How do they not address the actual financials? (saying "Numbers aside" and then digging into the strategy shift).
I'm more curious - out of the $200mm they are projecting this year, or the $100mm they made last year - what did they spend? Their business model seems even more insane than Groupons to me.
They apparently have to pay out $12-15 per class to the studios. Had heard that on a $99 membership, with about $50 going to normal expenses (staff, marketing, etc), if a member takes 4 classes in a month they're already underwater - and they'll lose money on every additional class that user takes.
I'm more curious - out of the $200mm they are projecting this year, or the $100mm they made last year - what did they spend? Their business model seems even more insane than Groupons to me.
They apparently have to pay out $12-15 per class to the studios. Had heard that on a $99 membership, with about $50 going to normal expenses (staff, marketing, etc), if a member takes 4 classes in a month they're already underwater - and they'll lose money on every additional class that user takes.
Want to know if that is true!