Club Insider

Cover Story Classics

Red Lerille

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February 1994 Edition of Club InsiderFebruary 1994 Edition of Club Insider

Publisher's Note: Some things are timeless. A sight. A smell. A good story. Sage advice. In this case, we are going to go with a good story, and within, you will certainly experience some sage advice. Throughout 2025, we will be presenting something we are calling: Cover Story Classics. From our library of 300+ case study cover stories, featuring many of the greats of this industry and how they got there, we will be selecting those that truly stood the test of time to re-present to you. We are doing this for several reasons:

  1. 1. As already mentioned, these stories and the advice within are timeless. Like they did when published, they can help readers today.
  2. 2. Though you may have read one of these stories years ago, many of our newer readers have not. And, even if you have read them, reading them again with the new perspective of time passed can be illuminating.
  3. 3. We want to remind everyone of the power found within the Club Insider Archives. It's the power of knowledge and experience, and with it, you can accomplish anything in this industry that you set your mind to.

This month, to kick off this year-long series, we go back to where it all began for Club Insider: Our first case study cover story, which actually appeared in Editions #3 and #4 in February and March of 1994. That story featured Red Lerille and his mammoth facility in Lafayette, Louisiana, which at that time, had been in business for 31 years. Fast forward to today, double those years in business to 62 this month (Happy Anniversary Red!). Many of the things Red discussed then are pertinent today, and thus, they have led to his continued experience and success in this industry. At the end of this classic, we will update you as to where Red's is today.

• • •

February and March 1994

  • Red's
  • Red's Always Expanding and Improving
  • Red's Outdoor Courts
  • Red's Workout Row, One of Several
  • Red's Basketball Gym and Indoor Track

You are about to be exposed to an in-depth INSIDER examination of one of America's leading health and racquet clubs. Red Lerille's Health and Racquet Club has been in operation in Lafayette. Louisiana for 31 years. This Club Case Study will examine all aspects of one of America's most successful multi-sport clubs. This study is the first of what will be an ongoing series, which will be published each Quarter by The CLUB INSIDER.

Red Lerille... the Boy... the Dream... the Man... the Legend

Lloyd Joseph "Red" Lerille was born in Harvey, Louisiana in 1935. When Red was ten years old, he was inspired to take up weightlifting by his uncle, Harold Lerille, who was in the military at the time. Each time Harold would come home to visit, Red was impressed with Uncle Harold's "new" muscles. At age 10, Red took up weightlifting, building his first weights himself using paint buckets filled with concrete attached to a bar. At an early age, Red began a lifelong habit of cutting and placing a picture of his goal on the wall where he could look at and be motivated by it.

As a boy, Red placed a picture of a Mr. America contest winner on the wall and used that as his driving motivation to become Mr. America someday. His goals seemed simple to him. He wanted to someday become Mr. America and then to open his own health club. Fourteen years later, at 24, Red Lerille reached part of his childhood dream... he WON the 1960 Mr. America Contest.

A couple of years later, he founded Red Lerille's Health Club in a small store on Johnson Street in Lafayette, Louisiana. His original location was started with a $250 loan from his father. With that money, Red built his own benches and racks, and he was up and running with one of the first health clubs ever built in Lafeyette. From that meager beginning, Red's place has grown to 120,000 square feet sitting on 15 acres and producing in excess of $5 million per year in revenue!

Red Lerille is a dedicated fitness enthusiast who has gone from being Mr. America and Mr. Universe to a highly successful businessman. Red still puts up pictures of his goals on the board in his pro shop... and when he puts a picture up, he will always reach that goal. Goal setting, determination and dedication combined with being a very hard worker have been the keys to Red's success. Red's total dedication to his family, his club members, his employees and his community have carried him a long way. There are a number of habits that distinguish Red Lerille from just about anyone you will meet anywhere. Red is still a devoted bodybuilder, hitting the iron at 4:15AM four days a week. He rises daily at 3:45AM and pedals his bike to his club, which is located about one and a half miles from his home. Red finishes his workout on weights daily by 6AM and then goes immediately to St. Mary's Catholic Church for morning Mass and Communion. From there, he pedals home, has breakfast and usually goes to the airport to check on his antique airplane collection. By 9AM, Red is stationed in his club's pro-shop, on time and ready to work, having already done more than most people do in an entire day. He works a regular split schedule Monday through Friday from 9AM to 2PM and from 4PM to 7PM in the evenings. From 2 - 4PM, he will usually go back to the airport to fly his planes, or he will be in his shop in the garage behind his home applying "dope" (airplane paint) to one of his airplane wings.

Red Lerille has NO OFFICE and never has had an office. He feels that, if you are locked in an office, then you can't do what you need to be doing, which is tending to the needs of the club and its members. The closest thing he has to an office is a corner table in the snack bar area where he will sit briefly to talk to members and guests. Red sells memberships every day, and on an annualized basis, he sells about one half of all new memberships sold. He also vacuums the carpet, picks up towels, cleans the locker room and picks up scrap trash anytime he sees it. It is Red's daily presence and dedication to totally clean and well-kept facilities which makes Red's club remarkably clean for a place that is 31 years old and that has between 2,000 to 2,400 in daily traffic.

A Change or Improvement for the Club Every Month

When Red first started his club, he made a vow to himself which he has kept religiously. That vow was that he would make a change or improvement to the club EVERY MONTH. Some changes might be small, and some might be huge, such as the addition of his huge basketball gym/running track facility. For 31 years, change has been a key to his success. Red attributes a great deal of his success to this constant change and improvement process.

