Fresh off the split between Mad Dogg Athletics and Core Health & Fitness – Star Trac, I received this press release promoting their new (?) lineup of Indoor Cycles…
Core Health & Fitness To Introduce New Indoor Group Cycles
VANCOUVER, WA. September 29, 2015 — Core Health & Fitness, an industry leader in the manufacture
and distribution of commercial fitness products, announced today plans to introduce three new indoor
cycling bikes. The bikes will be marketed under Core Health & Fitness’s Star Trac brand and will debut
this Fall as the Studio 7â„¢, Studio 5â„¢ and Studio 3â„¢.
“Our new bikes are a winning combination of features and price points that customers will love”, said
Dustin Grosz, President of Core Health & Fitness. “We have been the number one seller of group cycle
bikes for over a decade and have over fifteen years of experience in engineering, design, manufacturing
and distribution of indoor cycling bikes. The design of our new line of bikes draws on that wealth of
experience and reputation for producing the highest quality indoor cycling bikes, while answering our
customers’ requests for a newly designed, more flexible and more affordable offering in the indoor
cycling space. The new bikes have a superior look and feel and are offered at a more attractive price
point than Star Trac’s prior product offerings in this space,” Grosz added.
Jeff Dilts, Vice President of Product Management and Innovation at Core Health & Fitness said,
“Although the bikes will vary in regards to frame and drivetrain, all three will utilize the popular perimeter weighted flywheel and a direct pressure brake system.
The top-of-the-line Star Trac Studio 7â„¢ will feature an aluminum frame, a field-tested Poly V belt and ship with pedals featuring both toe cages and SPD clips.
The Star Trac Studio 5â„¢ will have these same popular features, but will do so on the steel
frame structure. Both bikes incorporate the Star Trac patent pending, durable Morse Taper design that
delivers unmatched performance, safety and durability”.
The Star Trac Studio 3â„¢ launches with a steel frame, a traditional chain drive and direct pressure brake
system.
“The Star Trac Studio Series indoor cycling bikes provide a perfect complement to our Schwinn AC
series”, added Grosz. “No matter what frame, drivetrain, brake or console system a club wants, we’ve
got a bike that fits the need.”
I've requested pictures and will be posting them as soon as I receive them. Based on these very basic descriptions, (and no mention of Power) I'm going out on a limb and guessing that these will be rebranded versions of the Star Trac Indoor Cycles that you're already familiar with. Studios who are interested in magnetic resistance and power indication will probably be steered toward the Schwinn AC line by the Core Health & Fitness sales reps.
I've been in my share of Indoor Cycling studios where, by the end of class, the air is so thick with humidity that you can no longer see yourself in the mirrors. The room stinks and every breath feels like you're riding at 10,000 feet – your lungs starving for oxygen.
Are your experiences similar to mine?
I'm discovering that there's a very simple cause for poor/bad indoor air quality; insufficient ventilation that is the result of a HVAC (Heating,Ventilation & Air Conditioning) system that wasn't designed for the occupancy and activity levels of the rooms inhabitants.
Typically new small/boutique fitness studios are opening in retail spaces with HVAC designed for sedentary office workers – not 30 athletes riding below/@/above threshold for 60 minutes 🙁
The lead author of the study is PhD student Carla Alexandra Ramos from the University of Lisbon, Portugal. Carla agreed to join me to discuss her findings and offer suggestions to improving the quality indoor air in your club or studio on this addition of the Podcast.
Carla has published a number of research papers on indoor air polution that you can find them here at researchgate.net
Are you committed to the health & wellness of your participants?
Then shouldn't we all be doing something to improve the air we're breathing in class?
A good start would be completing this short survey on the quality of the air in your club or studio. Create your own user feedback survey
This might be a perfect space for a 25 bike cycling studio – except the HVAC system was designed to supply air for a three person travel agency.
I'm learning that many small/boutique fitness studios are located in spaces designed as offices or small retailers. Businesses with a handful of sedentary people, sitting at a desk. The building's HVAC system isn't typically optimised for all the CO2 and moisture created by a room full of heavy breathing participants = poor air quality, especially at the end of class 🙁
Does this describe your studio? Should we be looking for solutions to improve your studio's air quality, while keeping energy costs to a minimum?
