A MEMBERSHIP HEALTH CLUB IN LOS ANGELES COUNTY
The Southern California Area of Dominant Influence (ADI) is the most health-and-appearance conscious market segment in the United States (StatAbs, 1997). The more than 11 million Americans who comprise the 400 mile square Los Angeles County are well ahead of their countrymen in taking care of themselves (Miller, 1998). This is confirmed by the chief researcher for the University of Southern California's Preventive Medicine Department: "Southern California tends to be ahead of the rest of the country in healthy lifestyle changes. It's just part of the culture" (Miller, 1998). Does this attitude toward healthy living necessarily imply a prime market for the establishment of yet another health club/spa in Southern California?
With more than 300 health clubs in Los Angeles County alone that boast a membership roster list of more than 400,000, it would appear that the market is semi-saturated (Carter, 1998). Yet a recent Los Angeles Times Poll showed that of a representative 1,281 Angelenos who were polled by telephone over a 7-day period, more than 75 percent said that they had no interest in "rejoining" a Health Club (Miller, 1998). A 1996 poll taken by UCLA researchers found that Northern and Southern Californians are in better shape and live longer than other Americans. Researchers attributed this finding to better diet, more exercise, and a greater health-consciousness, rather than to membership in health clubs (Facts on File, 1997).
An investment in a health spa requires a considerable cash outlay, and a great deal of time in preparation. The National Association of Health Club Operators (NAHCO) says that a Health Spa must operate at least two years before showing breakeven profits (NAHCO, 1997). Some Spa owners, however, say that given the right conditions, a spa can be profitable well before that time (Daniels, 1998). Because of these conflicting opinions and be...