Barry Klein and Rob Bishop have been friends since junior high school. They are now CEO and president, respectively, of Elevations Health Club. They spoke to Club Business Entrepreneur about how they got started in the industry, what their club does best, and their vision for the future of their business.
How did you get started in the industry?
We've been friends since seventh grade. After high school, we lifted weights and ran together for Rob's off-season football conditioning, and we became committed to one day opening our own club. Rob pursued the appropriate education, obtaining a master's degree in exercise physiology, and becoming a certified strength and conditioning specialist. Barry went to work in the software industry to learn something about business. During that time, we both coached, lifted competitively, and worked as fitness instructors. In 1995, when we felt we were ready, we purchased an existing club located in Scotrun, Pennsylvania and got into the business full-time.
What is the biggest obstacle you have overcome as club owners?
Surviving the first three to five years was huge. We began as a raw startup that could barely make payroll, and eventually we became a cash-flow positive, stable business with strong ties to the community.
How have you contributed to the community?
Our key charitable relationship is with our local Head Start pre-school program. We often host these kids at Elevations, letting them exercise and play in our group fitness room. Last year, we held a very successful Secret Santa toy drive for Head Start. Each year, we provide gift certificates to more than 50 organizations for fundraisers, and we frequently donate used equipment to local schools and organizations. We are also active in our local Chamber of Commerce.
What is the biggest threat to the success of your club?
The biggest challenge comes from the way most clubs in the industry are operated and sold to the public. When clubs have unqualified kids working the front desk and the fitness floor, or when they cheapen the value of their offering by selling on low prices and discounts, or when franchises give licenses to anyone off the street who wants to open a fitness center'all of these behaviors damage the entire industry.
What IHRSA benefit do you find most valuable to your business?
The savings of the workers' compensation program has been a big help to us and has saved us significant dollars. Second, the lobbying done by IHRSA for fair competition and the related information provided by the public policy team is extremely valuable. The tax-exempt organizations in our area that could compete with us are just an arm's length away. IHRSA's constant flow of good information has taught us to watch closely and be prepared.
What does your club do best?
We visit clubs all across the country, and although we hear a lot about 'great' service, we actually find it in frighteningly few clubs. Every club has equipment, classes, weights, etc. The only way to truly differentiate ourselves is with exceptional service. At Elevations, we know our members by name, and we do our best to make them feel at home in our facility. Just as importantly, we employ only qualified fitness professionals who are capable of helping our members reach their fitness goals.
At any given time at Elevations you might find Santa Claus wandering the halls, or a barbeque dinner being served, or Rob singing 'Happy Birthday' to a member over the loudspeaker. We have goodies at the front desk during the Christmas season and candy at Halloween. It all boils down to the fact that we don't take ourselves too seriously. We have a fun, relaxed club in which our members can reach their goals with the right kind of help.
What's next for Elevations?
We are in the early stages of doubling the size of our facility and adding a pool. In many ways, this endeavor is riskier than opening the club in the first place. We have a number of challenges facing us, from managing our way through the construction, to then offering the same high quality service and fun atmosphere, but in a much larger facility. In a sense, we're going to be a start-up all over again!
International Health, Racquet and Sportsclub Association
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