Episdoe #505: Navigating the Recovery Tech Landscape with Brynn Scarborough, CEO of JK Products

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I am super excited to announce that we now have a formal partnership

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with the prospect wizard. And when I say wizard, I

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mean wizard. Obviously, you have a website. This

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allows you to convert your website traffic visitors directly

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into leads. It's not just another chatbot, and it's not AI,

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but it allows a visitor to call, text, or leave a voice

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mail, immediately goes to you, your sales team, or anyone else in the club

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instantly. MIT shows a study that if you contact the lead within

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10 minutes, chance of them converting goes up 9 times

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that of the average. We got the Atlanta clubs on it, Pete

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fitness, Gold's Gym, mountainside, city fitness

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Philly, college park become one of the

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next halo companies to deploy the wizard. It's easy to

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use. Go to the prospect wizard.com. Get a free

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30 day trial. Talk to my boy, Dave Gallon. He will get you all set

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up and let the leads flow based on the wizard.

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Go get them. This

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is Pete Moore on HALO Talks NYC. I have the pleasure of

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bringing the CEO of JK Products, Brynn Scarborough,

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out of St. Pete to her first HALO Talks. Brynn, welcome to

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the show. Thank you so much. Happy to be here. I heard a lot about

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the podcast and privileged to be on it. Thank you.

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And, we have a ranger fan and a lightning fan, and we are going to

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bury our rivalry for the sake of the industry. So

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Brynn, let's talk about, you know, the products that you guys are delivering

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and the growth of the workout recovery and med spa space

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and, you know, focusing on, you know, we've got labor shortages, we've

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got labor price increases, and how your products are kinda positioned to

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attack the opportunity as well as reduce the cost of entry.

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Absolutely. Yeah. Just to give you a 30 second recap of

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our history, if you don't know us in the fitness space, we have,

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a plat a manufacturing platform and service platform in the tanning

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and sunshine space. So we've been manufacturing equipment, capital

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investment equipment for more than 40 years. And so 5, 6 years ago,

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we really started taking a look at how we could build stackable

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amenities, into recovery and wellness spaces.

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And, honestly, it was before the conversation was really ready. This was pre COVID.

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People weren't really talking as much about touchless or labor

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free modalities at that point. Today, it's a very

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different conversation. And so we're bringing modalities to the

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forefront, like dry water massage red light infrared and

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others that. Really work to help operators and

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owners not only increase foot traffic, which we know is a problem right

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now, but also do that without directly impacting

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or raising labor costs. Which we know is another huge problem for

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operators at the moment, so we feel like we're really well positioned at the moment

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to let people kind of take the initial investment to not only upgrade their

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services, but be able to diversify their

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service offerings, you know, when the next treadmill or the next piece of cardio isn't

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gonna make that happen. No offense to my cardio manufacturer friends

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out there, but we know what moves the needle at the end of the day.

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Sure. You know, as you take a look at when you started, you know, entering

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the space to where we are today, and we we invested in the

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company, as I mentioned before, Higher Dose, you know, we were in, like, this

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education and, like, evangelist movement, and people would be like, oh, what's red

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light? Or, you know, what is PEMF standpoint? So, you know, from your

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vantage point, where are we in the education curve, and,

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you know, how are the conversations now, going for you and your

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team? I would say we're somewhere in the messy middle.

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Okay. We we are light years ahead of where

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the conversation started. You know, we were one of the first companies to come out

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with Total Body Redlight almost 15 years ago. It was

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fringe, it was biohacking wasn't even a word, there wasn't a

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category to put it in, no one even knew what to say about it. Today,

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it's a very different story. Now the consumer appetite for experimentation,

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especially in the US, is high, particularly with the

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with technology integrations for wellness and fitness. Where we're missing

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you know, there's but there's definitely snake oil out there. You know, along with that

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conversation comes entrance to the market that are not necessarily high level or

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well researched as I'm sure you're aware. So the conversation

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has definitely moved forward. Where we really try to

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position ourselves is not only the forefront of of quality,

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but also technology combined. We build equipment that

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you're going to invest in, you know, over decades, not over, you

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know, single years or months. And and we really have a reputation for people being

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able to build their businesses around our brands. And so that's a

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that's a place that we really work hard to not only stay in, but

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then be at the forefront of education. We're not trying to convince you that biohacking

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is cool. Right? That's not really our job. Our job is to give

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business owners equipment that really shows an ROI and a

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value proposition that can be as complex as you want it to be

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for that consumer or as straightforward and, you know, almost

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explanation free on a lot of things, to kinda help them be

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able to move memberships as well. Got it. So when you take

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a look at the number of health clubs and and studios, and

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I'll I'll Talks studio a second because I've got some comments on it in a

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viewpoint that I wanna get your view on. But but I've been telling health

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clubs for the last 5 years is to say, look. There

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are these new concepts coming up that are in the workout recovery space.