Every year, Red puts a large percentage of his profits back into the business. This constant commitment to change and improvement has been influenced by Bill Pearl, one of Red's friends and a boyhood idol of Red's. Long ago, Pearl told Red: "Don't get greedy. Take one thing and make it successful." Red has heeded and followed that advice carefully. When asked about opportunities to expand to additional locations, Red says: "I am only one man... I can't really operate two clubs."

The Member is Boss... Don't Forget to Say "Hello" and "Good Bye"

Red believes and teaches his staff to believe that his members are the real bosses of his club. He does everything he possibly can to make each and every one of them feel cared about. He teaches his staff to always remember to say "Hello" to each member when he arrives and "Goodbye" to each member when he departs. Red explains that this constant warm and friendly greeting for members and guests boils down simply to: "It just means be nice to people."

Red is nice to EVERYBODY. He is even nice to his members who are unhappy and want a refund of their money. If a member is ever dissatisfied and wishes to be released from his one year membership agreement before the term is complete, then Red is the first to want that person's obligation to be cancelled and that member to have his money back. This philosophy of accommodation has served him well over the years. He says that many people who have quit and asked for their money back end up coming back and joining at a later time. He firmly believes that, if he had enforced his contract and not given the member his money back when the member was unhappy, he would never have been able to get them to join later.

Another factor in Red's success has been his temperament with those who have not paid their bills. In the mid-1980s, the city of Lafayette was hit by massive layoffs in the oil-based economy. Many people were moving out of town, and Red was losing members at a record pace. Some people who wanted to remain as members of Red's found themselves unable to afford to pay their club bill due to their own economic problems. Red extended credit to some of his members for as long as one year so that they could continue to exercise throughout their period of economic duress. This caring and giving policy by Red endeared him to many in the community.

Red donates his time to his community, delivering 35 or so public speaking engagements. His presentation and slide show that he gives to civic groups is outstanding and is highly motivational to people who attend. He credits this regular community outreach program with being one of his keys to success. While the presentation lasts for about one hour, it is full of wisdom and anecdotes by Red. In his presentation, Red teaches "Ten Hints For Getting Into and Staying in Shape" and he teaches the "Five Suggestions for a Successful Life" that he would share with his son. Both of those follow:

Ten Hints For Getting Into and Staying in Shape:

  1. 1. Pick a regular time to exercise and stick to it;
  2. 2. Find a partner to exercise with (Red says, "misery loves company, and you should have someone there to enjoy the fun," says Red);
  3. 3. Stick to a high carbohydrate diet, one that is high in fruits and vegetables and low in "meat, chicken, fish and eggs;"
  4. 4. Get regular cardiovascular exercise at least four times a week for a minimum of 20 minutes per session;
  5. 5. Write down your goals (Red says, "it is good to put a picture of how you want to look on the wall");
  6. 6. Participate in weight training three times a week;
  7. 7. Get into the right attitude for exercising by "dressing to sweat" (Red says, "you should go in with the right mental attitude and commitment");
  8. 8. Find a method of checking your progress, such as weighing in daily (Red weighs every day, and if he is up on weight, he adjusts his diet and/or exercise program to compensate for it).
  9. 9. Don't miss a workout (Red says, "It only works when you do it");
  10. 10. JUST DO IT.

Five Suggestions for a Successful Life:

  1. 1. Show up on time and ready to work;
  2. 2. Say "hello" and "goodbye" to everyone;
  3. 3. Make a change every month;
  4. 4. Learn as much as you can; and,
  5. 5. Stay in shape the rest of your life.

When discussing his generosity, Red explained that he tries to give to his church and community whenever he can. He estimates that he gives away $80,000 per year to worthy causes. He explained that he often has had employees and even members come to him in the past for small loans. He says he always tries to help younger people whenever he can, and sometimes, he never gets his money back. Red has established a Profit-Sharing Program for his key full-time employees, which gives them all a vested financial future with his organization, and he has established what amounts to an employee credit union for small loans for autos, boats, etc.

When quizzed about his involvement in the financial matters of his club, Red confessed that he doesn't spend a lot of time thinking about or worrying about the club's financial performance. He even admitted that his staff sort of keeps the club's cash position a "little secret" from Red to combat his spending it all on club improvements for his members. Red feels that he has the greatest job in the world, and he wouldn't trade it with anyone. The thing he cares about the most is that he is able to do what he wants to do. He says: "I was put on this earth to run a gym, and as long as I'm alive, I will." Red loves his work and his play. In addition to his hobby of collecting and totally restoring pre-World War II airplanes, he and his wife, Emma, enjoy riding their Harley Davidson motorcycles on extended road trips across America. Also, Red is the proud owner of an awesome white 25th Anniversary Collector's Edition Lamborghini, which causes major head turns when Red drives around town.

Red has had some interesting experiences. Years ago, he bought the first Nautilus machine that Arthur Jones ever built. Arthur was traveling across America with a U-Haul on the way to California and stayed with Red in Lafayette for a couple of weeks. Since then, Red has bought over a hundred Nautilus machines and the new Med X equipment invented by Arthur. Recently, Red had a visit with Frank Borman, former Astronaut and Chairman of Eastern Air Lines. He came just to get a ride in Red's incredible Waco Bi-Plane.

Red has had two aircraft accidents. The first was when he flipped one of his planes while landing. He walked away. The second was when he was on the landing roll with one of his planes and the wing strut collapsed, sending the plane into a ground loop. His son, Mark, was watching at the time and actually saw the accident in which Red was seriously injured. Red was taken to the hospital and had to receive several hundred stitches on his face and head. Through all of that, Red only missed two days of work and two workouts!

