Latest / Gym Business Coach Podcast / 5 Myths That Keep Gym Owners Stuck Under $30K (Pt. 4)

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5 Myths That Keep Gym Owners Stuck Under $30K (Pt. 4) · Gym Business Coach Podcast

• 0:08
  [SPEAKER_00]: You are listening to the built-to-grow podcast delivering the knowledge in all things, fitness, business.
• 0:17
  [SPEAKER_00]: We help jimrollers win, hear your hosts, ten lions, and Randy Axton.
• 0:28
  [SPEAKER_02]: All right, welcome back to the built-to-grow podcast.
• 0:30
  [SPEAKER_02]: I'm your host, Embo Lyon's joined in studio today.
• 0:34
  [SPEAKER_02]: by Randy Hanks there.
• 0:35
  [SPEAKER_02]: After 700 of these, you just got to make a fun.
• 0:38
  [SPEAKER_01]: You're just tickling your lobes today.
• 0:41
  [SPEAKER_02]: And that sounds like the built rope on gas in your ear to know.
• 0:46
  [SPEAKER_02]: You're laughing as much as we are.
• 0:47
  [SPEAKER_02]: Yeah, if not, we're laughing.
• 0:50
  [SPEAKER_02]: We're laughing with you.
• 0:52
  [SPEAKER_02]: Trust me, not at you.
• 0:53
  [SPEAKER_02]: I think you're laughing at us, guys.
• 0:56
  [SPEAKER_02]: All right, let's get into myth number four of the five part series where we discussed the five myths.
• 1:03
  [SPEAKER_02]: that keeps you moaners stuck below 30,000 y30, 30s the survival line in the sand.
• 1:10
  [SPEAKER_02]: Um, for anybody that's gone from 30 to say 45, it's life changing a lot of times because every, every market's different.
• 1:21
  [SPEAKER_02]: All your expenses are going to be different.
• 1:24
  [SPEAKER_02]: But on average, we're just talking averages.
• 1:26
  [SPEAKER_02]: Like if you, if you can get to 45, in most markets with a 1,500 to 4,5, 6,000 square foot studio with, you know, hand full of coaches and your normal price points, your normal rents and stuff like that, 45 becomes like you're feeling damn good or breathing room.
• 1:46
  [SPEAKER_02]: Yeah, big breathing, big breathing room.
• 1:48
  [SPEAKER_02]: So gotta get you over 30.
• 1:50
  [SPEAKER_02]: Like that's just gotta be number one.
• 1:54
  [SPEAKER_02]: When it comes to growth of any jam, it always kind of always look back to marketing.
• 2:00
  [SPEAKER_02]: But the myth that keeps you stuck under 40, 30,000, the myth says marketing will solve all my problems or marketing is my biggest problem.
• 2:12
  [SPEAKER_02]: And I find that's a biggest myth in the book because we default to marketing, but if we're really to turn around and look at the business,
• 2:22
  [SPEAKER_02]: in the 9% attrition, all of the things that you could be doing better, while these clients are leaving, those are, that's the problem, not the marketing, yes, we need marketing.
• 2:34
  [SPEAKER_02]: We need marketing, yes, the old leaky bucket, right?
• 2:37
  [SPEAKER_02]: You pour it in, it'll never fill, right?
• 2:39
  [SPEAKER_02]: And look, guys, you're going to lose clients, unless you have a 10 clients, you're going to lose some clients.
• 2:44
  [SPEAKER_02]: There, you know, in 16 years, I can count on one hand, 16 years.
• 2:50
  [SPEAKER_02]: I can count on one hand the months that we didn't lose any clients.
• 2:55
  [SPEAKER_02]: Always lose one, two, seven.
• 2:58
  [SPEAKER_02]: We've even lost 20 in a month.
• 3:01
  [SPEAKER_02]: We've also signed up 30 in a month.
• 3:03
  [SPEAKER_02]: Like it's just these cycles, these waves of, in, out, in, out.
• 3:09
  [SPEAKER_02]: And so eventually over time,
• 3:13
  [SPEAKER_02]: You're going to come to a glass ceiling in your business.
• 3:15
  [SPEAKER_02]: Sometimes it's 150, sometimes it's 300, sometimes it's 200.
