Amazon is one of the leading examples of a success case over the last decade or two. The Amazon story has a lot one can try to emulate or be inspired by when carving out how best they can maximize THEIR value to their clients or customers. However, there is one thing that deserves our special attention - Amazon’s secret sauce.
There are many reasons someone can point to in describing why Amazon has been such a success over the last decade plus. It was run by a visionary, smart leader. It anticipated the impact of the internet to retail. It scaled and developed its business correctly. Yada, Yada, Yada…..
All those reasons are fine, but they miss the key point. Amazon is another word for convenience to shoppers. We can practically buy anything we need on Amazon within seconds and have it delivered to us within days if not hours! Amazon’s ability to make that happen is its secret sauce. They save us time and energy, even if it’s so we can spend it watching the eighth season of Seinfeld for the 20th time.
Humans have always had their eyes out for convenience. It’s an insatiable craving for us all. Anyone or anything that can provide us with convenience jumps to the top of the line! This is the key dynamic Bezos saw and acted upon with Amazon.
The effects of this dynamic are also prevalent outside of retail. Look at Uber. Or Netflix. Or Doordash. Or yada, yada, yada. All of them are hitting on the same key note, delivering convenience!
We at GAINZ are also focused on helping our underlying partners deliver a level of convenience to their tenants through the fitness center. Yes, the fitness center, which is a key amenity at multifamily and commercial office buildings. Our offering works to make these fitness centers a destination for tenants and not just a stop on the tour.
A good fitness center is a huge convenience for tenants. It saves tenants time by not having to drive to a gym. It reduces their monthly spend by eliminating expensive gym membership fees and lowering gas consumption. It can also be a great place for community building by allowing tenants to meet one another over a common interest.
Bad fitness centers, unfortunately, regularly go unused, becoming a burden on operators and imprinting a sour experience for tenants.
We strongly believe that operators should lean into their fitness centers and use them as a tool for differentiation. Unlike Amazon orders, tenants can access these fitness centers in minutes. Tenants can also use them over and over again without additional fees. Unlike the swimming pool, fitness centers are also an amenity that can be used year round!
What does leaning in actually entail for operators? The easy answer is to simply spend more money on space and equipment. We at GAINZ don’t subscribe to the theory that more spending equals better results. Instead, we believe operators should invest smartly and with a data driven approach.
Money should not necessarily be spent on more equipment, but rather on the right set of equipment. Resources should be pivoted towards technology solutions that make the fitness center more appealing and useful for all tenants. This should include solutions for at-home workouts that allow tenants to have flexibility in where and when they workout. Technology and data should be seen as helpful elements to amplify the experience of an important amenity.
The fitness center is key to a positive tenant experience at a building. It’s one of the few amenities that are part of the entire tenant life cycle. A renewed focus and investment into fitness centers will only pay dividends for operators. The key will be to spend smartly and towards solutions that improve overall output and not just aesthetics.