Skating Into An Open Market
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Skating Into An Open Market

by Elisabeth Pena

 The only place to go for skateboarding. That’s the goal 360 SkateSpot, Inc. founder and president, Joseph Smith, has set for his 360 SkateSpot Extreme Sports Entertainment Centers. Seeing an unsatisfied market of skateboarders, Smith seized the opportunity to create a brand and a destination for the sport’s underserved fans and athletes.
The father of a nine-year old boy, Smith found that when his son wanted to go skateboarding there was nowhere nearby that he felt safe taking him and local authorities did not want kids skateboarding on the streets. Smith realized how widespread the problem was after he built a half pipe in his backyard and had all the kids in the neighborhood coming over to skate.
This situation is not unique to Smith’s neighborhood. According to Board-Trac, skateboarding participation in the United States increased 49.2% between 1999 and 2000. The National Sporting Goods Association reports that more than 9.1 million people seven years old and older skateboarded more than once in 2000, up from 4.7 million in 1996. Despite these numbers, Smith estimates that there are only about 350 official skateparks in the United States (official meaning more than a ramp in a backyard). Seeing the need in the market for a place for the growing number of skateboarders to go, Smith, the former president of a telecommunications company, researched the sport and decided to form a company to build a chain of skateparks.
The company decided to locate the first skatepark near his home at a former American Appliance warehouse location in Willow Grove, PA. The 40,000 sq.ft. indoor skatepark, which was slated to open this week, consists of 22,000 sq.ft. of skating space; a 2,500 sq.ft. pro shop selling apparel, skateboards and accessories; a 3,000 sq.ft. arcade; 1,000 sq.ft. of locker space and 4,000 sq.ft. of concession space and party rooms, as well as common areas with seating for spectators.
The park is free to enter. Skateboarders can buy different packages depending on the amount of time they plan to skate. In addition to the retail shop, the company has teamed up with Cingular Wireless to sell phones at the skateparks. The phones will be branded by professional skateboarders and only will be available at 360SkateSpot locations. Other unique features at the parks include the audio and video systems that allow viewers in the park to watch other skateboarders through close-circuited televisions and a Webcam system that will allow people to view skateboarders at the park through the Internet.
Of the estimated 350 skateparks in the United States, about 75% are outdoor. Smith found that outdoor parks could only be used 30% of the time because of weather and safety conditions and decided to build his chain of parks indoors. Safety was a big consideration in the design of 360SkateSpot. All the poles in the park are padded and all the skateboarders are required to wear protective pads, which can be rented at the park if the skater doesn’t own them. In addition, the park will have one spotter for every 25 skateboarders on the floor.
Marketing efforts will include appearances by professional and local skaters on the weekends, as well as having bands play at the park as the skateboarders skate. In addition, the ESPN-sponsored X-Games will be held in Philadelphia, PA during August. Last year, the event was attended by more than 450,000 people and is expected to be a big draw for 360SkateSpot, which is located about 30 miles from the event.
The company plans to have five parks operating in the region within 16 to 18 months. In addition to the Willow Grove, PA location, the company currently is negotiating property acquisitions or leases for facilities in Delaware, Chester, Montgomery and Philadelphia Counties, PA. The company expects to open its second 360SkateSpot location by mid-Summer. If the skateparks are successful, the company plans to go public and expand along the East Coast through franchising. Long-term plans include nationwide expansion.
For more information, contact Joseph Smith, 360 SkateSpot, Inc., 1150 Easton Road, Willow Grove, PA 19090; 866-SK8-SPOT; Email: jsmith@360skatespot.com; Web site: www.360skatespot.com.