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Okay? If you're an authority on workouts, you better become an

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authority on workout recovery. Right? Yeah. And then you see these med

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spas or you see these workout recovery groups, and great that they're

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providing it, but they're opening up in your shopping center. Okay? And they're

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basically poaching your 600 people that are traffic in your

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club, in your parking lot, and they're charging 5 to 10 times the amount of

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what your membership cost. So if you're not gonna either build that

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yourself and get a new location that's adjacent to

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or allocate space inside of your health club, you're basically giving

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away the most premium component of their disposable

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dollars. So how is that kind of weaved into your you know, sales pitch

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or, like, saying, like, this isn't something that you you watch and and and

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go buy because you're gonna lose them, and they're they're gonna think you're not the

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authority, and then you're kinda backfilling. And that's not a place you wanna be.

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There's so many layers to this conversation, and I love this conversation

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because at the end of the day, the the brick and mortar

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that's building up around wellness and recovery really wasn't there pre

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COVID, it's brand new. And there are times when the traditional

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fitness industry is just kind of sitting back and watching that happen when I agree

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with you, they should be out in front of it and they have the space

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they've already got the square footage. It's already there, I think

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in the traditional fitness space recovery used to mean, you know, a massage

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gun and a foam roller. And that's not what

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the con what consumers expect. And I really think it comes down to

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the the base level root issue of up regulation and down

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regulation, you know, oscillating input and output. And in the fitness space,

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we've been great at, like, no pain, no gain, go hard or go home for

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a long time, And a lot of our HVLP actors are are

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perfect in that space, but they don't know how to offer the opposite

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or the down regulation, the relaxation, what we are now calling

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recovery that means something very different, to their same

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member. And so they're having to educate themselves, But you're

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absolutely right, they're they're watching someone walk out of their Moore, and

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if if you're, you know, a participant in the time wallet and there's

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only so much time in the wallet and you have to choose between where you

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go during the day, you know, you're making a choice between stops or

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locations Square fitness, especially HVLP and others, are really

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well positioned to Talks up a lot more

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space in, like, the high end recovery amenity

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modality space. And it's it's they're a little behind in the conversation.

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I'll just tell you. Some have been doing it for years. Others

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are still wondering how to put the mix together when they really just need to

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be trying and, you know, taking advice from their members, things like

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that.

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This is Pete Moore. I wanna let you in on a little secret. There's this

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company called Promotion Vault, and what they do is they give out rewards

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from retailers that allow you to incentivize your

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members without having to do zero down and 1 month

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free or giving away shakes or giving away t shirts. What

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you wanna do is build a rewards program that lasts, that

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people value, and that doesn't discount your own products and services.

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So here's the deal. There's something called rewards vault. The rewards

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vault is going to allow a member to set up their own profile.

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They are going to answer questions. You're gonna get those answers. You're gonna be

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able to target those members, and you're gonna reward them inside your

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club, inside your spa, and outside of the club, and

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outside of the spa to get them to become loyal, to get them

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to pay their monthly dues, and to be rewarded

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properly for the actions. A lot of companies are cutting back on rewards.

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You shouldn't be. Promotion Vault's your answer. Trust me. This is

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real.

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Yeah. One thing and I've been in the health club industry for better or for

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worse since, August 1, 1999. And

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sometimes I would go to certain groups, and I'd say, look. You need to put

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this in. I kinda refer refer to, like, a trade show as, like, a a

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weapons dealership. Like, what weapons do you need to actually optimize or keep your

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members? And that's what they want. The one thing that I saw that

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worked really well, and I wanna know if you guys do this or if you're

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thinking about doing this, but a health club operator, they might not

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get educated on each one of the actual modalities. Like, what's it in for its

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sauna? You know, what's a compression technology? Lymphatic drainage, cold

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plunge. And what I found that worked was basically saying, like, here's a

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picture of, like here's a here's what you need in 500 Square feet. Here's what

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you need in 1,000. Here's what you need in 3,000. And just, like, buy this

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as, like, a bundle, and then organize it like that, like I'm in

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a IKEA store. You know? I would say. So Yep. So how have you kind

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of fed this and say, look. I'm not gonna educate you on every piece of

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technology. You're missing the point of what we're delivering to you.