When Red decided to install a gym for kids aged 9 to 14, he had specially sized weight machines made up by his friends down the road at Body Masters. Red predicts that weight training will be the single largest draw for clubs in the 1990s. His weight training areas total close to 20,000 square feet currently, so he is well prepared for the future. Red at age 59 is in incredible physical condition... testimony to his lifestyle. He demonstrated how strong he actually is by lifting himself into a rigid handstand on top of two handgrip devices attached to metal poles. In 1987, Red was named by IRSA, The Association of Quality Clubs (now the Health and Fitness Association) as the Person of the Year. This was just one of many awards and honors that he has earned.

Connie Tomino, one of Red's five top managers has summarized the philosophy of Red Lerille and his organization in a simple statement. Red Lerille and his team live by this concept... it is not new... it is as old as time:

"TREAT PEOPLE THE WAY THAT YOU WOULD LIKE TO BE TREATED (OR BETTER) AND EVERYTHING ELSE WILL TAKE CARE OF ITSELF."

An Interview With Red Lerille

Red LerilleRed Lerille

Club Insider (C.I.) - Red, you have quite a history. Could you tell me how you first got involved in weightlifting and the club business?
Red Lerille (RL) - My uncle, Harold, used to come home from the military all the time and show me a new muscle or two. He was 10 years older than I was. Every time he would come home, he was kind of my idol. I used to make my parents take me to the Mr. New Orleans contest. That was a big inspiration for me. And, of course, reading magazines like Strength and Health. I'm not even sure it's in existence anymore.

C.I. - I think I've figured out by looking at your 30th Anniversary Newsletter, but how long were you at the original location where the country boot store is now?
RL - A little over two years. I opened up in 1963, and here, I opened up in 1965. Two years. About a year and a half after I opened up, I bought the land here and started construction.

C.I. - How much land did you buy?
RL - Two acres.

C.I. - And it's now how many acres?
RL - Fifteen acres.

C.I. - How much did you pay for the two acres?
RL - $25,000.

C.I. - How about the building?
RL - That was about $60,000.

C.I. - Did you finance the first 4,000 square feet or build it with cash?
RL - I financed it with the people who just refinanced it for us, the Lafayette Builders and Loan Association.

C.I. - How about all the other expansions?
RL - Everything was built with loans... until recently. All the recent work we've done with no loans, like taking out the racquetball courts. We haven't borrowed money since the refinancing.

C.I. - The first location was 4,000 square feet. What's the size now?
RL - About 120,000 square feet indoors, plus the outdoor four-pool complex, 16 outdoor tennis courts with the jogging track, so we have more outdoor facility space than indoors. And, six hundred parking spaces.

C.I. - When you did the most recent refinancing package to roll your bank notes together, how much did the club appraise for at the time?
RL - The appraised amount in 1992 was $10,750,000.

C.I. - In regard to racquetball court conversion, you've built up to how many racquetball courts total?
RL - Twelve.

C.I. - And, you're down to how many racquetball courts now?
RL - Six. The next move is to take one more racquetball court out. We'll probably end up with five.

C.I. - What advice would you give a club owner who has racquetball courts and is looking to expand but is afraid to take racquetball courts out?
RL - I'd take 'em out. We have six courts now and rarely are we ever booked. You can get a court almost any day and at any time if you call in the mornings. They might be booked at six or seven o'clock, whereas years ago, we had twelve courts and you could never get a court. The only time you could get a court was maybe between one and four. That was the easiest time. We had 12, and right down the street, there was a place that had seven. And, they're gone. And, there was another club across town with six courts. I don't know how many are being used now. But, we are down to six, and we don't even need six. Compared to the level of occupancy that we were at twelve years ago, we now only need three courts right, maybe two. In other words, when you look at that, racquetball is down by about 90%.

C.I. - Did we as club operators fail to properly teach racquetball?
RL - I don't know. I don't study things like that. I don't try to figure stuff out. I just try to go with whatever is going. Try not to buck it. It's not worth fighting. It is better to do what the common stuff is, and right now, it's definitely workouts and cardiovascular machines, treadmills, bicycles. I think that's the trend now, and actually, in our club, it probably always has been our leader. And, that's where I'm putting all my bucks.

C.I. - What about aerobics? When did you first install aerobics?
RL - That would have been about 15 years ago when we built this row of racquetball courts, right before the racquetball court decline started. We were going to 14 courts, and I saw a man leading an aerobic class in a club in Las Vegas. It was more than an aerobic class, rather a dance class, which kind of excited me a little bit. And, at that point, I decided we were not to go to 14 courts, but to 12 instead, taking two out for an aerobics room. So, we never did get to the 14 courts. The courts were basically constructed when I told our builder to put some framework up here so we could span two courts so we wouldn't have any walls.

C.I. - How much did it cost you to take out a racquetball court and double deck it?
RL - It's going to be a wild guess, but I think it's costing us about $60,000 or $70,000 to take a court out. And, I think we did it pretty classy. It blends in with the building. I really feel good about the way we have done things. If a person didn't know it had been a racquetball court, he would think it was just another room to work out in. I think we've done a good job with it. And, upstairs, where the bikes are, there's no way in the world that you'd know it was a racquetball court. That room is about 4,000 square feet plus the passageways... close to five thousand square feet of bikes, treadmills, Stairmasters and Cross trainers.

