PPT REX- Ver2 HydroMassage 6-7-16

HydroMassage Value Proposition

HydroMassage is an innovative massage amenity that feels great on sore, tired muscles after a workout. This technology was first utilized by physical therapists and chiropractors 27 years ago, and is now utilized by most major health club operators.

HydroMassage Overview

PRODUCT DETAILS

• Provides a warm, customizable, full-body massage

• Typical massage time length is 10 minutes in fitness centers

• No staff is required to operate HydroMassage.

• Users adjust the massage pressure (1-10), massage speed (1-4), and massage range (30 points on the body) on the Touchscreen

• An entertainment menu provides multimedia content during the massage (music, videos, games, wellness articles, etc)

MEMBER BENEFITS

• Innovative massage system; integral in post-workout recovery

• Helps with muscle soreness, stress, and tension. Increases circulation where massaged

• Offers a unique and convenient alternative to hands-on massage therapy

• Does not require the member to disrobe or be touched by a stranger

Value Proposition and Strategy

The following are potential strategies to implement HydroMassage

• Most commonly utilized by most other fitness centers with HydroMassage, this approach delivers results to the bottom line but also minimizes selling required by front desk staff

• As opposed to having one basic membership package and selling a variety of other ancillary services, this approach shows the member a high level of value by providing several premium services in a higher priced membership.

• When packaged properly, upgrades to the premium membership package often exceed 50% for all new members

Strategy #2: Increase Guest Traffic and Member Retention Rates

Strategy #1: Premium Membership Package

• If retention rates are currently below expectations, HydroMassage is an excellent tool to help.

• In this scenario, HydroMassage would not be billed separately. Rather, it would be introduced as a new wellness initiative which should be a part of every member’s total wellness approach.

• The locations benefit from a measurable impact to new member guest traffic and year over year retention rates

• Members often will return to the YMCA even on off days when they’re not planning to workout

• When sold separately as a stand-alone package, the direct impact from HydroMassage is most easily measured

• Most locations price HydroMassage at $14.95 per month, and offer the first 100 packages at $9.95 per month.

• This is an easy add-on if the organization has a strong sales team with a track record of successfully selling other new profit centers to members

Strategy #3: New Stand-Alone Profit Center

HydroMassage Best Practices

The following represent best practices from other health and wellness facilities that have successfully implemented HydroMassage

• A “HydroMassage Zone™” includes 3+ units and a waiting area. This

dramatically increases member usage rates.

• Key HydroMassage Zone features:

• Semi-private space with open entryways (4’ or larger)

• Location in a high traffic area in front of the facility to maximize visibility

• Relaxing, spa-like atmosphere

– Small waiting area with a two chairs for members before their

massage.

• The most widely utilized sales strategy is to bundle HydroMassage in a

premium membership package with 2-3+ other premium services (ex. guest

passes, towels, personal training, etc)

• Members are provided with one, 10-minute massage per day

• When possible, prospective members are given a 1-3 minute sample

massage during the initial club tour. 75% of overall sales efforts are focused

on new members joining the YMCA each month.

• A “Free Massage” offer is a helpful call to action in advertising campaigns to

drive new guest traffic

Suggested HydroMassage Layout

HydroMassage Zone with three Lounges in a 21’ x 10’ space with open entrance and relaxing spa décor and Eurowalls privacy partitions

HydroMassage Usage

HydroMassage Desktop Software is the most widely used, and simplest means of regulating usage. After a one-click activation by the front desk staff, the HydroMassage® Touchscreen allows members to easily operate the units without supervision.

Front Desk Computer

Message windows pop-up on the Touchscreen instructing members what to do before and after their HydroMassage sessions.

Touchscreen Massage Controls

Speed

Controls how fast the massage travels up and down the body

Limits

Set the upper and lower range of the massage area

Entertainment Menu

Provides relaxing music, videos, games, etc during the massage

Custom

Provides preset massage programs. Users may add new

Start, Stop, Hold Buttons

Promotion Window

Allows up to 10 ads to scroll during the massage

Pressure

Controls the intensity of the massage (10 settings)

HydroMassage Lounge (440/450) Specifications:

• Dimensions: 80” (204cm) long, 32” (82cm) wide, 43” (110cm) high

• Weight: 285 lbs (130kg) without water; 405 lbs (184kg) with 15 gallons (95 L) of distilled water

HydroMassage Bed (340/350) Specifications:

• Dimensions: 94” (239cm) long, 41” (95cm) wide, 27” (69cm) high

• Weight: 260 lbs (118kg) without water; 500 lbs (227kg) with 30 gallons (114 L) of distilled water

Electrical / Installation / Space Requirements:

• 8’ x 8’ or larger space per unit

• One 220V, 30A dedicated electrical outlet with NEMA L6-30 locking receptacle and one 110V outlet per

unit

• 30 gallons of distilled water per Bed; 20 gallons per lounge. No external plumbing needed

• CAT5 or CAT6 cable for Front Desk Software to regulate member usage

• 50/60 Hz Tested to UL/CSA/CE electrical standards

• Listed with FDA as a Class 1 Medical Device under 510-K program

• External Temperature Control System (internal available): 33.5” (85cm) x 15” (38cm) x 10.5” (27cm).

