Millions and Years: The Final Moment

The Criticality of Launch in Hardware Startups

For numerous startups, a product launch often fails to generate significant impact. Within the software industry, it's frequently observed that a basic, functional prototype can be rapidly assembled and released to gather initial user feedback, initiating a cycle of iterative improvement.

However, the concept of launching carries a substantially different weight when dealing with physical products. Once a hardware item is shipped from the warehouse, the design team lacks the ability to directly modify the physical unit itself. Reliability, ease of operation, and, crucially, user safety are paramount considerations from the outset.

Beyond the Product: The Importance of Sales and Marketing

Preparing the product itself is only one aspect of a successful launch. An equally vital component is the robust sales and marketing infrastructure that supports it. A flawed launch can be particularly devastating for hardware startups, potentially leading to bankruptcy as unsold inventory accumulates and financial resources become limited. A misstep in the launch phase is often irrecoverable.

Tonal's Journey: From Prototype to Potential

The first part of this EC-1 series examined Tonal’s formative years – a period spanning three and a half years. It detailed how founder and CEO, Aly Orady, persistently refined prototypes of a comprehensive strength-training system utilizing electromagnetic technology, a field previously unfamiliar to him.

We also observed how Orady successfully secured investment from firms like Bolt, Mayfield, Shasta, and Sapphire Ventures. These investors recognized the potential of his device after experiencing its capabilities firsthand.

Preparing for a Successful Market Entry

With all individual components of Tonal finalized, the central question became: how could the company effectively integrate these elements to achieve a successful launch?

Building a Brand and Launching Strategically

Successful company building, brand development, launch planning, and marketing execution are fundamental to the success of most startups. This second part of the Tonal EC-1 focuses on these critical areas.

We will analyze how Tonal’s design team incorporated user feedback gathered during the beta testing phase to refine the product. The company’s specific focus on strength training necessitated an adaptation of conventional hardware launch strategies, optimizing for its intended consumer base.

Lessons Learned: Early Blunders and Hindsight

Finally, we will delve into Tonal’s marketing and launch strategy, including a key decision initially perceived as intelligent that ultimately proved to be an early mistake, offering a valuable lesson in retrospect.

The Iterative Build Process Beyond Single-Click Deployment

In contrast to software applications where consistent user engagement generates continuous data streams, Tonal, a strength training system, experiences usage in focused sessions a few times weekly. This characteristic presented initial challenges in acquiring sufficient, genuine feedback on early iterations.

Achieving a functional prototype that mirrored the eventual product’s capabilities demanded a prolonged development cycle. Following a limited alpha test conducted in 2016 within a San Francisco residence, RiptLabs – subsequently rebranded as Tonal – initiated an extensive year-long beta program in early 2017. This involved deploying prototype units to 25 households, each with at least two participants, and meticulously tracking their usage patterns for a full year.

“Our initial community manager, Sarah Johnson, proactively contacted these users regularly to discuss their workout experiences,” Orady remembers. The primary objective was to gather comprehensive feedback to guide the product team’s design refinements.

Numerous design choices and modifications were implemented based on insights gleaned during the beta phase. The horizontal displays used in the alpha units were replaced with vertical ones, aligning better with the natural stance of users facing the machine. A subtler adjustment involved reducing the screen size of the Tonal unit to 24 inches. Despite prototyping 24-, 27-, and 30-inch displays – simply attached with tape – the team discovered that larger screens prompted users to subconsciously position themselves further away, hindering proper form during routines.

millions of dollars and 3.5 years, and it all came down to this

Unlike stationary bicycles, Tonal’s exercises necessitate frequent adjustments to the device to accommodate the demands of each exercise, mirroring the functionality of conventional gym equipment. Orady explored the possibility of incorporating self-adjusting arms – requiring manual repositioning via buttons and levers – that would automatically adapt for different exercises. While potentially enhancing the user experience, this approach would introduce more complex mechanics, increasing Tonal’s overall cost. Ultimately, he opted to refine the positioning of the existing buttons and levers based on beta user interactions.

Concurrently, Ryan Vance, Tonal’s Chief Content Officer, accelerated content creation in anticipation of the device’s launch. Both he and Orady were resolute in avoiding the linear structure prevalent in many at-home fitness classes. Competitors like Peloton, Echelon, NordicTrack, Tempo, and Mirror employ editing techniques similar to television production, filming multiple angles and selecting the best shots, even for live sessions. However, these classes remain fixed, unaffected by the user’s performance.