The music industry is figuring out that a great Indoor Cycling class is built on a fabulous playlist. Now they're making noises that they feel they should be charging fitness studios a higher rate for their commercial performance licenses…
By Andrew Sparkler, Vice President, Business Affairs & Operations
At this year’s SXSW, SoulCycle teamed up with Spotify and some of their favorite DJs at what was dubbed as “an epic music and movement experience.” While the popular fitness club’s trip to Austin underscores the importance of music to its business, it is unclear if the music business is spinning to the same beat.
SoulCycle, launched in 2006, is now filing for an IPO. Its business is primarily based on offering a high intensity spin class led by an instructor who also serves as a DJ. Take a class, glance at their website or read their S-1 filing and it is clear that music is perhaps as essential to their business as the bikes themselves.
SoulCycle’s SEC filing characterizes its product as a “carefully curated ‘cardio party’ [that] is fueled by the personalities of our instructors, their uniquely crafted musical playlists and the energy of the room” and says that “[w]ith inspirational coaching and high-energy music, SoulCycle was created to strengthen both the mind and the body.” Their instructors go as far as to claim that music “is the most important part of what we do at SoulCycle.”
Performing rights organizations like ASCAP and BMI are on constant lookout for ways to generate royalties for their songwriters and rights holders, but one publishing exec (and former ASCAP vp) argues they need to look harder — maybe even break a sweat — when dealing with your favorite fitness center.
In an op-ed for Medium, Downtown Publishing vp of business affairs Andrew Sparkler said PROs are dropping the proverbial medicine ball by classifying certain gyms under “general” licenses — the same umbrella as restaurants, bars and concert/sports venues — when music has become such an ubiquitous and personalized part of the workout experience.
To make his point, Sparkler cites the popular SoulCycle chain of spin classes, who in a recent SEC filing for an IPO called their product a “carefully curated ‘cardio party' [that] is fueled by the personalities of our instructors, their uniquely crafted musical playlists and the energy of the room.”
In its SEC filing, SoulCycle projects 2015 revenue to be around $140 million and said it hopes to expand to 250 locations (up from 36 in 2014) in the near future.
Sparkler figures each SoulCycle is currently bringing in about $3.1 million apiece for the company, but is only paying a tiny fraction of that to PROs under the “general” licenses for the music it plays. BMI, for example, charges fitness clubs a maximum of $2,123 per year per location — which would amount to .01 percent of what Sparkler estimates each SoulCycle makes. ASCAP also has a flat fee per location, but it slides depending on inflation.
According to his calculations, fitness center revenue increased over 104 percent in the U.S. between 2000 and 2014, and SoulCycle jumped 108 percent from 2012 to 2013 alone.
While noting that SoulCycle is doing nothing wrong — they’re simply paying the bills sent by PROs — it’s those rights groups that should tap into “this cultural phenomenon and increase their rates accordingly.”
So where does this lead? My guess is that ASCAP and BMI will be looking for ways to monetize (make more money) off the excitement surrounding SoulCycle/Indoor Cycling and the ease of music delivery from Spotify/iTunes Music = they'll be contacting clubs and studios with “revised” (read more expensive) license agreements.
As someone who prefers to maintain a level of fair exchange, I can't begrudge them for asking a higher rate than a sports bar or restaurant would pay. My only hope is that club/studio owners/managers recognise the value great music brings to our classes and not follow the LA Fitness path that pretends to save money by enforcing canned Muzac use by their Instructors 🙁
Understanding WHY something “is” the way it “is” is fascinating to me. Outdoor road riders tend to be predominantly men… and Indoor Cycling participants are far and away women. So why is that?
OK, I already know why – outdoor cycling has an element of risk that's more acceptable to men, than women. My wife Amy is much more comfortable at speed on the back of our tandem, than she would be piloting her own bike. And it's not just me who's figured this out. Citi Bike has too.
When Citi Bike arrived here, it promised to spread the benefits of biking to the masses, an uphill push in a city where large potholes, heedless yellow cabs and darting pedestrians can make riding on busy streets seem like an activity best left for daring messengers.
But two years in, Citi Bike’s inroads have been decidedly uneven, with men far outnumbering women in using the bike-sharing system. A little time on Eighth Avenue on a recent morning, watching the stream of Citi Bike riders heading north past Pennsylvania Station and toward Times Square, was instructive. Man after man pedaled by, some in suits, others in jeans. From time to time, a woman on a Citi Bike rode by.
Reasonable (and observant) people already understood this, so I'm not sure why this is even a question. Men are by nature more reckless and more tolerant/accepting of risk than women.
