CrossFit SOFLA: growing pains
CrossFit SOFLA was started in August 2012 by Josh and Stephanie Thompson. The business
began very humbly, offering workouts in the park from August 2012 through April 2013. It
opened its first brick and mortar location in April 2013. For the first year, it ran a business
model called the “closed class model.” The closed class model was a model that had each client
commit to two things: the number of times per week they trained (either two, three, or four
times per week) and the time of day they trained (either 5.30 a.m., 9.30 a.m., 5.30 p.m., or 6.30
p.m.). The client was required to follow a set schedule, much like you would for a college
course, allowing the client to always train with the same coach and the same fellow athletes.
From a business perspective, this maximized the space. From a client perspective, it minimized
their flexibility. They were locked into the same class which proved to pose a difficulty for many
prospective clients. They found the model to be limiting, and SOFLA realized it was not working.
The adoption of the closed class model caused disparity for the business and stunted its
growth. A change needed to be made, and in April 2014, it shifted the business model to a more
traditional model: the “open class model.” This allowed for more freedom for the clients, as
they were now allowed to come as often as they want and come to any class time that fit their
schedule. After this shift, the gym started turning around. In January 2015, CrossFit SOFLA
rebranded with a new logo and website. After the rebrand and the change in business model,
there was slow but steady growth.
CrossFit SOFLA is known in the community for providing an excellent experience and superior
coaching. It offers a high-quality product, and is respected in the local CrossFit community.
The retention rate is high, and customer satisfaction is high as well. Overall, the service is top
notch. This is clear through the reviews on Google, Yelp, and Facebook, the responses to
random surveys, and the positive reputation buzzing in the community.
In spite of the obvious quality and superior customer experience, CrossFit SOFLA has not found
the kind of traction that it needs to become profitable. The problem is that CrossFit SOFLA does
not have nearly enough people actually coming out and trying the service. The good news is
that when people do venture out, CrossFit SOFLA is very successful in converting potential
clients to paying members. They typically love their experience. This problem is crushing the
business, keeping it at breakeven status and away from profitability.
•In the first year there was little to no growth.
•After the business model shift, there has been slow but steady growth.
•It offers a very high-quality product.
•Once a potential client tries out classes SOFLA has a high rate of converting them to members
and a high retention rate.
•SOFLA’s physical space is one of the nicer CrossFit gyms in South Florida but it doesn’t have air
conditioning or locker rooms (which is almost standard for CrossFit gyms across the world).
CrossFit headquarters and CrossFit’s position in the fitness industry
Challenging the paradigm of fitness
In 2000, CrossFit was founded by Greg Glassman and Lauren Jenai in Santa Cruz, California. The
concept of CrossFit is to offer a general and inclusive fitness regimen, which all begins in the
belief of fitness. This program was built in order to prepare members for any unpredictable
situation. By offering such a broad range of fitness skills, CrossFit believes that all these skills
will be easily transferable and adaptable to any physical situation providing a performance
advantage over others. In short, CrossFit boasts a General Physical Preparedness, or GPP,
strength and conditioning program.
Glassman’s fitness regimen has changed the way people think of fitness. The protocol calls for
constantly varied, functional movements, performed at high intensity. What that means is that
the client is exposed to several different components of fitness (weightlifting, throwing,
gymnastics, running, jumping, etc.) all of which are movements that you would find in the real
world. And to make the most impact, these varied, functional movements are performed at a
very high level of intensity, allowing for incredible fitness gains over time. Another huge
component of CrossFit has been the creation of a strong, unbreakable community, leading the
company to impressive growth and success. Glassman contends that the combination of these
standards is what leads to fitness and health:
CVFM @ HI + Communal Environment = Health
A regimen of Constantly Varied (CV), Functional Movements (FM), performed at High Intensity
(@HI) in a communal environment leads to health and fitness (CrossFit, n.d.).
The affiliate model
We want to fuel a revolution in fitness that advocates the pursuit of function, not form – that
measures performance, not anatomy. We want rings and bumper plates in our gyms, not
machines. We believe that where you train is less important than how you train and that who
you train with matters more than what gear you have. We know this can be done in little boxes
and we’ve proven that the garage is as good an environment as any for Forging Elite Fitness®.
