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4 Mistakes Gym Owners Make On Regrand Opening · 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.
• 0:16
  [SPEAKER_00]: We help jimrollers win, hear your hosts, ten lions, and Randy Axton.
• 0:26
  [SPEAKER_02]: All right.
• 0:28
  [SPEAKER_02]: Welcome back to the built-to-grow podcast, I'm your host, Tim.
• 0:32
  [SPEAKER_02]: Lions joined in studio.
• 0:34
  [SPEAKER_02]: With radiates, say what's up, man?
• 0:36
  [SPEAKER_01]: I think he doesn't just give me the laugh.
• 0:37
  [SPEAKER_01]: I think every time.
• 0:39
  [SPEAKER_02]: I think I do it to entertain myself with the being honest.
• 0:41
  [SPEAKER_02]: I just pause and twist.
• 0:44
  [SPEAKER_02]: Anyway, guys, let's jump right into it.
• 0:46
  [SPEAKER_02]: We've got four things, Jim owners.
• 0:49
  [SPEAKER_02]: do make mistakes on when doing grand openings or re-grand openings.
• 0:53
  [SPEAKER_02]: And the reason we put re-grand openings in here is because there's a lot of people changing models, changing branding, location, and re-grand openings.
• 1:01
  [SPEAKER_02]: Always a great idea.
• 1:03
  [SPEAKER_02]: It's always a great idea.
• 1:05
  [SPEAKER_02]: One of the things way back, way back.
• 1:09
  [SPEAKER_02]: Gosh, this must have been four years ago.
• 1:11
  [SPEAKER_02]: We had an episode where I said, we were talking about things to grow your business.
• 1:14
  [SPEAKER_02]: And one of them was a re-brand.
• 1:16
  [SPEAKER_02]: But I said, you know, take some big balls to do a re-brand.
• 1:19
  [SPEAKER_02]: Um, and it does because at the time, I think there was like three gems that we were working with at the time.
• 1:24
  [SPEAKER_02]: They had kind of, with over the last year, do rebrands.
• 1:28
  [SPEAKER_02]: It was Frank Nash to stronger personal training.
• 1:31
  [SPEAKER_02]: It was North Point, personal training to alloy.
• 1:33
  [SPEAKER_02]: And it was our buddy Jared down in, uh, burned your fear of fitness to Jim.
• 1:39
  [SPEAKER_02]: So, so we were looking at that and they had grown there.
• 1:43
  [SPEAKER_02]: business because it was like new impression the market right and so that's not that's not something you would take lightly but it is an opportunity in fact we did it here for a lot of different reasons and it's proven to be really good move
• 1:58
  [SPEAKER_02]: Now, grand openings are a lot different than re-grand openings.
• 2:02
  [SPEAKER_02]: So let's just start with the grand opening.
• 2:06
  [SPEAKER_02]: Grand openings are a great opportunity to get a large client base before you open the doors.
• 2:13
  [SPEAKER_02]: I think that is your only goal when it comes to a grand opening is obviously get the space done, get the certificate of occupancy, get your systems and software set up, build your team and do all the stuff there.
• 2:24
  [SPEAKER_02]: If you open the door to zero clients, like you missed the boat, right?
• 2:27
  [SPEAKER_01]: All those expenses hit and you're, you got nothing coming in yet.
• 2:30
  [SPEAKER_02]: Right.
• 2:31
  [SPEAKER_02]: So number one mistake that Jim owners make is not giving themselves a long enough timeline of reality of what it's really going to take to get the build out done, get the equipment or all the things to get Jim open it off the ground.
• 2:46
  [SPEAKER_02]: They rush it.
• 2:47
  [SPEAKER_02]: They be for good reason, right?
• 2:49
  [SPEAKER_02]: There's maybe they're on a timeline with the landlord.
• 2:51
  [SPEAKER_02]: Maybe they're a timeline on their loan and they need to income to start coming in.
• 2:56
  [SPEAKER_02]: And so like there's a lot of reasons why this happens, but it's always underestimated.
