Muscle Ventures Podcasts

In this podcast (Quicktime ipod compatible, 35MB; Google streaming flash video), Troy Garver describes to me (Bud) some of the challenges he and Paul Wright faced during Gold's Gym, Ann Arbor's first year.

In Troy's view it's been a fantastic year but one where they have faced some challenges. When I ask him to name one of those challenges, he mentions their shakes bar, which always seems to be busy. They are now using higher quality materials than when they started but still charging the same prices. They have also switched to frozen fruit, which is more readily available and easier to store. Given, the typical profit margin on beverages in the food industry, my guess is that they are probably still doing well. It's just not the profit center they want it to be.

Gold's Ann Arbor is now running at about 1750 members. A year ago, when I first spoke with Troy, he mentioned that they wanted somewhere around 2300 members while maintaining the customer experience. Now, he is putting more emphasis on the customer experience. When I ask whether the local economy is holding them down, Troy mentions that the economy's impact has been mixed and that they have picked up members from some failing gyms.

Next, Troy drops a big bombshell. He and Paul are looking to expand to a new location with 62,000 square feet (as confirmed by Paul a little later), close to four times the size of the current location. The new location will have a full size basketball court, a swimming pool, two handball courts, and three group exercise rooms. They should be signing a lease in the next two weeks.

I suspect we will do a series on design and construction of the facility.

Additional Links

• Cost of goods and labor typically account for 50 to 75% of non-alcoholic drink revenues. However, drinks with special ingredients, like the protein shakes at Gold's, can have much higher margins.

This podcast (Quicktime ipod compatible, 12MB; Google streaming flash video) originates from Beijing, China where I visited Powerhouse Gym. We've been in China since Saturday night local time, almost 3 full days, and I had not been to the gym since Thursday in the states, 5 days. So, on our free day in Beijing, I made it a point to go to Powerhouse.

Troy, general manager of Gold's Gym in Ann Arbor had hinted to me that Gold's had a Chinese location, possibly in Beijing. Unfortunately, the only reference I could find for Gold's in China was about one going bankrupt in Shanghai. So, Powerhouse it was.

The video is short. I wanted to interview a manager, but the general manager was not available until afternoon. Frankly, I think videotaping the gym just blew the staff's mind. Things are different here. So, I wound up with just a short introductory piece where I give a brief show of the landscape and discuss where I think a place like Powerhouse fits into China. There are 9 locations, all in large cities. Tianjin, where we are headed, has three. Nine may sound like a lot, but Southeast Michigan has over 30 by itself. China has over 1300 times the population of Southeast Michigan.

I suspect the concept is slow to take off in China mainly because of cost. Basically, you have be rich here to afford Powerhouse. For less than the cost of a day pass at Powerhouse, I can take 6 people to dinner at a decent neighborhood restaurant. Further, I think the whole concept of the fitness lifestyle is foreign to people here. There's not a weight problem, and there's not a muscle aesthetic.

Additional Links

• Follow my travels in China here.

In this final installment on NCA Fitness (Quicktime ipod compatible, 24MB; Google streaming flash video), Bud finishes talking to  Jim and me (Nancy) about how the building came into existence and how Jim completed the inside.

The conversation begins with Bud asking why we wanted to build a pole barn in the first place.  Jim  responds by explaining that  he has always been interested in building things, restoring his 1931 Model A and woodworking.  He never had a place that was dedicated to his hobbies but always wanted one.  When the opportunity to build the pole barn surfaced we decided to take it.  In August 2003 we began to build the barn.  After many hot days and long hours we finished the building.  Jim then divided the barn into two rooms and we decided to make the smaller area a fitness center for me.  

Bud next asks about how Jim knew how to finish the inside of the barn.  Jim says that he learned alot from his father.  His dad was a carpenter and taught Jim quite a bit about the trade.  He learned everything from the initial  steps of "roughing in" a room to the finising steps of drywall, trim and paint.  Jim also points out that he enjoys working with his hands so this is really not "work" to him.

Bud then asks what work is left to complete in the fitness room.  Jim states that we are thinking of installing a suspended ceiling to decrease the echo in the room.  We are also contemplating adding a bit more lighting to make the room a little brighter.

ADDITIONAL LINKS

• Not sure what a pole barn is?  Find out here.
• Read more about NCA Fitness