We've been using TRX in our workouts for a little over a decade. We love how they allow us to do a number of workouts whether indoors or outdoors and you can pop them into your bag so that your fitness goals stay on track! This functional training system is an innovation in this space and we're excited to see where they go next. We caught up with Randy Hetrick, founder, and creator of this fitness methodology as well as TRX CEO Jack Daly, who recently acquired the brand this summer. We wanted to find out how TRX was created, the background of both of these men as well as what their vision is for the future of the brand, and its products including the TRX Training Club.
ATHLEISURE MAG: Randy, before we delve into the vision of TRX, can you tell us about your background and what led you to creating this fitness methodology?
RANDY HETRICK: I had a background in body weight training and spent a career as a Navy SEAL, so I hatched this kookie idea of using a jiujitsu belt, I mistakenly brought with me on deployment, and some dilapidated parachute material to create this wacky harness that allowed you to lean back, use your own bodyweight against gravity, and train across a wide variety of movements needed to stay strong, agile, and mobile for the SEAL teams. Today, we call that functional training. By the time I was out of the SEALs, I thought I would apply to business school at Stanford. I didn’t think I would get in, but to my everlasting astonishment, they wanted a SEAL on the recruitment poster the year I applied, so it was serendipitous how it all worked out. I was admitted and while there, I utilized the second year of business school as an incubator to determine if the fitness tool I developed overseas was something I should move forward with. Following that year, in 2004, I decided to launch what eventually became TRX.
TRX started around its hero product, the "TRX Suspension Trainer," which in retrospect, is funny, because that is the name I coined to describe it. Suspension Training wasn’t a thing back in the 2000s. It became a fitness phenomenon on the back of TRX. As we grew, we broadened our stance over time, and became one of the global leaders of functional training. We had the benefit of being both good and hard working. But, just as important, we also had timing. The functional training movement was in its infancy, to such a point that when I first heard the term, I thought I should get the URL. So, I went and registered it for $10 which tells you how early we were in the functional training movement. We became one of the main players in what would help to popularize functional training. I also like to categorize it another way – small tools, big movements. This is different from traditional weightlifting and exercising machines you see at every gym, and here we are 18 years later.
AM: And before we talk about the TRX reacquisition, Jack can you tell us about your background?
JACK DALY: I got to know TRX through a friendship with Randy, which is what brought me here. I have spent 25 years on Wall Street as a partner at Goldman Sachs and moved over to be a partner at TPG Capital. My expertise is making controlling investments in large companies. I bought industrials and service companies and have taken companies in public markets and made them private, and taken private companies and later made them public. Over the years, I’ve been working with large-scale companies, which led me to the opportunity to acquire TRX. This is something I have been doing for a very long time.
Prior to my career in business and finance, I spent six years on faculty of Case Western Reserve University in Cleveland where I was a mechanical engineer, teaching classes in product-development, design, and manufacturing. The important parts about my background are probably less Wall Street and more the product-development side. I’m also a fitness nut and have been for a very long time. I think this endeavor is more about my enthusiasm for fitness, my product-development experience through my engineering days, and the friendship with Randy, than it is about the 25 years I spent as a partner at Goldman Sachs and TPG buying large companies. But what that experience gave me was the ability to team up with Randy and acquire TRX. This is an acquisition I made with my wife. It’s our family business and it’s a partnership with Randy. I am not investing someone else’s money. I’m investing my own money into TRX through this acquisition, and I’m very excited about it.
AM: That’s fantastic. We have been fans of the products, and have used them. What is that process like in terms of bringing new products to the brand?
RH: I can’t tell you how excited I am to be in business with Jack. Jack’s reputation as a supporter to the SEAL community is unprecedented and, fortunately, I have been able to get to know him much more closely through this opportunity. Everybody knows the story about this thing getting driven into the ground by some guys that didn’t know what they were doing. What I'm most excited about is having Jack, at a point in his career where he decided to step back from being the "deal" guy to start focusing on other quality-of-life-oriented pursuits. This opportunity came up at the perfect time for both of us.
I can tell you about how we brought on products previously, but how cool is it to now have someone on that same path of wanting to create and provide solutions to problems in the fitness realm. To be able to do that in a way that helps people live healthier and better lives, as well as to perform better in sports, is a blessing. It’s also about keeping my former colleagues fit on the battlefield as well.