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I'm gonna actually give you, like, a room. Yeah. Is is that is it evolved

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to that, or is it going there? Yeah. We we've gone I'd say we're

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about 60% of the way there, but you are pegging on you know,

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it's not a complex concept. I say, a, fill up the truck.

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If the truck's coming, fill up the truck. And b, you know, create a

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space that makes sense and is stackable in a a sensical way.

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The SPA world has been doing this for a while, like, this idea of a

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circuit that, it is now autonomous. It didn't

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used to be autonomous. Now the circuit is autonomous because technology can support

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it. But you're absolutely right to be able to move from red light to

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dry water massage even to tanning if that's a component of what you do in

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your business model. And all of those three things work together. You don't have to

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make choices between what you use on each on what day. You know, you

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really can't do it wrong. You can optimize it. There's no doubt. But as a

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user, you really can't do it wrong. So you don't have to have

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the hour webinar of education before you use each piece of equipment.

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It really is, you know, almost explanation free from that

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perspective, and you get a great outcome. It's also one of

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those things, you know, this this phenomenon of flat January

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that we had this year. Instead of dry January, which some of us suffer through,

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we have flat January. Obviously, what is in the gym

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space isn't enough to get people in their cars and drive across town,

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and so we really focus on bringing you amenities that people will drive

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to, that they will say, okay. I wasn't gonna go in today,

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but if I can go in and have really good red light and a great

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massage, that's worth it even if even if I'm not gonna work out.

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Because something's gotta be added to the value of the workout right now to get

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people through the doors. So so 2 follow on comments and,

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you know, we can just keep going back and forth here for hours, but, you

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know, we gotta cut the show at some point. But the one thing that drives

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me crazy that and being, you know, being a Swifty, in

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addition, my other cult that I belong to I'm gonna be I'll admit it here.

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I'm like, I'm cold. No no judgment here. Thank

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you. The other the other cult that I'm a part of is Soul

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Cycle. Okay? And the one thing that drives me crazy about Soul Cycle, and I'm

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sorry to Melody and the team at Soul Cycle for saying this on a podcast,

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and I'll try and get in touch with them beforehand, is that, Brim, they have

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500 square feet that they have in their studio that is

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devoted to towels, and they're cleaning towels, okay, which

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generates 0 revenue. If you took those industrial towels

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machines out and put in lounge chairs at NormaTec.

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You would have at least 30% of the people that went to a class

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to go straight to the NormaTec and do

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compression right afterwards for an extra $20. I know I would do it,

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and I'm I'm not the minority. So have

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those conversations happen? Do you, like, look at certain studios and say, like, like,

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what are you do you use your square footage for, like, selling, you know, like,

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you know, T shirts? Like, I can put I'll put anything

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where you're not making money. I'll find something to put in there. That's on my

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list of products. I agree. And, you know, we have a few

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similarities and that we're both Swifties. I used to be a spin instructor

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because I love the fact that, you know, you get that energy in the room,

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everybody moving at one time. It's great. It's a great way to tune in and

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check out. And I think the conversation around boutique fitness

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has been for a while, like, there's no, oh, we don't do amenities, we

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don't do, you know, this, we have our merch, and I love great

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merch, don't get me wrong. Yeah. But for the spaces that aren't

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making you money, I completely agree with you that, you know, whether it's

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a massage, whether it's red light, whether it's recovery, there's multiple things you could

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do that don't add staff and don't take up extra extra square

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footage that you don't already have, that get that extra click out

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of every person that comes through or even a few percentage that moves the

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needle. And boutique fitness has kind of sat out on this conversation

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and I don't think that's gonna be an option in the future. Yep. One of

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the things that drives me crazy, I we do these HALO Academy, so we go

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through, like, here's what it takes to run your unit economics for it to be

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successful. And please don't sell a franchise unless the unit economics

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actually work for you as a franchisor. But one of the

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things that that we look at is if you're a spin studio and

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you're open, you know, you have 6 classes, right, at 45 minutes,

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right, The hair salon's open 14 hours. The Dunkin'

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Donuts open 24 hours. You know? The, you know,

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the the GNC store, they still probably make a little bit of money. You know,

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they're open up from, like, 7 to, you know, 10 PM. Moore basically paying

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the same exact rent, and you basically have, like, 5 hours of revenue.