• 3:19
  [SPEAKER_02]: It just depends on a lot of factors.
• 3:23
  [SPEAKER_02]: And
• 3:24
  [SPEAKER_02]: based on your cost per acquisition and based on what you're willing to spend on marketing not what you should but what you're willing to spend on marketing you're standard attrition rate you're always going to lose some percentage of people and there's you're always in order to stay even you've got to replace them in the cost of marketing and acquiring customers or it goes higher so you're just never like internally going to triple your ad spend to overcome your losses
• 3:51
  [SPEAKER_02]: and then stay there because the next month you have more members which means more losses and it's the same percentage so you're just going to continue to have to spend more so there's going to come at point in time and there's gyms in the air circle that this hit them you know the last year or so uh... that you just can't grow anymore
• 4:13
  [SPEAKER_02]: only way you can grow financially is to charge more to sell more things to increase rates and things like that that that you're because again going back to the attrition and acquisition formula unless you're going to triple or quadruple your ad spend.
• 4:36
  [SPEAKER_02]: you're going to just bring in five loose five, bring in 10 loose 10, bring in 12, loose 12, and you're just gonna be there.
• 4:44
  [SPEAKER_02]: So in order to raise the revenue, the gross revenue, you've got to raise rates.
• 4:49
  [SPEAKER_02]: You've got to bring this Mrs. Johnson from seven years to go up to the current 2025, 2026 rates.
• 4:56
  [SPEAKER_02]: you've got to sell a higher ticket thing for a stretch or a nutrition program or a new, you know, some type of internal transformation challenge, if you will.
• 5:07
  [SPEAKER_02]: Again, this is when you're five and five outguards, 10 in 10 outguards, that's the point I'm trying to make.
• 5:15
  [SPEAKER_02]: And so, yes, while you believe it's marketing and you should have marketing going,
• 5:21
  [SPEAKER_02]: It's not typically the problem.
• 5:23
  [SPEAKER_02]: The problem typically is the delivery of your operations or attrition and everything else inside.
• 5:30
  [SPEAKER_01]: Yeah, it's not being able to, or comfortable charging a higher value rate because the service isn't there, maybe.
• 5:35
  [SPEAKER_01]: Or again, your attrition rates, people are falling off because again, sometimes it's the things you can control.
• 5:42
  [SPEAKER_01]: I mean, everybody's loses clients that they don't need to lose, right?
• 5:45
  [SPEAKER_01]: So obviously there's a percentage that move that all of the life things that happen
• 5:52
  [SPEAKER_01]: take that for what it is, right?
• 5:53
  [SPEAKER_01]: You're going to have some of that loss.
• 5:55
  [SPEAKER_01]: But every time somebody quits that you know, you should have, you had the opportunity to keep them and they, they left for some reason.
• 6:02
  [SPEAKER_01]: Those are the ones that hurt.
• 6:03
  [SPEAKER_01]: Those are the ones that are affecting your business and your ability to actually scale and grow.
• 6:07
  [SPEAKER_02]: And there's things outside our control that I don't know the answer to yet.
• 6:11
  [SPEAKER_02]: Other than having a conversation and the other person actually listening to it, you have to say the one that I'm thinking of is the GLP1.
• 6:19
  [SPEAKER_02]: Sure.
• 6:19
  [SPEAKER_02]: Oh yeah, we got a Jim owner that came up to us is like we've got two of our favorite clients of mother daughter been with us for years started with the end of the garage days they're here with us, they'd love us.
• 6:31
  [SPEAKER_02]: But they got in GOP ones and they'll also sway and they don't feel like they have to work out anymore because they because they they checked for the box of I guess weight loss Yeah, their pain points gone and they don't need training anymore in their in their eyes and they're eyes and I'm like, oh my god I don't think you can change that person's mind, but you have to try because they're they're probably not going to listen to you But you know Jim owners fitness professionals.
• 6:56
  [SPEAKER_02]: You know that they got to have that muscle
• 6:59
  [SPEAKER_02]: their muscle wasting is on the, you know, there just could become a bag of bones and it's just going to hurt them in the long run.
• 7:05
  [SPEAKER_02]: You know that they just don't want to hear it.
