Latest / Gym Business Coach Podcast / The Math of Large Group Training

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The Math of Large Group Training · Gym Business Coach Podcast

• 0:08
  [SPEAKER_00]: to the built-to-grow podcast, delivering the knowledge in all things, fitness, business.
• 0:16
  [SPEAKER_00]: We help jimmers win, hear your hosts, ten lions, and Randy Axton.
• 0:28
  [SPEAKER_01]: Oh, right, welcome back to the built-girl podcast and your host Tim Lines joined him in studio by Randy and Simba to Merit Good Morning.
• 0:35
  [SPEAKER_01]: Let's go.
• 0:36
  [SPEAKER_01]: Let's do a rapid fire episode.
• 0:38
  [SPEAKER_01]: Yes, that work works for me.
• 0:39
  [SPEAKER_01]: Listeners, this would be the fast step So we're going to talk about what we want to do real quick is do large group math.
• 0:45
  [SPEAKER_01]: It's just interesting that
• 0:48
  [SPEAKER_01]: the way these numbers work, but we want to share something with you.
• 0:51
  [SPEAKER_01]: There was an industry report that came out and said, on average, large group training gyms have about six people per class, the colonel classes because they are.
• 1:02
  [SPEAKER_01]: So on average, across the nation and actually into Canada and a little bit of UK,
• 1:08
  [SPEAKER_01]: No matter how many, they might have some, they have 12 people, some that have 8, some that have 4, on average across all the attendance of all the larger training gyms per class with 6.
• 1:18
  [SPEAKER_01]: Okay, if we know that number is true, 6.
• 1:22
  [SPEAKER_01]: We want to know, we want you to understand your revenue per hour.
• 1:26
  [SPEAKER_01]: And so the way that we would define revenue per hour is taking all of your large group training members and taking their average frequency and divide that into what their average pay is per month.
• 1:40
  [SPEAKER_01]: And so that will get you a per class.
• 1:43
  [SPEAKER_01]: rate.
• 1:43
  [SPEAKER_01]: Correct.
• 1:44
  [SPEAKER_01]: Okay.
• 1:44
  [SPEAKER_01]: And for ease of numbers, we are going to say on average all large group training members are paying 200 bucks a month.
• 1:51
  [SPEAKER_01]: Okay.
• 1:51
  [SPEAKER_01]: It's probably high.
• 1:53
  [SPEAKER_01]: Let's just play on the safe side.
• 1:55
  [SPEAKER_01]: 200 bucks a month.
• 1:56
  [SPEAKER_01]: And let's just say on average, all of your large group training members frequency is 12 times a month.
• 2:04
  [SPEAKER_01]: Okay.
• 2:05
  [SPEAKER_01]: Some will be more, some will be less, but that's a pretty safe number in most models.
• 2:10
  [SPEAKER_01]: 12 times.
• 2:11
  [SPEAKER_01]: If they're paying $200 a month, you take $12 and you divide that into $200 and you get, come up with the number $16 is $67.
• 2:17
  [SPEAKER_01]: We double-checked my math just to be clear, $200 divided by $12, $16 is $60, $60, $60, $60, $70, $70, okay.
• 2:20
  [SPEAKER_01]: So, if you're going to pay $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1,000, $1
• 2:29
  [SPEAKER_01]: Each class is essentially generating $16.67 per person.
• 2:36
  [SPEAKER_01]: And you've got six people in your sessions on average.
• 2:40
  [SPEAKER_01]: The round number is $100 on the screen.
• 2:43
  [SPEAKER_01]: That's six people, each paying $16.67 each.
• 2:47
  [SPEAKER_01]: You're generating $100 for that one hour class, okay?
• 2:53
  [SPEAKER_01]: That number needs to pay for the coaches.
• 2:57
  [SPEAKER_01]: All of the operating expenses, your marketing, utilities, and have some profit after you pay yourself out of that $100.
• 3:07
  [SPEAKER_01]: How much are you leaving on the table for only charging 200 or having your clients coming and only having six of them show up?
• 3:19
  [SPEAKER_01]: Versus,
• 3:20
  [SPEAKER_01]: the other models that we speak of, which is some of my private training, which on average we're seeing well into the $200 to $300 per hour, and we'll do the math on that or another show.
• 3:31
  [SPEAKER_01]: But I wanted everybody to do a larger training, go look at their numbers, you're going to take your average.
• 3:38
  [SPEAKER_01]: I guess revenue per member per month.
• 3:40
  [SPEAKER_01]: So let's just say if you charge 150 for some clients to 100 for the others, you just kind of lump sum it.
• 3:46
  [SPEAKER_01]: Get that average, yeah.
• 3:47
  [SPEAKER_01]: So you take your large group training revenue and you divide it by your active members and that'll give you your monthly, I guess, average.
• 3:53
  [SPEAKER_01]: And then you're going to take a number.
• 3:55
  [SPEAKER_01]: And if you don't have your frequency numbers, you're going to just have to use the number 12, like that's just seems to be the number for most gyms.
• 4:02
  [SPEAKER_01]: Like yours might be less, it might be more.
• 4:06
  [SPEAKER_01]: And go find out what you're generating per large group training class.
• 4:11
  [SPEAKER_01]: And tell me if it's worth your time with after all those expenses, it come out of that number.
• 4:18
  [SPEAKER_01]: Because that's what's coming out of that numbers.
• 4:20
  [SPEAKER_01]: You got to pay your code.
• 4:21
  [SPEAKER_01]: You got to pay your electricity, base operating expenses, pay yourself, hopefully, and have some type of profit after all that coming out of 100 bucks.
• 4:32
  [SPEAKER_01]: That's just the eye opener.
• 4:33
  [SPEAKER_01]: We wanted you guys to go look at go do the math.
• 4:35
  [SPEAKER_01]: Yeah, report back.
• 4:37
  [SPEAKER_01]: Yeah, I'd love to hear that.
• 4:39
  [SPEAKER_01]: Go back in, we have a Facebook group, guys.
• 4:40
  [SPEAKER_01]: We'd love to, you guys could go join that Facebook group and just go punch in the numbers and be truthful.
• 4:45
  [SPEAKER_01]: I mean, it's okay if it's like, oh man, I'm going to make an 80 bucks or I'm making 200 bucks.
• 4:49
  [SPEAKER_01]: Cool.
• 4:51
  [SPEAKER_01]: Really, that's, these are the numbers you need to know if you go back to the seven habits of winning gyms, winning gyms and other numbers.
• 4:59
  [SPEAKER_01]: Absolutely.
• 5:00
  [SPEAKER_01]: And this would be one of those numbers you'd want to know.
• 5:02
  [SPEAKER_01]: So hopefully that helps you guys get you the formula to go determine your revenue generator per hour of class-based training and hopefully it's three times what I said.
• 5:13
  [SPEAKER_01]: Yeah.
• 5:14
  [SPEAKER_01]: Hopefully that helps you guys just run that number real quick until that next episode.
• 5:19
  [SPEAKER_01]: Keep changing a lot of things in the next show by.
• 5:21
  [SPEAKER_01]: Alright, thanks for listening to another episode of The Built Girl Podcast.
• 5:24
  [SPEAKER_01]: 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.
• 5:34
  [SPEAKER_01]: 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.