Positioning fitness in the marketplace
By Christy Krueger, Inside Tucson Business
Published on Friday, January 09, 2009
Ignoring the poor economy would be an important first step when launching a business these days. So believes Keri Ruffell, owner of Oro Valley’s fitness center 1-2-3 Fit, which opened in July 2008 with a bang. Since then, while some established businesses are closing their doors around her, Ruffell continues to find success in her new enterprise.
The Denver-based fitness franchise started three years ago and currently has approximately 25 locations. Keri Ruffell and her husband, Geoff Ruffell, have exclusive rights to the state of Arizona, which she feels can support up to 30 locations. The Ruffells’ goal is to own two more facilities and sell the remaining franchises to others.
“Part of my role,” said Keri Ruffell, “is to help proposed franchisees - identify them and get them approved. Once underway, I coach them on marketing and explain the system.”
The company’s concept of fitness is to provide a full-body workout through a series of resistance machines combining strength and cardio while spending less time, explained Ruffell. “The circuit that we use – there’s a lot of data that proves they work. It’s like interval training. In 2007, the American Council on Exercise did a study showing that this type of exercise routine burns more calories than other 30-minute programs.”
She also promotes cross-training, encouraging clients to participate in other activities they enjoy such as walking and hiking. “We are a tool, but not the only tool you need,” she emphasized.
Prior to opening 1-2-3 Fit last summer at La Cañada and Lambert Lane, Ruffell and her husband set up a tent in front of their still-under-construction space. They signed up more than 200 people from a table on the sidewalk.
“A lot of people drove by and wondered what was going on. We had pre-opening prices for incentive, and to make them feel comfortable, we offered a 30-day guarantee. It took away their fear of trying something they couldn’t see,” Ruffell noted.
Photographs of other 1-2-3 Fit centers were available to show prospective clients, but for the most part, Ruffell said, “they didn’t care what it looked like – they responded to it being a neighborhood-based business and being small and the personal services and support we give.”
Franchisees’ guidelines for location selection include being in a shopping center with a major anchor tenant. Ruffell conceded, however, that there is room for discussion on this point. Her Oro Valley facility does not follow the recommendation, but it has many things going for it, she said, such as “visibility, cars per day, rent, residential density within two miles. I think clubs not next door to a grocery store do better.”
Once reaching her opening goal of 200 members, Ruffell’s real work began. She understands that retaining clients is as important as obtaining them and she strongly believes in the concept of marketing within your own walls. Membership at Oro Valley’s 1-2-3 Fit includes e-newsletters and e-mailed fitness tips, phone calls to members who are overdue for a workout, rewards for reaching personal goals and providing monthly consultations with body composition analysis. She also holds trip give-aways for members bringing in the most new members.
Additional fitness opportunities are available to those who join such as the Boomer Boot Camp Ruffell leads at CDO Riverfront Park in conjunction with Oro Valley Parks and Recreation. During first quarter 2009 she will be expanding 1-2-3 Fit into the space next door with a studio for exercise and yoga classes.
Within the community, Ruffell forms business partnerships, and she networks extensively. Attending chamber meetings, sponsoring local events and visits to nearby employers are all part of the mix. She presents talks and workshops with organizations such as Northwest Medical Center, promoting the benefits of exercise and encouraging businesses to share the cost of membership for employees. Some physicians have even referred patients to the fitness facility.
Another component in the growth of her business, Ruffell believes, goes back to the clients - who they are and why they are there. “Our demographics – they are not young. They respond differently to the economy. We help them to see that in times of stress they must keep exercising to help with personal challenges. It’s not just a fun thing; it’s for their health.”
Determining what brought customers in is part of Ruffell’s business plan. “We ask everyone who comes in the door how they heard about us and put it in our database.” She learned that prior to opening, a majority of new clients discovered the business by driving past and seeing the sign. “Now it’s referral-based. They say their friend, neighbor or husband works out here. Customers like us, so they tell friends.”
Ruffell also knows geographically and demographically who her customers are. “They either work or live in a three - to four - mile radius. They know they can have a 30-minute workout without driving 30 minutes. The average is a 50-year-old woman. We have about 40 percent men, 60 percent women. Other Fits have more women. I attribute our higher number of men to women bringing their husbands in.”
“The third best source for new customers is integrated marketing strategies. They see us in the chamber newsletter or Oro Valley Medical Center or an ad in the newspaper,” Ruffell stated.
When will she stop accepting new members? “When we’re too busy to provide the best service. We think the max is 500-600 members. It’s different with every club. Some have more of a peak time; I have several peaks, so I have a higher capacity.”
As far as advice for businesses during challenging times, Ruffell believes, “If you work hard, once you pull through, you’ll be 100 percent stronger.”
1-2-3 Fit
10370 N. La Cañada Drive,
Suite 170, Oro Valley
(520) 575-9800
www.123fit.com/orovalley
Christy Krueger is a Tucson-based freelance writer.
Copyright © 2009 Inside Tucson Business