Love this post, Amanda! What I found most interesting is that Method doesn’t overly advertise the way their supply chain matches with their mission (on the face of the products, it’s super tiny font!)– it seems like most of their marketing is word-of-mouth. Would be very interesting to see the trend in their margins, especially with increased competition and supply chain pressures. Really enjoyed the read!
Nicely done, Caitlin!
I found this super interesting, as a big ClassPass user myself. My only question is that it seems like the value of ClassPass to fitness studios is filling extra holes due to underutilized capacity (say for example, Flywheel). The long-term value is then that users become regulars of Flywheel and do not go through ClassPass. This ties in to your above comment regarding the sustainability of the business model– I wonder if ClassPass will have to invest heavily consistently on acquiring new users since old users, if the system works properly, will slowly but surely defect.
Loved the read– great job!
Love it, Cam!
My question is largely around international expansion– seems like this could be strongly embraced in several foreign markets. It seems like their operating model would require high fixed costs for expansion, however, but those costs could be easily absorbed if they’re able to drive up the number of participants in the new markets as successfully as they have done in existing markets.
Also agree with Andrew’s point above. It seems like they spend quite a bit to acquire new “users”, but lose those “users” primarily after one experience. Would be very curious to see their trend of marketing expenditures over time. Great post!!