorite fitness magazine for only $8, which leads to increased retention of our gym members. The monthly articles in Flex Magazine, Shape Magazine, and Muscle & Fitness will continue to be present in addition to social media outreach collaborations. We are excited to continue working closely with the team at Muscle & Fitness and Flex magazines and are excited to be able to bring national advertising back to Powerhouse Gym. Other opportunities designed to bring additional foot traffic to our facilities include: A Powerhouse Gym Model search, with the winner receiving coverage in Muscle & Fitness, co-branding with many of M&F advertisers and making the subscriber lists for M&F, Flex, Shape, and Men’s Fitness magazines available to Powerhouse Gym owners. Also in the works is a “Change Your Body, Change Your Life” body transformation challenge that will take place throughout our Powerhouse Gym organization.

POWERHOUSE BUSINESS JOURNAL 2014

This year, we continue to be committed to exploring ways in which we can better serve our customers, partners, and employees. We are excited and anxious to see what the New Year will bring. Our mission is to educate, encourage, and empower people by delivering something different, something extraordinary. I personally challenge all of you to go beyond the conventional by giving your best effort. Finally, I would like to welcome our new Powerhouse Gym owners and Preferred Vendors to the Powerhouse Gym family, and wish continued success to our existing locations. I encourage all of you to keep pursing our vision and accept my gratitude for your continued support and steady growth. We are truly becoming a global Powerhouse. It is essential to remember that our hard work and dedication is truly a worthy endeavor. Warmest Regards, Henry W. Dabish CEO Powerhouse Gyms International 248-476-2888 x 108 Henry@Powerhousegym.com

show your MeMBers how BiG our FaMily is!

Order the PHG Location Poster and Travel Member Cards Today. print@powerhousegym.com

TRAVEL MEMB

TO: T YOU LOG ON TION NEARES M O FOR THE LOCA C . M Y EG

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RHOUS

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of the ROCITY AGREEMEN ce of a current, non-ex who resides outside to MEMBERSHIP RECIP card or other eviden . Licensee also agrees of a Powerhouse Gym® of a valid membership days, to any member same state as the Facility Upon presentation who resides within the to seven (7) consecutive panying guests. on privileges, for up a Powerhouse Gym® as well as to any accom complimentary visitati ee fee to any member of Licens daily of nted nel discou a 50% corporate person is located and extend of any duration, to all es, privileg on visitati permit complimentary All rights reserved. Gyms International. © 2011 Powerhouse

www.korotkin.com

We’re here to spot you. At Korotkin Insurance Group, we have been servicing the needs of our customers since 1913. With over 100 years of experience, it’s no wonder we have become the exclusive insurance vendor and trusted agent for Powerhouse Gyms International. As specialists in the health and fitness industry, we have access to the very best insurance programs strictly built to cover the needs of gym owners across the country.

Our staff of fifty will provide unmatched customer service in a way that is automated and virtually paperless. Our in-house claims department also sets us apart from our competitors by working handson as your liaison during a moment of crisis. We provide loss control services that include sample waivers, incident reporting materials and safety guides for every gym owner. We offer a full package policy for your club which includes workers’ compensation and professional liability to cover your personal trainers and group exercise instructors. Call today, and let us do the heavy lifting on all your insurance needs. PREFERRED INSURANCE VENDOR OF

Matt Warsh, CLCS (248) 350-5838 | mattw@korotkin.com

By Matt Warsh

I had the distinct honor of sharing some insurance wisdom at the Powerhouse Owners Convention in Las Vegas last September and felt the need to follow up with further information on your favorite topic. When it comes to running your health club or fitness center, at Korotkin Insurance Group, we know how much time you love spending on your insurance each year! All joking aside, it’s a subject that must be taken seriously and thoroughly understood by each individual gym owner. If handled properly and placed with the right company, you could wind up saving yourselves not only thousands of premium dollars but maybe even your business in the event of a large claim. Having the proper coverage in place and working with an agent that understands the particular risks that gym owner’s face is extremely vital towards the protection of your facility. Since insurance is not a tangible product, I realize it’s sometimes hard to justify the premium dollars for your current policy. Believe me, when it comes time to turn in that claim, you will be glad that you paid extra attention to the details and purchased great coverage. In my experience, most people don't know the true value of their insurance policy until they have that first claim. It’s my job to help you realize what you are buying before a claim ever occurs. In today’s ever-changing world, it’s important to understand some of the risks that gym owners are extremely vulnerable to. Not only is it inexpensive to include some of the following coverage’s but you must also know that in most cases, this coverage is specifically excluded from the standard commercial insurance policy: 1. “EPLI”, which stands for Employment Practices Liability Insurance, is a coverage that protects you as the “employer” from lawsuits brought by disgruntled or ex-employees. This covers you for lawsuits alleging harassment, discrimination, and wrongful termination. More and more employees are suing their bosses or corporations for these types of allegations. The premium is based on the number of employees and is absolutely worth the added cost.

iMPortantINFORMATION

Protecting Your Gym

2. “Hired and Non-Owned Auto” coverage is the second recommendation. Since the majority of you do not own vehicles in the business name…that means that you and your employees are using your personal vehicles to do company runs, which is perfectly normal. And, the good news is that your personal auto insurance policy will cover you personally from any auto related accident, but the bad news is it will not cover your business entity. If you get into an accident and injure somebody while handling a business matter, whether it’s to the bank or to see a vendor, a good attorney will find out and not only sue you personally, but your business as well. It’s a must-have coverage and if you look at your current policies, some of you are surely missing it. Cost for this coverage typically runs between $100 and $300 for the whole year! It’s a total no-brainer. 3. “Umbrella” is the final coverage topic. Some of you may know what this is or have it on your policy already, but in today’s world, when somebody gets seriously injured on your premises, medical bills and pain & suffering lawsuits can add up to enormous amounts. Sometimes more than the liability limit on your policy which is typically $1million dollars. An umbrella policy covers you for an extra $1million over top of your current policy bringing you to a total of $2million in liability coverage. It’s important for any gym owner with tanning beds, saunas, steam rooms, pools, or anything else that exposes you to increased amounts of liability. Typical cost for a $1million umbrella policy is about $1,000 per year. Umbrella policies are available in million dollar increments all the way up to $10million or sometimes more. At Korotkin insurance Group, we take special pride in our customer service and ability to advise you as a business owner on your insurance needs. Our agency turned 100 years old in 2013 and we are specialists in the fitness industry. We insure more Powerhouse Gyms than any other agency in the world. We understand your needs, we understand the specialized coverage’s, and most importantly we understand the insurance marketplace for your industry.

Matt H. Warsh, Korotkin Insurance Group, is the preferred insurance vendor for Powerhouse Gyms International. He can be reached directly at 248-350-5838 or mattw@korotkin.com.

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A beautifully designed, high end facility with top of the line strength and cardio equipment made by Life Fitness. Complete with every amenity a gym owner could want; massage room, pool, group fitness studios and a beautifully designed pro shop that would put the average consumer in awe.

internationalNEWS

Powerhouse GyM now oPen in duBai

Powerhouse Dubai is located in the Emirates Tower, allowing the members to overlook the city of Sharjah. This is the first Powerhouse Gym in the UAE, and it has set the bar high for any other competitors to come into this emerging fitness market. Congratulations on the beautiful facility and keep up the great work!

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internationalNEWS Powerhouse GyM now oPen in Cairo, eGyPt With the changes in government in Egypt, this has allowed entrepreneurs to begin to flourish with aspirations of starting a successful business, and our friends in Egypt found an industry that was lacking any type of presence and have begun to fill that gap. Opened in April 2014, the Cairo, Egypt club will feature; State of the art cardio and strength equipment from Life Fitness, Group Fitness classes from Les Mills, Tanning, Steam & Sauna rooms, and a Live DJ! All in a facility designed by a world class architect. The level of interest that this individual club has generated has baďŹ&#x201E;ed us. Since creating its social media outlets in mid February, it has become the 2nd most popular Powerhouse Gym on Facebook, which took 3 weeks. To top it off, the club wasnâ&#x20AC;&#x2122;t even open for business yet! We have extraordinarily high hopes for the team of Powerhouse Gym Cairo as they embark on bringing Powerhouse Brand to Egypt with aspirations of opening several locations in the years to come.

POWERHOUSE BUSINESS JOURNAL 2014

INTERNATIONALNEWS 15

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PhGNEWS Mike AGeMY, powerhouse GYM licensee, poses for A photo with MeMbers of the wAYne countY deputY sheriffs’ AssociAtion. photo credit: dAniel lAi

Powerhouse GyM oFFers Free MeMBershiPs to loCal sheriFF’s dePuties The men and women of the Wayne County Deputy Sheriffs’ Association have a new place to relax and unwind thanks to a partnership with Powerhouse Gym.

welCoMe Powerhouse GyM Clarkston, Mi A full service, 24/7 facility complete with a wide arrangement of cardio and strength pieces. With a full variety of different group fitness classes included in the membership, the Clarkston location is destined for success.

The gym’s three locations in Dearborn, Brownstown and Lincoln Park will offer free all-access gym memberships to deputies and corporals effective immediately. Mike Agemy, director of operations for his Powerhouse Gym locations, responded to a request from WCDSA Vice President Jeremy Cady, who was actively seeking donations of workout equipment for law enforcement personnel.

POWERHOUSE BUSINESS JOURNAL 2014

“Jeremy came to me, explained to me what these men and women are going through and I knew I had to do whatever I could to give back,” Agemy said. “I spoke with my management team and together we came up with this idea. The men and women who protect us 24/7 need to be in the best health possible. It is understandable for municipalities to have to cut back on funding for some programs due to the economy, but to have nothing for those who we expect to put their life on the line in a moment’s notice is not acceptable.”

This location brings together some of the brightest business and fitness minded individuals around to create the perfect group of owners/operators to build a fitness community in an area that will allow for growth and prosperity for an emerging club in a competitive market.

PHGNEWS Welcome Powerhouse Gym oxnard, ca

Powerhouse gym featured in generation iron

Formerly a Golds Gym, Noel Thompson ended his tenure with Golds and converted over to Powerhouse Gym at the beginning of this year. This club boasts every amenity under the sun, literally. With an outdoor free weights area, top of the line cardio and strength equipment, TRX, Pilates, outdoor basketball court and lap pool, there really isn’t anything more you could want in a gym. This Powerhouse Gym Oxnard takes fitness to the next level, welcome to the family Noel!

