MindBody, the San Luis Obispo-based company that provides software for health and wellness businesses, reached a new level of success this week with the acquisition of a San Diego-based tech company and the launch of a partnership with Google.
The local tech company acquired Lymber Wellness for its intellectual property: software that allows health and fitness businesses to set dynamic pricing so users can purchase a single class or service at a price based on market demand, similar to the hospitality and airline industries.
The purchase (at an undisclosed amount) builds on a partnership MindBody has with Google using Reserve with Google, which went nationwide this week. Through that page, users can search for the type of class or a specific studio available nearby, select the desired class time and pay directly through Google.
For MindBody co-founder and CEO Rick Stollmeyer, the integration is a dream come true.
“The nearly simultaneous linkage of our platform to the largest search engine in the world and the acquisition of a cutting-edge, yield-management and dynamic-pricing engine in the same quarter is not accidental. It is intentional,” Stollmeyer said.
“It’s a pivotal moment for the company, and it’s everything we’ve been dreaming about for years.”
The acquisition means MindBody will take on two co-founders and eight full-time employees from Lymber Wellness at a new San Diego satellite office, but it will not likely result in additional employees at the San Luis Obispo headquarters, where about 1,000 workers are based.
The new developments will help fitness studios, health centers and spas fill their classes and appointment books.
“These are hardworking entrepreneurs,” Stollmeyer said. “These are people that have made an enormous investment, signed multiyear leases to pay rent, and they’re all in. The most important thing they need to do is bring in more customers.”
Four million classes and sessions a day are available on the MindBody website, and less than 50 percent of those are sold, he said. Meanwhile, there are millions of people who would love to do these things, but they can’t afford it.
The new technology “allows people who wouldn’t normally show up to a barre class or have a massage search on Google and look for that $10 class,” Stollmeyer said.
Dynamic pricing will be rolled out beginning in the second half of the year.