Sunday May 11, 2008
IT'S A SHORT WALK from Wall Street, and that's deliberate.
Brothers Don Saladino, 29, and Joseph, 26, know how to play the game — golf, that is — and made sure to cater to their likely clientele when they opened Manhattan's first golf gym, Drive 495, last spring in downtown SoHo, not far from the financial district.
The 15,000-square-foot facility is serene and sleek, full of state-of-the-art technology that brings the links to elite city dwellers too busy with work or too frustrated by traffic to get to the real thing.
A 3-D motion-sensor system in the gym's golf studios can make you feel like you're standing on the tee at Pebble Beach, complete with an ocean vista in the distance and the sound of chirping birds overhead. Want to try out the driving range? The scene changes, and it's a lovely stretch of green, with bulls-eye targets and rolling hills in the distance. The gym provides the equipment, and — WHACK! — you can hit balls to your heart's content. (This reporter tried it out, and momentarily felt like Jack Nicklaus, albeit a less-talented, more feminine version.)
But this isn't just videogame golf. The brothers Saladino have played up the sport's exclusivity, turning what could be a glorified Bally Total Fitness into a country club of sorts. The lofty bilevel space offers a gleaming, fully equipped workout gym on the first floor; a golf center with wall-to-wall artificial turf on the second floor; and one-on-one personal instruction from fitness pros and golf experts, such as Robert Baker, who's taught top-ranked players and celebrities alike.
None of the services come cheap. Membership, which is limited to 500 people to ensure a rarefied air, runs $5,000 a year. Personal trainers cost $100 to $150 an hour, while golf instructors run $125 to $350 an hour. The entire golf center can be rented out — as it has been already, often by financial-services firms for corporate events — to the tune of $6,000 to $7,000 an evening.
Some might call that pricey, even by Manhattan standards. "We thought there was only one way," says Don Saladino, sitting down for an interview in Drive 495's lounge area. "Golf isn't necessarily a cheap sport."
Still, for two guys in their 20s starting their first business together, the upscale nature of the club and the amount they have invested — $4 million, from their own savings and family contributions — seems risky. Not to them. "My brother and I have never once turned to each other and said, 'What if we fail?'" Saladino says. "We'd hit each other over the head with a golf club if we said that."
While they are young, the brothers come from an entrepreneurial family, which might explain the confidence. Their grandfather started a catering hall out on their native Long Island, and the two learned the ropes of running the family business as teenagers. Both took up sports in school — for Don, it was baseball, while for Joe, it was golf. After college graduation, Don started his own personal-training business while Joe continued playing golf in both amateur and professional tournaments. (Joe was unavailable for the interview, as he was in Miami working with celebrity instructor Baker on golfing techniques.)
Top 3
When starting their small business, Drive 495 founders Don and Joe Saladino make these big decisions:
1. Go high-end with prices
2. Hire an outside consultant
3. Think franchising from the get-go
Blending their talents and starting an indoor golf gym seemed like a logical step, even though "a lot of people just look at you and roll their eyes," says Saladino. The two turned to an outside consultant for advice on planning and strategy, retaining a retired banker who came recommended by a family friend. "We knew right then and there we were young guys — we didn't know it all," says Saladino. "It was nice to be able to go to someone with a question. You need someone in your corner who can point you in the right direction."
Their timing, it appears, has been spot-on. The concept of using a fitness program to enhance one's game has taken off in golf circles, especially as chiseled athletes like Tiger Woods show off the value of being in shape. And Wall Street, from which Drive 495 draws so many patrons, just had one of its best years, doling out a record $24 billion in bonuses in 2006. "We were happy to hear about the bonuses," says Saladino. With few competitors in the city (the closest is the sprawling Chelsea Piers complex), many city golfers have checked out Drive 495 to practice their skills or get their fix.
To date, 200 members have signed up. One is David Bossalina, an investment banker who has stopped down from his midtown-Manhattan offices on this winter day to relax and practice his swing. "It's kind of a country club vs. a gym," he says. (Indeed, the owners say fewer than 10 patrons are usually there at a time — a stark contrast to the city's crowded gyms.) Bossalina, 36, has tried out personal training, but is even more enthusiastic about the golf studio's AIM-3D technology. "It's exactly like hitting a ball on a golf course," he says. And that $5,000 membership fee? "It's on the more expensive side, but I think it's worth it."
The Saladinos won't disclose how much they hope to make in revenue, but say they expect to break even by the end of the year. Already, they are looking into expanding to other big cities and perhaps into upscale hotels and high-end residential buildings. But before they do that, they need to boost their membership to 500, and that's "nerve-wracking," says Saladino.
Saladino used his contacts in the personal-training world to sign up clients initially, and now the focus is on luring more members through word-of-mouth. Drawing an elite clientele is no easy task; you can't exactly hand out flyers on the corner. The Saladinos have hired sales representatives (some with training from the Ritz-Carlton) to recruit more members. One sales pitch that's sure to be used is the story of a Drive 495 member who lowered his score to 83 from upwards of 98 after several sessions with an instructor. Another pitch? The chance to hang with Wall Street power brokers, not to mention the occasional celebrity and Ford models who also make up the gym's membership.
Saladino says he welcomes the "nerve-wracking" part of the job. "You have to be frightened — that's what's going to get you hungry and aggressive," he says.
Golf, Anyone?
Your names: Joseph Saladino (26) and Don Saladino (29)
Name of business: Drive 495
Year founded: 2006
Business type (industry):
Golf and fitness industry
Location: New York
No. of employees: 15
Web address: www.driveclubs.com
Where do you look for business advice? (Mentors? Industry or trade groups? Family and friends?)
Joe: Business advice came mainly from friends, family and a few mentors.]
What do you know now that you wish you'd known when you started?
Joe: The production process of construction, what to expect, etc. (It's easy to look back and assess where you could have cut costs, to ultimately determine what is necessary.)
What's the smartest move you've made so far?
Joe: Going into business with my brother.
Don: Proceeding with this project. We feel a great sense of pride in what we have created and what we offer our members.
What is the best business book you've read?
Joe: Jack Welch's "Winning."
Don: I read The Wall Street Journal every day.
What keeps you up at night?
Joe: How to stay ahead of the competition.
Don: Wanting to stay ahead. The constant drive to want to be the best in our field.
And extra credit, please answer: When/where was your last vacation?
Joe: My last vacation was to Paris in October (part business/part vacation — I was there for a golf tournament).
Don: I recently got married and spent my honeymoon in Capri, Rome, Venice and Ischia Italy.