The sequel to the famous “Pumping Iron”, features several of the worlds top body builders in their quest to win the coveted Sandow Trophy. In the film you will see several scenes shot inside The Syosset Powerhouse Gym, or as its better known as “The East Coast Mecca” and The Downtown Tampa Powerhouse Gym which is often referred to as “The Southern Mecca”. 17

The film takes an in depth look into the life and preparation of each body builder during their road to the 2013 Mr. Olympia. It gives the average gym go’er a deep look into the life of each athlete and allows for the viewer to experience and understand the countless hours of work that goes into creating the perfect physique. The documentary is slated to be released on April 4th, 2014 and is a must see for anyone who is into the fitness culture.

W W W. P O W E R H O U S E G Y M . C O M

PowerhouseGYMCOMMUNITY

Above: nicole AdAMo, victor MArtineZ, shAwn roden, flex lewis, MArco riverA And friends At the “trAin with the pro’s” seMinAr

Powerhouse teaMs uP with Bodies aGainst BullyinG By Nicole Adamo - As Published in Flex Magazine.

The Powerhouse Gym mission is to inspire everyone who steps foot into one of our elite facilities. We want to motivate all walks of life from novice gym-goers to the best competitors in the world. Through the fast growing Powerhouse FX movement, we’ve witnessed firsthand how cutting edge training equipment and highly skilled trainers can bring positive change to people’s lives. True to its inspiration mission, Powerhouse continues to shares the importance of a healthy lifestyle through events held in the heart of the community. Case in point: Powerhouse’s proud partnership with Bodies Against Bullying (BAB), a non-profit organization whose mission is to raise awareness about and prevent all kinds of bullying.

POWERHOUSE BUSINESS JOURNAL 2014

The charity’s inaugural event took place last summer at the 25,000 square foot Powerhouse Gym in Linden, NJ. This summer, Powerhouse will host the philanthropic organization for the second annual BAB Charity Lift, an event that will feature training sessions with IFBB Pros, catering, prizes, and a keynote anti-bullying speaker among other fun activities. Hosted by IFBB Pro Felicia Romero, attendees at the first annual Charity Lift trained side by side with two time Mr. Olympia 212 champion Flex Lewis, IFBB Pro’s Shawn Rhoden, Victor Martinez, Marco Rivera, and Yeshaira Robles and NFL star Justin Trattou as part of the Train with the Pros seminar.

It’s safe to say that bullying prevention has a new face and her name is Nicole Adamo, founder/director of BAB (who also happens to be an associate Editor here at Flex Magazine). Searching for a great facility to showcase her first event, Adamo asked Powerhouse Linden owner and IFBB Pro Judge, Mazen Ali to help her make the day a success. “I’m grateful to Powerhouse Gym because the event was so successful due to the people at Powerhouse being so into it; We got there to set up and they just wanted in,” says Adamo. “I don’t think it would have been possible to do the event at any other gym.” Eager to spread the message that every victim is not alone and that their voice matters, Adamo donates all proceeds to education, awareness, and other charities such as Make-AWish Foundation and the J.J. Watt Foundation. Running a second Charity Lift was a no-brainer for Adamo after receiving widespread interest and support throughout the past year. “I founded BAB because I grew up in a town that was very catty and I started to see my peers fall victim to bullying. I see it all the time in my profession both on the fitness and media sides,” says Adamo. “We are advocating change for ANYONE and EVERYONE whether you’ve been a bully or have been bullied.”

Joining the cause at this year’s sponsored Charity Lift is four-time Mr. Olympia champion and newly re-signed FLEX athlete Jay Cutler, who expects a much larger showing from the fitness industry at this year’s event. “I’m privileged to work with this type of charity because I feel it’s becoming more common in society and you hear too many victims that are afraid to speak up for various reasons,” says Cutler. “I would like to stay active by speaking out at these events about standing up and being confident.” Cutler says high profile athletes play a pivotal part in bringing topics like bullying prevention into the limelight. “With the notoriety and role model positions that most of us carry, people will tend to take more notice if we show awareness to this cause,” says Cutler. “As someone who has been around a lot of these types of situations, I want everyone to realize it can happen to anyone no matter who that person is.” Moving forward, Adamo wants to continue organizing BAB events and realizes that Powerhouse was there from the start cheering her on. Powerhouse hopes to help make individuals happier by encouraging them to simply be themselves in and out of the gym.

In addition to being a year old and reaching a global audience, Powerhouse FX and BAB have something else in common, they’re both solutions to common problems. Powerhouse FX offers a way to build full body strength and conditioning, improve balance and boost sports performance. BAB gives anyone who wants to get involved the opportunity to educate and encourage others about the way out of bullying.

POWERHOUSEGYMCOMMUNITY

Above: reigning 212 Mr. Olympia flex lewis demonstrating different shoulder exercises

Together, Powerhouse and BAB are making waves around the fitness community for their commitment to inspiring others.

19 For more information on how to get involved with Bodies Against Bullying, visit bodiesagainstbullying.com. Twitter: @BABFoundation Instagram: @BodiesAgainstBullying Facebook.com/BodiesAgainstBullying W W W. P O W E R H O U S E G Y M . C O M

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Members going mobile; a self-service approach By ABC Financial Staff

Modern health cubs opened in the 1940’s, as a way to combat the effects of sedentary deskwork. Throughout the years, the fitness industry customer and the facilities they join have changed dramatically. The multitude of ways to bring potential members into the club have changed just as much. In the digital world in which we live, people are used to instant gratification and dealing with a gym is no exception. Studies regarding the imminent growth of mobile sales state that potential members are eager for faster and more convenient options. Facilities focusing on the delivery of rapid, dependable and well-designed mobile solutions will reap the benefits. By providing potential members with a much more innovative, beneficial and overall easier joining experience, online membership sales are the wave of the future. More than 33 million US customers already engage in shopping related activities on their smartphone, while 2.3 million of those people make purchases on their mobile device. According to The Mobile Vine (August 2013), in the next year and a half, 81% of cell phone users will have a smartphone. This will create a “mobile society” of people who will listen to music, shop, work and perform many daily activities all from the same device. Fitness club memberships are no longer bound by the four walls of a gym. Personal training, boot camps and impromptu New Year’s Resolutions have shifted health club membership sales outside the club walls and into parks, home oﬃces and mall kiosks. If someone outside of the facility wants to join, just hand them a tablet and they can become a member in a few minutes. They can even sign the membership contract with their finger. Mobile selling comes in handy inside the facility as well. When a potential client walks through the doors of a gym, they are looking to make a change. While someone in your

sales team guides the potential client through the gym, they can gather basic information about the potential client. When the tour is complete, the sales person can simply hand them the tablet to complete the enrollment process. Little time is wasted gathering data at the end of the tour with the possibility of losing the sale. After the sale, members can continue to use the mobile site to: Manage their Account – This allows members to view account information, check in history, edit billing information and make a payment. Book Appointments/ Enroll in Class – Don’t let the mood pass them by. When they are feeling guilty about a fi lling lunch or heavy dessert, don’t let them miss the opportunity to book a personal training appointment or claim a spot in Zumba class. Purchase Services – If they need to purchase services, classes, or personal training sessions, they are just a few clicks away from charging it to their credit card. Once purchased, they may book their session(s) immediately. View Schedule – Members can view their scheduled events at a glance. Pull up the calendar and see time and dates of upcoming booked classes and/or personal training. Cancel Appointment – Never get caught with no-show fees again. Mobile services allow the consumer to peruse options in a relaxed and comfortable environment. This relaxed environment allows the consumer to choose options that are best for them. By using mobile technology to meet consumer needs for information and services, gyms can increase sales, member satisfaction and loyalty. The facilities that focus on the delivery of rapid, dependable and well-designed mobile solutions will reap the benefits by offering potential members with a much more innovative and overall easier joining experience. W W W. P O W E R H O U S E G Y M . C O M

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Using Social Media To Increase Your Membership Base By Jeff Robinson

We are in an age where you can reach an enormous amount of people at a rapid rate with social media. There is no reason why as a business owner you shouldn’t be using this avenue to expand your member base as well as create a community around the idea of fitness. Facebook allows you to connect to every single person that is a member at your club, keep them informed of changes in schedules and excite them about upcoming changes happening in your facility. This audience is also great for capturing the attention of new potential members as well as staying in touch with your members and being able to address their concerns so that you continue to keep a happy membership base.

POWERHOUSE BUSINESS JOURNAL 2014

Advertising through Facebook has been a very effective method for a lot of our clubs to obtain quality leads, and drive sales with a very low cost per customer acquisition. A simple tag line such as; “$1 to join, limited to our first 100 new members! Reserve your spot today by messaging us or call..” It creates a sense of urgency for the user as well as offering them a great price on joining the gym. With Facebook’s ‘boosted post’ feature, you can invest a small amount into getting the message across to 10’s of thousands of people and more often then not have an immediate return on investment. Collecting the customers information. “If you could please provide us with good contact information so we can have one of our fitness consultants contact you to schedule an appointment to visit our club and get you set up with this great special.” The interested customer will usually provide you with full name and phone number, which now becomes a viable lead assuming they decide not to join during the current promotion.

Follow up and schedule the appointment. It’s great you’ve received someone’s information, but if you do not physically speak to them over the phone, chances are they will not be in to tour your facility and join the club. Leaving a message does not accomplish the same as speaking person-to-person and setting a day and time for the potential member to visit. Track where your leads are coming from. If you’re running different promotions through different outlets it’s best to use a call tracking service such as CallSource to differentiate the value of each promotion as well as see which one is more cost effective for customer acquisition. The benefits don’t end with knowing where the lead is coming from, CallSource allows for you to listen to the interaction with your staff member and evaluate how they handled the call. Sales can die when they aren’t handled properly over the phone. Whether it be from direct mail piece or social media advertising, the staff member answering the phone ultimately is the first real impression of the club to the consumer. If I’m unsure of the atmosphere at a club and I call and am greeted with “Powerhouse Gym....” chances are if I was already intimidated with the idea of joining a gym regardless of how nice it may appear, I wont. If a friendly voice greats me with “Thank you for calling Powerhouse Gym, how can I assist you?”. I’ll be more interested in joining the club as my first impression was a polite courteous experience.