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So if you put on the workout recovery, you know, you don't have the risk

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of somebody being injured, and you're not you know, and you're liable for

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that. But you can actually have an open to say, whatever you're doing, like, come

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in. Reserve a an infrared sauna. You know? Come in here whenever you want

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and have one person working in there just making sure that everything's

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monitored. And I don't know why people don't get that and that you and I

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have to have a podcast about it to get it out there. I'm with you

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you know? And I can't I love boutique fitness, but I'm

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not loyal to any of them. And I think loyalty in boutique fitness is a

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huge issue right now, where it is, you know, certain

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apps and platforms have made it so easy to move around, they don't have that

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stickiness that they really need to keep you coming back to the same location,

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and that's part of it. Right? It's part of it is, what

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else can I do? How can I be more efficient with my time?

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And the amenities are a big piece of it, to be honest with you. You

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know? If you could you got the same person at the front desk, whether they're

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scheduling classes or putting people in a paid service, the same

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person's working the front desk. It's really not you know,

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adding an amenity like, you know, WellSystem or Revive is a force

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multiplier because it does not add to your overhead, but it adds to your to

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your revenue. You know, one thing I think that's missing in workout

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recovery, and I wanna get your take on this or maybe, you know, your team's

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already doing it or or thinking about it. I play this

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game with my nest my with my niece, Candyland. You know,

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Candyland? And it's just basically, you know, you're moving through the colors. Nobody's

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given someone, like, a a prescription yet to say, like,

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you know, hey. I just sold cycle 3 days a week. You know? I do,

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you know, that's pretty much what I do. Sorry. I do soul cycle 3 days

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a week. I go right, you know, take a Talks, and I I run outside.

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I do some TRX. Let me tell you what I do. Now the overlay,

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like, a candy land okay. You should do compression 3 days a week. Yeah. You

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should do an infrared sauna. And don't do the infrared sauna before the cold plunge

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because it it eradicates the effect. Or do it in reverse order. Or don't

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do them on the same day. I feel like there's, like, this black hole of

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there's all these these great technologies, but, like, what order do I do

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them in? When do I should I do it before? Should I do it after?

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Like, I feel like that's, like, the final frontier that, like, nails it, and

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nobody's doing it yet. I'm busy. Integrated recovery

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protocols, based on your preferences would be

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amazing. I would follow them too because I'm an I'm an experimenter at the end

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of the day. Right? I've tried everything, and I can give you my advice.

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But I'm with you. No one's really telling you, like, okay. If you're doing HIIT

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4 days a week, you really need to be focused on cold plunge and

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infrared. Or if you are, you know, looking for muscle gains,

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you need to be focused on x, y, and z. No no one

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has taken it to that level yet. And, honestly, the technology is getting there. I

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mean, we have enough good modalities at this point.

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Now accessibility, right, is gonna be highly varied, but we've

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got enough, like, good modalities to be able to really put

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together protocols that Talks sense.

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This is Pete Moore. Here's the last tip for you of the podcast.

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We are partnered up with a company called Higher Dose.higherdose.com.

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They are the leader in workout recovery products,

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infrared technology, LED light masks, neck

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enhancers, and other products such as Pete

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mats and sauna blankets. If you have not gotten

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on the workout recovery train yet, your time

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and your stop is now. You gotta get these products in there before

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these workout recovery and spas end up saturating your Moore.

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Having your members walk out of the club and going into one of their locations

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for $200 per month where they're paying 39 to

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you. Let's become an expert in workout recovery if we

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are already the authority in workouts. Higher dose,

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check it out. There's a wholesale code, and we look

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forward to helping you augment your products and services

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to meet the demands of your members. And, hey, let's get

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people happy, healthy, and sweating, and the recovery

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should be just as good as the workout.

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So from a standpoint, you know, we got about 5 minutes left here. When when

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you walk into a a new client, you know, obviously, some of them come and

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say, like, I know I need to do this. You know? Like Yeah. Tell me

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what to do. What are the things that you know, if you if I said,

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look. I wanna take baby steps, and I don't wanna, like, overhaul what I'm

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doing. So what is your advice and your team's advice to say, look. Let me

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get you into my ecosystem, and here's, like, the products we're gonna start with,

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and then we're gonna walk our way up. So maybe, like, explain how you think

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about that. Yeah. Absolutely. So, you know, we we focus on a few

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things just because our equipment is not it needs a space to

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be. Right? And so we the first conversation is, are you

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remodeling, or or what is your existing footprint, and how much

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ability do you have? Are you willing to remodel? A lot of people don't

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wanna remodel, and at the end of the day, you're repurposing a

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good bit of your space or at least some of your space from, you know,

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open treadmill spaces to something different. So the first thing is

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opening up your mind to remodeling. And I I think, honestly,

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consumers are looking for that. But if you can't even remodel and you're just ready

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to put in the first item, it's definitely the well system wave because it can

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sit in an open space. It doesn't need a dedicated room.

