Today we’d like to introduce you to Mark Federico.
So, before we jump into specific questions about the business, why don’t you give us some details about you and your story.
We opened our first Fitness center about 10 years ago in downtown Northborough. At the time, the club was only about 4,500 square feet, and offered very little in terms of extras. Our main difference from other commercial gyms in the area was being open 24 hours a day – seven days a week. As we have evolved into much larger facilities, offering classes, personal training and more – providing members an opportunity to work out on their schedule, not ours is still our biggest benefit.
As the concept of being open 24 hours a day grew, so did our clubs. In under two years, we doubled the size of the Northborough location, acquired a club that was about to close down and began to expand the number of programs we offered our members.
Over the next seven years, we have opened brand new locations, as well as purchased existing clubs re-branding them under the Boost brand. We currently have 8 locations open, with 3 more in development. Our model is still the same from the first few years in business – offer members a clean comfortable location, open 24 x 7 at a great price.
Has it been a smooth road?
Over the last decade, we have had a lot of obstacles and challenges that we have overcome to be successful. The fitness industry as a whole has changed – and we have had to adapt to change with it. When we first opened, the market rate was about $40 a month for gym membership – now people expect to pay between $10-$20 a month. The space is much more competitive than it once was, with large corporate player’s small boutiques and still some independent facilities.
We have seen competitors come and go – but I think we have been able to weather the storm and continue to grow by listening to our members and adapting accordingly. For example, we used to sell just one membership for $40 a month that included all classes and spin. We found out that about 50% members, never used classes – and didn’t want to pay for something that they never used. In order to accommodate them, we adjusted our pricing model to offer a basic membership at a reduced rate for those members just looking to use equipment.
We have had the opportunity to acquire some great clubs that fell on rough times – and the biggest reason was they did not change and adapt to the market.
So let’s switch gears a bit and go into the Boost Fitness story. Tell us more about the business.
Boost Fitness is a locally owned and operated health club with 8 locations in Central Mass. Our passion is providing a clean and comfortable fitness club at an incredible value. As the first 24 hour club in Massachusetts, our goal has always been to make working out easy for members. We realized early on, that most people want to work out, it’s just hard to find the time with work, kids and life. By being open all day, every day – we were able to eliminate that excuse.
How do you think the industry will change over the next decade?
I believe the industry will continue to evolve. Independent clubs (mom and pop) will shut down as more corporate chains come into the market place. The large public chains just have too much money behind them – making it very difficult for single club operators to survive.
We will continue to see small boutique fitness clubs open, with new trends every couple of years. These generally run their course as peoples habits change. Normally we will see a large bubble open, and then closings as new trends take off.
Obviously, we have seen a lot of changes in the retail space, with how large retailers are unable to compete with the internet and companies like Amazon. The good news is people still need to go someplace to workout, build relationships and have fun – so I don’t see the internet taking over health clubs any time soon.
Contact Info:
- Website: www.myboostfitness.com
- Phone: 888-845-5072
- Email: info@myboostfitness.com
- Instagram: boost_fitness
- Facebook: https://www.facebook.com/Boost-Fitness-77623690632/
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