This linear format proved less suitable for Tonal’s strength-training focus, as users vary in repetitions and set completion times. To address this, Vance and the RiptLabs team developed a “responsive content system” featuring “TimeFlex,” which dynamically adjusts the class pace based on the user’s speed.

If a user progresses slower than anticipated during a set, the system pauses, incorporating additional footage and instructor commentary until completion. This feature is notably effective and remains unique among at-home fitness offerings.

“During a Peloton ride, a user can pause to prepare a snack, and the class continues uninterrupted,” Vance explains. “The bike is unaware of the interruption. However, if a user steps away from Tonal, the system will wait for their return.”

Strength training, unlike cardio, involves numerous adjustable variables, including exercise type, repetitions, and resistance. Orady envisioned an AI-powered capability within Tonal to adapt classes in real-time based on individual user performance during sets.

The team implemented features that progressively increase resistance as users gain strength and complete more classes. Tonal also includes a “Burnout” mode, activated when sensors detect difficulty completing repetitions, proving particularly beneficial for beginners and intermediate users.

Prioritizing Education in Tonal's Marketing Approach

Following the development of a nearly finalized prototype in early 2018, Orady, alongside the Tonal team, determined a launch would occur later that same year. August was selected as the optimal launch month, strategically positioned before the holiday shopping season. This timing allowed for the acquisition of initial users prior to the peak demand period at year-end.

A significant strategic challenge for the company involved effectively marketing a device with a substantial price point – $2,995 for the base model – and ensuring consumers grasped its unique value proposition. Unlike conventional fitness equipment like treadmills and stationary bikes, which largely represent incremental improvements on existing designs, Tonal presented a completely innovative concept.

While drawing inspiration from traditional gym equipment, Tonal integrated electromagnets, digital content, and adaptive software in a novel combination previously unseen by consumers. Nate Bosshard, then CMO, engaged external marketing agencies to create initial marketing assets – including static advertisements and online videos – with the primary goal of quickly educating potential customers about the device and its AI-powered digital weight system.

This approach distinguished Tonal from other premium fitness brands such as Peloton and established gym networks like Equinox, which typically emphasized exercise as an aspirational lifestyle element. The initial marketing materials were designated as an “educational” phase, centering on three core benefits of the device.

Tonal’s inaugural video advertisement, narrated by actor Ed Norton, positioned the system as “the world’s most intelligent fitness” solution. The ad highlighted its convenience for at-home use, access to extensive weight-training classes, and the advanced AI capabilities for tracking repetitions and monitoring progress.

“These initial assets weren’t overly refined, but they were highly informative,” observes Christopher Stadler, Tonal’s current CMO. “I’d characterize them as low on ‘sizzle’ and high on substance. The imagery was simple and straightforward, clean in its presentation, yet lacked a particularly upscale feel or strong personality.”

The early fitness classes offered by Tonal also maintained a similarly straightforward aesthetic. Content was originally recorded with the startup’s initial team of six instructors against a minimalist gray wood backdrop within its San Francisco office and studio space, which had been expanded to include a nearby rented gym facility.

“The setting was simply a gray wall – far less glamorous than it is today – and our wardrobe choices were admittedly subpar,” concedes Liz Letchford, one of Tonal’s pioneering fitness instructors.

This emphasis on education within its marketing strategy also drove the company to invest in a physical retail presence from the outset. In April 2018, Tonal debuted its first showroom in San Francisco’s Cow Hollow district, forming part of a broader, long-term plan to establish retail locations nationwide.

These stores would allow potential customers to experience the device firsthand. Initially, access to the showroom was by appointment only, limited to invited guests, friends, and family. Privacy was maintained through frosted windows, and all visitors were required to sign non-disclosure agreements.

“A key takeaway from that initial showroom was that a complete workout isn’t necessary to generate purchase interest – a 10-minute demonstration proved sufficient,” recalls Orady.

The insights gained from this first showroom significantly influenced Tonal’s approach to future retail expansion. The company determined that locations in high-traffic, family-oriented areas were crucial for building brand recognition and converting demonstrations into sales. (Tonal has not publicly disclosed the sales conversion rates of its current 16 showrooms across the U.S.)

A Phased Rollout and its Impact on Tonal’s Initial Reception

The company’s commitment to comprehensive user education, prioritizing substance over sensationalism, shaped numerous strategic choices. Tonal’s CEO made the decision to forego pre-sales, and to refrain from offering the device for purchase prior to actual shipment – a departure from common practice in the hardware industry and prevalent in platforms like Kickstarter.