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Translate SoftBetter ware product. Better service. Capabilities Into Workable Knowledge By Eric Claman - Twin Oaks Software

I have always understood that knowledge is power. What I have learned as a club owner and now as a consultant at Twin Oaks Soft ware Development; is that learning how to turn that power “on” is the key to success. Richard Feynman, That great American theoretical physicist, explained it best, “You can know the name of a bird in all the languages of the world, but when you’re finished, you’ll know absolutely nothing whatsoever about the bird... So let’s look at the bird and see what it’s doing -- that’s what counts. I learned very SOFTWARE - BILLING early the difference between knowing the name of something and RETURNS MANAGEMENT knowing something”. Most health club management soft ware’s have reports and information compiling capabilities that provide empirical data on your membership numbers and accounts receivable. What is even more important is how that information translates into the kind of workable knowledge that gives you the true power of understanding your business

POWERHOUSE BUSINESS JOURNAL 2014

per month. Th is was alarming because my price point was $36 per month. After digging a little deeper I found out that my Manager Working on the areas had been selling new memberships for less than our published rates, which increased our membership that matter most. numbers, his bonus and the equipment’s usage, but not our revenues.

• People

Example 2: I experimented with offering shortTeam termMembers. memberships to Outstanding personal service by our dedicated the health club. I surmised that my competition only offered month • Product to month memberships and that offering a three month membership Free, simple, secure state of the art Club Management Software. might entice new members who didn’t want to commit. I thought I• Pricing had hit a home run, we sold more than a hundred in the first Total and lowest providerlooked with thegood. best products and services. quarter mycost numbers But as Yoda said, “beware the numbers…”

Again, the lesson I learned was that numbers don’t tell the whole story; understanding their significance does. After two years and hundreds of three month memberships sold, I went to my Membership Profi le Report and analyzed the average tenure column. It detailed that the average three month member only stayed at the club for 6.8 months. In other words, we got them and we lost today. them andyour with results a limited number of possible members in our area, a In 2007 when I opened my second club, I quickly learned that I Start improving Call 1-866-278-6750 or is nothing more than a slow death. retention rate of under - 35% had to delegate a lot of responsibilities at both facilities. As a self Proven results. admitted, micro manager, I knew this wasn’t going to be easy. I had visit us at HealthClubSoftware.com Obviously, numbers don’t lie, they just don’t tell the whole story. to relinquish some control to my managers and increase my reliance Health club management soft ware needs to be more than a on the data reporting capabilities of my soft ware. I quickly learned compilation of numbers; it needs to provide those numbers in a the difference between the looking at numbers and knowing what useful and meaningful manner. There are so many variables in our they mean. business that generic data reports are about as useful as an ejection seat in a helicopter. Analytical data needs to be detailed enough to Example 1: I had given my Manager the task of growing the core get through the many different layers of your business and malleable membership and even went as far as giving him a generous bonus for enough to be exclusive to your club and to your unique situation. increasing the club’s membership tally. Our membership numbers May the force be with you were great, the club was always busy and my manager was happy as a fat rat in a cheese factory. Unfortunately, revenues were not growing and my equipment repair expenses were. Eric Claman owned two Clubs in Torrington, Conn., Pinewoods Health and Racquet Club for 23 years and Energy Fitness for My Twin Oaks Consultant, I will call him Yoda to protect his four years before selling both and accepting a consulting job at identity, explained to me that I had to understand my reports and Twin Oaks Soft ware Development in 2011. He can be reached not just look at them. Yoda showed me that there was a lot more at 866.278.6750 or at eclaman@tosd.com, or visit www. to the Membership Profi le Report than just how many members healthclubsoft ware.com. the club currently had. The average dues per membership column showed me the average EFT member was only paying around $29

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What’s the secret to getting your members super fit, super fast? By Les Mills Staff

It’s a secret that pro athletes and elite sports people have long had up their sleeves; high-intensity interval training (HIIT) gets results. Now, an increasing number of everyday fitness enthusiasts are looking to use HIIT to getting super fit, super fast. And all around the globe, savvy fitness facilities are satisfying this demand, adding HIIT workouts to their offering and reaping the rewards. HIIT-based workouts are hard work, but they’re over quickly. A typical HIIT workout is just 30 minutes, featuring short bursts of high-intensity activity interspersed with recovery periods. Studies have shown that this interval training is an ideal way to increase fitness, build muscle and help lose fat. How? By pushing the line between aerobic and anaerobic energy use. Your anaerobic energy threshold is the point at which your body reaches its maximum oxygen intake (VO2max).

POWERHOUSE BUSINESS JOURNAL 2014

Steady-state training ticks along at a comfortable rate below VO2max (VO2max is your maximum level of aerobic fitness), but the interval periods of HIIT push you closer to it, which has two effects: first, it triggers the “after burn,” where your body continues to burn oxygen, and therefore calories, hours after exercise. Second, it increases your VO2max. In other words, once you hit your anaerobic threshold, the body now relies on energy other than oxygen to keep going, giving you only about three minutes at that intensity. Every time that happens, your body adapts by enabling you to use oxygen at higher intensities. As your VO2max goes up, you can now work out at that intensity aerobically, continuing to burn oxygen. You can work out harder, for longer. A 2006 study divided middle distance runners into three groups training at different intensities and found that the group undergoing a HIIT workout had a stronger after burn, which lasted up to nine hours post-training. In addition, HIIT engages more muscle fiber in each workout: steady-state training works predominantly slow twitch muscle fiber, creating the lean “marathon runner” look. But a lot of our muscle is made up of fast twitch fiber, which operates anaerobically. HIIT is a great way of reaching these fibers. Think of a sprinter: Usain Bolt hits VO2max off the blocks. The difference

between steady-state training and HIIT could be illustrated by thinking about different physiques: a lean marathoner versus a muscular sprinter. It might seem counter-intuitive that HIIT workouts lead to greater fat loss than steady-state training, as it’s commonly accepted that more fat is burned during moderate-intensity exercise, but fat loss through HIIT is aided by the after burn and hormonal responses. For instance, higher levels of human growth hormone – which promotes fat burning – are present due to higher intensity work for your large muscle groups. Recent research by Dr. Jinger Gottschall and Pennsylvania State University highlights how HIIT can get you fitter, faster while you spend no extra time working out. This research tested 84 fit adult exercisers split into two groups. Both groups engaged in five hours of quality, professionally-designed exercise per week. The point of difference was that one group substituted an hour of cardio for two 30 minute HIIT sessions. After six weeks all participants recorded increases in cardiovascular fitness and strength while decreasing triglycerides, decreasing body fat and reducing waist circumference. Those who did the HIIT workouts enjoyed these benefits at more than twice the rate across all measures. The fact that HIIT workouts are quicker and offer better results than other forms of exercise can only fuel the attractiveness of the HIIT trend. The workouts are hard, they’re not for everybody, and they’re not for every day. But given their increasing popularity, adding a HIIT offering is something that every club should consider. Les Mills is the world’s largest provider of group fitness and team training programs, including the popular LES MILLS GRIT™, a series of high-intensity interval training workouts. For more information, visit www. lesmills.com.

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Tips To Increase Sales in Your Proshop By Mandy Clement

So you may be wondering what you should be selling in your pro shop. The best place to start is to ask yourself, “What are other clubs selling in their pro shops?” According to Club Industry Magazine’s 2012 Survey of Buying Power, here is what club operators said they were stocking:

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Apparel with Logo: 70% Bottled Water: 65% Soft/Sports Drinks: 65% Health Foods/Snacks: 55% Supplements/Vitamins: 38% Other Apparel: 28% Gym Bags: 27% Exercise/Fitness Equipment: 22% Books/Video: 19% Sports Shoes: 16% Other: 4%

Now that you know what to sale, let’s get your members to buy from your Pro Shop instead of the “other guys.” Here are KEY areas you should be focusing on.

POWERHOUSE BUSINESS JOURNAL 2014

Location & Flow Having your pro shop in front of your members eyes and at the forefront of their mind is very important. Making sure they can touch the products that you want them to buy will increase the chances that they will buy. That said, you will also need better customer service than the other guys. Using your members first name and reminding them of how your products can help them get the results they want faster, safer, etc. will make you and the products look better than if they are looking at them in some dead retail spot. Think “high touch & focused solutions.” Understand Your Members A very important key to increasing pro shop sales is understanding your members. Obviously you can’t motivate them to buy something if you don’t know their needs and wants. Start by identifying your customers by age, gender, race, income levels, and marital and parental status. From that starting point, you can add products to your pro shop that apply to them instead of what you “hope” will sale. Also,

don’t forget about your members extended families…such as husbands, wives, children, and even the family cat or dog. By offering products that they can buy for their family members they are more likely to buy because they can justify the purchase and feel good about it. Consider Win-Win Pricing Strategies A majority of people are motivated to buy products based on the price of the product, whether it be high price points or low price points. There are some members that only look for bargains and low prices and will actually sacrifice on the quality of the product just to save a buck or two. That’s why we suggest have a discount or sale section within your pro shop. Other members are willing to pay higher prices, believing it gets them a better product. So it would be a good idea to have a section for premium priced products for those that will gravitate towards higher priced items. Scope out how your competitors are pricing their products and consider selling yours either for less money and more sales volume or at a higher price and less sales volume. We also recommend offering two different versions of your product at different price points so you can capture both segments of the market. Sell the Sizzle… NOT the Product Where a majority of gym owners & personal trainers are making mistakes in the sales process is talking about your gym, boot camp, personal training services, product features or your latest promotion as the main message of your advertising. What you should be doing is talking about the customers’ wants and needs first, while at the same time promoting the benefits of your product(s). Once you have captured your potential customers’ interest this is the time to give more information on the product, such as features, price, awards or promotions.