(Glassman, 2005)
CrossFit is now a movement that has provided an alternative to commercial gyms with its “big
box,” machine-based, bodybuilding approach to fitness. CrossFit’s garage gyms have proven a
success as they focus more on the fitness than the aesthetics of the actual location. Along with
its communal environment mentality, CrossFit has taken this advantage by developing
affiliations with this fitness concept. The first affiliated gym was CrossFit North in Seattle, WA.
By 2005, there were a total of 15 affiliated gyms and in 2015 there were over 12,000 affiliates
worldwide.
CrossFit is not a franchise and never will be. Under a franchise, the franchisee must follow the
rules and regulations of the franchising company. Unlike a franchise, an affiliation of CrossFit
only pays for the right to use the CrossFit name and to be listed on crossfit.com. Each affiliate
owner has the freedom to control all their business decisions to run and organize their gym.
Becoming a CrossFit affiliate is a simple process. An applicant must submit their application
online, as well as submit the appropriate paperwork and payment. Along with all the
paperwork and payment that must be filed the interested affiliate must provide an essay
explaining why they are interested in affiliating, explaining what CrossFit means to them and
why they would like to affiliate, and what they wish to achieve as an affiliate. This essay is
critical in the application process as it can indicate if the applicant aligns with CrossFit’s mission
and business model.
Business culture
To sum up the overall business culture, CrossFit SOFLA is built around excellence. Its coaches
work hard on continued education and personal development, and on providing a high-quality
coaching experience for their athletes. They are out in suburbia where their athletes consist of
young families between the ages of 30 and 40 looking to be fit for life, not for competing. Their
fitness is measured by whether or not they can do cool things with their kids and not get out of
breath. They have an inclusive, open community with a laidback atmosphere, and low drama.
Coaches are extremely helpful and are always going out of their way to assist customers. Their
mission is to use fitness to improve lives. The best part about CrossFit SOFLA’s cultural
environment (something that would not necessarily be able to be seen from just a walk around
the gym) is the high level of coaching. Coaches are well educated who have chosen coaching as
a profession and career, not just a hobby. The coaches love working with and helping people.
The goal of the coach is to help clients reach their potential. The coach guides them and they
start seeing changes in their life physically, which then turns into changes in their mentality,
which ultimately leads to them living healthier lifestyles.
Based on strongly encouraged feedback provided by customers, CrossFit SOFLA’s clientele are
highly satisfied. There are, however, some types of clients that would not thrive as well at
CrossFit SOFLA. The highly competitive athlete or a young millennial looking for party friends
will not necessarily fit in at CrossFit SOFLA, as the majority of clients are working professionals
and moms and dads. CrossFit SOFLA also works diligently to provide special conflict resolution
training to employees in an effort to prevent and eliminate drama. A strong, positive, and
drama-free culture is important to the leadership team, so they work hard to maintain a great
culture.
Services offered
CrossFit SOFLA offers three different kinds of services: group classes, personal training, and
CrossFit for kids. Group classes are simply personal training sessions in a group setting. The
advantage of group classes is that the athletes get personal coaching in a competitive and
motivating environment that pushes them to achieve their goals. Each class is structured to
have two workout options – fitness workouts and performance workouts – to fit every athlete’s
needs and physical capabilities. Fitness workouts are customized to be beginner-friendly for
CrossFit SOFLA’s athletes that don’t have a lot of experience. Fitness workouts help the athletes
build a strong CrossFit foundation through the use of lighter, progressive weights that
correspond to the athlete’s boundaries. Performance workouts are targeted for CrossFit
veterans who have experience and are proficient in the more complex movements. Athletes
can attend any class offered by CrossFit SOFLA and choose the option that best fits their
experience level. An experienced coach helps and motivates the athletes throughout the
session. CrossFit SOFLA offers high-quality personal training for those athletes that feel more
comfortable working out alone and getting complete, one-on-one attention from their coach.
The experienced CrossFit SOFLA coach will design a workout program with the athlete based on
their current fitness level and desired goals. The coach then trains, guides, and supports the
athlete to help them achieve their individual goals in a safe, timely manner. CrossFit Kids is a
unique class for kids, ages 6–12, that teaches them the basics of how to squat, jump, climb, run,
push, pull, lift, and throw, all while developing mental strength and willpower in a fun, focused,
and education-orientated manner.
Table 4.1 illustrates the membership fees CrossFit SOFLA charges for its athletes. CrossFit for
adults offers an eight-group class card for $120 and unlimited group class access for $145 a
month. Personal training costs $220 or more in a month depending on the number of visits per
month and coach. A kids’ eight-class card costs $100 and CrossFit SOFLA offers 50 percent off
for the final price on any additional kid or if the parent is already a member.
