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Baby Boomers and Beyond
The largest, richest, and fastest-growing segment of the population is changing the face of fitness by Colin Milner The process, the phenomenon, has been described in a variety of ways. It has been referred to as a tsunami, critical mass, the tipping point, the accumulation effect, and, most famously, with respect to the topic at hand, as the age wave. The Age Wave, of course, was the title of Ken Dychtwald’s and Joe Flower’s 1989 bestseller on the baby boomers, but the subhead of that book—How the Most Important Trend of Our Time Can Change Your Future—is, if anything, even more relevant today. Baby boomers, the largest, richest, and fastest-growing segment of the population, are beginning to accumulate in middle age. As a matter of fact, this group’s numbers will increase by 25% over the next eight years, unlike the 18-49-year-olds, who will experience virtually no growth over the same period. With a greater number of older consumers, the demand for products and services designed for, and marketed specifically to, them will certainly grow. In 2009 alone, it’s estimated that this group will spend over $72 billion dollars on products and services to help slow the aging process. The positive impact they could have on your business is a given. The critical question is: Are you ready for them? The concept Sheldon Zinberg, Jim Agostino, Paul Holbrook, Edward Drangle, and Cleo Chmielinski are certainly ready. Each of these five entrepreneurs has capitalized on the promise of an aging population, opening health clubs designed and programmed exclusively for baby boomers and even older individuals. But these aren’t your typical fitness facilities. What makes these centers unique and successful? What can they teach the rest of the fitness industry? Well, for example, when was the last time you saw a driving simulator in a club? At Nifty after Fifty, CEO Zinberg regards this as a standard equipment offering. And if you stop to think about, it makes a great deal of sense. One of the greatest fears older adults have is the threat of losing their independence. Losing your license limits your ability to go where you want, when you want, and with whom you want—it reduces your freedom. So a driving simulator, which helps users improve their driving skills in virtually any kind or traffic or weather condition, represents a great example of knowing your market. Other elements that make the Nifty after Fifty business model unique include:
The typical Nifty after Fifty operation, he explains, has from 500 to 1,000 members, averaging 72 years of age, who pay a monthly fee. His first club, in Garden Grove, now generates an average net profit of 25%-30% of gross revenues. The critical factors For Zinberg and his fellow entrepreneurs, devising the right concept is only the start. The key to longevity for clubs serving the 50-plus market is service. “All of the equipment and programming in the world will never substitute for human interaction and support,” insists Agostino, the owner of Peoplefit, a 6,000-square-foot facility in Woburn, Massachusetts. Founded four years ago, Peoplefit serves a clientele averaging 60 years of age. In the case of his club, the support that Agostino refers to starts with a physical-therapy evaluation for every new member that’s conducted by an exercise physiologist. A physical therapist is also available to diagnose ailments that may be spotted and, if required, offer appropriate exercise alternatives. That type of personal attention, combined with age-specific equipment and programs, enabled Peoplefit to achieve a positive cash flow within six months of opening its doors. Now, quickly approaching capacity, its goal is no longer to grow membership, but, rather, to simply maintain its current volume of business. Cultivating a sense of community is also a crucial factor when catering to the boomers and their elders. Cleo Chmielinski, the owner of Avalon Woods Health Club for Mature Adults, in Toronto, Ontario, suggests that her club is like “Cheers without the booze and debauchery”—that is, a place where everyone knows your name. “What separates us from other clubs is the friendly and supportive culture that exists here,” she explains. But it’s not just a sense of belonging that differentiates Avalon Woods from its competitors. It’s Chmielinski’s intense attention to every detail “Our staff hiring and training process, décor, programming, coaching, and social events are all designed to encourage baby boomers and older individuals to start with us, use the club frequently, and stick with us,” she says. Creating the right atmosphere—both in terms of the physical environment and programs offered—is critical to winning over older members, observes Zinberg. The club industry, in general, has failed to do so, he observes—catering to a younger