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MarketinG

Don’t Let Your Club Become Extinct By: David Vail Marketing Consultant

A ton of new health clubs open each year. Unfortunately, there are also tons of clubs that close each year. The competition in the industry continues to get stiffer, so how can you avoid attending a funeral for your club in the near future? There are many factors in the success or failure of a club, but one major factor for those that succeed is having the right marketing. You can have the best gym, equipment, price points and amenities, but if people do not know what you have to offer your memberships will not grow to their full potential.

POWERHOUSE BUSINESS JOURNAL 2014

What are you doing to ensure you are maximizing your growth potential? Have you set up a marketing plan or budgeted funds, or are you flying by the seat of your pants on a month-by-month basis? If you are like many, you are probably thinking, “we are too small and don’t have the money to market on a regular basis”, or even worse, “we don’t market at all”. With the increased competitive landscape in the fitness industry, this mindset is one that will lead to extinction. It is imperative that your club makes the right impression within your target market. About 85% of people are not members of a gym, so there is a huge market out there, ripe for the picking. Your goal should be for Powerhouse Gym to be the first gym that comes to their mind when they think of fitness. You ask, “How do I make sure that Powerhouse Gym is the first gym they think of?” No matter how large or small your club is a marketing plan and marketing budget is a necessity. If you fail to plan, you plan to fail. When you are developing your marketing plan it is important not to put all your eggs in one basket. The most successful clubs we work with spread their budget through different channels and throughout the year. By increasing the frequency and avenues in which you reach potential members, you increase the stickiness of your brand and stay top of mind.

At any given time, you should have 7+ marketing tools going to drive in new members. Direct mail is the core of the best campaigns and still by far the best way to drive in new members. Other avenues you should be utilizing to get to the 7+ number include: Referral program, guest passes, website, active social media pages, email marketing, former member campaign, lead boxes and text messaging (amongst others). Lucky for you, Muscle Up Marketing offers ALL of these things and is here to help get your club back on track. We work with over 500 clubs across the United States whose budgets range from $500 a month to $50,000 a month. Our specialty is maximizing the bang for your marketing buck. No matter what size budget you have to work with, we can customize something specifically for you to help you get a strong ROI and the results you want. You don’t have to spend $50,000 a month in marketing to be successful. However, you do have to have a proven plan of attack. Don’t let your club become extinct – give us a call today and let us help formulate a strong marketing plan for you. David Vail is a Marketing Consultant at Muscle Up Marketing, specializing in lead generation for health clubs. He can be contacted at 800-516-4480 or at David@MUSCLEUPMARKETING.com

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Powerhouse Fitness

sales salesSYSTEMS POWERHOUSE BUSINESS JOURNAL 2014

Implementing Systems For Explosive Growth By Powerhouse Gym - South Lyon, MI Owner - Joe Odam Success breeds opportunity. I have been given the opportunity to share my success with you. By imparting my personal success surrounding sales, systems and revenue generation, my ultimate goal is to provide each of you the necessary tools to create your own opportunities in the fitness industry. I encourage everyone to relax, open your mind, grab a beverage, and be prepared to truly comprehend unthinkable revenue increases……right now! Many of you are thinking, “Who is this guy and why should I spend valuable time out of my day to read this?” Honestly, at first glance, there is nothing extraordinary about my background. I don’t have an extensive scroll of business, economics or marketing related degrees. I don’t have a long and decorated career in the ever growing fitness industry. In fact, for 12 years prior to my journey with Powerhouse, the only decorations I received surrounded my roles as an active duty Civil Engineer and multiple campaign veteran in the United States Air force. Theoretically, if success in this industry was predicated upon a strong business education, I more likely than not may have pursued a different career path. However, “properly” educated or not, I am tenaciously hungry and obsessively dedicated student of my craft. Add in the fact that I absolutely love every facet of what I do and I have no tolerance for failure. Who is this guy? I am the backbone of one of the most recognized “rookie owner” seasons this industry has produced. I not only doubled the revenue of a small town gym in sleepy South Lyon, Michigan INSTANTLY, but I was also honored as Comeback Club of the Year by Powerhouse Gyms International for 2013. Is that perhaps too aggressive a way to introduce myself? Perhaps. However, if it results in your feeling driven enough to try and take my title from me, then I’m delivering my opening lesson with precision. Has my passion and drive motivated you enough to want to produce at a truly elite level? Any action fueled by

such fervor will ultimately lead to substantial profit growth as an end result. Look at that! We’ve already uncovered two of the primary components to unchartered success….. loving what you do and promoting a breeding ground for motivation! At this moment, I am overwhelmingly humbled, honored and thankful for the opportunity I have daily as a Powerhouse Gym owner. I have the power to make an impact on individual lives, represent a truly first class company, and make a whole lot of money in the process. I’m very proud of what I’ve been able to accomplish in the opening chapter of what hopes to be a long career in my favorite industry. The element that excites me most is that my success can be replicated by any Powerhouse Gym Owner at any Powerhouse Gym in the world. Nothing would bring me greater joy than for everyone reading this to feel what it’s truly like to be “In the zone”! Stick around and I’ll show you the simplest approach to guaranteed capital success. Love what you do and employ like-minded team members. This one cannot be taught or learned, yet remains the most vital piece of the puzzle when operating a successful fitness center. It’s the one factor that can cover up for a number of disadvantages to include high volume of local competitors, inadequate facilities and equipment, and even stubborn prospective members. When you love what you do, it establishes a culture that is not only contagious, but, more importantly, impossible to resist. When you love what you do you’re never working. Most notably, you never spend time worrying about your revenue…..you’re too busy creating new profit centers. If you love what you do, you’re never selling off a script. You’re offering the most coveted of all returns no matter the size of the investment: a healthy lifestyle. As gym owners, we’re already possess an advantage over every other sales-related field. We offer a need in the fullest sense of the word. There’s nothing more elementary about business than supply and demand. In this case, every person that walks through your door should not leave without wanting to become a member of your gym family and, subsequently, a continuous source of income for you. If you can find one person willing to go on the record saying they don’t absolutely need a healthier life, then I’ll find you a Powerhouse gym they need to join. Make certain that your staff and trainers subscribe to the same principles. Skills can be taught; passion and love for another’s needs cannot. If money is the source of an employee’s drive, then I highly suggest passing them over for someone with an appetite for impact.

Establish a personal connection FIRST and motivate everyone you touch at all costs. Have you ever heard the expression “the lights are on but nobody’s home”? That phrase describes a vast majority of the people you have the opportunity to motivate on a daily basis. It is crucial to identify what motivates each particular person to make a change. People never respond to salespeople, but they will always respond to someone who attempts to connect with them personally. Every person that willingly steps foot into your establishment has already displayed recognition of the need for a healthier lifestyle. It’s really no different than you or I walking into a grocery store and grabbing a shopping cart. We don’t need convincing to purchase food. We already identified the need and acted on it by walking aisle to aisle. The difference between that analogy and the scenario we’re faced with routinely is simple. Commitment to a healthier lifestyle requires diligence, accountability, opportunity, and most often neglected….follow through. So how do we find the key to unlocking the motivational force to promote follow through? The answer to that question is really quite simple; ask questions and practice active listening! For example you might ask: “What are some of your goals and how do you plan to achieve them?” After the question is asked, your job is a piece of cake. Let them tell you all the things that will sell them on being a part your Powerhouse Gym. Someone who says, “I really need to lose a lot of body fat but I can’t seem to figure out how” has just given you all the tools needed to close them and keep them around for good. “Sir/Ma’am, you have no idea how excited I am to have the solution to your problems! With regular attendance and participation in our programs, I can safely assure you that your days of struggling are nearing an end.” The combination of their need and your solution equals another closed membership. Features attract, benefits sell. Now we come to the nuts and bolts regarding the technical side of increasing sales volume. Here we’ll take a look at how to tie the aforementioned objectives together with a guideline to finalize a “can’t miss” sales opportunity. In order to best prepare for any incoming business opportunity, you must first ask yourself the same question your potential member may ask….”Why should I choose your Powerhouse Gym”? If you can’t confidently recite five or more reasons at the snap of a finger, then I suggest you start practicing now. The most common question asked, whether over the phone or inside your gym, is “How much does a gym membership here cost?” When asked that question, you essentially have only two responses at

your disposal. The most widely used response is an immediate and direct answer to the question, “Our memberships cost $XX.” Do they know if this will result in a positive return on their investment? How could they? The only thing they can identify at that point is the dollar amount, which makes them feel as though they are simply spending hard earned money, as opposed to gaining a personal investment. The second form of answer will lead to a much more positive and productive response, “We have several different options to select from and can tailor them based on your needs. Please allow me to first show you what you’ll be paying for as a Powerhouse Gym member.” At this point you can take them on a tour and explain all of the amenities you offer that set you apart from the other options. When all is said and done, there’s only one thing that will ensure the sales opportunity finishes with a payment receipt being handed to the customer. The one thing that needs to be established is the benefit. Once that is done, the price is nearly irrelevant. In our industry, the benefit is clearly health related. What better investment? How do you think the customer will respond if you look them in the eye and say “I’m not billing you $XX for a membership. I’m billing you $XX for the added years and/or quality of life you’re certain to receive by joining our Powerhouse family.” Try countering that! I could quite easily elaborate on this topic until mind numbing levels of boredom are achieved, but I feel compelled to let these three components marinate. I don’t need to know anything about your gym, staff or location to confidently issue a guarantee that your revenue will increase if these approaches are polished by each member of your Powerhouse team. I don’t need to know what your credentials in this arena are in order to say that your skill-set will develop at a rate so fast, it will have your peers asking how you supercharged your business operations so instantaneously. As matter of fact, you don’t need to be extraordinary in any way…..remember, I’m not. If you have the hunger and the need to grow, then you’re already on your way. If you also fully understand that no matter what level of experience you bring into your gym, you’re never done learning, then you are ready to enter the company as a revenue assassin. Just remember that while you’re cranking up the intensity in your Powerhouse Gym, I’m grinding even harder to remain the pound for pound champ. Is the fire within you still raging out of control? Do something about it and try to take what’s mine. If every single gym owner comes after my title, the real winner will be the people who need us the most……our members.

