- “An emerging growth company” as part of the Jumpstart Our Business Startups Act of 2012
- In addition to the “Planet Fitness’ trademark, the company owns rights to “No Lunks”, “No Gymtimidation”, Judgement Free Zone”, etc.
- Standard membership is $10 per month includes free fitness instruction to everyone from staff trainers; $19.99 PF Black Card is available for system-wide store access + access to special amenities (i.e. tanning equipment, massage beds, other)
- 1,171 total stores with typical stores ringing in at ~20K sq. ft. – 1,113 franchised and 58 corporate-owned. Believe in opportunity to more than triple size with 1,000 stores already committed with franchisees
- Company focuses heavily on “judgement free zone” and creating an environment where members are not intimidated by members or high fees
- New stores in 2015 signed up an average of 1,300 members per store before even opening their doors – reflect strong brand
- Each store is required to spend 5-7% of monthly dues towards local advertising
- Franchisees typically experience >25% return on initial capital investment in the second year of operations (net of advertising and royalties)… most franchisees reinvest capital into Planet Fitness with 90% of new 2015 stores opened by existing franchisees
- Equipment have typical useful lives of 4-7 years — franchisees then provide a predictable, growing revenue model for re-equipping stores
- Revenue growth
- Store growth
- PF Black Card members as a percentage of total membership from 42% 2011 to 57% 2015 with average monthly dues per member $14.24 to $15.64
- Planet Fitness closed an IPO August 11, 2015 of 15,525,000 shares opening at $16.00 per share
- Revenue (2013-2015): $211,009 –> $279,777 –> $330,537
- Number of stores (system-wide, 2013-2015): 749 –> 918 –> 1,124
- Number of members (system-wide, 2013-2015): 4.8M –> 6.1M –> 7.3M
- Over 20% of members joined through Planet Fitness websites in 2015
- Franchisees’ unlevered investment in 2015 for a new store ~$1.9M including fitness equipment purchases and construction (~12 weeks for new construction)
- 756 employees across corporate owned stores and 180 employees at the company’s headquarters located at 26 Fox Run Road, Newington, New Hampshire
|TAG Panel on “How Dynamic Sales Orgs Drive Results”. Pictured from left to right: Jon Birdsong, Mary Ford, Ryan Radding, Eric Mercado, and Kyle Tothill|
- Jon Birdsong (CEO, WideAngle)
- Mary Ford (Director of Sales Operations and Strategy, Dell SecureWorks)
- Ryan Radding (AVP, Salesforce)
- Eric Mercado (VP of Business Development, Force Marketing)
- Kyle Tothill (Partner and Managing Director, eHire)
The majority of the discussion revolved around engaging sales teams either in mentoring and coaching or via direct incentives. Here are a few take-aways:
- There’s a spectrum of engagement and performance that ranges from (low to high): Resistant, Reluctant, Existent, Compliant, Committed, and Compelled. Mitigate (or remove) reps in the first three groups while promoting and sharing practices of the high performance reps who exhibit innovation and leadership.
- Drive engagement in these areas: Connection (connect individuals together to form the team), Support (mentoring and coaching), Reward (incentives), Progress (clear career progression model), and Structure (ensure alignment and understanding of roles and responsibilities).
- Measuring success and engagement should go beyond metrics and activities. Include personal goals – set, met, exceeded? Understand that the “outside” lives of reps has a very real impact on work performance.
- Beyond retention and promotion stats, evaluate the effectiveness and engagement of the team with referrals by reps and how quickly reps ramp up.
- Gamification plays to the competitive nature of sales reps with a layer of transparency and accountability.
- Pull ideas from reps on selling, don’t just push “best practices”. Sales reps can be innovative in how they sell and pushing “best practices” may not be conducive to the reps’ individual styles.
- Coaching tends to have a “master-subordinate” structure set with boundaries while mentoring allows freer structure and less formality. Mentors tend to go beyond sales topics or even at the current job. Have/ establish both.
Good points raised by the team, and continues to illustrate that to drive sales, it’s all about driving engagement from the team. Companies are organizations of people. Engaging the people within, at the group and individual level, can produce a culture that drives sustainable practices for business growth and team motivation.
|“Always be curious, and take closer looks at things you think you know.” Image of Curious George from: http://socialtextjournal.org/wp-content/uploads/2010/08/thecurios.jpg|
I get a lot of laughs when people see how I use Microsoft Office program in non-traditional ways such as PowerPoint for photo-editing and Excel for messaging (vs. Word).
- Limited resources can empower greater creativity and curiosity to solve problems
- Always be curious, and take closer looks at things you think you know. There’s a good chance there are layers you did not know about (applies to people, too)
What are some unconventional tools you use and how? How has limitations empowered you to be more creative, more curious to get things done?
- Understand the change management aspects of an organization including the culture at each level – don’t fail at these principles
- Consider the benefits for each consumer of the product (execs, mid-level managers, lower-level users, etc.)
- Almost more important than benefits, consider the risks. Why would the user not want to use the product? There are jobs at stake, work-life balance, etc.
- Empower and promote the main users of your product. Provide them with support, and make them feel valued. If they feel valued and love you, they will can be a powerful ally in the company
At the end of the day, to properly sell, ensure customer success, and retain customers, it’s imperative to consider the benefits and risks to each level of consumer and user. Be empathetic to each consumer.
We tend to reflect at the end of the year or after some big event that’s transpired. For me, that was hitting 200 posts, so I’ll take a moment to share six reflections over the past year (100 posts).
- Wrapped up a considerable amount of consulting projects including an iOS app project, product management, new website build, sales and biz dev process development.
- Wrote a book about startup and entrepreneurship focusing on lessons from failure – Postmortem of a Failed Startup: Lessons for Success (getting great reviews and feedback).
- The goal of consulting was to find my Next Great Move, and it successfully led me to a full-time role with an early-stage startup (SalesWise) – “No More Consulting For Me – I’ve Joined A High-Growth Startup!”
- Learning a lot with SalesWise including all the tools available. Bootstrapping companies in the past, many tools were priced out of range, so I built a lot manually. With a funded startup, there are many tools available that can accelerate learning and growth.
- Given a number of talks. I can’t wait to do more with students and beyond.
- I’ve struggled with high levels of anxiety, but found outlets to “right the ship”. Since, I’ve included more ways to escape and gain mindfulness.
- Is Your Customer’s Hair on Fire? – Key point: entrepreneurs and startups should solve a REAL pain-point.
- Kenneth Cole Started a Film Company… Just Kidding. Sort Of. – Key point: Persistence and creativity can be “all” it takes to build something special.
- Finance of Startups: For Dummies (Part 10 – Match Group, Inc. S-1) – Key point: Online dating is highly lucrative. (Maybe I should give it another go.)
- The Miss Universe Card Failed in One Glaring Design Principle – Being Understandable – Key point: Design exists everywhere, not just in technology, and can have significant ramifications on a grand stage.
- Leadership Take-Aways from Two of NCAA’s Most Successful Coaches – Key point: Leadership is critical in guiding a team towards a common goal, and the styles of leadership must adapt as culture and teams evolve.