• 7:07
  [SPEAKER_02]: Sure.
• 7:08
  [SPEAKER_02]: They don't want to work for it because they obviously went down the road of the shot, right, which is the easy button.
• 7:13
  [SPEAKER_02]: Sure.
• 7:14
  [SPEAKER_01]: Yeah, and I think that to your point though, it's an education gap, right?
• 7:18
  [SPEAKER_01]: If the client understood that the GLP1's non-discretionary, what it's taken weight off of you, and it's going to eat the muscle, it's going to eat fat, and it doesn't care what it's doing, right?
• 7:28
  [SPEAKER_01]: The number on the scale comes down, but it's also negatively affecting their strengths, their muscle mass and skeletal muscle mass and so forth.
• 7:36
  [SPEAKER_01]: So, I think in that one, the responsibility of the gym owner is making sure that they're
• 7:44
  [SPEAKER_01]: And then also fill that void with the reason that we provide strength training is so that you're not experiencing that.
• 7:52
  [SPEAKER_01]: Yeah.
• 7:52
  [SPEAKER_02]: And I think this is a great scenario.
• 7:54
  [SPEAKER_02]: I mean, yeah.
• 7:56
  [SPEAKER_02]: Here's the other issue.
• 7:58
  [SPEAKER_02]: You could have the information.
• 7:59
  [SPEAKER_02]: We all have the information.
• 8:01
  [SPEAKER_02]: We have it.
• 8:02
  [SPEAKER_02]: And how do you get it into your clients' years and then into their brain?
• 8:07
  [SPEAKER_02]: How do you do that?
• 8:09
  [SPEAKER_02]: Well, it's not going to be under an email.
• 8:11
  [SPEAKER_02]: It's not going to be under a video.
• 8:13
  [SPEAKER_02]: They're not going to watch that.
• 8:14
  [SPEAKER_02]: You only have so much time on the training for.
• 8:16
  [SPEAKER_02]: You only meet with them every say 30 to 90 days.
• 8:20
  [SPEAKER_02]: You hand them a flyer that they're not going to read.
• 8:22
  [SPEAKER_02]: You know, how do you, the challenges?
• 8:25
  [SPEAKER_02]: How do you get everybody in the room so you can give them the information that they can then take action on in a seminar is a way.
• 8:35
  [SPEAKER_02]: but you better have something in it for them.
• 8:37
  [SPEAKER_02]: You better have wine, you better have some, you know, thoughts give away some shit like that.
• 8:43
  [SPEAKER_02]: Because they're busy.
• 8:44
  [SPEAKER_02]: Why do they want to go sit in your gym and listen about body composition for 45 minutes?
• 8:51
  [SPEAKER_02]: Because that's what they need to know.
• 8:53
  [SPEAKER_02]: I mean, they're, they got kids that take this class and they're practicing all this stuff.
• 8:58
  [SPEAKER_02]: So like the end of the day, like I don't know the answer.
• 9:00
  [SPEAKER_02]: I know that's, you'll get some percentage of the people there.
• 9:04
  [SPEAKER_02]: I mean, we did a whole state of the union here and we probably got 50% of our clients in the room.
• 9:10
  [SPEAKER_02]: I mean, it was, it was, it was, like, it was big news, big news.
• 9:14
  [SPEAKER_02]: We played that up something big happening.
• 9:17
  [SPEAKER_02]: We can't wait to tell you about it and then we're starting to see changes happen.
• 9:21
  [SPEAKER_02]: Their freaking construction was going on and it was like, all this stuff.
• 9:24
  [SPEAKER_02]: still got.
• 9:25
  [SPEAKER_01]: And still was only 50 percent.
• 9:26
  [SPEAKER_02]: And there was wine there was stuff and we had chairs and we had a bunch of things.
• 9:29
  [SPEAKER_02]: And all of our coaches were there and we still have 50 percent.
• 9:32
  [SPEAKER_02]: And it just is what it is, right?
• 9:34
  [SPEAKER_02]: Yeah.
• 9:34
  [SPEAKER_02]: Like we just people are busy.
• 9:35
  [SPEAKER_02]: So anyways, back to, you know, you're going to lose clients.