• 3:01
  [SPEAKER_02]: Very much real.
• 3:02
  [SPEAKER_02]: And when you're dealing with contractors, if assuming you're building a space out, nine times out of ten, they're going to go over schedule and over budget.
• 3:11
  [SPEAKER_02]: Always.
• 3:11
  [SPEAKER_01]: And then on top of that, it's not always the build out.
• 3:13
  [SPEAKER_01]: It's the permitting dealing with the city, getting your certificate of occupancy.
• 3:17
  [SPEAKER_01]: Like you and I have backgrounds in construction, both of us have seen this almost every single time.
• 3:22
  [SPEAKER_01]: They shoot themselves in the foot, thinking the date that they've chosen for a great opening is great because the construction timelines on pace.
• 3:28
  [SPEAKER_02]: and then also boom, you're stuck waiting for your way for the fire marshal, because the fire marshal's saw sprinkler head that was covered up.
• 3:38
  [SPEAKER_02]: And now he's not going to come back for a week.
• 3:40
  [SPEAKER_02]: Yep, happens all the time.
• 3:42
  [SPEAKER_02]: So, you know, the rule of thumb's always give yourself thirty percent more time than you really believe you need.
• 3:47
  [SPEAKER_02]: And it'll, you know, it'll be getting eaten up in there.
• 3:51
  [SPEAKER_02]: First mistake, not giving yourself enough time, not planning things out and accordingly to make sure that one, you're getting out there and hitting the streets, right?
• 4:02
  [SPEAKER_02]: Part of a grand opening is a lot of door to door sales, right?
• 4:06
  [SPEAKER_02]: Like going to the businesses, meeting the people in your community, going to little events, trying to like partner and let the neighborhood know, hey, we're coming.
• 4:16
  [SPEAKER_01]: It's probably one of the areas where networking actually pays off the most.
• 4:19
  [SPEAKER_01]: Great.
• 4:19
  [SPEAKER_01]: First effort.
• 4:20
  [SPEAKER_02]: And it's a great excuse.
• 4:22
  [SPEAKER_02]: So we're working with a gym, out of Connecticut, and they've chosen a location that's in a business park, but they're in the bank location, which is the bank was right on the street.
• 4:30
  [SPEAKER_02]: So by far, amazing location.
• 4:34
  [SPEAKER_02]: Um, it's, where it's, I was talking to the gym owners and we're talking about going to all those businesses.
• 4:40
  [SPEAKER_02]: It's a great excuse.
• 4:41
  [SPEAKER_02]: Hey, we're going to be your new neighbors.
• 4:43
  [SPEAKER_02]: Let me tell you all about what we do and love to invite you in all this stuff.
• 4:46
  [SPEAKER_02]: And you could really blow the doors off day one.
• 4:49
  [SPEAKER_01]: Yeah.
• 4:50
  [SPEAKER_02]: Think about the clients in your shopping center, like those guys are perfect clients.
• 4:55
  [SPEAKER_02]: And when we were across the street, we had the restaurant owner, we had the tanning salon owner, we had the optometrist in there, we had the dentist, they were all members.
• 5:05
  [SPEAKER_02]: Because how convenient is that?
• 5:06
  [SPEAKER_02]: Hey, I'm lunch, they're gonna go work out.
• 5:08
  [SPEAKER_02]: So, all right, so there's that.
• 5:09
  [SPEAKER_02]: First one, timeline, you don't give yourself enough of time.
• 5:12
  [SPEAKER_01]: Yeah, number two, budget, you know, where you're spending the money is a big deal.
• 5:18
  [SPEAKER_01]: often you know everybody wants the big beautiful stuff they want the brand new equipment they you know so I see quite often all of the focus goes there as opposed to the marketing budget sales team things like that putting putting the pieces in place and actually turn
• 5:34
  [SPEAKER_01]: uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh
• 5:56
  [SPEAKER_01]: you know, having the marketing budget to expose yourself in the area and things like that.
• 6:01
  [SPEAKER_01]: So budget to big one, I think that people tend to do, you know, the build out and all of that type of stuff and then they have to figure out, oh, how do I get the word out?
