Saturday, January 05, 2013

"Long tail" fitness business model


1/3/13
Warm up. Joint mobility, Indian clubs, bands.
5 sets of 500 meters rowing and 5 reps L/R Kettlebell snatch
Barbell good morning: sets of 5
Ring dips and pull-ups, ladders 1-10 (that was not easy)
GHD sit-ups 4 sets of 10.
Prone triceps extensions with dumbbells.
30 min on heavy bag; with some gear.

Great session!

 "Long tail " fitness business model
            This is term “Long tail business” used by the “black Irish” publishing company and the work of Steven Pressfield and Shawn Coyne. It’s a new business model to capture the business opportunities on each end of the bell curve not covered by the large corporate structures.  We are not talking about scraps left for  the “bottom feeders”. It can be significantly profitable to those who laser focus on one area that is not being addressed in that business world.
            Pressfield and Coyne and “Black Irish” publishing have self published using the available new media and by-passed the mega publishing firms that basically have a monopoly on that business. For example they publish Steven Pressfield’s book, “Warrior Ethos” to our men and woman overseas free of charge. Now a major publisher would not allow this to happen as they are not getting a cut. These are some of the things that are happening to the new media, where anyone can blog, Kindle or e-books without a publisher. Result; book stores are closing by the thousands.
            In regards to the “long tail” fitness business model, is the “small box” or garage gym part of this? This fitness business model has been around since weights have been invented. Now it seems to be coming of age by Crossfit, who has building a following of “long tail” fitness facilities that the Globe business does not cover. The owners of the Crossfit” boxes” are semi independent but still have an affiliation fee to apply to the over head each year. Very modest by franchise fees I must say. To startup a Crossfit box is one hell of a lot cheaper that starting up let’s say, a Gold’s gym franchise, plus you are about 90% independent as to how you conduct your business. Most Crossfit boxes are mostly all profitable and owner satisfaction is also high.
             There is another new adjunct business model, as an off shoot of the Crossfit model, which is more independent than being affiliated with that organization. This is the independent small gym owners. The independent gym owners always tried to battle with the gonzo-globo franchises  in the past, by using the same style of equipment and going after the same customers. That’s not the “Long tail” business structure I was talking about. The new independent goes after the more serious fitness market with low volume membership with higher cost and profit. Also they now loosely affiliate with other independent gyms to form a grouping to share training experiences and more income streams beyond the gym training.
            Another “long tail” fitness business is the DVD, no gym needed programs, as I call them. You know; Buns of Steel, P90X, Tai bo, combat Krav Maga,  insanity, etc. These are media driven programs sometimes with some cheap ass equipment, that will make you fit like the models shown in the videos. Human nature prevails here in two respects. First everyone is looking for a cheap, quick fix to get the ass in shape. Second, you will be all over it for a short period of time, but when you look in the mirror and don’t see a ripped stud, you will lose interest fast. Think about it, how many in house treadmills, rowers, fit balls and cycles are sitting collecting dust or on Craig’s list? This is a great income stream for the promoters of the programs and it can be quite lucrative. This DVD business in not to be confused with coaches, trainers and box owners that put out DVD on some of their training. They are selling training aspects but not a complete program and encourage you to get professional in house training.
            An ever increasing “long tail” business is e-books and training DVD’s. It a great second income stream to the independent gym business, plus, you can team up with other gyms to sell each other’s works. It a real winner. You don’t see Gold’s or Planet Fitness publishing, as they really have little to offer.  You see there is nothing new in the fitness and strength world that has not already been done, so the best you can do is take the basics and simplify them so it can be applied by anyone. 
            The last” long tail” business is seminars, workshops and certifications. Many of the major fitness coaches and trainers are involved or perform seminars on their expertise and most are well worth the money. If you do attend a multi day workshop or seminar, there should be some e-book or DVD that covers the content of the days as there is usually tons of information thrown at you to absorb in those few days. Some trainers don’t even own a gym and make the majority of their living, giving seminars all over the world. Cool life I think.
         Certifications, is also a second or third income stream for some gyms, that attempts to authorize you to teach or train other people in a particular exercise form. I have some of the best kettebell certifications you can receive, but there a trainers that teach Kettlebell exercise with no certifications, so what Is it true value in the market? Dam if I know.

Just a sub note: if you’re interested in Steven Pressfield works they can be found on Amazon.

I have read his,"Warrior Ethos", "Turning pro", and "The Profession", all great books and the concept of the “Long Tail” business is something to watch out for in the future in many businesses going forward. The “Globo” fitness business model is obsolete just like many functions in our goverment.
Ken
The mission is sacred 

No comments: