Lifetime Fitness 2004 Annual Report Download - page 8

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Follow a disciplined business model
Life Time Fitness has a wholly owned subsidiary
dedicated to designing and building our centers.
This in-house capability gives us substantial control
over the cost and timing of the construction process.
Internal personnel oversee the bidding and cost
management of subcontractors. And they leverage
purchasing volume to receive favorable pricing.
Our experienced, in-house marketing agency brings
full-service capabilities to every new market and center
opening. Each well-defined stage of marketing uses
a proven, systematic series of communications, in
concert with trained sales staff at each center, to
optimize lead generation, drive new memberships, and
promote in-center activities, services and products.
The Life Time Fitness business model is built upon
discipline — both in providing a consistently positive
member experience and in managing the business
behind the scenes.
Each prospective site is analyzed against a set of
physical, demographic, psychographic and competitive
criteria chosen to optimize return on investment.
With this process, we are able to efficiently operate
one or multiple centers in a market.
A formal, detailed business plan is prepared for each
new center and is approved by operating divisions and
a committee of our board of directors. Once a center
opens, performance is rigorously measured against
this plan.
Optimized site selection criteria
Proven marketing and sales process
Detailed business plan and measured performance
Dedicated subsidiary for standardized
design and construction