C.I. - Describe your management philosophy.
RL - I'm very loose as a manager. In other words, I would like to consider myself and all my managers more as workers than actually managers. And, I think we do it on a very casual basis where we all work, myself included. I think I manage much like my managers do, sort of on the job, hanging around, doing little odd jobs, doing whatever has to be done, you know. But, I don't really consider myself a manager; I just work here. And, I just happen to own it! So, I don't know if I have any management style. I just do basically the same thing that I've always done here, which is everything that needs doing that's not being done at that time. And, I think that's basically what a manager should do. I mean, you want all your workers to be extremely efficient so you have no loose ends, but you've got to be realistic. That's never going to happen. Your managers are going to drop the ball. I drop the ball sometimes. You know, sometimes I come in and it's a total day of day dreaming. I'm just like everybody else. We all are. And, other days, I'm really focused on what I'm doing. I find I have a tendency to focus more if there is a problem and focus less when things are running smoothly. And, I think that's probably healthy. I think it keeps you from being under tension all the time. As far as a philosophy of operating, I don't really have one. I don't quite know how to describe it. But, that's basically how we operate.

C.I. - Describe for me your philosophy about dealing with your members. Say, if they are unhappy and they want their money back.
RL - If anybody wants his money back and doesn't want to be a member, I'm the last one that wants them to be a member. I'll give him his money back. If somebody comes in, has been a member for a few months and is totally dissatisfied or says he was transferred out of town, I'll give him his registration fee back with no hassle in cancelling the contract. But, if a guy's been a member for a while, it may be seven or eight months and he decides to cancel, I won't give his registration fee back, but I'll let him cancel the contract. We've done that forever. We try to take care of people as best we can. If anybody has problems in the snack bar, we give them their food. I want everybody that works for me to realize they can do that.

C.I. - So, you fully empower people?
RL - Yes, I'm not saying they do it, though. Sometimes, it is hard for some of the younger workers to do that. I wish all of my workers at every level could learn to be that flexible. Yes, they have the power, but they don't all use it. I try to make them (members) as happy as possible. If they want out, I try to make it as smooth as possible. One day, they may come back.

C.I. - Over the years of dealing with people in that manner, how rewarding has it been to see a person come back in after two or three years?
RL - Many do. But, if you don't treat them properly, and they have a bad feeling when they leave, they are never coming back. They will never go to anybody else's health club either, and that's really bad. You know, a lot of people come here, and often, I know they have not been treated properly at somebody else's club when they start asking the questions like how do you handle this, how do you handle that, do you sell the contract to a finance company... So, when they start asking all those questions, I know that they have had problems somewhere and I try not to do that. I'm not saying we make everybody happy, but I think by and large, we shoot to make everybody happy. And, I want a place that I feel like coming to work at. I don't want a place that's so structured. I'm not a very structured person. I lead a certain structured life: I wake up at a certain time, work out at a certain time, because I want to get a lot of things in.

C.I. - You have a policy that, if one of your people has a problem with one of your members, you want to be informed first before that person gets to you. Could you elaborate on that policy?
RL - The reason is that I'm very easy to find here, so nine times out of ten, I may know the member very well. I know that the member's coming to me. I want to know what is happening, so I want to know in advance about why a person is calling or if they are going to come and approach me. I don't like to be surprised. But, I mean, I'm listed in the phone book... they can call me anytime.

C.I. - You have a new member sheet which explains your club's account system and covers the ten most asked questions on the bills for members. What I want to understand is your policy on dealing with members who don't pay their bill to you. How do you handle that? What is your philosophy for dealing with people who have come on hard times and really want to be a member but can't afford to due to some financial setbacks.
RL - I'll work with anybody who comes and talks to me. But, I don't like when a person gets way, way behind and then comes and talks to me. If they get a little behind, I'll work out anything with them. I just don't like it when someone runs up a big bill, then says he can't pay. He might charge a few tennis racquets and eat for two or three weeks and not pay his bill. That's not too good. I don't like that. But, if a guy has a little problem, I'll let him ride for a little while. I've done it before.

C.I. - What would you say has been the most dominant factor in your membership dues pricing?
RL - It is a mix of things. There are weightlifting places where a guy can work out for less. I guess the biggest thing is that our cost of operation is always something to contend with. Plus, we do constant maintenance and are constantly adding improvements. In most clubs, they don't do what I am doing by adding and changing. I mean look what has happened since you were here in August (6 months). We converted a racquetball court, we've added about 30 machines, we are tearing out the outdoor jogging track and resurfacing it, we've refinished the entire basketball gym floor. We put in that huge drinking fountain/ice distribution machine that cost us $11,000! All that's happened since August. So, we've done a lot of things. The equipment is probably the biggest thing.

C.I. - You don't try to get corporations to pay for all of its employee's memberships because it is better if the person is investing something. Why is that?
RL - If I decide I want to buy free passes for a local restaurant and give them to my employees for free, they will all probably take one, but not all of them are going to go there. The same thing with a health club. If you just give the membership away, everybody will take one, but they won't necessarily use it. I think it's better for us if they use it. In the old days, you wanted people to join and not come, and that was a good member. But, it really isn't a good member. He's not bringing his friends, and the only way you're going to prosper is by people bringing their friends. And, they are only going to bring their friends if: (1) they are getting in shape and their friends notice it, and (2) they have a good attitude about coming here and WANT to bring their friends. The BEST method is if they are getting RESULTS and their friends see it. The results will bring the friends. That's the way to get new members, I feel.

