The spectacular growth of Smart Fit across Latin America isn’t just luck – it’s the product of a carefully refined business model developed by founder Edgard Corona. The “dono da Smart Fit” has built a fitness empire through strategic thinking and data-driven decision making that offers valuable lessons for businesses across industries.

Optimizing Space for Maximum Returns

One of Corona’s most significant insights came from understanding traffic patterns and urban development in Latin American cities. Unlike American cities with expressways where people might travel 3 miles in 15 minutes, dense Latin American urban centers often limit customer catchment areas.

“A quadra (city block) is a zone in Brazil,” Corona explains. “If you make a very large gym, you either have to attract people from far away, or lower your price significantly. Both options hurt your results.”

This realization led Smart Fit to develop smaller, more focused facilities with optimized offerings. By eliminating underutilized amenities like swimming pools and concentrating on weight training and group exercise, Corona created a more efficient business model.

“At that time, a Bio Ritmo facility produced 1.3 customers per square meter compared to 0.3 or 0.4 in the market,” Corona shares. “You could charge three times less and get the same result. We didn’t charge three times less—we charged 50-60% of competitors’ prices—so we made a lot of money.”

Strategic Location Selection and Standardization

Smart Fit’s expansion follows a rigorous location selection process. Corona reveals that his expansion committee reviews 70-80 potential properties each week, rejecting about 95% of them. The company analyzes local populations, income levels, and potential customer numbers before moving forward.

“This property needs to have the right size, be in the right region with the right population. This area will generate 3,000 or 2,500 customers for this gym,” Corona explains. “The income level of this population allows for a certain ticket price.”

Once a location is approved, Smart Fit’s standardized processes take over. The architecture team designs the space according to established guidelines, with predetermined equipment layouts creating consistent customer experiences across all locations.

“When you combine all these processes and launch the gym—we can launch 95 gyms and they’ll all function identically,” Corona proudly states.

Pricing That Matches Local Markets

Perhaps one of the most sophisticated elements of Edgard Corona’s strategy is his differentiated pricing model. Rather than applying uniform pricing across all locations, Smart Fit tailors fees to match the economic reality of each neighborhood.

“You need to be the best quality-price offer in the micro-region where you’re located,” Corona emphasizes. “When I’m in Leblon [an affluent area], my competitor is charging R$700, it makes no sense to charge R$99.”

In premium locations, Smart Fit offers tiered memberships—R$149 for an annual contract or R$169 for month-to-month—while maintaining more affordable options in other areas. This flexible pricing maintains competitiveness without sacrificing profitability.

Through these strategic approaches to space utilization, location selection, and pricing, Edgard Corona has created a fitness juggernaut that continues to expand throughout Latin America. His data-driven, market-sensitive approach offers a master class in business model optimization that entrepreneurs in any industry would be wise to study.