The foundational idea at TRX is to innovate by looking at problems people have and trying to find an elegant solution. And by elegant, I mean something that is not too complex and not to expensive. Some of the hallmarks of our brand have been our ability and our aspiration. We want to make the same kind of products that benefits the pros - the best on Earth, whether in athletics or tactical fields - and can be used as well by regular folks from a functionality and price perspective. This way, they can take them home and benefit in their own lives. In partnership with gyms, trainers and coaches, we engaged with them to get their honest feedback and recommendations, which is how we built the company for the first 12 years. We like to take real-time input from the folks on the front line at gyms, health clubs and professional- athlete environments who know what our core audience needs. Many of our ideas come from our professional coaches that are training a variety of different people, from physical therapists to strength and conditioning coaches. They have ideas.
Quick question, have you been able to use our TRX Bandit?
AM: Yes, we love them and use them!
RH: People love them and this is an example of something we have developed that provides a solution to a very specific need, yet is not very complex. It’s the antithesis of complex. Literally, it's just a handle that pops over any resistance band. But by creating the product, it encourages people who didn’t like bands to use it, because they previously didn’t like the uncomfortable experience of their hands on a resistance band. I have a knack for sitting down and thinking about things I am super excited about. To be able to sit down with Jack, who can bring that knowledge as a successful product designer in his early years, and combining it with his success as a board member and best best practices from his companies, is a benefit as well. I think, as we go forward, that's how I would look at new product development. Always looking at innovation and always addressing a need. We will try to address a real need, as opposed to coming up with something just because you can. From there, you want to make sure you are creating products that can sell through to the consumer, and that gyms and training facilities would also want. That’s my take on it.
JD: What’s great about this is that you can only imagine how excited I am to team up with such an iconic man. I’m going to embarrass Randy just a little bit. He’s an iconic and legendary inventor of fitness products, having pioneered functional training in this industry through his creativity and genius, and being able to make things happen. Randy's ability to develop these beautiful products, especially on the creative side, just can’t be taught. My time spent teaching undergraduate and graduate engineering courses on product development showcased this clearly.
There is an innate ability to see things that other people can’t see and to be able to bring them to life. Randy has that more than anybody else out there. You have this creative genius who was able to build a company based on that.
Now, with my experience, I can come at it from a disciplined company-builder perspective, plus understanding the product-development process and what goes into that. From an organizational capability, we have that nuclear power engine of the creative genius of Randy being able to really spark the ecosystem and come up with all those ideas. But someone has to see all of those ideas and then take them in, nurture them and develop them. Then, we can come at it with a process overlay and investment perspective on what makes sense, how to do it, how to get all the people around the table, how to action those ideas, how to bring them to prototype, how to test those prototypes and then how to introduce them into market. There is so much that goes into all of this, but I think that is where our skills are very complimentary. As I think about the new products going forward, we're very well positioned to be utilizing this process.
AM: How does TRX Training Club fit into the TRX universe?
JD: From my perspective, I have to tell you that I am very excited about the TRX Training Club. As we came in and looked at the business, there are many things that are great about the company. One of them is the potential of the TRX Training Club. We're off to a very good start and have over 30,000 subscribers in the TRX Training Club ecosystem. What we can do, with the right amount of focus, time, and attention, is take that product and really improve it and then grow it pretty rapidly in many different ways. When you think about how you do that, we can take what we are doing now and bring in Randy's experience, the authentic TRX experience. It’s really about expertise in this kind of training. The foundation we are building for this TRX Training Club is based on authentic expertise and TRX style funcitonal training.
You start off with back to basics...back to core...what are we really good at? And then there is the fitness and entertainment side of it. It has to be entertaining to be effective. The foundation has to be an authentic, real experience and then we will make it entertaining, because you want people coming back over and over again. We marry that with the organizational capability of Quincy Carroll, for example, who is our Chief Technical Officer. He has been involved in building some of the largest subscriber-based businesses in the world. He happened to go to Stanford Business School with Randy 20 years ago so they’re friends, and he wanted to come in and join our mission to do this. We’re thrilled to be able to attract a technology leader like Quincy to come in and bring the tech to match up with Randy and other senior leaders in the company. To have that depth of expertise that has taught people for 20 years in funcitonal training, and - match it with our ecosystem of hundreds of thousands of trainers worldwide, is a good thing. To be able to get expert feedback and to bring it to the TRX Training Club is a great service to provide the customer. If we can marry the expertise we have with the technology platform we are building, and layer that into our ecosystem and get that excitement from our ecosystem around it, that’s a huge opportunity for us. We’re investing a lot of time, energy and, effort into the platform, but it takes time. With a product like that, we won’t be making a lot of changes right away, but there will be changes over the coming quarters to improve it. And I would guess that we will see our subscription numbers grow pretty quickly as we do that.