C.I. - If you were to be advising an upcoming young operator about the constant improvement concept, how would you advise them?
RL - Do an improvement monthly. The biggest reason is that it excites the member, and he brings his friends and that's how you get members. There's no question, that's the most important reason. Second, it excites the hell out of all your workers. Third, it excites the hell out of the owner! I mean you've got to be excited about things. And, if you're adding new things all the time, especially if you are a person who likes to work out, I like new little trinkets to play with. And, I think nothing can be more important than an owner working out and staying in shape, because then, he at least knows what's going on a little better than if he doesn't exercise at all. The guy who exercises and goes to a convention is a better trained eye for buying equipment than the guy who doesn't.

C.I. - If you are in a situation in a club and you want to make improvements but you can't afford to make improvements, what other alternatives would you suggest?
RL - My opinion is if you can't afford to make improvements, then you will go out of business, so it won't matter anyway. I would make the improvements, I don't give a damn whether you can afford it or not. I set a little law when I went into business that I never go one month without making an improvement of some kind.

C.I. - 31 years ago... that would work out to at least 372 improvements in the club since the beginning.
RL - An improvement to me might be something as small as a new piece of equipment in the gym, it might only be a bench. Or, it could be a $1 million dollar basketball gym one year, it could be new tennis courts or a pool. The important thing is that you have this feeling that you're growing no matter what. I use the same concept when I'm working out... always progressive weight training... always adding a little weight or another rep, but always, I feel like I made some little improvement. And, the same thing with my facility, I feel like I'm always doing something...

C.I. - What about rearranging and moving things?
RL - I think that's good, too... but don't think you are fooling anybody. Then again, you might fool adults, but don't try to fool the kids. You can't fool kids. Again, it's real important to make those changes, if nothing else, it keeps them enthusiastic. You feel like you are growing. In tough times, when we were losing big time numbers of members --one time, we lost 1,700 members in a short period because of the oil crisis-- I still made that monthly improvement of some kind, because I know that the losses wouldn't last, and if it did last, what the hell, I was going to go out swinging.

I feel if you don't do these things, you are going to go out, you know... you only have to look back at the corner grocery store. Now, why didn't that guy become the supermarket? Why did he let the other guy come in and do it... why couldn't he be the big supermarket? He was there first, but chances are he was selling the same kinds of foods on the same shelves with the same linoleum floor. All of that stuff was probably the same because he did not believe that he had to make improvements, he thought he would always be there. Nobody goes into business thinking they are going out! Everybody thinks they are going to finish their life in that business. They really do.

I opened up a health club here, so I'm going to do this the rest of my life. I'm not going to open up and go out of business in two months. Or, five years and go out of business. I think I'm going to be a success. Everybody does, and I think the difference between those who do and those who don't is those who keep plugging away. And, plugging away to me is making those changes. I will make a change every month; sometimes I make 10 or 15 changes. I don't even write 'em down. I'm just going to make changes. If it gets to a point that I'm not making changes or it's tough to make a change, then I might write it down. You know what I mean... I might put it on my goal board. I need this change this month. It's not like that right now, the money's not bad... things are good, so changing is easy, but I guarantee you when things were tough, I'd put up a change on that goal board. If I had to pick ONE THING that has made me successful, it's that attitude of change. You know, you'd be surprised how many people don't have that attitude.

C.I. - Do you ever dream a dream and then let it get away?
RL - Well, I have this little board, and I started this when I was a kid. When I wanted to win Mr. America, I used to put pictures of Mr. America on my wall, and one day, I was going to be on that wall. I used to tell my friends that I was going to be on that wall... I weighed about 80 pounds, and I was 10 years old. I'm sure they all walked away laughing... but I never forgot that, and one day, my picture went up on that wall, you know. I'm sure my mother repainted the wall and the picture is down, but I won that contest. And, I do that with anything I want... if I want something real important and hard to get, I put a picture up on the wall. Last year, as this time, I decided by September 1st, I was going to start four more tennis courts, so I drew four tennis courts on a little piece of legal paper, put it up on the wall and said, 'we'll start four tennis courts by September 1st.' The only problem... I didn't have any land to build them on. I went to talk to the lady next door, and she wouldn't sell. I had to romance her a bit, a lot of hello and goodbye, next thing you know, we were sitting down talking about it. Still wouldn't sell yet, but to make a long story short, on August 31st, I bought the land. On September 1st, I went out there with a shovel, and I dug a spade full of dirt.

C.I. - When you think back on your days of training for Mr. America, how much influence do you think winning that contest had on the rest of your life?
RL - Oh, everything. Not because I won the contest, but because I accomplished my goal. And, I think that was most important. I don't think the contest meant a thing. I really believe that I had the proper attitude... I realized the next morning that I was still a little red-headed fellow from Harvey, Louisiana that had another trophy... that it wasn't the end of my life... I didn't think that anybody owed me anything... I just won the contest. I went about my business... went back to school, worked in some health clubs, did some posing, trained, went to more school, and that was basically it, until I opened up my health club, which was a lifetime dream, also.

I'm not saying I didn't get sidetracked. You know, you get in school and you get in all this financial stuff... I was majoring in economics. And, I liked all that, but the thought of wearing a suit all the time and working in a bank or financial institution didn't excite me at all. But, as time rolled on, my little dream of opening up a health club became a reality.

I always worked in health clubs. I worked for Alvin Rowan one summer in Baton Rouge. He was one of the first guys to have a chain gym way, way back. He had one in New Orleans and one in Baton Rouge, and his sister had a few in Dallas. I learned a lot from Alvin. He was a tough operator. He was a real pusher to get the bucks in. I got no salary; I had to sell memberships. I could do all that... but I don't know if I would want to do that again. But, Alvin taught me a lot. I spent the summer there. Alvin was invited to go to the world weightlifting championship as a coach. At that time, I was still in school, but I dropped out of school and stayed on with Alvin until December or January. Then, I found a little building in Lafayette and opened my health club shortly after.

