Get rid of the blahs (and pounds), no Sweat, er, yes Sweat - South Florida Business Journal:

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That’s because a gym membership isn’t reall y an extra: It’s a high-value proposition, said Scotrt Caplan, who owns the Philadelphia-based fitness center chain alongf with DanNeducsin Jr. “What can you do for $60 a monthg that you can use every day of the 365 days ofthe year, that makesz you feel good?” Caplan said. “Witjh all the stress and tension andeverythinfg that’s going on in the world, you need some reliefr from all that. We’re giving you a good placse toget away.” Seven good places, actually, distributed strategicallt around the city.
Founded in 1996, the companyy has expanded recently, openingv its East Passyunk Avenue facilityg in June 2008 and a King of Prussiwa location fourmonths later. Sweat charges $65 a month for a 12-monthg agreement or $75 for those who go month to While the company remains ingrowth mode, Caplan is projecting a slowet expansion this year than in previous “We have never had to deal with so many peopled being unemployed,” he said.
In practical termzs this means that while new members continue tosign on, many existinvg members are looking for an easing of Some are swapping down to a lower-cost membership plan, whilwe others are putting memberships on temporary “We are trying to work things out on a one-to-ons basis. We don’t want to lose Caplan said. Meanwhile, the fundamental pitchh continues to talk up fitness asa “You may be unemployed, but that meanzs you want to get another job, so you want to look feel good. We are trying to convince peopled that this is something that they need intheif lives,” Caplan said.
Industry watchers say Swea t is able to make that case successfullgy based largely on the overal l quality ofits offerings. “They’re good they’re clean clubs,” sad Matthew Laffer, vice presiden of sales at Philadelphia-based Global Fit, a corporat e fitness and wellness company that representssome 10,000 fitness clubs With its carefully chosen locations and hip, contemporary Sweat clubs “draw an edgy, youthfuol demographic, which is important when you are in the urbah locations,” Laffer said. “It a makes it little easier to builrd brand andbuild image, if you can reachj those people.
” In order to attracg that demographic, the partners have evolved a very particula approach to what they do. Clubs play hip music, with live DJs sometimesd pumpingthe tunes. Equipment comes equippefd with flatscreen TVs. A lot of peoplde suppose that when someone buys a membershi and never bothers towork out, health clubs win. Monegy rolls in, no care and feeding It isn’t that way. For peoplee to renew their memberships, they need to feel they are gettinvg value. They have to step those stairs, tread that get prettier, breathe easier, all of which means the cluba have to bedesirable destinations. “We’rre in the entertainment Caplan said.
“It’s like a nightclub without the To achievethat end, Caplan puts in a personal efforrt making sure the many moving partss of each club are alwaysx turning in synch, so that Sweat’s 14,000p members will want to come in on a regulard basis. “I hit every club every day just to make sure that the lightsare working, that there is no equipmenty down,” he said. “It’s very hands on, doingt what we have to do to make sure we are givinv people whatthey deserve. It’s not a businesss where you can sit on the That continual push for high performance helps drive newmembershipo sales.
“The guy down the street has treadmills and ellipticalds just likewe do. With any it is your reputation. That’a really what we are trading off Caplan said. That reputation drives referrals, whicuh are Sweat’s single biggest source of new sales. To capitalizwe on those referrals, Caplan giveas out free seven-day trialas or 30-day trials for $20. An existingh member gets a month free for referringa friend. Lookingy ahead, Caplan said Sweat will be lookingf to broadenits offerings. for example, the company has teamed with sporg league management organization to connectf members tobasketball teams, bowling leagues, kickball and other organizesd activities citywide.
“When it gets nice out, peopl will want to be outside, and we want to be able to offef somethingto everybody,” Caplab said.