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PersonalTRAINING

Business Development For Personal Trainers By Steven Todd - Director of Personal Training

Most trainers don’t plan to fail...they fail to plan. If you want to help your personal trainers succeed, help them create a business plan. The “sales” schematics of personal training is not any different than any other product/service. It’s a simple formula of Appointments Set, Appointment Shows and Conversions. Trainers focus more on fitness and less on finance. So help them put together a simple plan that ensures their business (and yours) grows and maintains profitability. Trainers essentially have two responsibilities: 1. Help members achieve their health and fitness goals. 2. Develop and maintain a business and clientele by service and prospecting.

POWERHOUSE BUSINESS JOURNAL 2014

Many personal trainers see their two responsibilities as two separate tasks. They think of developing a business as sales and helping members as service. In actuality, service is the key to success with both responsibilities. Without service there is no sale. Step One Toward Developing Your Business Set Goals: Personal trainers must establish goals if they expect to develop a profitable and rewarding business. Goals should be based on the money they wish to make and/or the hours they wish to dedicate to training clients. Once goals are created, the plan toward reaching them must be carefully thought out and determined. For example: Jon is a personal trainer whose goal is to make $500 a week / $2000 a month and train approximately 20 hours a week. In order for Jon to reach this goal, he will need to Service 20 sessions a week and 86 sessions a month. 20 sessions/week x $25/session = $500 86 sessions/month x $25/session = $2000

Establishing a Plan: So, how does a personal trainer like Jon develop their business? Appointments, appointments and more appointments. Once the business is built, the focus needs to shift to resigning the clients. But we can examining that at a later date. How many appointments does Jon really need to reach his goal? First you must consider the law of averages in personal training. Assume, you have 10 confirmed appointments for workouts, how many of these appointments will actually show? History tells us that, at very best, 7 out of the 10 will show for their appointments. Of the 7 that show, how many will actually purchase personal training in the future? Once again, history tells us that even the best personal trainers will only sell sessions to a maximum of 50% of all their prospect and new member workouts. With that being said, let’s say Jon sells 2 of the 7 appointments that he shows personal training programs to. If those two clients trained 2 times a week, it would take Jon over a month to get 20 sessions under his belt. If 10 appointments leads to 4 sessions in a week then 20 appointments could yield 8 sessions and 40 appointments could eventually lead to 16 sessions and so on and so on. So, in order to train 20 sessions in a week, Jon needs a minimum of 60 appointments. Don’t even begin to think that adding a semi-private or small group program will cut down on the amount of appointments necessary to reach your financial goal. Semi-private sessions can reduce your overall training hours, provided you have 3+ participants, but you will actually need to prospect and accumulate more members to fi ll those group sessions than individual personal training sessions.

• Floor prospecting – 5 Alternative Exercises / Walk-Away Technique • New Member First Workouts (NMFW) • Special Events • Telephone calls to members who completed their NMFW the previous month • Telephone calls to members who haven’t been to the club in 30, 60, 90 days • Handing out business cards / prospecting outside the club • Walk-ups (members asking about personal training / SGPT) • Buddy/Client referrals

Remember, Just because an appointment is scheduled doesn’t ensure that the potential client will actually show. All prospecting types and techniques should conclude with specific follow-up steps that will increase the chances of the potential client making the appointment. These follow-up steps are: • Always confirm appointments on the telephone 24-hours in advance. • Avoid leaving messages – keep calling until you get a live voice. • Always be polite and professional. • 5-10 minutes prior to the appointment, wait for the client at the front/trainer desk (if possible). • Be the first person to greet the member as they arrive at the club. • Always refer to the member by name both on the telephone and in person.

Leads: A successful personal training business starts with the appointment book. Your ability to schedule appointments will dictate your ability to gain personal training and clients. How can you determine who will likely purchase personal training and who won’t? How can you tell whether an appointment is a good lead or not? You can’t! Everyone you encounter in and out of the club should be considered a good lead that could evolve into a personal training client. Have you ever met anyone that didn’t want to improve his or her body in some way? Everyone is a good lead. It is up to you to show them your services and convince them of your value. Successful Personal Trainers: Successful personal trainers are organized, service oriented and professional. They are on time, respectful and take personal responsibility for their business. Successful personal trainers call to confirm appointments the day / night before. They start building relationships over the telephone and uncover expectations before the potential client arrives at the club. They discuss goals, needs and emotional wants during the confirmation call. Successful personal trainers meet clients and potential clients at the front desk whenever possible. You never get a second chance to make a first impression. They smile, act warm, open and helpful. Remember, potential clients often feel intimidated and uncomfortable upon first arriving at the club. Try to make them feel as comfortable as possible. Successful personal trainers always put the spotlight on their clients. They ensure that the workout/session is designed for them and their specific goals. They turn off their cell phones and have the club receptionist take messages. Nothing disrupts their focus on the client.

Appointment Plan: Let’s say, for the week, Jon received 10 appointments from floor prospecting for 2 hours and 4 appointments from Thursday’s special event. On the phone, Jon booked two appointments from NMFW he trained from the previous month and 4 appointments from members that haven’t used the club in at least 60 days. Jon received 2 NMFW from the sales team. He made two appointments outside the club – one at the grocery store and one at a restaurant. He “backed into” one appointment from someone asking about personal training at the front desk and two more appointments from client referrals. Finally, one of Jon’s friends has a co-worker that is interested in training so he set up an appointment with her. 10+4+2+4+2+3+2+1+2+1= 31 appointments. Assuming that only 70% of these appointments will actually show, Jon realistically has 21 appointments. If 3 of the 21 appointments lead to a personal training package purchase and Jon keeps this up for a month, he will gain approximately 12 clients. That should assure him of training a minimum of 20+ sessions a week. If Jon wasn’t proactive and depended solely on the training manager for appointments, he would finish the week with about 6 appointments. Looking back to the no-show and sales percentage we highlighted earlier, Jon’s chances of even selling one personal training package decreases dramatically! Jon will be lucky to have one client by the end of the next two weeks.

PersonalTRAINING

Getting Appointments: What forms of prospecting will effectively lead to appointments? The following are some tested and proven methods of prospecting that lead to a good percentage of appointments.

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PersonalTRAINING

Asking Questions: Successful personal trainers accumulate information from their clients and members by asking questions. In fact, they spend much more time asking questions and listening then they do giving out information. Good questions get members to talk openly about their needs, wants, underlying motivations and concerns. There are two types of questions – closed and open. When and how you ask these questions depends on what you are trying to accomplish. Open-Ended Questions: Open-ended questions cannot be answered with just a yes or no. They force potential clients to explain their answers. Open-ended questions are effective when you feel a person may be holding back information and / or their underlying motivations. Ask open-ended questions to obtain extensive information that requires the client to elaborate. Open-ended questions begin with words like: What, Where, When, Why, How & Tell me about. Open-ended questions help you receive important information, encourage a person to elaborate, and persuade a person to visualize attaining their underlying motivation Closed Questions: Ask closed questions to get brief answers – “yes”, “no” or a choice of alternatives. Closed questions should be used when you want to gather quick information and guide the conversation. Closed questions begin with words such as: Which, Do, Have, Are & Is. Closed questions help you obtain quick information, allow for a potential client to make a choice, and receive a positive response or commitment from a potential client.

POWERHOUSE BUSINESS JOURNAL 2014

Questions to Ask Before, During & After the Workout: • Have you ever exercised before? What did you do? Why did you stop? • How long have you wanted to lose / gain the ______ lbs.? • Are there any events coming up that pushed you to start working out now? • Why did you join the gym? • What is the first thing you are going to do when you look the way you want? • How many hours of the week are you thinking about devoting to your health? • Is there anyone in your life that is affected by your decision to improve your health / appearance? • Have you ever worked with a personal trainer before? • Is your job mostly sedentary or active? Is it stressful? What do you do? • What gives you the most stress in your life? • How successful has your current workout program been in helping you lose the ____ lbs? • How do you think working with a personal trainer could best help you? • What did we just do together that would be diﬃcult for you to do on your own alone?

Presenting a Personal Training Package: Never present prices always present programs and options. Personal trainers do not sell sessions. They sell programs that will allow for clients to reach their goals. If you pull out a price sheet without mapping out a specific program for a potential client, they will have no idea what 16 sessions or 48 sessions is going to do for them. You must write out and explain a specific program that is based upon the potential client reaching and then maintaining their goals. For example, Mary wants to lose 25 lbs. to get ready for her daughter’s wedding in 4 months. We can establish that Mary, through personal training and the right diet, will lose 1 to 2 pounds a week. Therefore, it will take a minimum of 12 weeks for Mary to lose the 25 lbs. Now if we were to ask Mary how long she wants to maintain the 25 lb. loss, we can assume she will say forever. If Mary wants to lose 25 pounds and learn how to keep it off, we should present a program where Mary trains 3 times a week for the next 4 months (48 pack). 3 times a week x 4 months (16 weeks) = 48 sessions.

Presenting the Package Price: When presenting a personal training package, begin by showing the per-session price. You have a much better chance of avoiding “sticker shock” by initially showing the per-session price. For example, 48 sessions at $59 a session is not as intimidating as simply presenting $2830. After the price is presented, ask the potential client to make a decision. Do not say anything until the potential client speaks. In addition, never react and present a package with fewer sessions before a concern is presented. If the potential client expresses a monetary concern, either present a package with fewer sessions for a shorter period of time. Detail the financing on the applicable packages. Write out different down payment and monthly payment options. Your focus is presenting to the client what they need in the form of a program and finding the best payment option for them to get started. Remember, personal trainers should have weekly and monthly goals based upon the money they wish to make and the hours they dedicate to training clients. Regardless of whether you are proposing personal training or some other fee for service program, never pressure or badger the member into making a decision. Just because a potential client does not buy a package today does not mean they won’t buy later when it becomes clearer they need your assistance!

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powerhouse photo of steve weinberGer, ifbb pro’s victor MArtineZ, Jon delArosA & JuAn Morel

Legends Are Built At The ‘East Coast Mecca’ Since 1986, “Bev’s Gym” has been one of the leading gyms in the country for serious bodybuilders. At least three former “Mr. Olympia” title holders train there. Magazines and athletes alike say the facility is the East Coast go-to bodybuilding gym, comparable to the widely heralded national “Mecca of bodybuilding gyms,” Gold’s Gym in Venice, California.