C.I. - What made you come to Lafayette?
RL - To be honest with you, the way I ended up here was when I came home to compete in the Mr. America contest. I had gotten stationed in Hawaii in the Navy. There, I had won some local contests and the Navy eats that stuff up. When I won Mr. Hawaiian Islands, they had an 8 X 10 photo of me on the front page of the Hawaiian newspaper. Like I said, the Navy loved that, because the weekend before, a whole bunch of drunken sailors were arrested and put in jail. This was a real nice thing. So, I never had to go to sea again. All I had to do was eat, sleep and train for contests.

I was in pretty good shape, so in 1959, I decided I wanted to go for Mr. America. I took two months leave and went home to train. I competed in a contest in Baton Rouge, and at that time, I met a guy named Mike Stansbury who had a health club in Lafayette. I was then contacted by a guy named Gordon Blake, inviting me to a meeting in New Orleans. Blake introduced me as a Mr. America contestant. He said the next day he wanted to take me to Lafayette. He took me there, and I ended up working for Mike's Gym.

I won Mr. America, came back, went to school for three more years and then I opened my health club. Lafayette was growing... I was always doing well. But, when I say I was doing well, by some people's standards, maybe I wasn't, but I was doing what I wanted to do, which is what I consider being a success. Doing what you like to do and enjoying what you like to do. A lot of people go to work and make a tremendous amount of money and can't stand what they do. I'm not going to do that. Not that every moment is perfect... but I love what I do. I feel I have the best job in the whole world.

C.I. - You don't have an office, do you?
RL - No. I have no place to use a phone privately. I have to hide in the closest in the pro shop to use the phone privately. But, I like putting pressure on myself and not being able to hide too easily. I try not to do that. I try not to hide in my facility. I try to be wide open. If somebody has a compliment, I'm there to get slapped with it; If they have a complaint, I'm there to be kicked with it, too. Whatever. I like to operate that way. I like to operate under a little pressure all the time.

C.I. - Have you ever had an office?
RL - No. Only the office we use to sell memberships here, and everybody uses that office.

C.I. - I know you are a member of IRSA (now the Health & Fitness Association). What about other associations? RL - Basically, as far as the club, the only thing I'm a member of is the Faust Roundtable #1 Group. The original group. I feel the Faust Group and the IRSA Group are very beneficial. Not that you are going to learn a lot each time, but every time I go, I learn something. I always pick up something. I probably give less information than anybody. I probably don't give a lot of information, because I feel it is so simple to do this that I don't have a lot to give. You just show up on time, ready to work. And, there you are. I like to do that, I like to work. The IRSA situation is probably more beneficial to a new club, but I do feel every time I go, I get pumped up. The talks are excellent, some of the main speakers are sensational and I always come back with a good feeling, and I like that.

C.I. - When you hire an employee, what process do you go through? Have you ever run an ad for employees?
RL - No. All my full-time people have been with me so long. I don't hire anybody. My managers do that. Most of the people come in and make applications. We don't test people. We went through that years ago, did testing, but we found our gut feeling was the best. It is not that we don't screw up, but by and large, we hire good kids and we try to hire U.S.L. students. That's worked fairly well for us. We have over 100 kids working here all the time, and during the summer, about 150.

C.I. - When a person is hired, what benefits do they get in the first six months
RL - They get their pay, a membership and 35% pro shop and snack bar discount.

C.I. - With new employees, how do you break them in?
RL - We have a little two-month probationary period. I think the great benefit is working with the members who are so nice coming and going here all day. They meet more people with good attitudes than any other place in this town. That's pretty nice. There are over 2,000 people per day coming to this club, and there are 2,000 people per day coming with a good attitude. You don't find that at too many places. Working at Burger King or McDonald's, you don't get those good attitudes. We are dealing with good, motivated people.

C.I. - You have a list of full-time employees that to characterize it as totally incredible for the health club industry might be an understatement. You have 13 people with nine or more years, including one person with 30 years and a couple of others with 25 or more years. What would you attribute this retention and loyalty to?
RL - Well, I can tell you one thing. I think I treat them like they are my family. Or, better than my family. I would do ANYTHING for those people. If they ever asked me for something or ask me to come somewhere, I would go. I wouldn't ask why; I would just do it. If they said I need $10,000 or $20,000, I wouldn't ask them what for. I would GET IT and give it to them... and I wouldn't even worry if they ever paid me back, and I think I would do that for ANY of those people. And, I feel they would the same thing for me. I might not do that for my kids. I might ask why they want it.

C.I. - You have developed both a profit-sharing plan and what amounts to an employee credit union. Could you share how that was done?
RL - The plan was probably started for a selfish reason. It was so I could put money away for myself, and it's an official plan... but it has worked out to be quite a thing. Several of my workers have used it to buy boats, to buy cars, so in a roundabout way, we're running it like our own little bank... and all of the interest is shared by all of us. For some of my top people, this could be their retirement, and in my case, it could be my retirement, too, if I ever decided I wanted to retire. Hopefully, I can work until I'm 100, you know.

C.I. - That leads to the next question. This is your plan, is it not?
RL - I would like to never retire and never draw social security in my lifetime.

C.I. - 1993 was a good year for Red's wasn't it.
RL - It was our best year. It's the first year we got up to the numbers we were hitting before the big crash. We haven't had bad years. Things have been good for us. It is the most members we have ever had.