RH: The only thing I would add here is the company was built on this premise of what we call the "Triple Threat." It was innovative and supported by two pillars. One is wrapping it in great content for the end user, which allows us to entertain and deliver great results that are relevant. The other pillar is partnering with trainers, physical therapists, and coaches. Giving them a level of comfort and depth of knowledge with our tools, enables them to deliver results to their patients, clients, and athletes. That idea has been there since the very beginning of the company. What has not always been there was the tech. We were up online for over a decade, but digital has risen, and you know you have to be a little more deliberate and modest about your expectations, because people have begun to convert over to digital. So, what I'm super excited about is that once we have this app - and it almost feels like we're underselling it by calling it that, because it's such a broader platform than just an app, we'll be able to reach around the world for that consumer and deliver all of this incredible content, education, support, and entertainment to customers of all levels. We'll be able to do it in a way that is efficient and affordable. We never had that ability before. This is someting that is being called TRX 2.0. I'm just "Jacked" about it, no pun intended, because we can take this thing and make it so much bigger that what it ever was before.
AM: What are the roles and responsibilities that you guys have?
RH: While I was away from TRX, as you may or may not know, I developed a company called OutFit that I’m the CEO of. But as we started talking about this (acquisition of TRX) from the beginning, we knew that I couldn’t be the CEO.
I’m an entrepreneur and I love building things. Even towards the end, when I was selling control, TRX was getting to be of a size that I am really passionate about creating. I think what was ideal about the situation was that I was able to say "Jack, we’re going to have to find a CEO for this." Initially, his response was, "We’ll go hire the best CEO we can find, and we'll bring them in." Then as I worked with Jack a little bit, I got to understand him and the way in which he works, and frankly, the talent that he can bring into something. I started pestering him and said, "I don't think we should hire an outside CEO. I think you should do it." His initial response was that he wasn’t doing that. I told him that if he wanted to be a really great control owner, to do that, you have to at least take a couple of years and run it. This way you’re not some smart-ass running things from the cheap seats and asking why the spreadsheet doesn’t match to the reality of how things are. He said that wasn't what he does, but eventually myself and Jack reached out to one of our board members who he can tell you about. Jack told him that I was pushing this crazy idea, and he wanted to know what he thought. Turns out, he joined me in ganging up on Jack to become the CEO for however long he chooses to do so. I have to tell you, as a guy that would tell you that this is not what he does, I'm learning every day from him about best practices on running businesses. I'm really pleased! I don't know whether I'm an Executive Chairman, but I'm way more than a guy sitting out there and coming to a boardroom. I am someone who goes to Jack with my true and honest perspective.
JD: That is the true story. Randy put me in this position. I certainly agree and support those statements. When I decided to acquire the company, I wasn’t thinking of running the company. That’s clear, but Randy and I are very much partners in running this business. Now, he is right. As we were getting closer to thinking about who the best person in the world would be to run the company, he came to me and said that I should do it. He told me I have an intensity issue and would probably kill anyone else in that seat, and I probably do have that. Then a board member and close friend, Mark Fields, who was the CEO of Ford for many years and has also been the CEO of Hertz and runs major companies around the world, and I agreed that I would come in as the CEO and that any one of the three of us can fire me at any moment if I'm not performing or if we find someone better. That was the deal that we had going in. Having now been in this seat going on the third month, I’m having a blast! It really is the perfect position for me. I was in the warehouse running a forklift on Saturday. I was doing an inventory count with the team, and I spent time in the UK with our sales team for our European business arms. I’m getting to know everybody in the company much deeper than I would have otherwise, and I’m having a blast. I’ve been on the phone with our certified trainers worldwide, and I’m really getting to know the ecosystem. We have a summit coming up in Massachusetts in early December that Randy and I will be part of. From my perspective, it has turned out to be a perfect position, and I’m really excited about that. There’s an activation energy that comes, even at this stage in my career, from taking on a role like this.
Randy is the vision, direction, and spiritual leader of the industry and the company, and he’s actively involved in all of the major decisions that we’re making as a company. I’m building the team and making the trains run on time. We work together a lot. I talk with Randy multiple times a day. We're buddies, so that makes it easy. Randy's partner, Jill, on the other hand, probably wants me to talk to him a little bit less, but we're having a great time doing this. We're building this team and we're all on this mission of what we want from this company, and I have to tell you it's fun and exciting.
RH: The one other thing I will add is that by structuring it this way, we’re able to move fast, which is such an asset. Normally, if you think about how it would work, a CEO would be separate, and you have these board members, and there’s this whole series of delays and a lot of inefficiency that comes from having the CEO constantly having to put everything together for board approvals, which takes up a ton of time. For us, we're able to pull our team together quickly with a couple of board members and make quick decisions. This is a critical position to be in, coming into a business that was struggling and trying to turn it around rapidly. What you're going to see over the next 12-18 months just couldn't happen in a different structure at this kind of pace. I have been really happy. It was something that I didn't really anticipate, but it has worked out really great.