• 6:09
  [SPEAKER_01]: How do I pay the people that are going to be, you know, converting some of these things?
• 6:13
  [SPEAKER_01]: And so the misalignment of where or misbudgeting towards the location build out versus what it's going to take to actually put people in the door.
• 6:21
  [SPEAKER_02]: Yeah, budget can go awry really quickly in construction but really quickly in equipment and like you said if you don't if you don't leave a chunk of that out for marketing you got a room full of equipment and nobody knows about it basically at the end of the day so it would be more advantageous to put you know don't get the ten thousand dollar xyz thing and put that ten grand into marketing and and I truly believe to do a market marketing push in today's day and age
• 6:51
  [SPEAKER_02]: thirty to fifty thousand over a four to six week period is probably about right.
• 6:59
  [SPEAKER_02]: And honestly it's probably a little bit more sure and maybe it's two months.
• 7:04
  [SPEAKER_02]: So the budget isn't set.
• 7:06
  [SPEAKER_02]: Um, you know, and hey, you know, good for the gym owners that are bootstrapping the deal and getting it happen, you know, you're going to just run slow.
• 7:14
  [SPEAKER_02]: You're just not going to get a whole bunch of people to start right away.
• 7:17
  [SPEAKER_02]: You're just going to build a slow grind and there's that way too.
• 7:21
  [SPEAKER_02]: One of the biggest benefits by far when it comes to a grand opening, and we'll make this mistake number three is not having, one of the big mistakes is not having a sales team, but one of the biggest opportunities when you do have a sales team is what you're selling.
• 7:37
  [SPEAKER_02]: Okay, let's talk about this for a second.
• 7:39
  [SPEAKER_02]: So the mistake is not having a dedicated sales team.
• 7:43
  [SPEAKER_02]: The benefit or the opportunity when it comes to a grand opening, you're selling somebody on air.
• 7:51
  [SPEAKER_02]: One, you're selling air.
• 7:52
  [SPEAKER_02]: Like your excitement of what could be or what it's going to be and what's over here.
• 7:57
  [SPEAKER_02]: And I know you see a trench here, but there's going to be a smoothie bar here and you're selling the vision.
• 8:02
  [SPEAKER_02]: People can get behind that.
• 8:03
  [SPEAKER_02]: Absolutely.
• 8:03
  [SPEAKER_02]: That's the first thing.
• 8:05
  [SPEAKER_02]: They also like the fact that they can commit today.
• 8:09
  [SPEAKER_02]: They don't have to start working out until they get open, right?
• 8:11
  [SPEAKER_02]: So there's something to be said there, right?
• 8:13
  [SPEAKER_02]: Hey, you can commit today, but you're not gonna actually pay or work out and exude the energy.
• 8:20
  [SPEAKER_02]: It takes to get the result you're looking for for four more weeks.
• 8:24
  [SPEAKER_02]: And during those four weeks, we're gonna keep you updated.
• 8:26
  [SPEAKER_02]: And if it pushes, we'll let you know.
• 8:28
  [SPEAKER_02]: Now, this is where you could shoot yourself in the foot.
• 8:31
  [SPEAKER_02]: If you don't have a good construction team,
• 8:35
  [SPEAKER_02]: That in that butt in that schedule gets blown out, you're losing all those sales.
• 8:39
  [SPEAKER_01]: The other half of it, you can't go too long, right?
• 8:42
  [SPEAKER_01]: Yeah.
• 8:42
  [SPEAKER_02]: There is a fine line.
• 8:43
  [SPEAKER_02]: I would say call it ninety days that people are willing to wait.
• 8:47
  [SPEAKER_02]: But if that, no, not ninety days, maybe forty five days.
• 8:51
  [SPEAKER_02]: That's what I meant.
• 8:51
  [SPEAKER_02]: Forty five days is probably where six weeks, like somebody could sign up.
• 8:56
  [SPEAKER_02]: And if you're not open for six weeks, they're cool with that.
