How a virtual fitness company is staying strong in a changing market
How a virtual fitness company is staying strong in a changing market
Companies like Peloton climbed to the top of the fitness food chain during the pandemic. Virtual at-home workouts provided a convenient and accessible way for people to get their sweat on. But the pandemic has eased and Peloton’s sales have plummeted, with its customer base shrinking for the first time.
Some gymgoers are returning to their pre-pandemic fitness habits. According to a global report by the International Health, Racquet & Sportsclub Association, large chain operators and facilities like Planet Fitness have witnessed notable growth in their membership. Other gym chains are opening new locations. As more employers enforce a return-to-work policy, these facilities could be competing for foot traffic. What does it mean for the future of the virtual fitness market?
As part of our Economic Pulse series, “Marketplace Morning Report” host David Brancaccio spoke with Jeff Witherspoon, founder and CEO of E2M Fitness, which stands for Eager to Motivate. Witherspoon, a retired Army lieutenant colonel turned fitness entrepreneur, channeled his passion for training people for battle to helping others reach their fitness goals. His online program focuses on developing the discipline necessary for sustaining a healthy lifestyle.
The following is an edited transcript of their conversation.
David Brancaccio: When you’re thinking about a fitness program that you don’t have to go to a gym, but even if you went to a gym, I think of paying monthly.
Jeff Witherspoon: Yes. Going to a gym, you’re going to end up paying subscription fees. I have people do an eight-week program where they pay me once and they never pay me again. I’ve had people that I’ve trained three or four years ago, and they haven’t paid me since and I’ve still been training them to this day.
Brancaccio: Well, how can you grow the business if people pay just this one time?
Witherspoon: The whole thing behind my business model is the referrals, the word of mouth. That just brings in new clients to me over and over again.
Brancaccio: As a former Army colonel during these workouts, are you in people’s faces drill instructor-style, kicking butt?
Witherspoon: Unfortunately, no. I think there’s so many ways to execute fitness, but I’m more of the encouraging trainer.
Brancaccio: Tell me when you realized that you wanted to go to business school. Given your long experience as a military officer, you figured somehow that business school was still worth it?
Witherspoon: I knew that the military wasn’t going to be forever for me. So, I decided to go after my MBA at William & Mary.
Brancaccio: Are you running into what I would call the Peloton effect? A lot of people jumped into online fitness during the height of the pandemic. As the pandemic eased, some people wanted to go to a place where they could work out with other actual humans. But using your company as a barometer right now, what are you seeing?
Witherspoon: I think all fitness companies are seeing that Peloton effect. During the height of the pandemic, when online fitness was important to people to stay fit, people felt community by being a part of Peloton or being a part of my program. Now that the country is opened up, there is a little bit less of a focus on health and a little bit less of a focus on fitness.
Our No. 2 source of clients comes from doctors. That’s really how we’re surviving that slump from the pandemic height. When somebody goes to their doctor and their doctor says, “Hey, you need to be a little bit healthier. You need to work on your body weight” or “You need to work on eating healthier,” they don’t have a plan to give them. Now, because I actually train thousands of doctors, those doctors know exactly what plan to prescribe to them.
Brancaccio: Tell me about the biggest obstacle you faced when starting or growing.
Witherspoon: It was hard to convince people that I really am giving them exactly what I say. Because internet stuff becomes a little bit salesy or gimmicky, it is a new challenge for me to convince them that I’m the real deal.
Brancaccio: You had to build trust is what you’re telling me.
Witherspoon: Exactly.
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