JD: The point Randy is making, which is worth noting, the team that has come together is a combination of OGs and NGs within the TRX community. We have OGs like Randy and Rick Cusick who came in as our Chief Revenue Officer after exiting the business in 2019/2020 and brought a great perspective. Our senior management team is really extraordinary. I mentioned that Mark Fields is on our board. Frank McGuigan, who is also on our board, is one of the most recognized senior leaders in global supply chain. If you look at the management team, our CFO was Revlon's former CFO for eight years, Doug Greeff, who also ran Global Leverage Finance for Citigroup. He's an extraordinary finance executive who is on this mission with us. Quincy Carroll, who I mentioned earlier, is the CTO and, a friend of Randy’s, has known this business for a long time and is very close with him. Our VP and General Counsel, Alain Villeneuve was TRX's litigation attorney for 12 years. When we came together to acquire the company, he came to us and said that he wanted to be on the team. He wanted to be in-house and on this mission with us. We’re about to announce the new head of Supply Chain. An 11-year Senior Executive at Nike, who was at Nautilus six years before that and provides great start up experience as well. World class talent is here.
I did not acquire this business to flip it. I want to build this over the next couple of decades to take something that is very special and make it even better. We have this great team around us that is making it possible to do that, and these are just some of the names.
AM: That’s fantastic! Looking into next year, what is the vision of TRX as a brand, its projects and new products?
RH: We have a bunch of cool, innovative new products that are in the pipeline that I was part of before the dark days came and I went away. Fortunately, that group couldn’t figure out how to get those things to market. There are some really interesting new products that are new takes on training modalities like elastic resistance, which is something that I am really interested in. I think that it is something that has been under-leveraged, and there is a real opportunity to leverage there. Our products are pretty damn smart, but we’re interested in making them smarter. I think there is a way to do things we have been doing, but make them better, faster, more efficiently and more profitably. TRX will never do some crappy commodity product, just because we can. We want to speak to premium and quality, and have items that speak to deliberate and smart approaches. If we can’t do that and wrap it in amazing content, then we shouldn’t do it.
JD: We’re completely on the same page. From our perspective, now that we are two months into the acquisition, and having a retooled senior management team, we’re really focused on getting back to basics as a first step which won’t be as exciting to you, but it’s really important to us. Getting back to basics is critical and understanding what we do now, what we do well...how we do everything well...in a first-class way and improving the foundation. Obviously, the business has been up and running for a long time now. So focusing on those basics is key, such as making supply chain a competitive advantage rather than focusing on just getting product out the door.
Those are the things we’re doing. On the new product side, Randy has a bag of magic tricks, and the trainers in our ecosystem do as well. As we get through this period of focusing on what we do today, we’re going to look for competitive advantages through improving the products we have and through the development of new products as well. Things like expanding the functional training product line is a natural thing to do. Working to ensure that the services within the TRX Training Club work hand-in-hand with the products is critically important. Then it’s about looping back to a connected system. Everyone is looking for more feedback and more information. They want to have that connected experience and bio feedback. We have lots of places that we can grow through new services and new products that collectively create a complete system where you’re not only working out, but it’s being tracked and, you’re getting feedback in real time, so you’re able to compare yourself day over day, month over month and year over year. It’s like anything else, when you’re getting ready to compete in a sport, get your body in excellent shape. Get your cardio and your strenth up. Get your agility where it needs to be, and then you get into the ring ready to do battle. What we’re doing now is getting our cardio up and getting our strength and our agility up, and then we’re going to pick our spots to see what rings we’re going into, where we're going to do battle, and we're going to do all that in a very deliberate way. We have the expectation that it's coming and we'll need to be a little patient while we work on our core health. But then watch us as we start coming up with these new tools, equipment, and capabilities for our customers, while we simultaneously activate our ecosystem. There are people all around the world that are excited about the brand!
If you have not tried the TRX Training Club, Jack and Randy are giving our readers 90 days free to try it out for yourself!
You'll have access to an all-in-one virtual gym built for everybody, everywhere, every level. When you move with TRX, there’s no limit to how far you can go.
You will have unlimited access to 500+ on demand workouts, new on demand workouts added weekly, unlimited access to daily LIVE classes and unlimited access to daily REPLAY classes.
Simply visit www.trxtraining.com/athleisuremag, no credit card required!
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PHOTO COURTESY | TRX
Read the NOV ISSUE #83 of Athleisure Mag and see FORGING AHEAD WITH TRX | Randy Hetrick + Jack Daly in mag.
