Investing in What Moves the Top Line

When Arjun Lal, CFO of Life Fitness / Hammer Strength looks at the state of the fitness industry, he doesn’t see volatility; he sees momentum. “The demand for health and wellness isn’t cyclical anymore,” he states, “It’s structural. We’re in the early stages of a long-term secular growth trend.”

For Arjun, that growth story comes with a challenge and an opportunity. The challenge: navigating a fragmented ecosystem where new digital and physical players emerge almost weekly. The opportunity: shaping that ecosystem through disciplined investment and financial clarity. During our time with him, he mapped out seven areas of importance that can help facilities dial in to the momentum to help improve their ROI and overall performance. 

1. Growth is Real. But So Is Fragmentation 

Arjun believes the long-term market fundamentals are strong: “Health clubs are expanding, hotels are investing back into fitness to keep up with their guests’ increasing desire for fitness options, and we’re seeing many of the categories we target continue to grow annually.” 

Still, he warns; the industry remains highly fragmented. “Fitness equipment is only one piece of the wellness puzzle now. You’ve got recovery, nutrition, wearables, and digital coaching. It’s a vast landscape. Over time, these will converge.”

For operators, that convergence means thinking beyond the treadmill or the rack. “If you only see yourself as a gym or a manufacturer, you’re missing the bigger picture,” Arjun says. “The member journey is integrated, and our offerings have to be too.” 

2. The CFO as Strategist, Not Gatekeeper 

When Arjun talks about finance, he doesn’t start with cost control; he starts with purpose. “Finance decides who we want to be in five years,” he says. “Capital is finite. Every dollar needs to push us toward the right future, not just a cheaper one.”

Life Fitness / Hammer Strength has already done the hard work of optimizing its infrastructure by investing in new technologies to deliver a best-in-class customer experience. Now, Arjun’s emphasis is on selective, top-line-driven investments (e.g., sales capacity, product gaps, and digital experiences). “Now that we’ve made the structural and cost improvements,” he notes, “We’re investing to grow but doing it with a greater focus on efficiency.” 

His framework: clarity and credibility. “When I go to the board or to the teams, I show a simple path, it’s point A to point B. If we invest X, here’s what happens to growth, share, and trust. That transparency turns people from ‘no,’ into ‘how.’” 

3. Product Discipline: Build What the Market Actually Needs 

Arjun’s philosophy on product development is straightforward: solving real customer problems. “Our approach to innovation is intentional. We focus on creating solutions that address real needs and fill genuine gaps,” he explains. 

Two examples: the Symbio Runner, which offers configurable terrains and responsive control so athletes can safely replicate everything from track sprints to trail runs in a single machine; and the Universal Cable, whose adjustable routing, simple attachment points and broad range of grips make strength training accessible to users of different heights, abilities and rehabilitation needs. Together, these tools let coaches and gyms create truly inclusive programs, scalable resistance, easy step-up access, intuitive controls, and adaptable movement patterns. Now, more people can train effectively, safely, and with dignity. “These are both excellent examples of the passion we put into how we respond to the requests our customers are making,” he says. 

But he’s quick to add that financial ROI doesn’t always tell the full story. “A product line like our Symbio™ might not be our highest-selling unit but strategically, it reinforces our brand leadership. It opens doors. That’s long-term value you can’t see in a spreadsheet. It’s like how we think about Mercedes-Benz... everyone wants to have the AMG SL 65, but they are beyond happy to have the C300 because it’s representative of what Mercedes-Benz delivers. Symbio is our AMG SL 65." 

4. Financing and Flexibility Are Growth Levers 

Arjun knows financing can make or break deals. “Leasing and flexible financing are often the final differentiator,” he says. In the U.S., Life Fitness / Hammer Strength has strong partnerships with third-party lenders, but he sees room for expansion, especially in Europe.  “We will now have competitive and flexible financing solutions in Europe and Asia as we move forward into 2026,” Arjun explains, “The company now has a stronger balance sheet, which provides flexibility to self-fund as well as provide back-stop guarantees to facilitate third party leasing.” 
  
For operators, his advice is simple: “Ask your partners about financing options early. If they can help you manage cash flow and refresh cycles, that’s real value.” 

5. Service and Total Cost of Ownership: The Hidden Differentiator 

One of Arjun’s strongest convictions: operators focus too much on upfront cost and not enough on total cost of ownership (TCO). “Serviceability, uptime, parts availability, these determine your real ROI,” he says. “If your machines are down, your members notice, and your brand takes the hit.”

That’s why Life Fitness / Hammer Strength has invested heavily in service speed and parts logistics. As Arjun notes, “It’s not glamorous, but reliability is the most powerful form of brand equity.” Along with this, it’s also important to understand how product quality impacts long-term value. Because Life Fitness / Hammer Strength equipment is engineered for durability, it means typically each requires less service and repair over their lifespan. Arjun states, “This reduces downtime and maintenance costs. And when it comes time for a facility refresh, that same build quality translates into stronger resale or trade-in value compared to many competing brands, extending the overall return on investment.” 
 
For operators, he recommends tracking uptime, repair response time, and member satisfaction tied to equipment. “You can’t manage what you don’t measure. Price matters, but predictability wins.” Arjun puts emphasis on how effective the Life Fitness / Hammer Strength Facility Connect tools can be in this circumstance. He states, “Thinking about this, tools like Facility Connect enable equipment managers to monitor usage, streamline maintenance and extend the life of the machines by providing real-time analytics and software updates. With actionable data at their fingertips, which by the way is free to implement, teams can tailor user experiences and make more informed decisions about how their facility operates.” 

6. The Technology Imperative: Seamless, Data-Driven, Member-Centric 

Behind the scenes, Arjun is driving ERP modernization and exploring AI across functions. From forecasting to customer experience. But for him, technology isn’t the goal.

“The goal is a seamless member experience,” he says. “Imagine a single ecosystem that connects workouts, sleep, hydration, recovery, all without friction.”

That’s where finance and operations meet strategy: “Technology should eliminate friction, not create new silos. The best investments make life easier for both the operator and the member.” 

7. Leadership in Numbers: Transparency Builds Trust 

Arjun’s approach to leadership is rooted in clarity. After COVID, the company needed alignment. “People were fatigued. We had to rebuild trust internally,” he recalls. “The answer wasn’t speeches, it was transparency. Showing the plan, the data, and where every initiative fits.”

That mindset applies everywhere, from global capital allocation to front-line decisions. “When people see how their work ties to results, they stop resisting and start contributing.” 

The CFO’s Challenge to Operators 

Arjun leaves operators and leaders with a challenge:

“Listen to your customers or your members. Invest where it grows the top line. Measure long-term value not just the upfront price.”

It’s disciplined optimism, rooted in finance, but aimed squarely at growth. Because in a world where every player sells equipment or experience, the real differentiator is how well you invest in what profoundly moves people, and your business, forward.

So, what’s the Lesson for operators?

As a whole, Arjun stresses that it is important not to just buy or build for the short term. He cites that facilities need to be strategic and invest where the product or experience strengthens trust and the brand relationship. The product decision will be important, which is why it’s necessary to work with the right partner who has the range and depth to deliver on membership needs. 
 
Whan to find out how you can get started on building the format your facility can use to further its ROI. Get in touch today.