• 8:58
  [SPEAKER_02]: But if it gets to eight, twelve, sixteen weeks,
• 9:03
  [SPEAKER_02]: They're found another gem.
• 9:04
  [SPEAKER_02]: Yeah, they're not coming to you.
• 9:05
  [SPEAKER_02]: Like why would they wait four months?
• 9:07
  [SPEAKER_02]: So can't sell too early, but you can't sell too late.
• 9:11
  [SPEAKER_02]: It's this like, forty five day window, which is probably the sweet spot.
• 9:15
  [SPEAKER_02]: If you really wanted to get in front of it, maybe you start selling sixty days out, but you better be damn right on that schedule.
• 9:22
  [SPEAKER_02]: That's a difficult of occupancy is the day you can open for business.
• 9:26
  [SPEAKER_01]: Yeah, absolutely.
• 9:27
  [SPEAKER_01]: Yeah, that's a big one.
• 9:28
  [SPEAKER_01]: You know, and then
• 9:30
  [SPEAKER_01]: As you have that stuff, I would, in alignment with that, I wouldn't plan grand opening stuff until you're in the location, right?
• 9:39
  [SPEAKER_01]: Like start with that soft opening, right?
• 9:41
  [SPEAKER_01]: Work out some of the king's much at restaurants, too.
• 9:44
  [SPEAKER_01]: You're talking about the event.
• 9:45
  [SPEAKER_01]: Yeah, the event, right?
• 9:46
  [SPEAKER_01]: Like a kickoff grand opening event, things like that.
• 9:49
  [SPEAKER_01]: I see so much.
• 9:51
  [SPEAKER_01]: planning and accordance with that date of you know that everything's pre planned open and then also something gets pushed some gets delayed that now all of that has to get pushed on the line yeah or you know you get in there and you do all that stuff and you don't have the products that you you want to product yeah that you want to bring to the market place yet
• 10:10
  [SPEAKER_01]: and you haven't worked out the Kings, right?
• 10:11
  [SPEAKER_01]: Your team hasn't taken sessions and knows how to train people in your vision model, things like that.
• 10:19
  [SPEAKER_01]: And so, you know, you can lose somebody as just as early as, as a hell of a point.
• 10:25
  [SPEAKER_01]: It's a scary one, too, because you put, I mean, again, you're putting all of your eggs in this basket trying to make this as good as you can make it.
• 10:32
  [SPEAKER_01]: Yeah.
• 10:33
  [SPEAKER_01]: Customers will give you grace.
• 10:36
  [SPEAKER_01]: when they know, like when you're clear and transparent on, hey guys, for the next couple of weeks, we're working the Kings out.
• 10:43
  [SPEAKER_01]: You know what I mean?
• 10:44
  [SPEAKER_01]: Like, I think about, I mean, we've been to software openings for restaurants together and things like that.
• 10:48
  [SPEAKER_01]: Like, you expect questions that they can't answer yet, or things just not to go as planned, but with the expectation, right, you're setting that standard, you're setting that expectation in the client size, they will give you some of that grace.
• 11:03
  [SPEAKER_01]: If you come
• 11:05
  [SPEAKER_01]: You know, out of the gates, raging and believe that everything's going to be perfect day one.
• 11:10
  [SPEAKER_01]: And then you fail that.
• 11:11
  [SPEAKER_02]: Yeah.
• 11:12
  [SPEAKER_02]: You can't get that.
• 11:12
  [SPEAKER_01]: You're never getting that back.
• 11:14
  [SPEAKER_02]: Yeah.
• 11:14
  [SPEAKER_02]: So follow the model of the soft opening, bring your friends and family in, do it do a little bit of a soft opening, then let your founding members get in there, test the pressure test.
• 11:26
  [SPEAKER_02]: And then after you've been in there thirty or even forty five days, then you plan a grand opening event that might be in month two or even month three where now you've you've been open.
• 11:39
  [SPEAKER_02]: You've got you've got a little buzz going on now we bring everybody from the community and get the ribbon cutting all the stuff at that point.
