Club Insider

Jeff Stokes, Vice President of HYPOXI North America, Weighs In

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Jeff StokesJeff Stokes

Club Insider (C.I.) - Jeff, let's get right to the question at hand. Our industry is a very competitive industry, and because of that, every move a club owner/operator makes must be smart and well-considered. So, let's analyze, item by item, exactly WHY our readers should purchase HYPOXI Machines and install them in their clubs. Certainly, we can focus on what a great machine HYPOXI is, but for purposes of this conversation, let's focus on what HYPOXI can DO for their club(s) FINANCIALLY. So, Jeff, please fill us in with one consideration at a time on the positive financial aspects of integrating Hypoxi into a club business.
Jeff Stokes (JS) - Absolutely! As you mentioned, the industry has become extremely competitive, and there are more options now than ever for consumers to choose from. The big box club owners are challenged with high-volume, low-price (HV/LP) clubs, boutique studios and CrossFit gyms on every corner. Many are creating their own HV/LP club brands and/vor integrating boutique studio concepts and CrossFit gyms into their own clubs to compete and maintain market share, and that is where HYPOXI comes into the formula. First and foremost, HYPOXI is a profit center. Utilizing as little as 300 square feet, a small or large club owner can integrate 3 - 4 HYPOXI devices into their business and generate substantial incremental revenues.

The HYPOXI - Method utilizes four unique, patented devices which combine the three elements of vacuum and compression therapy, low-impact exercise and nutrition coaching to successfully target stubborn areas of fat and cellulite on both men and women. The core target audience is women between the ages of 30 to 65 who are seeking body shaping/body contouring services and/or an alternative low-impact method of exercise to help jumpstart their fitness program. HYPOXI is very similar to personal training, but it does not require an actual trainer to conduct each session. All sessions are by appointment only, so the HYPOXI Coach can work with 2 - 4 clients at once. Clients purchase 12, 24, 36 or 72 session packages and train three times a week for 30 to 50 minutes in each session. Best results are achieved between 12 - 24 sessions when following the program, but clients begin noticing changes in their body after just 3 - 6 sessions.

The key to the HYPOXI business is utilization and occupancy of the devices. When a 4-machine studio is being utilized 50 - 60% of the time, the business can generate incredible revenues per square foot. Greg Oliver, CEO of our parent company in Australia (Fitness and Lifestyle Group) is putting HYPOXI studios inside most of his big box clubs. They currently operate over 25 HYPOXI studios inside their Goodlife Health Clubs and Fitness First Clubs. He has four key strategies for adding HYPOXI.

Greg Oliver's 4 Key Strategies to Adding HYPOXI

  1. 1. Generate new revenues in unused club space... both member and non-member revenue.
  2. 2. Create a separate digital store front and sub-brand that generates leads for both the HYPOXI business and his clubs. In fact, 60% of their non-member HYPOXI clients convert to a gym membership either during or after completing their HYPOXI packages.
  3. 3. Differentiate clubs by attracting a new consumer. 50% of Greg's HYPOXI customers are not members of a health club. The HYPOXI low-impact form of exercise and ability to target stubborn fat and cellulite has a huge appeal to many non-active people, so adding the HYPOXI sub-brand to his clubs has generated a tremendous increase in leads and exposure.
  4. 4. HYPOXI is a great platform to grow people's confidence and break down any insecurities about joining a health club. The small boutique studio environment combined with personalized experiences helps people begin and/or jump-start their fitness programs and goals. It's a win-win formula.

Bottom line, any club owner (big or small) that has unused space and is considering repurposing that space should call me. We have created a complete turnkey program that provides support for every aspect of the business. From space layout and design, to the HYPOXI equipment delivery and setup, training and development, sales and marketing support, and staffing, we provide a full, turnkey solution.

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