When Sweet Spots Collide

When Sweet Spots Collide

Leaving the gym today, I noticed the in-house smoothie/snack bar was closed – again. I realized that in 20 plus years of regular gym membership around the country, I have never seen one of these things succeed, despite multiple cycles of grand openings and promotion.  Of course, there are exceptions, but the deja’ vu triggered an “aha” moment.  Studies show that club attendance is highest among those who travel less than 15 minutes to reach their workout facility. That’s the business model “sweet spot” – to locate clubs near neighborhoods of target market populations. But, here’s the pertinent “flip side” – the majority of people in the club are only 15 minutes from home after their workout. Not much reason to stop for an overpriced protein shake or power bar when your refrigerator, couch and TV are waiting for you. On the other hand, if you’re heading to the car for a half-hour drive or longer, then that snack bar is looking pretty good. Oh wait – if that were the case, you probably wouldn’t be a gym member in the first place!

The take-away? What constitutes a “sweet spot” for one business model can cancel out a different one that another business needs to be sustainable. Worth looking around your own organization, or even at the mix of businesses in proximity to yours to see if there are aspects of one that are competing with the growth of another. Suspect that is driving some of the divestiture among global brands. When sweet spots collide, somebody’s going to end up with a bitter pill to swallow… Think I’ll have that slice of espresso cake now!

 



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