• 11:47
  [SPEAKER_02]: And then you can leverage it again.
• 11:48
  [SPEAKER_02]: So it's like a it's a big pre-opening push.
• 11:51
  [SPEAKER_02]: then it's working the kinks out and then it's another like push again for the grand opening which brings us to probably mistake number four is what you offer in the market the hook for the grand opening the buzzword around town is founders rate founders member founders of the you know the new gym the biggest mistake as a mistake number four is extending those
• 12:21
  [SPEAKER_02]: discounts for life, never, ever do a founding rate for life, discount it for life, never.
• 12:29
  [SPEAKER_01]: Yeah, that's a scary one.
• 12:31
  [SPEAKER_01]: I mean, unfortunately, you know, we all went through the pandemic.
• 12:34
  [SPEAKER_01]: And there is a portion of gyms that could not, I mean, think about what we all went through during that, right?
• 12:40
  [SPEAKER_01]: Your vendors hit you every single vendor you're work with, hit you with a thirty percent increase.
• 12:45
  [SPEAKER_01]: If your margins are relevant to third you know if you got thirty percent margins in your business and you couldn't pass on that rate increase that you felt in the business to your consumer you as the business owner just took a thirty percent decrease in your margins and probably took all the profit away on exactly right and how many of those gym owners are gyms are no longer here
• 13:07
  [SPEAKER_01]: because they forced, you know, they were, they were putting a position where they had lifetime rates, couldn't raise those rates to those members.
• 13:14
  [SPEAKER_01]: They couldn't offset that increase and expense.
• 13:18
  [SPEAKER_01]: And therefore, they couldn't pay their bills.
• 13:20
  [SPEAKER_01]: And we had a conversation with a couple coaching clients that are doing some re-grando openings and things like that.
• 13:24
  [SPEAKER_01]: And that was a question that was bounced around was, you know, are you doing a lifetime founders rate?
• 13:29
  [SPEAKER_01]: And I said, absolutely not.
• 13:31
  [SPEAKER_01]: I said, there's a business owner, there's not a business in the world that doesn't have
• 13:35
  [SPEAKER_01]: the ability to raise rates kind of in place.
• 13:38
  [SPEAKER_01]: I mean, subscription companies do it all of the time and just pass it along like it's normal business, but yet there's something about this industry that we feel one, everybody's afraid of raising rates, which is to me is ironic because we're all underpaid.
• 13:54
  [SPEAKER_01]: Any Jim owner is underpaid for the services that they provide my opinion, right?
• 13:57
  [SPEAKER_01]: We're providing for health and fitness and what we're doing for the community.
• 14:01
  [SPEAKER_01]: if we were paid what the value of that actually is, it would be much, much higher than what anybody's charging for their services.
• 14:09
  [SPEAKER_01]: But if you don't have the ability to adjust accordingly, think about all those external circumstances, right?
• 14:17
  [SPEAKER_01]: We didn't have a choice during that.
• 14:18
  [SPEAKER_01]: We didn't have anything to do with it.
• 14:21
  [SPEAKER_01]: Whether you believed that was the path, whether you didn't believe it regardless,
• 14:25
  [SPEAKER_01]: You, your bills, one up, thirty percent.
• 14:27
  [SPEAKER_01]: And unfortunately, that is something that has to be passed along to the consumer.
• 14:32
  [SPEAKER_01]: And if you don't have that option in your business, you can expect to pull a part-time job, pull another job, or at some point probably will close the doors.
• 14:40
  [SPEAKER_02]: Here's something really, really interesting.
• 14:42
  [SPEAKER_02]: And I have a, we have a mutual friend.
• 14:44
  [SPEAKER_02]: He's our chef, right?
• 14:46
  [SPEAKER_02]: He's our, he owns a restaurant here in town.
• 14:48
  [SPEAKER_02]: It's a breakfast restaurant.
• 14:50
  [SPEAKER_02]: you know, biggest heart, right?