Temperature control from 92-105° F (33-41° C)

Warranty:

• HydroMassage® comes with a 3 year warranty on the tank/frame on the bed, a 2-year warranty on the

electrical components, and a 90-day warranty on labor. Technical phone support is available 7-days per

week from our factory technicians in Tampa Bay, Florida.

HydroMassage Technical Specifications

About HydroMassage

COMPANY BACKGROUND

HydroMassage has a successful 27+ year history of helping health & fitness centers, spas, and medical offices worldwide provide clients with an affordable means of receiving the benefits of massage therapy on a daily basis. The company has corporate offices in Tampa Bay, Florida, and all products are manufactured in the United States.

HYDROMASSAGE PRODUCT LINE

HydroMassage Customers Include:

HYDROMASSAGE TECHNOLOGY

All HydroMassage models meet UL / CE / CSA safety standards in addition to being best in class, patented, Class I medical devices registered with the FDA. The company designed, engineered and manufactured 14 unique water massage models prior to the current generation of HydroMassage. Any new component must pass a 5,000 hour life expectancy test without failure before being considered for use in production, and each unit undergoes a 268-point checklist and a 48 hour electrical test prior to shipping. HydroMassage products are self-diagnostic. With customer permission, the technical support team can access each system to upgrade software, troubleshoot minor issues, and download usage statistics remotely.

HydroMassage Lounge Models

HydroMassage Bed Models


The following are potential strategies to implement HydroMassage

• Most commonly utilized by most other fitness centers with HydroMassage, this approach delivers results to the bottom line but also minimizes selling required by front desk staff

• As opposed to having one basic membership package and selling a variety of other ancillary services, this approach shows the member a high level of value by providing several premium services in a higher priced membership.

• When packaged properly, upgrades to the premium membership package often exceed 50% for all new members

Strategy #2: Increase Guest Traffic and Member Retention Rates

Strategy #1: Premium Membership Package

• If retention rates are currently below expectations, HydroMassage is an excellent tool to help.

• In this scenario, HydroMassage would not be billed separately. Rather, it would be introduced as a new wellness initiative which should be a part of every member’s total wellness approach.

• The locations benefit from a measurable impact to new member guest traffic and year over year retention rates

• Members often will return to the YMCA even on off days when they’re not planning to workout

• When sold separately as a stand-alone package, the direct impact from HydroMassage is most easily measured

• Most locations price HydroMassage at $14.95 per month, and offer the first 100 packages at $9.95 per month.

• This is an easy add-on if the organization has a strong sales team with a track record of successfully selling other new profit centers to members

Strategy #3: New Stand-Alone Profit Center


What we can say about Massage

–Although HydroMassage can never make a claim to heal or treat any specific condition or concern, we have received a tremendous amount of anecdotal reports of major impacts that users have attained. Additionally, HydroMassage recovery and relaxation sessions provide significant contributions to the Recovery Phase of training that include:


HydroMassage Provides


• The Recovery Phase of Training is the New

Frontier of Fitness– Elite Athletics, Spec Ops Military, Wounded Warrior

Recovery, etc.

* HRV – Heart Rate Variability

* Omega Wave Theory – HRV +EEG

* emWave2 (Heart Math) – HRV, Respiration EEG

Recovery & HydroMassage


• Results are Optimized when an individual is Recovered and Ready to Train

• Sympathetic vs Parasympathetic Dominance

Sympathetic: Fight or Flight (Gas Pedal)

Parasympathetic: Rest and Digest (Break Pedal)

• Optimal Health Occurs with Balance

Massage helps move an individual out of the Sympathetic Dominance and

helps move the individual into the Stress Relieving, Tissue Building,

Restoration that occurs with more parasympathetic activity.

Recovery – Key Issue


• Provides Great Increase to Premium

Membership and Cash Flow

• Helps Close Higher Percentage of New

Membership Sales – and Premium

Membership Sales

• Helps Membership Retention

HydroMassage – Powerful Sales Tools


• Commercial Fitness facilities have upsold

memberships by $10 – to an average of 45%

and as high as 65% of their membership.

• When organizations offered tanning as the

key element in a $10- Up-Charged

membership; Their penetration increased

15-20% after adding HydroMassage.

Increased Revenue


• New Membership tours that end with

getting the prospect on a

HydroMassage product increases the

membership “close-rate” by more than

20% and as high as 70%.

Increased New Membership Sales


• When HydroMassage products are

available to members – 84% choose to

use the technology at least ONCE per

week.

– keeping members in the facility at least

once a week- and improving their

retention potential significantly.

Retention Increases


$600- $900 Month HydroMassage Initiative (equivalent of acquiring 3/4-eliipticals and 3/4- Treadmills which become invisible after 10-days and does not generate additional revenue)

HydroMassage Initiative• Increase VIP Membership by 10%-20%

• Improve membership close rate by 10%-20%

• Encourage more Facility Utilization- Retention Impact

(80% will use once a week)

• Create tremendous Excitement and Member satisfaction

• Be THE leader in promoting the need to focus on Recovery Plus write the RX- for a Pleasurable- Productive Experience

HydroMassage Initiative

Documents

PPT REX- Ver2 HydroMassage 6-7-16