Table 4.1 Service prices
CrossFit adultsPrice
8 Group Class Card $120
Unlimited Group $145/month
Personal Training $220+/month
8 Class Card $100
50% off for any additional kid
50% off if the parent is a member
Source: Price List (CrossFit SOFLA, n.d.).
Service strategy
The CrossFit SOFLA team understands that the biggest determinant for success is consistency.
Most people who are out of shape start going to the gym 2–3 days per week, then they might
add a day. Over time, the changes will come. What deters success is inconsistency such as when
a customer goes for 5 days, then skips a week. Inconsistency is where success is missed. In
order to address the issue of inconsistency, CrossFit SOFLA has built its service strategy on
three major points: make things simple, make them smile, and give them hope. The CrossFit
SOFLA customer is between the ages of 30 and 40, and they live in suburbia with their family.
They are not looking for a competitive atmosphere as much as they are looking to be fit for life
so they can do fun, active activities with their kids. They are looking for an inclusive, open
community with a laidback atmosphere, and low to no drama. CrossFit SOFLA has successfully
created this atmosphere by providing an encouraging, positive, and helpful environment that
focuses on teamwork and the customer’s ongoing progress. All that being said, just in case
there is an unsatisfied customer, CrossFit SOFLA has a strong conflict resolution policy that
focuses on sincerely listening and sympathizing with disgruntled clients, and then including
them in the solution.
Most contact with customers is conducted on a face-to-face basis at the gym either in casual
conversation, or announcements after class. For those who are in a rush, there is a board in the
gym that posts the same announcements. In addition, customers are contacted via email, and
through a weekly newsletter where CrossFit SOFLA communicates anything new it will be
working on, any changes, and/or events. It also communicates with its customers on a more
personal level by mailing handwritten birthday cards. CrossFit SOFLA has a very active and
successful Facebook page with over 700 followers and boasting a 5.0 rating, which it uses to
communicate with its followers/customers.
Type of customers SOFLA is trying to attract
CrossFit SOFLA’s ideal target market consists of four different types of client segments. One of
the segments is working parents who have a lot going on and are trying to find a work/life
balance. Their goal is to excel at work, live a fit life, and have time for their family. Young
professionals aged 28–35 with an active lifestyle living in suburbia make up another segment.
Their goal is to lose weight, feel better physically, have more energy, be around healthy people,
and increase their quality of health. Experienced CrossFitters who want to compete in CrossFit,
look good, improve their own results, and learn from the best available coaches are another
segment. Parents looking for kids; programs to help teach their kids an active lifestyle early on
make up the last client segment. These personas represent the desired CrossFit SOFLA
customers.
Current marketing efforts
CrossFit SOFLA’s marketing relies strongly on word-of-mouth promotions. However, CrossFit
SOFLA has a solid social media presence on Twitter, Facebook, and Instagram. The company’s
social media posts focus on athlete success stories, events, and workout tips. It has one
sponsored ad on Facebook every week to tell a success story of one of its own athletes. CrossFit
SOFLA’s marketing focuses on highlighting its athletes’ achievements as much as possible.
Facebook ads allow CrossFit SOFLA to target people who are in CrossFit groups, like CrossFit
pages, and write posts about CrossFit. CrossFit SOFLA is very engaged within the community.
CrossFit SOFLA’s staff meets potential new athletes and hand out flyers every two weeks at
local farmers’ markets. This has been very successful in recent years to get close to the
community and has provided a great opportunity to meet new potential athletes. CrossFit
SOFLA also takes part in local 5k runs and provides nutrition seminars. The company sends out
an email newsletter once a week to its email list providing content in three different categories:
knowledge, care, and fun. CrossFit SOFLA offers a “bring a friend” promotion on the first
Wednesday of every month to increase the awareness of the sport and CrossFit SOFLA. Both
the inviting member and the guest will get $20 off from their membership fee if the guest
decides to purchase a membership. CrossFit SOFLA’s coaches also write a blog on the
company’s website. Blog posts consist of workout tips, nutrition, upcoming events, success
stories, and the sharing of related articles. Also on the blog, Workout of the Day adds value by
allowing members to check the day’s workout schedule and routine online. CrossFit SOFLA’s
ongoing challenge is to create and deliver high-quality content across all platforms at all times
to increase engagement of current members and to attract new members.
