Lifetime Fitness 2004 Annual Report Download - page 9

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Our internal service groups are centralized to reduce
overhead, maximize support, and maintain greater
cost and quality control. They include functions
such as Member Relations, Information Technology,
Procurement, Human Resources and Accounting.
As a result, our general and administrative expenses
have decreased as a percentage of revenue every year
for the past three years.
The health club industry employs a large percentage of
part-time workers who, by nature, are a transient group.
Given the likelihood of staff turnover, most companies
invest little in this group. At Life Time Fitness, however,
we recognize that our team members are critical to the
member experience. We not only apply stringent hiring
standards, but also provide comprehensive training for
all team members through our Life Time University. The
team member curriculum includes extensive exploration
of our vision and member-focused approach. Team
member commitment to the vision is evident by the
intense competition around our annual Artistry Award,
given to the center and team members that provide the
best experience for members.
Our distinct business model gives us an advantage
over our competitors. The 12 years of in-house
expertise we have amassed in real estate, development,
design, construction and operations is difficult to
replicate. In addition, our centers require a substantial
investment. Unlike many gyms or clubs that lease
facilities, we build and own the majority of our
centers, therefore insulating the company from
continued increases in underlying lease costs.
Centralized service functions to reduce cost
Strong staffing emphasis to support vision
The result: A strong competitive advantage