C.I. - There is one thing that I don't want to forget to ask you. What are the three things you can't buy in this world?
RL - Respect, reputation and experience. They can come and put a new competing club right next to you, but they can't take those away from you.

C.I. - Red, what would you say is the most unique quality about your club?
RL - I really believe that if I had to pick one thing, and the comment I get from a lot of people who visit the club, is that this club has a "Feel" about it. You know you walk in and you kind of "Feel" something. The members all have that; I think they like coming here. We have our share of misbehavior, but I think by and large, people are excited about their club, they like coming here and they bring their friends here. During the Holidays, they all bring their friends here. They are excited and proud of it. I think it is because both the staff and the members here have GOOD ATTITUDES. I guarantee you one thing, you want to go through your life with a good attitude. I went to high school in New Orleans, which pushed RMA hard.

C.I. - What is RMA?
RL - Right Mental Attitude. They drummed it into me. If there is one thing I learned in high school, it was to have a proper mental attitude. Attitude is important.

C.I. - You had a real interesting experience with your work with Dr. Michael Berard. Could you share that with us?
RL - There was a time when we were growing like crazy. It was during the racquetball boom days. We were adding on. If I could borrow money, I'd borrow it. If somebody would lend me $5 million, I'd take it. But, I had tremendous confidence that I could pay it back and I thought, like everybody else, that racquetball was a game to get into. And, it was at that time. I have no regrets... it made me grow, we were just adding on like crazy, adding not just racquetball but tennis and swimming and so on. We just kept adding more and more. It got to the point where I came to realize that I couldn't operate this facility; I was basically trying to do everything. I was even still writing out workout programs... I knew all of the members. I enjoyed that part... but I could not keep doing it all.

Dr. Michael Berard primarily helped us develop a management team... probably more in a selfish fashion to help me more than anybody else, so I could turn loose. I was willing to let these people take some control, and I think I definitely picked the right people. They are all still here, not that we've all worked perfectly together, not that they are perfect people; nor am I. But, I think we all did a good job, and I think that we all learned a lot from him. We worked with him almost on a weekly basis for two years, which was really tough for me because I can't stand to sit in a meeting. But, we'd sit in meetings sometimes for 3 or 4 hours. We'd laugh and cry and do everything. I think we got to know each other better... I'm not saying we like each other better. I love 'em all... but I don't like 'em all.

C.I. - After you got your team in place, do you feel able to let go like you had hoped?
RL - To some extent. You know that's hard for me. Anytime you are a 100% owner, I mean this is my thing, I still look at it as #1. It's my total ass if this thing goes out. In their case, it's their job. In my case, it's me, totally. So, I mean there's times when I put my foot down. In most cases, I do listen to what they say. Sometimes, they knock me down. Sometimes, they are basically right. I feel I've been right most of the times... I've screwed up. Contrary to what they might think, I might bring up something and we move fast, but that doesn't mean that I haven't thought about it for awhile... I analyze it in my own fashion and then we do it.

C.I. - What was the biggest mistake that you can remember ever making in the business?
RL - If I had to look at the biggest dinosaur I have, it would be indoor tennis, and if I had the guts, I probably wouldn't have them. I probably would have converted those courts into a gymnasium. But, it would have been difficult to take out. I don't care what it is, to take it away from the members is really difficult. But, that's probably the biggest single item. I can't call racquetball a mistake because it made us grow. I can tell you about mistakes I didn't make, though. I had a lot of opportunity to expand and build more clubs around the state when things were really rolling. I could have had four or five sites. But, do you know where Red would be right now? Out of business. Because when things got tough, they got tough in all of those cities at the same time. We concentrated here, and it saved our ass. I don't know if I could have done that in five places, you know? I'm just not the type of person to do that because I like the hands-on work. That was the biggest mistake I didn't make. I'm not saying it is a mistake for others, I just don't want to miss my workouts, my planes, etc. I'm not going to miss my workouts to make money... if you had to describe myself with one word, that word would be BODYBUILDER. That's the best word I could use... no doubt in my mind. I'm not a businessman, I'm not an entrepreneur, I'm a bodybuilder... and bodybuilder by Arthur Jones' description is: 'A little boy in the body of a gorilla!'

C.I. - Red, what do you think about the hospital competition you are seeing in Lafayette, New Orleans and other cities?
RL - I tell you what... I feel that hospitals are the #1 competitor for the health clubs for one big simple reason, they've got the thing that most of us don't have... money. I think that they are going to be the competition of the future. I don't think it takes a rocket scientist to figure that out.

C.I. - I think I know the answer to this question. Is there anything else in the world that you would rather be doing with your life?
RL - I don't think so. I think I was actually put here to do this. I must say that, if luck has anything to do with my situation, I think the luck is that I've found something that I really like to do. By and large, I am extremely happy with what I do. I really like working here.

C.I. - How did you get started rising at 3:45AM?
RL - Well, actually, I've always been an early riser. In fact, when I talk to the girls in the pro shop, I tell them that girls used to like to go out with me because they could have two dates in one night! I bring them home so early that they could have a second date! I've always been like that, going to bed early and waking up early. I like the mornings... after you get a workout, you get this great feeling, so why get it at night or late in the afternoon? I enjoy it in the morning, where it can last all day! Then, I know when I'm going to work out, I don't have to worry about interruptions, because at 4:30AM, the only thing that will interrupt your workout is sleep. So, to me, it is a great time to exercise, it makes me get up and it starts my day, and I just like it. I don't think it has any added benefits to training in the morning, it is just that I am a morning person. I'm gonna do it, so I want to get it done soon!

