Home » Episode #488: Crafting a Profit Center with Private Label Products-Insights from Radz Zalewski

Radz Zalewski, an astute entrepreneur with a passion for fitness and branding, is all about transforming how gyms create and maintain their connections with members. Recognizing the pivotal role that supplements and apparel play in establishing a gym's identity, he holds a firm belief that every individual wearing a gym’s shirt not only promotes the brand but also strengthens the communal bond. His approach targets missed opportunities for brand connection by ensuring that members endorse their gym with pride, clad in merchandise that resonates with their lifestyle.

As far as supplements? They're critical because they're consumable . . . people keep coming back. Radz likens them to an entry point to having a much larger wellness conversation. He acknowledges that an astonishing 85% of gym-goers engage with some form of supplementation, highlighting the necessity for gyms to offer education and seamless access to purchasing.

Radz's vision extends beyond the retail aspect, as he advocates for integrating comprehensive nutrition programs and meal planning services into the gym experience. His perspective definitely challenges the status quo, moving towards a time where facilities are seen not just as places to exercise but as a total health solution.

On the evolution of his company he states, "Originally it was just. . .let's build retail programs for gyms. And it was more along the lines of supplements and apparel. Basically order 100 units and keep them at the gym. That worked for some locations, but then we got into helping them create a proprietary done-for-you-online store where you don't have to do anything, and you have one monthly subscription cost. That changes the game for them and makes your retail into a true profit center."

Key themes discussed

  • Focused on niche supplement products for health.
  • Individuals must represent and diversify their brand.
  • Background, passion, and executed business plan success.
  • Creating perfect customer avatar, gym owner's goals.
  • Serious consideration for the quality of product.

A few key takeaways:

1. Radz emphasizes the potential of gyms as not just fitness centers but also as retail outlets. His approach targets gym owners who view their business as a long-term career and are eager to invest in creating additional revenue streams beyond monthly memberships.

2. Zalewski's company helps gyms create their own branded supplements and apparel by handling the entirety of the online retail process, from store hosting to product fulfillment. This enables gyms to focus on fitness while still benefiting from retail revenue without the burden of inventory management.

3. Their offerings are designed to make it easy for gym owners, requiring minimal effort on their part — they simply provide a logo to have a fully functioning online store set up. This model aims to convert members into customers, increasing each customer's value to the gym.

4. Zalewski believes the key success factor is how well gym owners can market their brand within their established community. The gyms that actively promote their in-house products and adopt a strong branding message are the ones that vastly benefit from this additional revenue channel. 

5. Zalewski discusses how his frustration with the complex and under-regulated supplement market led to a more straightforward solution for gym owners. His business focuses on health and efficiency, creating a simple, ethical alternative for fitness entrepreneurs to offer quality supplements and branded merchandise to their members and feel good about doing so!

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