POWERHOUSE BUSINESS JOURNAL 2014

It’s something Bev knows well. A retired power lifter and bodybuilder from Australia, married to bodybuilding guru, power lifter and highly regarded contest judge Steve Weinberger, Bev Francis was a successful competitive bodybuilder and power lifter for many years, and was featured in the movie Pumping Iron II: The Women. From 1981 to the early 1990s, Francis was acknowledged as “the strongest woman in the world,” having bench-pressed an unheard-of 331 pounds, something no female had done. “The appeal of Bev Francis’s Powerhouse Gym is that bodybuilders can do serious training here because we have the specialized equipment that most gyms can’t afford to carry, or don’t have the need to carry,” Weinberger says, “We also feature enough of a variety of equipment so that an athlete never gets bored by having to work out on the same machine or with a limited range of equipment.”

The national significance of the gym stands in sharp contrast to its unassuming location—at the end of a nondescript road off Robbins Lane, amidst a signage shop, an eyewear distributor, an automotive repair shop, and assorted small businesses. However, in the vast space it occupies, which has been expanded over the years to its current 30,000 sq. ft., the gym houses hundreds of machines and weights. Among the equipment is a classic strength-training machine, an original 1972 Nautilus, the first single-joint rotary movement exercise machine that made fitness equipment effective, safe and easyto- use, and essentially launched the health club movement in the U.S. “One of the things that distinguishes us from other gyms,” says Francis, “is that we order equipment piece by piece, and only after Steve and I test it out. We’re not just gym owners; we train as well, so we understand how equipment should ‘feel.’ And we don’t order an array of equipment from a single manufacturer just to get a discount or a better deal.” World class bodybuilders and weight lifters train at Bev’s Gym, among them, Weinberger notes, Phil Heath, a fivetime Mr. Olympia winner, Victor Martinez, a seven-time Mr. Olympia, and—when he’s in town—Jay Cutler, who has placed either first or second in ten Mr. Olympia competitions. Kai Green, a two-time Arnold Classic winner and a 2nd and 3rd place winner in Mr. Olympia competitions, also trains at Bev’s Gym.

But Weinberger is quick to point out that not everybody who works out at the gym needs to be a world-class bodybuilder or even into the sport at all. “Many of our clients are ordinary people who want to stay fit—business people, retirees, mothers, college students. There’s no ‘looking down’ on anyone because they’re not into competitive bodybuilding or weight lifting. If anyone, whether it’s a staff member or gym member, shows disrespect toward another person, they’re asked to leave.” Adds Francis: “We create a welcoming atmosphere here. Anyone interested in getting stronger and staying fit feels comfortable. The serious bodybuilders don’t intimidate ‘regular’ people. On the contrary, they help give them motivation. Many members like to train alongside the professional athletes.” Four-time Mr. Olympia Jay Cutler, who visits Bev Francis’s Powerhouse Gym when he’s in town, says the gym meets the needs of everyone, regardless of experience or goals. “The gym floor is spacious and full of free weights and many machines for working every body part from every angle. There are also at least 70 pieces of cardio equipment.” “Over the past decade, gyms have been springing up like mushrooms,” observes Weinberger. “Some last, some don’t. Bev’s Powerhouse Gym is entering its 28th year because

we keep a sharp focus on our goal to be a world-class gym with the equipment, personnel and commitment to serious training. This goes for a top athlete or a ‘regular’ person just looking to stay fit and stay strong.” This past year Bev Francis’s Powerhouse Gym was named; “The #1 hardcore gym in the USA” by Flex Magazine, as well as “Team MD’s top gym in America” by Muscle Development. You can’t open a fitness magazine today and not see an image featuring the gym. Almost every fitness publication gravitates their photo shoots to that gym because it provides the perfect atmosphere for intense imagery.

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From Our House To Yours The Powerhouse Perspective on Group X By Amanda Juncaj - Group Fitness Director, Powerhouse Gym - Novi, MI

POWERHOUSE BUSINESS JOURNAL 2014

s a Gym Owner, Group fitness classes will give you a competitive edge. This will help your gym keep retention during these challenging times. Studies have shown that 60% of members join a gym for group fitness classes. More evidence of this emerged in an ACNielsen survey of 3,080 participants in Les Mills programs around the world. More than 85% of members visited their clubs at least twice a week specifically to take part in classes and that nearly 43% visit at least four times a week. IHRSA estimates that club members go to their clubs on average 1.75 visits a week. With Les Mills, Zumba, Turbo kick, and Cycle to name a few this propels to a whopping 3.4 visits a week. As owners it is up to you to follow industry trends in your area to determine what discipline your members prefer. Once you determine the formats your members prefer, the times that are most popular and a seasoned instructor is in place you are ready to roll. With the New Year come new goals. One of the most popular

New Year resolutions is joining a gym. Many of those new gym members lose focus and stop working out in the first 90 days. One way to keep your fitness goals is to join a gym that offers a variety of group fitness classes. Group fitness classes are more than loud music, fast pace movements, and instructor commands. They are a great way to get in shape with friends, to be physically active with your peers and keep you accountable to attend class. Classes come in a variety of formats. All classes offer instructors who explain the exercise, its benefits and model form to properly ensure a safe and effective workout. Instructors and peers push you beyond your perceived limitations. Classes offer social inclusion, physical benefits and psychological support Choosing a class can be intimidating. Names like “Boot camp” or “Body Attack” can certainly sound intense but every one of our nationally certified group fitness instructor is able to accommodate you in any class format. Part of the instructor’s job is to ask questions. Do not be afraid to speak

GROUPFITNESS

Step classroom featured at powerhouse gym in Utica, new York

up and express your concerns and ask questions. Reach out to the instructor or the group fitness manger. Remember they are there for you Group fitness classes appeal to people because of their diversity. Take advantage of this. Try as many classes as you can. Find a class that works for you. Formats are endless. Ask for a class description list. Now we are ready to break it down and find a class that is right for you, in choosing a class you first need to understand the verbiage and descriptions. Let’s start with Cardio. Any description with cardio in it typically means that during this activity you will raise your heart rate to a “working” level, your breathing will become rapid but you can still talk. The talk test is a great way to gauge your perceived exertion. With “cardio” you will make your heart stronger promote calorie burning and best of all feel good. Cardio classes come in many formats; Kick Boxing, Zumba, Cardio Blast, Step, and Spin to name a few. Other words like “Strength” and “Tone” are good indicators that you will be lifting weights and putting a “work load” on those muscles. Strength is the inherent capacity to manifest energy, to endure, and to resist. You can be sure in weight training or strength training class you will be lifting weights or resisting your own body weight like you might do in a standard plank or even a wall sit. Alas we come to classes with names like “boot camp” mentioned above. These types of classes are great fun. If you’re thinking of combat crawling and netting, take a deep breath and relax. Boot camp style classes offer a combination of cardio, weight resistance, and endurance. In interval training such as a boot camp class you

will get more bang for your buck, maximize time, and calorie burn. Now that you have a better understanding of group fitness classes you are ready to get started. Whether you are a beginner, or advanced you can find a class that works for you. You can be a dancing queen, cycle as if you were in the tour de France, lift until you can’t lift anymore, box like Rocky or channel your inner yogi. Most importantly move and have fun!

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GyMUPKEEP

Jani-king: The Undisputed King of Clean It’s not just Jani-King’s service that will impress you; it’s the pride and trust of our owner-operators who make it their business to clean your business. Since 1969, Jani-King has been adapting and improving to meet the standards and budgets of our clients. That’s how Jani-King has grown to become the world’s largest commercial cleaning franchise company today. With more than 120 regional oﬃces in 14 countries, Jani-King continues to prove that thorough training, proven processes and dedicated franchisees can’t be beat.

POWERHOUSE BUSINESS JOURNAL 2014

# 1 Our Franchisees Our network of authorized Jani-King franchisees have a vested interest in providing top-quality janitorial services. The owner-operator concept produces dedicated people whose futures depend upon fulfi lling your facility’s cleaning needs. You, the customer, receive the benefits of this commitment — a professionally cleaned facility that meets your personal standards of excellence. In addition, all Jani-King franchisees are fully bonded and insured. #2 Regional Oﬃce Support With over 120 regional support oﬃces worldwide, Jani-King franchisees are backed by a team of local experts. From training and consultation to hands-on operational assistance, Jani-King has incorporated a Total Care Concept to ensure a well-managed and effective cleaning system. # 3 Our Communication Jani-King’s unique Communication Program offers tools that clearly define how we can best serve your cleaning needs.

These tools include Contact Evaluation Reports, Inspection Reports and Past Performance Evaluations to ensure that you are receiving the utmost in quality service. In addition, an Account Follow-Up Sheet is maintained on each account and periodic phone calls and/or personal inspections are made by Jani-King customer service representatives from the regional oﬃce. Jani-King also reaﬃrms its role as an industry leader by investing in state-of-the-art equipment and training facilities. Our company’s leaders are experts in the commercial cleaning industry who are committed to incorporating new technology and methods so that our clients have the best service at the best price. Jani-King is also committed to the health and safety of our clients and those who visit your facility. From infection control processes to following proper safety guidelines to developing nationally recognized programs that identify and report potential threats of terrorism, Jani-King is a partner you can count on.

clean results.

Results you can count on. Your members and staff expect a clean facility and locker rooms. In fact, signing a new member can come down to their first impression of your gym. Jani-King understands that every aspect of your business matters and we have developed specific cleaning programs to ensure your gym is seen at its best. Your members expect quality. You expect results. We deliver.

1.800.JANIKING ext 149 powerhouse@janiking.com www.janiking.com To learn more about Jani-King, simply use your Smartphone and scan the QR code on the right.

Commercial Commercial Cleaning Cleaning Services Services*

ÂŠ 2013 Jani-King International, Inc. | CD0813-0133 | *Services performed by authorized franchisees

Follow No One

™

Those three words are the foundation of our identity and vision at SPRI. For 30 years we have worked hard to be known as leaders, innovators and experts in the fitness industry... and we are not stopping now! SPRI offers an array of products for large and small group training classes along with personal and functional training zones. SPRI - Preferred Vendor - Powerhouse Gyms

Contact: Lizz Erickson 800.222.7774 lizz.erickson@spri.com www.spri.com

WWW.SPRI.COM

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PowerhouseCONVENTION

froM left to riGht: chris kAkos, krYstAl dAbish, Joe odAM And henrY dAbish

2013 Powerhouse Gym Annual Convention By: Amanda Eve

Since its inception, the Powerhouse name has always been associated with hardcore weight training that yields results. As the largest branded gym name enters a new era in fitness, it is welcoming an exciting and innovative concept of a functional training gym facility called Powerhouse FX.