• 14:52
  [SPEAKER_02]: And I'm in his restaurant the other day, and I'm looking at his menu items, and they're like, you know, twelve ninety nine for this and thirteen ninety nine for that, you know, drink, you know, coffee's three ninety nine, and everything was like exact numbers.
• 15:05
  [SPEAKER_02]: And I'm like, if he were to take all of his pricing, honestly, this is like, I directed him to do this, he will not do it.
• 15:13
  [SPEAKER_02]: But like, as a restaurant, he could do this, and nobody would blink an eye.
• 15:18
  [SPEAKER_02]: Let's just say his margins and his business are ten percent because that's about what a restaurant is and he wanted to double his margins.
• 15:26
  [SPEAKER_02]: Okay, I want to make twenty percent profit instead of ten and he can do it like that.
• 15:31
  [SPEAKER_02]: If he just took all of his pricing raised at ten percent,
• 15:35
  [SPEAKER_02]: The numbers would be weird.
• 15:36
  [SPEAKER_02]: It'd be like, fourteen, twenty-one, and whatever, four, twelve, and like you know what I mean?
• 15:43
  [SPEAKER_02]: Like the numbers wouldn't be ninety-nine.
• 15:45
  [SPEAKER_02]: It wouldn't be on the dot.
• 15:46
  [SPEAKER_02]: It would be like these weird numbers, twenty-seven, cents, and like, because everything raises ten percent globally.
• 15:52
  [SPEAKER_02]: Nobody would blink a damn eye.
• 15:54
  [SPEAKER_02]: Yep.
• 15:54
  [SPEAKER_02]: From paying ten ninety-nine to eleven, sixty-seven, or whatever, I did it with math.
• 16:04
  [SPEAKER_02]: automatically is collecting ten percent more.
• 16:09
  [SPEAKER_02]: The customers wouldn't blink an eye.
• 16:10
  [SPEAKER_02]: Yep.
• 16:11
  [SPEAKER_02]: And he would make ten percent.
• 16:13
  [SPEAKER_02]: And it's like, why wouldn't he do that?
• 16:15
  [SPEAKER_01]: Good question.
• 16:17
  [SPEAKER_01]: He won't do it.
• 16:18
  [SPEAKER_01]: Yeah.
• 16:19
  [SPEAKER_01]: Well, I think it goes back to the same reason Jim owners don't.
• 16:21
  [SPEAKER_01]: It's a fear of losing customers, right?
• 16:23
  [SPEAKER_01]: And more often than not, it's the fear that the owner has.
• 16:28
  [SPEAKER_01]: that's entirely different than the reality of what consumers willing to do, right?
• 16:33
  [SPEAKER_01]: We assume that a ten percent raise, I'm gonna lose.
• 16:36
  [SPEAKER_01]: Well, all of these clients.
• 16:37
  [SPEAKER_02]: There's a big huge difference between that restaurant and its menu items in a gym and I'll tell you what that is.
• 16:43
  [SPEAKER_02]: The menu items, you pay for that today and you're done, you're done, the things fulfilled.
• 16:49
  [SPEAKER_02]: Over here on the gym, you've got these people on agreements that have been paying, let's just say, four or bucks a month,
• 16:57
  [SPEAKER_02]: And now you want to go to four thirty nine, but do you go to four thirty nine with the old people or only the new people or everybody goes up or whatever.
• 17:07
  [SPEAKER_02]: And there's this thing going on right now, like in leases, there's a there's a there's a three percent rent increase per year.
• 17:13
  [SPEAKER_02]: That's pretty much standard.
• 17:14
  [SPEAKER_02]: Sometimes some areas is too.
• 17:16
  [SPEAKER_02]: Sometimes it's four.
• 17:17
  [SPEAKER_02]: And there's gym owners that are talking about building in a three percent and you will increase to their contracts.
• 17:25
  [SPEAKER_02]: And while I believe that's a great idea, I see twenty seven flaws with it.
• 17:31
  [SPEAKER_02]: Here's a great example of that flaw.
• 17:33
  [SPEAKER_02]: Let's just say somebody's coming up on their contract.
• 17:36
  [SPEAKER_02]: Unless you're here's the way you're around it.
