Home » FAQFrequently Asked QuestionsWhat is the purpose of AFIRM? AFIRM’s purpose is to improve the business climate for manufacturers and retailers in the fitness industry by unifying the manufacturer and retailer segments and providing them representation. Every segment of the entire sporting goods industry has had its own association except manufacturers of fitness equipment. Yet, the manufacturers are paying the bills for almost every association, publication, and trade show in the fitness industry. They also have no public-policy voice. A unified, industry wide association of fitness manufacturers and retailers can enhance the business climate for all and help return profitability to the fitness industry. Why is the profitability of manufacturers so important? Fitness is, and always has been, a supplier-driven industry. Fitness’ growth has been fueled by product innovation from the Lifecycle, Stairmaster, and original Nautilus machines to the Step, elliptical, treadmills, electronics, Spinning, etc. Every new wave of industry-wide excitement stems from the manufacturers’ research and development (R&D). R&D is funded by profits. Without profits, R&D suffers and the pipeline for new products diminishes. The fitness industry will then become stale. A robust manufacturing segment is vital to the long-term growth of the fitness industry. What is AFIRM’s role in the industry? AFIRM will examine every link in the chain of commerce. Where we discover weak links, we will develop programs to strengthen them. Where we discover gaps between links, we will develop programs to bridge those gaps. There is a paradigm shift occurring and AFIRM’s pledge is that the fitness manufacturers and retailers will have a significant role in creating the new dynamic. AFIRM has “Retailer” in its name. What is the plan for Retailers? The retail side of the fitness industry actually went into recession a full 18 months prior to the current recession. That business model needs attention. AFIRM chose to first focus on securing critical mass of manufacturers and that has been achieved. Those manufacturers will next focus on how best to engage with retailers – both “big box” and specialty fitness – to enhance the business model. What is the relationship between AFIRM and the Sporting Goods Manufacturers Association (SGMA)? The impetus behind the creation of AFIRM came from the SGMA, the 103-year-old association serving sporting goods manufacturers. AFIRM is affiliated with SGMA, will be able to tap into its public policy and research resources, and ultimately create mutually beneficial programs and benefits. Will AFIRM be organizing and staging a trade show? Despite SGMA’s experience with The Super Show and Executive Director Chuck Leve’s experience in creating and building the IHRSA Show, AFIRM has no intent to create a trade show. There is no industry appetite for more shows. There is a great industry desire for better shows and that’s where AFIRM will focus its efforts – working with current shows to make them more consistent and more professional with improved ROIs for those companies exhibiting at the shows. How will AFIRM be positioned in the industry? AFIRM’s intent is to be complementary to all and competitive to none. We are reaching out to all associations, publications, and trade shows to develop sound working relationships and, if appropriate, formal alliances. Will AFIRM be independent? AFIRM will have its own board of directors, budget, P&L, benefits, and programs which will be different and distinct from SGMA. Why is there a Small Business Division of AFIRM? Many fitness companies are relatively small with revenues under $2 million compared to the major manufacturers with revenues in the hundreds of millions of dollars. The business issues of the small companies vary widely from the big companies. AFIRM will represent all sizes of companies in a variety of product categories. The Small Business Division will focus on the unique business challenges of small companies in fitness. What categories of membership will there be in AFIRM? There are four membership categories with AFIRM: Regular Members – manufacturers of fitness equipment; Retailer Members – companies that sell fitness equipment directly to consumers; Associate Members – companies doing business with Regular Members; and Affiliate Members – organizations and associations in the fitness industry. What are the primary benefits of AFIRM membership? AFIRM has focused on developing quantifiable, money-saving benefits and programs to help fitness manufacturers and retailers improve, or return to, profitability. The programs and benefits which AFIRM plans to implement include helping to control expenses in trade shows, shipping, warehousing, insurance, installation, energy, and leasing. These benefits are in addition to the obvious value of unification and representation. What types of companies are joining AFIRM? All types of companies are joining AFIRM. Companies producing equipment in cardio, strength machines, free weights products, Pilates, climbing walls, accessories, heart rate monitoring, and flooring are joining AFIRM. |
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