“Women are early indicators of a successful bike system,” said Sarah M. Kaufman, the assistant director for technology programming at the Rudin Center for Transportation at New York University and an author of a new report on Citi Bike. “If you have more women riders, that means it’s convenient and safe.”
Officials at Citi Bike say they are attracting a greater share of women than the citywide rate of female cyclists – about 21 percent, according to a study from Hunter College. The bike-sharing service is looking at more than just the safety concerns that seem to nag more at women than men, who insurance actuaries long ago concluded are more likely to engage in risky behavior, such as not wearing a bike helmet.
Anyone who's insured young drivers (like me), are thankful they had daughters – not sons – when they get their insurance bill. Young women are less likely to do stupid/risky stuff in a car = they crash less often = they're less of an insurance risk.
This isn't rocket science here people. And yet I'm continuously seeing instructors and studios focusing their marketing at men… who ride outside… and will probably never set foot in your class. While successful (read profitable) fitness businesses like SoulCycle cater almost exclusively to women.
My advice to Citi Bike is to accept the reality here (women don't feel safe riding in traffic) and quit coming up with stupid non issues like not having a place for their kids.
And there are other perceived obstacles, not unique to women but more commonly cited by them: They cannot ride with small children. They think the cost – $149 for an annual membership or $9.95 for a day pass – is too steep, especially on top of a subway pass. And they worry about arriving at work sweaty.
“I wouldn’t want to be gross the whole day,” said Maeve McCarthy, 21, an intern at an interior design firm in Manhattan, who has not tried Citi Bike but said she would consider taking a nice ride through Central Park, if not commuting to work from Brooklyn.
Ms. McCarthy just doesn't want to smell sweaty the rest of the day… and I don't want to sit next to her if she does 🙁
There's an old saying; “you can't fight city hall”. It points to the futility of trying to change something that just ain't going to change… no matter how hard you wish it to change.
Indoor cycling fitness chain SoulCycle Holdings LLC has hired investment banks for a U.S. initial public offering expected to come later this year, according to people familiar with the matter.
SoulCycle's IPO preparations underscore the growing popularity of boutique chains that cater to specific workout methods such as spinning, yoga and barre. The chains, which often charge per class rather than a monthly membership fee, have been taking market share from traditional big-box gyms.
SoulCycle has more than 42 U.S. locations, and plans to open 50 to 60 studios worldwide by next year, according to its website.
So would you purchase shares in SoulCycle?
After watching SoulCycle for years and seeing what a money machine they've become, I'm thinking I will. In fact I'm going to compare them to Starbucks and predict that SoulCycle will make investors a lot of money for the same reason Starbucks has been such a solid investment* > both their customers admit to being addicted to their products.
A few weeks ago, while mindlessly trolling Instagram, something stopped me in my tracks: My friend from high school, Michaela Miller, who is currently working on a master's degree in public administration from NYU, had screenshot her upcoming SoulCycle schedule. “475 rides in 365,” she boasted of her “SOULiversary,” the birthday of her inaugural class. “Stepping it up with an even STRONGER starting lineup.” After gawking at the fact that she was planning a Wednesday triple–as in three, 45-minute classes in a single day–I shamelessly pulled up my calculator app. Some quick math revealed that my friend's dedication to cult-loved $34 spin sessions (before the price of shoe rentals and water) could easily run her $16,000 in a single year.
Despite all the negativeness directed at SoulCycle, they have shown the rest of the Indoor Cycling industry how to be successful. Not to mention positively changing the lives of thousands of participants…
For Miller, the benefits of being die-hard include daily clear-headedness, a built-in support system, and being held accountable. “I'm definitely less flaky as a person,” she says of committing to ten or more classes a week all over Manhattan, New Jersey, and Brooklyn. “I used to be notorious for missing trains, planes, parties, dinners, but since I started doing Soul, I'm early to things. I show up on time. It sounds silly, because we all should do that, but I was late a lot.” To minimize the financial impact (she says she's only on the hook for half of the classes she takes), Miller buys packages and nabs free rides via a group of instructors who now make up her inner circle. She even gave up a pack-a-day habit. “I would never have quit smoking if it wasn't for Soul,” she says with a laugh. “It was between SoulCycle and the cigarettes.”
NOTE: This is not intended as financial advice, only to alert you to this future opportunity.
