Innovations - IHRSA

and fitness business. “GATC is the foundation for all of my
club knowledge and operating experience,” he explains.
“It taught me the critical importance of connecting with
our members and customers; being familiar with their
expectations is key to our success.
“Our business is never static,” he observes. “It’s always
dynamic, which is challenging, but also stimulating
and exciting.”
Madden’s GATC insights, as well as his instincts, would
soon be put to the test.
The mile-high city of Denver is, to begin with, one of the
most intensely competitive fitness markets in the country,
with an active, outdoors-oriented population, and a host of
fine facilities to serve them. Pura Vida, conceived of as a
luxury brand, was opening on the cusp of the Great Recession,
when the demand for pricey products and upscale
services would begin to evaporate. By some reckonings,
spa industry revenues would eventually drop by 40%.
“It wasn’t good timing,” Madden acknowledges. “We
were opening Pura Vida just as the recession was gripping
the economy with its talons.”
Though it was beautiful and brand new, Pura Vida Fitness
and Spa found itself in the uncomfortable position of
having to reinvent itself. “We realized that our message
didn’t resonate in the deteriorating economy, which, immediately,
put us in the mode of having to shift, strategically,
to align ourselves more closely with market conditions and
consumer desires.”
The principal, primary, change was to redefine the target
audience. “Keith Moore, Pura Vida’s general manager,
moved his sights from an older, affluent population to a
younger clientele, an urban 30s and 40s crowd,” says
Madden. “By doing so, he repositioned us from being
exclusive to inclusive, aligned us with our market, and
strengthened the substance of our brand.”
The move affected every aspect of the operation,
including pricing, marketing, outreach, staffing, programs,
and services.
The spa, originally named Nectar, was constricted most
by the weight of the recession and, appearances suggest,
profited most from the changes. “The original concept—
pretense, fluff-and-buff, ridiculously expensive skin
products and potions—didn’t work,” explains Moore. “It
clearly wasn’t 2006 anymore. People were looking for
something real, authentic—organic, no-fluff, serious-health,
body-and-soul treatments.
“The Vital Spa was born, and, immediately, the young
people responded.”
Today, the spa, with a staff of 20 and a director recruited
from Ritz-Carlton, provides members and nonmembers with
massage, manicures and pedicures, face and body treatments,
and body wraps, at an average price point of $130.
“The Vital Spa is the only day spa with a spa bar that allows
guests to build and customize their own treatment,” Moore
points out with pride. “The concept has really taken off.
“You start with a basic service, let’s say deep tissue
massage,” he explains, “and are then asked to customize
and enhance your treatment. For instance, ‘Choose your
oil: Organic Rosemary, Tuscan Lavender, Sea Kelp.’ Then,
‘Choose your scalp treatment: Cranial Massage, Hot Oil
Treatment, etc.’ And then there are add-ons… You can
get a basic massage for $85, add a few enhancements,
and still come out for under $100.”
Nonmember clients also enjoy access to the rest of the
club on the day they purchase services—“An incredible
value,” notes Moore, as well as an effective recruiting tool.
Some 23% of the club’s members make regular use of
the spa. Madden, himself, books several deep tissue
massages during the year.
Reflecting on the realignment, Moore says, “Rather
than a ‘Mangotini Massage with a Sprinkling of Gold
Dust,’ the consumer was looking for a great massage, by
a talented therapist, using an essential organically-based
oil. Throw in a nice cup of tea, with exceptional service,
attentive service
in an environment that’s beautifully designed, at a price
that’s under $100… and you have a busy spa.”
Pura Vida Fitness and Spa, which opened with 250
members, now has more than 1,500; on any given day,
as many as 40% of them may utilize the club. Attrition is
less than 10%. Madden, pleased with the results, and
convinced that the brand has demonstrated its viability,
is now eying other urban markets.
“Times may be more difficult,” he says, “but people
still want to take care of themselves physically, mentally,
and spiritually, and that’s what our tagline, pura vida, is
all about—the good life.” —|
– Jean Suffin, jrsuffin@yahoo.com
Wendi Schneider
www.ihrsa.org | APrIL 2010 | Club Business International 33