Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

Huawei sans the USA

Sep 19, 2019

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Corner Office from Marketplace
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy

SoulCycle pedaling hard toward IPO

Gigi Douban Jul 31, 2015
Share Now on:
HTML EMBED:
COPY

Another surprise in the IPO-announcement department: SoulCycle, a boutique cycling studio with locations concentrated around New York and California. It’s been doing well, especially with the celebrity set, tripling its studios from 2012 to last year to 36. Profits more than tripled during that time to $26 million in 2014.

Here’s a riddle for you: What do Chelsea Clinton, Lady Gaga, and Kelly Ripa have in common? They all love SoulCycle. This company doesn’t have to advertise.

“They’ve done a great job of branding themselves and marketing themselves,” says Jim Thomas, of Fitness Management and Consulting. He says one of the biggest challenges facing fitness studios is that they eventually fade into obscurity. That’s not likely to happen with SoulCycle anytime soon, he says.

Just ask Ryan Michael Shaw, a former dancer in New York City. Two or three times a week, Shaw elbows his way past people to make sure he gets into a class. Forty-five minutes later, “I leave those classes and I feel amazing,” he says.

Shaw says when the music and the energy are right, class is like a religious experience. An expensive religious experience.

“Oh, I drink the juice,” he says. “Let’s be clear, I walk out and buy the $80 Lululemon SoulCycle tank top.”

The question is, how much longer will people drink the juice, asks John Atwood, managing director of the Atwood Consulting Group.

“This kind of enthusiasm is very hard to maintain with the American public, and especially the city American public,” he says.

Big cities are where SoulCycle does best. Ninety-five percent of its revenue comes from New York, Los Angeles and San Francisco.

“Then the question is, what about Peioria, Illinois, you know, and all these other towns?” Atwood says.

People there might be wowed, he says, but that doesn’t mean they’ll pay $32 for one session.

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.