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It's dry water massage, but it it has a relaxation hood on it that

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allows you to really drop in even in a public space,

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which is nice. So if you don't have a relaxation space, if all you

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have is open floor plan, that's a place you can start.

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Though if we can really get involved in the conversation, then we're gonna conversation, then

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we're gonna say, okay. Like, what's your first stack of amenities, which is, you know,

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well system and red light or even could be sunshine, red light, and well

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system. Depends on what your business model is. We're gonna look for that

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really simple stack where you could use 1 or 2 services together without

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staff intervention. Gotcha. And and from a

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standpoint of providing people with the marketing

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for this and basically saying like, okay. Look. You put an infrared sauna.

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And by the way, just as an aside, when we work with higher dose Pete

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COVID, we used to have infrared saunas that we had with pop ups in in

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some locations. And I was doing the math, and I thought I was doing the

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math wrong, but we actually paid back for the infrared

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sauna in literally, like, 23 days. Yeah. And I was, like, shocked

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because the amount per hour plus there's no overhead,

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and somebody's gotta wipe it down. So from a standpoint

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of, you know, returning the investment, do you guys

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come also with, like, here's some financing packages that we've got with partners that

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would that'll finance this for you just like they would fitness equipment? And

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then my my question that I lost train of thought of, now it's back.

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So I'm gonna say it because I just remember what I wanted to say to

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you. Was do you provide them with marketing materials to say, look. This is how

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you position it, or here's, like, put this out as, like, a new amenity? Yeah.

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We absolutely do. So lots of brands obviously want their own marketing. They want their

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own messaging out there. So we we focus on providing as much education as we

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can and then allowing, you know, people to put their own spin or

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their own messaging on it. I'm with you on the ROI, though, because

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when when you start looking at ROI on some of these amenities,

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it doesn't seem believable at first. And, honestly, I I think that's part of the

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conversation is helping people understand why a 3 month

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ROI is is really attainable,

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when you're talking about either I always say, you know, casting a

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wider net or fishing deeper in the same pond, and you really

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only have to move, you know, a few percentage points to affect have a

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strong effect on revenue from that perspective and so. Yeah, the

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well systems are great example there's no. Procession cost There's

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no operational overhead. It doesn't cost you anything to run it other than to clean

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it every now and then. So everybody who pays you

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$20, that's $18.92 in your pocket, you

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know, just off the you know, there's just it's the ROI is really good.

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But from an education perspective, we really focus on education

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and support, and also then make sure that brands have what they need

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as well, whether that's a mom and pop or if that's a national brand that

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we support as well. Awesome. Well, look. It's great to have you on the

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show. Get back to us on some Swifty pictures from Portugal.

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Absolutely. We're down in Tampa frequently, so I'll reach out to you

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and and we'll grab some, grab some lunch at a spin class. And,

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you know, if you wanna use the term halo, we'd be appreciative of that, and,

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you know, feel free to use it, you know, to describe the ecosystem. But this

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is great, and I love what you guys are doing, and it's only positive things

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ahead for everyone. Awesome. Yeah. Maybe we can catch a Taylor Swift spin

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class if we're lucky. It's even better. I might I

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might prioritize that already. Exactly.

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Alright. I gotta go teach it. I'm gonna teach a class at 4, to the

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Crunch guys. But, hey, it was great meeting you. Great talking to you. And let's

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collaborate with you. It's, We got a lot a lot of clients. Hired dose

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if, you know, they've got their own set of products, but I want everyone to

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have all this in there because I'm so sick of somebody saying, like, oh, the

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the restored's got 400 members there right now. I'm like, dude, those are your

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members, man. How'd you miss that? It's $80 a month. You know?

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I totally agree with you. Well, I think there's tons of synergies and happy to

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open up the conversation, however we can be a resource. Oh,

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thank Trent and Co for setting this up. It's good to meet you. I appreciate

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what you're doing. Absolutely. Thank you so much. Take care.