C.I. - We were having lunch and a man walked up to talk to you who was from Shreveport, Louisiana. He made some complimentary remarks to you and then he said: 'Red, you're a LEGEND, do you know that?' Red, what do you think about being a legend?
RL - I don't know if I'm a legend. I think the reason people are shocked at my success is because the town is so small. And, I guess because I have been here so long. 31 years is a long time in this business. This is normally a very short-lived business. I've been lucky enough to have people who have worked with me for a long time, and I think all of that adds up to the little thing of me being a legend. And, we have been successful financially, no question about it... we probably have one of the highest grossing clubs as almost anybody in the country. I'm sure there are a few with big restaurants and bars, where they can charge high, high fees, who top us. But, I think the average guy with a small club looks at us as maybe like him only doing better. They might not look at the East Bank Club in Chicago as something they can strive for, you know, where I might be something they can strive for. I might look like the average guy with the average club who has grown to become above average, whereas they might look at East Bank Club and say, 'I can't ever have that.'

Maybe, I feel that's where the word 'legend' might come in. I get that thrown at me quite a bit. But, I don't think that I've ever done anything super human... I just think I picked an excellent town, I hired excellent people and I think we really work well together... I think we have a 'knack' for running the business. I think we developed that of course; we like it, we like working here, and all of that has made us somewhat successful. But, I don't think it's any special thing, any reason to be a legend. Of course, we are still here... the length of time, I that's a reason, too. But, you've got Foxy in Baton Rouge who has been in business almost 30 years, you know. For some reason, he never expanded a lot there. I don't know why, but he is an excellent operator.

C.I. - Over a year's time, how many club operating people come in to see your club?
RL - Maybe 20 per year. A lot of local people come by from around the state. You can't dream of this in some towns... this is not even practical for a town like Lafayette, Louisiana. It's only here because of the time period, you know. If you build this place today in Lafayette, you would bust your ass... no question about it. I mean, they bust their ass in California with the big clubs, where they have population. This couldn't not exist, this thing really should not exist, and it's only because of that one attitude of mine of doing something every month and that slow growth that has allowed this facility to exist... and the timing was right... right now, the timing is not right... someone would have to come in and build a facility to compete with this one, and it would be hard to make it. You'd have to have started with a lot of members the first day. If you had to build up like we did, it would be tough... I started when this was nothing. Physical fitness was nothing... just a bunch of kooks working out, and gradually, the fitness boom started. We grew with it, and racquetball played a big role there. We should all thank racquetball... most of us would not be here if it weren't for racquetball.

C.I. - Where do you see the future of the club business?
RL - No question about it, the weight training and cardiovascular areas will be it. I question some things, like personal training. I think the future is basically in the fitness component, the weights and cardio machines. And, that's always been the biggest thing for us... but the weights have always been our biggest thing, and it's getting bigger. It's probably where we'll put our bucks. I'll continue to upgrade this place, and I want to keep this place impressive.

C.I. - You were kind enough to give us in the Faust Roundtable group the book, Think and Grow Rich, by Napolean Hill. Have you used the principles in that book to reach your dream?
RL - I have used some of them, such as persistence; you never give up. I've used that principle in my goal setting. I first read the book when I was about 20 years old, and I've ready it many times. To me, it's the greatest book because it made me think of success and not necessarily in a monetary way... if it was just money, I'd have more money, because I don't have a lot of money... I don't look at success as money. I feel I'm a very successful person, mainly because I do the things I want to do. I have a nice family, I have a great job... the best job in the whole world. I have a hobby that is a passion with my antique airplanes. And, my job is a passion for me. I think that I look at my life as successful because of all those things...

I think the book, Think and Grow Rich, helped me in those ways, but I actually do not practice all of those principles, like developing a mastermind group and things of that nature. You know a mastermind group could be something like my managers. But, I do talk to people and try to get advice from them... And, I might pass something on and see how it strikes them... so, I guess I use a lot of principles in the book... the book is the first thing that ever put me on a successful path in some shape and form. I would recommend that book to everybody... I think it's a great book. It's not exciting; it's more like a textbook... the man did more research on that book than anybody... But, if I had to pick one thing out of that book, it would be persistence.

Winston Churchill gave a speech to his Junior High School class, and he said: NEVER, NEVER, NEVER, NEVER, NEVER GIVE UP! And, that was it. That about says it, doesn't it? I think that is what those people all had in common... they never gave up. They kept trying over and over again... I think that's the most important thing. You will get shot down A LOT, most of us do, but get up and do it again... get back up on your horse until he throws you off again. That's about it.

• • •

Publisher's Note: It's 30+ years later, and so many of the things Red said then ring true today. And, he continued on practicing what he preached. Today, Red's Health and Racquet Club is simply known as Red's, signifying the fact that his brand is so well known in Lafayette, no further description is needed in the name. And, for good reason... Red's is now 62 years old and spans 195,000 square feet on 20 acres. Dozens more expansions have occurred, and more are underway and on the horizon. Red and his facility are one-of-a-kind, simple as that. To close this Cover Story Classic, it is important for you to know that what was presented in this edition (10,000+ words) was less than half of what was published in this two-part case study cover story in 1994 (20,000+ words). Subsequently, in March 2005, we did a follow-up cover story on Red when he was presented with Club Insider's Health Club Pioneer of the Year Award. All of this can be found in the Club Insider Archives for Paid Subscribers. Simply, go to www.clubinsideronline.com/archives. Thank you for reading!

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