• 9:40
  [SPEAKER_02]: Those are the clients that you hate to lose.
• 9:42
  [SPEAKER_02]: The ones that you know should be with you.
• 9:45
  [SPEAKER_02]: But the ones that move and like you're just gonna they're just gonna go yeah, or pass away You gonna have clients that pass away.
• 9:52
  [SPEAKER_02]: We've had it There was a there was an episode we did on a crazy shit that's yeah, I mean it probably doesn't even touch Some of the stories and some of the gems.
• 10:04
  [SPEAKER_02]: I You know well I heard about this guy.
• 10:07
  [SPEAKER_02]: No, I don't want to get it go down that road bottom line is this guys
• 10:11
  [SPEAKER_02]: Marketing is something you need to be focusing on.
• 10:15
  [SPEAKER_02]: But the myth is, it's not.
• 10:20
  [SPEAKER_02]: The myth is that you're marketing is your biggest problem.
• 10:23
  [SPEAKER_02]: What I'm saying is not your biggest problem.
• 10:25
  [SPEAKER_02]: It's a problem, but it's not your biggest problem.
• 10:27
  [SPEAKER_01]: And you could probably see that as an owner, I mean, how many agencies have you worked with over the last two years?
• 10:31
  [SPEAKER_01]: Or how many different styles of ads have you run?
• 10:34
  [SPEAKER_01]: How many different attempts at getting new bodies in the gym have you done?
• 10:38
  [SPEAKER_01]: Has any one of those,
• 10:40
  [SPEAKER_01]: exploded your gym to the level of consistency right like put those new members in there that are still with you today type of thing.
• 10:47
  [SPEAKER_01]: It's it's a requirement of business but in part of the reason that we know this to be true because we went from the agency to the coaching side like we transitioned to what we do and provide for the you know to you guys because this was a big eye opener for us that it wasn't just about the marketing.
• 11:03
  [SPEAKER_02]: Yeah we could be great at marketing.
• 11:05
  [SPEAKER_02]: We could be great at it.
• 11:06
  [SPEAKER_02]: We could put people in your gym.
• 11:09
  [SPEAKER_02]: if you can't keep them what's the point you're always going to be marketing in that right there is the point that the gym owner says that marketing is the problem in the problem isn't you can't keep your clients.
• 11:18
  [SPEAKER_02]: Yeah.
• 11:19
  [SPEAKER_02]: There you go.
• 11:20
  [SPEAKER_02]: Yeah.
• 11:21
  [SPEAKER_02]: Anyways.
• 11:22
  [SPEAKER_02]: Put that one out there and just stir the pot a little bit for you guys.
• 11:26
  [SPEAKER_02]: Look at your client retention rates.
• 11:28
  [SPEAKER_02]: Look at your average state that you may not be even looking at that.
• 11:31
  [SPEAKER_02]: And that, therefore, is in one of the problems.
• 11:33
  [SPEAKER_02]: Yep, the problem is you don't know your numbers, right?
• 11:36
  [SPEAKER_02]: So take a hard look.
• 11:37
  [SPEAKER_02]: You'll be surprised when you start looking at the data.
• 11:41
  [SPEAKER_02]: Objectively and not emotionally.
• 11:44
  [SPEAKER_02]: Just looking at it like this is this is like this is what it is It is what it is the numbers don't lie.
• 11:49
  [SPEAKER_02]: So hopefully that helps you guys that's another myth that we got to get out of your heads If you want to get past 30,000 if you guys need help there's links in the show notes Love to help you We got a great URL gym Businesscoach.com Jim businesscoach.com go go check it out search bringbrew program.
• 12:06
  [SPEAKER_02]: All right.
• 12:07
  [SPEAKER_02]: That's it for this episode until the next time keep
• 12:11
  [SPEAKER_02]: Alright, thanks for listening to another episode of The Built Girl Podcast.
• 12:14
  [SPEAKER_02]: If you want more help growing your business, join our free Facebook group, Profit Accelerator, helping training Jim's grow to $30,000 a month and beyond.
• 12:23
  [SPEAKER_02]: We'd love to see you there, go check out the show notes for the link, and keep building something great, and we'll see you in the next episode.