Competition
The marketplace is currently very congested with other CrossFit gyms, big box gyms, yoga
studios, spinning studios, boot camps, and any other business that is charging the consumer for
fitness. There is not one gym or set of gyms that currently stands out as a major competitor
because there happen to be hundreds of these establishments within a 20-mile radius. The
challenge has become differentiating themselves as a jewel instead of just a face in the crowd.
It is becoming increasingly clearer, however, that Orange Theory is positioning itself as the
major potential competitor. Upon receiving feedback, most customers usually say they are
deciding between CrossFit SOFLA and Orange Theory. They are similar in the sense that they
are both group classes, start to finish. They are different in the sense of method and
foundation. Essentially, there are two types of thought structures for fitness. The traditional
thought structure, carried out by Orange Theory, speaks from conventional wisdom and is
followed by the majority of the industry. This is the traditional box structure that focuses on
bodybuilding, cardio, and weights for the purpose of such activities as long metabolic workouts.
Specifically, the physiological theory behind the Orange Theory workout is known as “Excess
Post-Exercise Oxygen Consumption.” By providing the client with a heart-rate monitor, it can
monitor the five-zone interval training sessions that it calls the Orange 60. During the 60-
minute workout, clients will perform multiple intervals designed to produce 12–20 minutes of
training at 84 percent or higher of their maximum heart rate, which translates to Zones 4/5.
This program design produces a workout “after burn” effect, which is an increased metabolic
rate for 24–36 hours after the workout. CrossFit, on the other hand, runs on a more
unconventional functional fitness thought framework. The idea is how to make someone the
fittest person possible across several measurements so that they are as fit as possible for any
task, also known as General Physical Preparedness. Its total body exercises are designed to help
the client run a marathon, deadlift a ton of weight, knock out a bunch of unbroken pull-ups,
sprint fast, swim a mile, back squat really heavy weight, and do a variety of other total body-
involved activities.
In addition to catering to the majority of the population in terms of fitness mentality, Orange
Theory has air-conditioned facilities with locker rooms. Although CrossFit SOFLA is nicer than
most CrossFit gyms, it is not too polished, is not air conditioned, and it does not have locker
rooms. Despite all of this, the real difficulty lies in the fact that not only does CrossFit SOFLA
have to think about how to attract people to its gym, but it also has to shift its customers’ vision
about fitness as a whole; a worthy yet daunting task.
CrossFit SOFLA wants to be aware of what is going on in the marketplace, and what Orange
Theory is doing, but that is not the basis for the decisions that are made. For instance, if Orange
Theory is focusing on rowing, it is not just going to focus on rowing, or if StrikeFit is kickboxing,
it is not going to be focusing on kickboxing. In essence, it is not necessarily trying to compete
head to head with potential competitors, although it is aware of the changing trends.
Demographics of the area around the gym
CrossFit SOFLA is located in the city of Coral Springs, Florida. As of 2015, its total population
consists of an estimated 354,511 people, of which 47.9 percent are males and 52.1 percent are
females (within a 5-mile radius) according to the Demographic Detail Summary. Of this
population, the race breakdown is as follows: White (67 percent), Black (20.5 percent), Hispanic
(22.6 percent), or non-Hispanic or Latino (77.3 percent). Within these demographics, there are
a total of 137,851 households, which is expected to have a 3.2 percent change from the year
2015 to 2020 (DemographicsNow, 2015). The average household income is about $74,305 and
it is expected to increase by 15 percent between 2015 and 2020. Coral Springs estimates that of
the total population, the majority of the residents range from 25 to 64 and the average age is
approximately 40½ years of age (DemographicsNow, 2015).
Within a mile of CrossFit SOFLA’s facility, slight changes were shown. The total population
consists of 51.1 percent of females and 48.8 percent of males, which intends to grow 7.7
percent by 2020, according to the Demographic Snapshot Comparison.
The future
CrossFit is very polarizing. The ones who love it really love it, and the ones who hate it really
hate it. It challenges everything we have ever known about fitness, and change, as we know, is
not always easy for people to deal with. With the Thompsons’ dedicated team, they strive to
change the stigma behind the CrossFit methodology and show their community its superiority
to other methods of training. However, since CrossFit SOFLA is at the breakeven point after
three years in business, it has to make some changes. How can this family-owned CrossFit gym
increase profits and increase membership? What is considered to be the underlying issue that
this gym is facing that can cause a detrimental impact on the future of this establishment?
