Welcome to HALO Talks! In today’s episode, host Pete Moore sits down with Rick Dennis, Co-Founder of Bakersfield’s Body Xchange and a definite "OG" in the HALO sector. With over 30 years of experience—including a storied career at Family Fitness, 24 Hour Fitness, and launching successful clubs with longtime partner John Ovanessian—Rick shares insights on evolving gym models, member experience, and responding to changing trends.

Rick and Pete chat about how Body Xchange became a place “where everybody trains,” adapting to the post-COVID demand for more strength training, flexible facilities, and self-guided workouts. Rick opens up about the importance of listening to your local community, running a tight operation with zero leverage, and the unique advantages of local ownership in a burgeoning market like Bakersfield, CA.

Pete and Rick also chat about future growth—both for Body Xchange and the Bakersfield area itself—as well as reflections on how today’s athletes are changing the game in high school sports and beyond. Listen now for a conversation packed with industry wisdom and practical takeaways for fitness professionals (and enthusiasts!)

On the "power" of staying debt-free Dennis states, "We're definitely not a leveraged company. I think that's something that's really important to understand because as you mentioned, with 24 Hour Fitness, once you get leveraged then there's restrictions to that. We've never had those kinds of restrictions because of the foundation and how we built it."

Key themes discussed

• Evolution of Body Xchange and their club model.
• Shift toward strength training post-COVID.
• Local market dynamics and growth in Bakersfield.
• Importance of a debt-free, reinvestment-focused business.
• Personal touch of local ownership versus national chains.
• Future expansion opportunities in nearby cities.

A Few Key Takeaways:

1. Evolution of Member Experience & Strength Focus: Rick highlighted how their business model has shifted post-COVID, with a significant pivot towards strength training and member-driven use of space. Recognizing the growing interest in free weights and Olympic lifting, they repurposed areas like group fitness rooms to fit more strength equipment, reflecting the changing fitness trends among younger demographics.

2. Deep Local Roots & Smart Growth: The Bakersfield market is robust and expanding, with affordable housing attracting a young population. Rick emphasized how their deep local knowledge allows them to strategically backfill old locations and position themselves in growth corridors, staying ahead of national chains and big box gyms.

3. Debt-Free, Locally-Owned, and Well-Maintained Clubs: Rick and John built Body Xchange with a focus on being debt-free and maintaining strong local ownership. This approach means they can swiftly reinvest in facilities, ensure equipment is always up to par, and maintain a high-touch presence—reasons why members prefer their facilities over less locally involved national chains.

4. Adaptable Operational Strategy: Body Xchange made a post-COVID decision to pause personal training, acknowledging a shift toward self-guided, technology-driven workouts. Rick notes they still onboard members and provide guidance, and could easily reboot personal training if the right talent emerges.

5. Expansion Opportunities & Local Demographics: Looking ahead, Rick sees potential for 2–3 more locations within Bakersfield and more expansion into comparable communities like Palmdale and Lancaster, as well as midsized cities between Bakersfield and Fresno or west along the Central Coast. He stressed their ability to replicate the Body Xchange DNA by maintaining control over real estate and ensuring each new club matches the model’s culture and values.

Resources:

• Rick Dennis: https://www.linkedin.com/in/rick-dennis-795252175/
• Body Xchange: https://www.bxfitness.com
• Integrity Square: https://www.integritysq.com
• Prospect Wizard: https://www.theprospectwizard.com
• Promotion Vault: http://www.promotionvault.com
• HigherDose: http://www.higherdose.com

On this episode of HALO Talks, host Pete Moore sits down with Logan Chierotti, founder of Physician’s Choice supplements, to dig into the in's and out's of building a high-growth company in the HALO space. Logan discusses his journey from working in digital marketing to launching what is now the top probiotic brand on Amazon, with annual revenues approaching $250 million. He opens up about the importance of focusing on value and science-backed products, the challenges of navigating both e-com and retail distribution, and the lessons learned in building a top-tier executive team.

Whether you’re a health club operator considering selling supplements or an entrepreneur looking for growth tips, you’ll want to hear Logan’s takeaways on company culture, self-awareness, and long-term success in a rapidly evolving, highly-competitive space.

When it comes to educating customers beyond just price, Logan states, "We wanted to give consumers value. And what's nice is with the Internet or e-commerce or even . . . med spas or health clubs, is you can educate the consumer more, right? They come into your store or they come online and you have all the marketing there so you can really educate them as opposed to just dropping your product in Walmart, which is a pure brand or commodity game. People are buying there based on price or based on packaging, versus when you control the distribution channels, you can educate them a lot more."

Key themes discussed

• Transition from e-commerce to retail distribution strategies.
• Building a high-quality executive and leadership team.
• Navigating retailer partnerships and managing risk.
• Importance of a singular brand focus: Probiotics and gut health.
• Educating versus marketing to the consumer.
• Value and growth of subscription business models.
• Founder self-awareness and letting go of ego.

A Few Key Takeaways:

1. Hyper-Growth Through Strategic Focus: Logan shared how Physician's Choice grew quickly by narrowing their initial focus to just probiotics and gut health. Rather than trying to be everything to everyone, they became the top probiotic brand by focusing on a science-backed, in-demand supplement.

2. Controlling Distribution—Don’t Chase Every Retailer: Logan emphasized the importance of controlling your own distribution channels, especially in the early stages. He cautioned against being seduced by “sexy” big box retail deals, which often shift risk onto the product provider and can become a logistical and financial nightmare. Physician's Choice only says yes to retailers who agree to their terms.

3. Value-Driven Brand Built on Education: The brand positioned itself as a value brand—affordable, yet backed by science and trust in the name. They focused on educating consumers through controlled channels like e-commerce and social media rather than relying on traditional retail, where purchasing decisions are much more driven by price and packaging.

4. Building a Strong Executive Team: Chierotti’s biggest learning was recognizing his own strengths and weaknesses early. He surrounded himself with a high-level executive team, brought in a CEO when the company reached a certain size, and freely gave equity to key hires. He stressed that hiring smart people and getting out of their way was crucial to scaling up.

5. The Power and Patience of the Subscription Model: About 40-50% of Physician’s Choice revenue comes from subscriptions—compounded over years. Logan pointed out how businesses (health clubs, supplement companies, etc.) often underestimate how long and compounding subscription revenue can take to build, but if you stick with it and focus on customer retention, the growth will come.

Resources:

• Logan Chierotti: https://www.linkedin.com/in/loganchierotti
• Physician's Choice: https://www.physicianschoice.com
• Integrity Square: https://www.integritysq.com
• Prospect Wizard: https://www.theprospectwizard.com
• Promotion Vault: http://www.promotionvault.com
• HigherDose: http://www.higherdose.com