By: Sasha Letourneau
Everyone has heard of the brand CrossFit in one way or another. It is one of the world’s fastest growing exercise programs out there today. The program is a mixture of high intensity interval training, Olympic weightlifting, plyometrics, powerlifting, gymnastics, girevoy sport, calisthenics and strong man lifts. The article entitled, “How CrossFit Became a $4 Billion Brand,” explains what CEO Greg Glassman viewpoints are and how he runs the business.
CrossFit, itself, only deals with its workouts. The company is connected with Reebok and lets the Reebok company handle CrossFit merchandise. It is important to CEO Greg Glassman that the company focus on their main purpose.
If you’re into CrossFit then you know that they post a daily “WOD” or workout of the day video online. Whether it be a WOD video from a licensed gym owner or from the company itself, hundreds are posted daily. What the company is hoping the WOD video does is lure people in and get them hooked, hoping that they will join a “Box” or CrossFit gym.
The CrossFit company interacts through business to business transactions. How they make profit off of their workouts is through “boxes”. Whoever owns the box has to pay an annual fee of $3,000 to the company along with attending multiple seminars that cost about $1,000 each to learn how to properly come up with a WOD and pay licensing fees to own a box. Their biggest profit and brand awareness comes from the Reebok CrossFit games, which is where serious CrossFit athletes can go and compete against one another for a $2 million prize. There are approximately 125,000 spectators at each CrossFit games. It is a very large event.
Important retailing factors that make a Box successful is that owners of CrossFit gyms are very particular with the location of Boxes because demand is based on consumer demand. So, they usually do research beforehand to make sure that the box is being put in an inviting area and that people will be interested. So location is very important. It would make no sense to have a box where no one was interested in CrossFit.
Personally, I don’t agree with all of the teachings of CrossFit regarding their lifts and such, but I do agree with how they create a community. People who are into CrossFit really come together to create a community. Back home, there are a couple of Boxes and the people that go there are so encouraging of one another and that’s something that CrossFit really pushes: encouraging one another to accomplish your best. I think that is a great selling point for them because, like I said, it really brings people together. And by bringing those people together they will all go to a CrossFit tournament together, which brings in profit to the company along with brand recognition.