This approach was largely motivated by a desire to avoid prematurely advertising a definitive feature set, as Orady expressed concern that not all planned functionalities might be fully implemented by the initial release date.

However, the most significant launch-related decision ultimately proved to be somewhat problematic in hindsight. Instead of implementing a nationwide launch, or even a rollout across multiple U.S. cities – as many competitors in the at-home fitness market had done – Orady chose a more deliberate, phased strategy.

The device was first made available exclusively in the San Francisco Bay Area in August 2018, with expansion to the rest of California following in December of the same year. Nationwide availability wasn’t achieved until March 2019.

Several factors supported the rationale for a localized launch. Marketing resources could be focused on a single geographic area, rather than being dispersed across the country. This concentration was expected to foster stronger word-of-mouth marketing, while simultaneously minimizing Tonal’s initial launch expenditures.

Furthermore, a local launch aligned with the company’s emphasis on a retail-centric distribution model, allowing potential customers who had learned about the product to readily visit a store for a hands-on experience. The concentration of the Tonal team in the San Francisco area also facilitated more efficient handling of distribution and product support for the initial customer base.

These considerations collectively led the company to believe that a staggered, localized launch would be the most effective course of action.

Orady acknowledges that, in retrospect, the phased rollout generated confusion among prospective customers nationwide, who were unsure why immediate access to the device was not possible. This misunderstanding proved detrimental to Tonal, contributing to a slower growth trajectory in the months following the launch.

“It proved remarkably difficult to dispel the perception that we were not yet available nationally,” Orady explains. “We officially went nationwide on March 1st, 2019, yet I continued to receive inquiries as late as six months later asking if the product was available in states like Alabama.”

If given the opportunity to revisit the launch strategy, Orady indicates he would have prioritized television advertising. Subsequent to the launch, TV commercials have proven to be a highly effective marketing channel for increasing brand awareness, but Tonal initially avoided television advertising altogether for the first six months.

“Local television advertising is simply not cost-effective, which is why we initially refrained from TV ads,” Orady adds. “Looking back, combining nationwide television advertising with a nationwide launch starting in August 2018 would have significantly altered our business’s early growth rate.”

Although Tonal’s initial slow launch may have initially constrained growth, demand experienced a substantial surge a year and a half later with the onset of the COVID-19 pandemic and the resulting stay-at-home orders. According to Tonal’s CMO, Stadler, sales increased by 800% from December 2019 to December 2020, leading to delivery wait times of 10 to 12 weeks.

In response, the company dramatically increased production capacity, expanded its workforce, and, in some instances, now utilizes air freight to transport equipment directly from Taiwan to the United States to fulfill the heightened demand, as reported by Stadler.

Positive Initial Reception, But Can Tonal Foster a Thriving Community?

Tonal first became available in August 2018, with the foundational unit carrying a price of $2,995. Additional Smart Accessories, including handles, a bench press bar, a rope, a bench, a roller, and a workout mat, added a further $495 to the cost. Similar to the Peloton model, full access to classes necessitates a monthly membership, initially set at $49.

Considering the handles, bench press bar, and bench are crucial for many Tonal workouts, the total initial investment to acquire a fully functional Tonal system approached $3,500 – a significant price point acknowledged in several product evaluations.

Men’s Journal, in a September 2018 review, described it as “a bold — and at $2,995, pricey — venture into the home workout market.” However, the publication also highlighted the device’s convenience and space-saving design as compelling benefits.

PCMag published a favorable hands-on review in December 2018, emphasizing the system’s efficacy and potential for future development.

S.C. Stuart noted, “The Tonal System isn’t cheap, but neither is a gym membership… As colder weather arrives and mornings grow darker, it’s likely easier than going to the gym.” He continued, “Simply put on your workout clothes, approach your Tonal, and choose an inspiring coach to prepare you for the day, knowing an AI is monitoring your progress and assisting in reshaping your physique.” The review awarded the system 4.5 out of five stars and designated it an “Editor’s Choice.”

The launch proved successful, despite some initial imperfections. Extensive alpha and beta testing provided the product development team with valuable feedback for iterative improvements. Furthermore, a targeted marketing strategy effectively communicated the unique value proposition of Tonal’s strength training approach to potential customers.

However, the company now faces a new challenge: maintaining consistent engagement among Tonal owners after the initial setup. Sustained user engagement is vital for the ongoing subscription revenue that underpins the startup’s business model.

This third installment of Tonal’s EC-1 series will examine the startup’s efforts to cultivate a strong connection with both current Tonal owners and those awaiting their orders, primarily through its online community, including a carefully moderated Facebook Group.