POWERHOUSE BUSINESS JOURNAL 2014

The perfect time to introduce this concept was at their Annual Convention, which took place during the “Super Bowl” of bodybuilding, the Mr. Olympia weekend in Las Vegas. This also gave Powerhouse the opportunity to showcase this phenomenal gym concept to fans and fitness enthusiast at their Olympia expo booth. This year’s Powerhouse Convention brought together gym owners, supplement companies and vendors, as well as various representatives from different areas of the fitness industry, to participate in workshops geared to assist in the development and growth of each individual gym. Additionally, participants got an exclusive first look at the exciting Powerhouse FX gym model, later introduced to the public at the Olympia expo.

Master of Ceremony and Corporate Counsel Wolfgang Mueller, introduced to the group Henry Dabish, CEO of Powerhouse International Gyms, for the State of the Union address. Henry Dabish later welcomed his father to join on stage, Powerhouse International Co-Founder Will Dabish, whose speech was clear and to the point, with the theme to “take back what’s yours”, as he spoke directly to the audience. Will Dabish also discussed the importance of building relationships with one another as he thinks this is one of the most valuable assets to every Powerhouse gym owner, all of whom he treats as a part of his family. Mr. Dabish personally committed himself to making a visit to every single Powerhouse Gym as part of his efforts to support the success and growth of the brand name and its legacy. While on stage, Mr. Dabish called on his son, Victor Dabish, to join him at the podium and thank him for the idea and development of the Powerhouse FX concept.

Eric Hillman, CEO of Europa sports

Keynote speaker Rich Gaspari captivated the audience with a personable account of his struggles building one of the most reputable supplement brands in the fitness and health industry: Gaspari Nutrition. Rich reminded participants that in order to grow his success as a business owner, he had to adopt the same attitude he used as a bodybuilder in the gym. His closing words were “persistence, hard work and dedication prevail”. The rest of the afternoon was filled with various workshops and trainings on topics such as insurance, social media and marketing, as well as the introduction of Powerhouse FX.

POWERHOUSECONVENTION

Mr. Eric Hillman Co-Founder of Europa Sports Distribution and former Powerhouse Gym Owner gave a tremendous speech at our 2013 Powerhouse Gym Owners Convention, reaching out to our owners about the importance of supplement education and profit centers inside the gyms. Europa Sports has been a tremendous asset in helping Powerhouse Gyms around the nation develop their pro shops servicing their members. Europa Sports is recognized as one of the largest sports supplement distributors in the world today. Eric Hillman and all of the Europa Sports staff will always be considered as one of Powerhouse Gyms strongest allies as well as great friends.

Rich gaspari, owner of gaspari nutrition

2013 Powerhouse gym award winners • Powerhouse gym Tampa bay: Gym of the year • Powerhouse gym Albertville: community outreach • Powerhouse gym Syosset: Outstanding branding • Powerhouse gym Redwood city: outstanding accomplishment • Powerhouse gym Canton: outstanding proshop • Powerhouse gym South lyon: comeback gym of the year • Powerhouse gym Greenville: outstanding representation

Steven Todd, director of personal training

co-founder of powerhouse gym william dabish

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2013olyMPiaEXPO Above: the 40 foot wide bAnners hAnGinG over the powerhouse GYMs internAtionAl booth

The Powerhouse Olympia Experiance By: Jamie Hockin - Powerhouse Gym Novi, MI

POWERHOUSE BUSINESS JOURNAL 2014

The Olympia; the Everest for the professional bodybuilder and the premium showcase for the world’s most renowned gym: Powerhouse Gyms International. In 2013 Powerhouse Gym used the Olympia Expo to introduce the world to their newest licensing addition, Powerhouse FX. The Powerhouse booth was center stage at the expo; it was the Grand Central Station for demonstrating the future of the fitness industry.

of all Powerhouse FX’s across the country. Standing almost 9 feet vertical and spreading out over 60 square feet, it is a force to be reckoned with. Double squat racks, vertical ladder, incline/decline ladder, three pull-up stations, band attachments, dip rack, and heavy bag attachment are just a start to what the FX matrix boasts. There were very few Olympia visitors that passed by this beast without at least asking what it was all about.

In one booth there were multiple leading supplement vendors handing out their goods, Olympia competitors giving photo ops, athletes demonstrating 4 ½ feet vertical jumps, free Powerhouse t-shirts for those who were adventurous enough to come inside the booth and attempt a two minute workout in the FX matrix. The trainers were ample and willing to put anyone through an excellent and challenging demo. Revelers walked into the booth nervous but willing and left the booth happy, pumped, and sweaty. They left with free t-shirts, supplements, pictures, and memories to last a lifetime.

As amazing as the 2013 Powerhouse Olympia expo booth was, the 2014 booth is looking to blow off the proverbial doors. This is an even more exciting year for Powerhouse Gyms International as they continue to introduce Powerhouse FX to the world’s stage. This year is the introduction of the Powerhouse FX Challenge. This will be a functional training course that registered visitors will be able to compete in and win. There will be $10,000 in prizes being given away to competitors who place. Nine functionally based obstacles will await their challengers September 19-20 and all will be able to witness this fierce and entertaining competition. It is not to be missed, head out this September to see the future of the fitness industry as Powerhouse Gyms International continues their legacy of defining fitness.

The FX Matrix all by itself is something to see, known as “The Red Monster”, this piece of gym equipment was the heart of the Powerhouse Olympia booth as it is the heart

2013OLYMPIAEXPO 67

W W W. P O W E R H O U S E G Y M . C O M

We are constantly asked by gym owners, “How can I incorporate Onnit products into my gym’s business model?” The answer is Powered by Onnit. Here are some of the advantages:

• We provide our amazing line of all-natural supplements, natural foods, and functional training equipment in a turnkey, customizable package deal that provides incentives based on your level of commitment. • We take the guess work out of the ordering process by providing you with recommended products depending on the type of gym and the client structure within. You will also have the option to create your own customized package if you already know exactly what you’d like. • A support network to help drive customers through our store locator, customer service, and social media channels. Our sales team will provide expertise to keep you educated about our products and help you to better inform your customers.

HOW IT WORKS We have broken up the package levels into three categories; SIlver, Gold, and Platinum. These levels are categorized by the amount of individual products you choose to carry from within our supplement, food, and fitness lines. Depending on your level of commitment, there are price breaks for your initial and future orders, as well as added marketing opportunities within our network. Plus, the more you commit to using our added promotional materials within your facility, the more we can help you inform and empower your customers to purchase the available products. We truly view this as a partnership and want to work with you to achieve the best results.

CONTACT INFO

DOMESTIC pbo@onnit.com 512.501.6325 x113

INTERNATIONAL ipbo@onnit.com 512.501.6421 x114

Pioneering & Defining fitness since 1975

www.PowerhouseFX.com

WeLcoMe to PoWerHoUse fX Thank you for your interest in opening a Powerhouse FX. The goal of Powerhouse Gyms International is engraved in our mission statement and theme: “Defining Fitness”. Keeping that in mind, the enclosed information will demonstrate to you the financial and promotional advantages of being a Powerhouse FX owner. After you read through this information, please take the time to call or visit one of our locations…any one. You’ll find that as we believe in our owners, they believe in us. They’ll give you a realistic assessment of the nature of the health and fitness industry, the integrity of our organization as well as the quality of our products. Ask them about how they feel about being a Powerhouse FX owner, whether they think they’ve made a wise investment, and ask them about their return on investment. You should also question them about the support they receive from us and how our Products Division supplies them with our exclusive line of designer sportswear and nutrition while demonstrating to them how to increase their profit margins. Ask them about a relationship of mutual trust, teamwork and camaraderie from a company that doesn’t impose on individuality, but encourages it. Inquire about the Powerhouse name. Ask what it stands for and what it means to their business. Then ask if they had to do it all over again, would they still license with Powerhouse? We’re confident that you’ll find out that Powerhouse Gyms International is an organization of professionals dedicated to the advancement of the fitness industry and to the success of our licensees. Thanks for reviewing the enclosed information. We look forward to working with you. Sincerely,

William K. Dabish

Victor W. Dabish

WHat’s in a naMe s An exclusive territory means competitive s Instant recognition and credibility associated with an internationally registered trademark and peace of mind. You don’t have the threat service mark known worldwide and symbolic with of having to compete against a Powerhouse quality in the health and fitness industry. FX in your protected market area. Having the Powerhouse name will help deter others from s National and international media campaigns, feature opening facilities in your area. articles and promotional pieces on Powerhouse Gym. s Access to a general pre-sale and grand opening plan/checklist to generate a membership base for your gym’s opening.

s Over 40 years of history in gym operating, retail and service business experience.

s A highly informative annual convention designed to help educate licensees and improve their bottom line. s Exclusive discounts with leading equipment manufacturers and supplement suppliers.

s Over 30 years of national and international licensing experience. s A network of owners and industry experts to share management and marketing ideas.

s Regular communication with the corporate office and support assistance with just about every aspect of gym development, management and operation from a designated regional director.

s Our publication, Powerhouse Business Journal, provides its readers a keen insight on what’s happening in the fastest growing gym licensing organization in the world. The magazine is a great selling tool to attract new members to your gym.

s Savings on fees for celebrity appearances, world-class athletes and fitness stars for grand openings, guest posing, seminars and other special events.

s A multi-million dollar sportswear and nutrition supplier with an exclusive line of officially-licensed Powerhouse sportswear and products to sell in your Pro Shop. These products are often worn s Access to blueprints from our corporate facilities. These will by athletes and celebrities and are featured in illustrate how our facilities are laid-out to maximize space, traffic flow, national and international sports and fitness and management efficiency not only for now, but for the future. publications and on television. s Access to group business insurance, guaranteeing you the lowest s Access to sample business plans that cover the rates available. executive summary, industry introduction, space s Savings that will exceed your monthly license payments by utilizing the planning, equipment selection demographic vast buying power associated with our Powerhouse Preferred Vendor Program. information, staffing requirements and marketing Our vendors have got you covered from your heavy gym equipment all the way information to help in your effort to secure financing to your hand soap in your locker rooms. and map out your business’ future.