demographic with a product that, to boomers, can seem intimidating, unsupervised, and uncomfortable. It’s a seminal imperative that Avalon Woods has made concrete. “We’ve tried to create an inviting, sophisticated, and noninstitutional environment,” says Chmielinski. “We’ve attempted to replicate the look that people like in their homes.” The club’s color palette features warm nonclinical tones, e.g., tans, greens, yellows, and reds, which are complemented by dark stained trim, millwork, and lounge furniture—“like Starbucks, but livelier,” she notes. Members also enjoy reading and socializing in the club’s expresso lounge, which boasts a fireplace and lending library. Chmielinski’s approach to programming is equally focused and thoughtful. At Avalon Woods, the programming incorporates all six dimensions of wellness—i.e., physical, emotional, occupational, social, intellectual, and spiritual. In addition to participating in the club’s regular activities, members can learn and socialize with one another at numerous seminars and special events. The topics are ones that appeal to baby boomers, e.g., travel, financial planning, alternative health therapies, and wine and beer tastings. Opened just 17 months ago, Avalon Woods has a membership averaging 59 years of age, has grown consistently, and boasts a 75% retention rate. Some 40% of its new clients are referred by its existing members. Holbrook, the owner of the AgeWell Personal Training Center, in Salt Lake City, Utah, also understands the importance of venue and menu when it comes to his affluent 50-plus clientele. “The center is quiet and nonintimidating,” says Holbrook. “The noise level, lighting, and temperature are all geared toward the mature adult; and we feature a wide range of air-resistance machines, which are specifically designed for this population.” Among the center’s carefully tailored offerings are balance classes, gentle-stretch yoga, cobblestone walking, Silver Spikes (a track and field team for those over 50 who want to compete at the senior competitive level), senior games and sport-specific programs, and rehabilitation regimens for those with medical conditions (e.g., stroke, arthritis, osteoporosis, and Parkinson’s disease). The center, which opened four years ago, employs six trainers, has 60-70 active clients, with an average age of 70.5 years, each of whom trains 1-3 times a week. It produces a rewarding profit margin, averaging 37%. But, if there’s one goal that motivates baby boomers and older cohorts—whether consciously or subconsciously—more than any other, it’s continued, ongoing functionality. That’s also the defining objective of the Ageless Health and Fitness Center, a 3,700-square-foot facility in Little Rock, Arkansas. Edward Drangle, the president and owner of the business, is a former competitive weightlifter and experienced physical therapist who combines his two areas of expertise on behalf of his clients. The center employs a total of three physical therapists, three personal trainers, and two massage therapists. “I have a unique perspective on things,” says Drangle. “Our philosophy and programs emphasize function.” At his center, that dictates exercises in which resistance is applied to normal everyday body motions to increase strength, flexibility, and endurance; improve posture and balance; and significantly enhance a person’s ability to enjoy normal activities late into life. Ageless currently serves some 150 members with an average age of 65; the oldest is 90 years old. What lessons have these trailblazers learned on their respective roads to success? For Zinberg: It was to make sure that you identify the needs of the demographic. Then develop, insofar as possible, programs to address those needs in a safe, comfortable, and supervised environment. Agostino agrees with Zinberg that older members are turned off by uncomfortable settings. Chmielinski realized that you have to do everything you can to develop relationships in the community—it’s invaluable for growing your business. She also warns against competing on price, especially when you’re offering a product that’s unique and, therefore, regarded as particularly valuable. And, for his part, Drangle stresses the need to persevere, suggesting that, if you use your creativity, you’ll find that solutions are abundant and at-hand. But it’s not just what you do that will guarantee your business’ viability. Your clients, he notes, will also contribute to its success. “Be prepared for the unexpected,” he advises. “Older adults are capable of so much more than we generally think. You should be prepared to be amazed.” - Industry veteran Colin Milner is the CEO of the International Council on Active Aging (ICAA). |
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International Health, Racquet and Sportsclub Association |
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