WHat tHe PoWerHoUse naMe can giVe YoU EQUIPMENT AND SUPPLEMENT

SPORTSWEAR

Next to membership sales, the sale of With Powerhouse, you get buying power! Powerhouse FX sportswear can provide a Powerhouse has exclusive discounts and significant source of income. A wide range pricing structures with leading companies in the of items are available with a mark-up potential industry… our Preferred Vendors. We deal with of 80 to 140% (100% is average). Everything is only the best of quality. This means three things: made in the USA from the highest quality materials and they are available in a size scale to meet your members’ needs. New items, colors and materials on various supplements) with fast, efficient delivery. are introduced regularly to keep your pro shop fresh This alone can cover the cost of your license fees. and increase your sales. And since service is of the s You get service. Tell your rep that you are a utmost importance to Powerhouse FX, most in-stock Powerhouse FX owner and they will know how to orders are shipped within 48 hours. Many of our items can take care of you. If there is ever a problem you even be personalized with your city name and location. know the manufacturer will get it taken care of fast because there is strength in numbers and as a Powerhouse FX owner, you are a part of that strength. s You get a great price (savings from 10 to over 25% on equipment and prices below wholesale list

s You get quality. Since Powerhouse FX locations are known for being state-of-the-art training facilities, we’re very particular about the equipment and products that are included in our gyms. Our Preferred Vendors’ products and services have been screened to meet our stringent quality standards.

PROMOTION AND ADVERTISING s Promoting Powerhouse FX through local, national & international games with world wide coverage. s Powerhouse FX training academy. s National television advertising on various cable networks. s Direct mail, newspaper, and social media marketing. s Full page advertising in several national publications including: s

Muscle & Fitness, Muscle & Fitness Hers, Flex, Shape Powerhouse Magazine s NPC News s Muscular Development s National and International promotional exposure through: s

Our involvement and sponsorship of local, state, national and international bodybuilding and fitness competitions and our support of individual, top-ranked contenders. s Donâ&#x20AC;&#x2122;t be surprised if you flip the cap on your favorite beverage and see a Powerhouse Gym guest pass. Thus far the Powerhouse /Pepsi alliance has led to many benefits from increased brand awareness to increased foot traffic in our facilities. s Sample print ads and flyers designed to give you ideas for your local advertising. s All of these are designed to increase consumer and brand awareness of Powerhouse locations across the world and add value to local communities. s Website and social media presence are included www.PowerhouseFX.com/<yourCity> will be fully integrated into our international website and linked to social media outlets such as Twitter, Facebook and Instagram. s Promote the Powerhouse FX brand through major trade shows.

faQ’s

What is Powerhouse FX? What Is Powerhouse Gyms International? Powerhouse FX specializes in interval and Founded in 1975 by William and Norman Dabish, Powerhouse Gyms International is operated by functional training typically set in a semi a staff of business professionals dedicated to private group environment. Utilization of assist present and future licensees in their quest kettle bells, battle ropes, punching bags, medicine for personal, professional and financial success balls and a variety of other equipment is used to create a high energy, intense, and fun workout owned and operated priding itself on developing environment. The workouts and training programs personal relationships with each and every one are tailored to accommodate everyone from the soccer mom to the elite athlete. The programs are of its licensees. based upon individual goals, fitness level, health history, What Is Powerhouse Gyms International’s Goal? and most importantly on how to get the member their To have our facilities recognized as the consumers’ desired results. choice for fitness. By aligning ourselves with Powerhouse owners that are committed to Why Should I Become A Powerhouse FX Licensee? servicing their members as well as providing 40 Years of international brand recognition. Leadership, state-of-the-art workout facilities, the Powerhouse loyalty and an established network of owners sharing ideas reputation will continue to grow exponentially with other licensees and corporate office staff to ensure success throughout the Powerhouse family. Our relationships with the top into the best training facility in the world. advertising & marketing companies are available for your use. As a Powerhouse, you capitalize on the success of an established name that is known, recognized and respected throughout the fitness industry while enjoying the pride and privileges that come from owning your own business. It’s one of the best methods of combining the independence and initiative of individual ownership with the strength, leadership and experience of an organized group giving you a greater opportunity for success. With licensing, you’re in business for yourself, not by yourself, especially when becoming a part of our 40+ year history. Our international real estate department will assist in finding and securing the top locations with the best lease structure for your business. in the fitness industry. The company remains family

Would It Be Of Value If I Visited Your Corporate Offices? Yes. Starting a new business is a decision that needs to be researched thoroughly. During your visit, which would take approximately four hours, you would see both corporate-owned and licensed facilities, meet corporate personnel with whom you will be working, answer all of your questions and determine the best way for you to proceed.

I Would Like To Review Your License

What Goes Into Developing A Powerhouse FX? Agreement. Will You Send Me One? Your initiative, resources, hard work, commitment, Our License Agreement is a highly valued and dedication are all necessary to be a successful and confidential document which we only owner. The desire to succeed and the passion distribute once you have established yourself of your entrepreneurial spirit are all crucial to be as a serious and qualified inquiry. After completing the very best. Combine these qualities with the the Confidential License Agreement Application, international reputation and recognition of the we will be happy to provide you with a copy. Powerhouse name, products and services, and you can build your business and be a part of the Am I Really In Total Control Of My Business? Powerhouse success story. Absolutely. You make all the decisions. For example, you choose the services offered, the methods of How Does A Powerhouse FX Make Money? marketing you will use, membership fees, the employees While membership and personal training sales will be you hire, the location of your gym and the methods the primary source of revenue, it represents only of operation. a portion of a gymâ&#x20AC;&#x2122;s gross income. Income can be generated by the sale of Powerhouse sportswear, Are There Any Restrictions or Expectations? nutritional supplements, body composition testing Powerhouse will ask for your compliance with reasonable and more. restrictions as outlined in the License Agreement. Of course we expect you to operate your Powerhouse FX in a reputable and How Much Can I Expect To Earn? business - like manner at all times as well as maintain a certain Your profit potential will depend on a number of level of quality throughout the facility. Powerhouse FX training and factors which include the quality of your facility certifications will be expected for all instructors. and location, the amount of time and effort you put into the business, how good a business person you are, the staff you employ, your marketing capabilities as well as your competition. Naturally, as in any business venture, there is no guarantee Are There Any Royalties Or Hidden Costs? of success or profitability. Powerhouse helps Absolutely not! Because this is not a franchise, your only financial obligation minimize your risk by allowing you to tap into our to Powerhouse is the monthly fixed license fee. many years of experience in operating fitness centers. Assisting with lease negotiations, Does Powerhouse Provide Financing? control of rent and payroll expenses and While Powerhouse does not provide financing, we can assist qualified providing training are all ways to help secure licensees in obtaining financing through the institution of their choice. In the viability of our network. addition, Powerhouse FX can be fully equipped including initial Powerhouse FX

Am I Given Any Territorial Protection? Yes. You will be in sole possession of a protected territory in which no other Powerhouse FX license will be sold.

license fees for as little as $50,000 to $150,000.

I BELIEVE ANYTHING IS POSSIBLE. I SEE OPPORTUNITY WHERE OTHERS SEE IMPOSSIBILITY

I take rIsks. I’m focused. I hustle. I know that nothIng Is unrealIstIc I TAkE FLYING LEAPS INTO THE UNkNOWN. I CONTRIBUTE TO SOMETHING BIGGER THAN MYSELF

I CREATE. I LEARN. I GROW. I DO. I BELIEVE IT’S NEVER TOO LATE TO START LIVING A DREAM

I am an entrepreneur JOIN OUR FAMILY POWERHOUSE FX

Powerhouse Gyms International 44125 W. 12 mile Road, Suite 118, Novi, MI 48377 Phone: 248.476.2888 | www.PowerhouseFX.com

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20 COUNTRIES, 40 STATES, 300 LICENSEES 20 COUNTRIES, 40 STATES, 300 LICENSEES

1.2 MEMBERS 1.2 MILLION MILLION MEMBERS GREAT NAME NAME 11 GREAT

® ®

EST. 1975 1975 EST.

COME AND SEE WHY WE ARE THE MOST POWERFUL NAME IN FITNESS

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VISIT VISIT WWW.POWERHOUSEGYM.COM/ONEDAYPASS WWW.POWERHOUSEGYM.COM/ONEDAYPASS TO TO DOWNLOAD DOWNLOADYOUR YOURFREE FREEPASS PASS AND AND VISIT VISITAAGYM GYMNEAR NEARYOU YOU VISIT/FOLLOW US US ON: ON: VISIT/FOLLOW

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/POWERHOUSEGYM • @POWERHOUSEGYM /POWERHOUSEGYM • @POWERHOUSEGYM

CORPORATE HEADQUARTERS CORPORATE HEADQUARTERS POWERHOUSE GYMS INTERNATIONAL POWERHOUSE INTERNATIONAL 355 SOUTH OLD GYMS WOODWARD, SUITE 150 44125 WEST 12 MILE ROAD,48009 SUITE 118 BIRMINGHAM, MICHIGAN NOVI, MICHIGAN 48377

(248) 476-2888 (248) 476-2888

INFO@POWERHOUSEGYM.COM INFO@POWERHOUSEGYM.COM LICENSING LICENSING LICENSING@POWERHOUSEGYM.COM LICENSING@POWERHOUSEGYM.COM

APPAREL/MECHANDISING APPAREL/MECHANDISING GEAR@POWERHOUSEGYM.COM GEAR@POWERHOUSEGYM.COM

MARKETING/ADVERTISING MARKETING/ADVERTISING MARKETING@POWERHOUSEGYM.COM MARKETING@POWERHOUSEGYM.COM

W W W. P O W E R H O U S E G Y M . C O M W W W. P O W E R H O U S E G Y M . C O M

EVENTS/TRADESHOWS EVENTS/TRADESHOWS SHOWS@POWERHOUSEGYM.COM SHOWS@POWERHOUSEGYM.COM