• 17:39
  [SPEAKER_02]: Unless you're increasing your rates every quarter, you're going to run into situations where the new people are paying less than the person renewing.
• 17:45
  [SPEAKER_02]: Sure.
• 17:47
  [SPEAKER_02]: What do you mean?
• 17:48
  [SPEAKER_02]: Well, let's just say somebody, let's just say your rates were a hundred bucks a month.
• 17:52
  [SPEAKER_02]: I'm just throwing numbers out there.
• 17:54
  [SPEAKER_02]: And the, you know, the person's coming up on their year and you haven't raised the rates in those year in that year, well, they're going to go to a hundred and three bucks a month and the people knew are still paying a hundred bucks a month and you got a problem then.
• 18:07
  [SPEAKER_02]: Unless you raise every quarter, you're always going to have some group of people that are renewing their rates at a higher rate than the newest people coming in the gym.
• 18:15
  [SPEAKER_02]: and I believe it should probably be the opposite, right?
• 18:18
  [SPEAKER_02]: You should always be one or two increases behind, you know, in front, you're existing clientele base.
• 18:25
  [SPEAKER_01]: Yeah.
• 18:26
  [SPEAKER_02]: I'm just saying like, and then when you go to three percent, you're going to have all these weird numbers just like the restaurant.
• 18:32
  [SPEAKER_02]: You're going to have one hundred and three, one hundred and seven, one hundred and eleven, you know, whatever.
• 18:39
  [SPEAKER_02]: I don't know.
• 18:40
  [SPEAKER_02]: I believe that that should be the case, but I think you're running, you're gonna have a couple of different issues with the people that are renewing in a higher rate.
• 18:48
  [SPEAKER_02]: Why don't I just quit and start over and I'll get the lower rate?
• 18:52
  [SPEAKER_02]: Wait a minute, that's not what we want, right?
• 18:54
  [SPEAKER_02]: So anyways, I just thought that was interesting.
• 18:56
  [SPEAKER_02]: And I believe there should be something there, but I just haven't figured out the way that would work perfectly.
• 19:01
  [SPEAKER_01]: Yeah, I mean, I've had Jim owners talk about like,
• 19:04
  [SPEAKER_01]: You know, maintenance fees, annual maintenance fees to help cover some of that cost, things that to go out like that.
• 19:10
  [SPEAKER_02]: We did that when we first opened.
• 19:12
  [SPEAKER_02]: We had like a twenty five dollar maintenance fee and it's common with Jenna, you know, general access.
• 19:17
  [SPEAKER_02]: Yeah, because I was getting a lot of guidance from the big box club at the time.
• 19:22
  [SPEAKER_02]: It didn't go very well.
• 19:24
  [SPEAKER_02]: What is this extra, a lot of charge backs?
• 19:25
  [SPEAKER_02]: I didn't pay for that.
• 19:26
  [SPEAKER_02]: And like, well, it's our annual rate.
• 19:28
  [SPEAKER_02]: And we would get it in July, which is when we needed it.
• 19:31
  [SPEAKER_02]: And it was like,
• 19:33
  [SPEAKER_02]: Just ended up being way more problems.
• 19:35
  [SPEAKER_01]: More headache than it was worth.
• 19:36
  [SPEAKER_01]: Yeah.
• 19:37
  [SPEAKER_02]: Yeah.
• 19:37
  [SPEAKER_02]: A couple extra grand and then you're fighting it with all these clients.
• 19:41
  [SPEAKER_02]: You're nickel and a dime, Amy.
• 19:42
  [SPEAKER_02]: All right.
• 19:43
  [SPEAKER_02]: So listen, there was four things.
• 19:45
  [SPEAKER_02]: It was not giving yourself enough time, not giving yourself enough budget, not having a dedicated sales team in granting these lifetime founder rates forever.
• 19:52
  [SPEAKER_02]: Now, there's probably twelve other things we can talk about, but not on this episode.
• 19:56
  [SPEAKER_02]: That's it for this show.
• 19:57
  [SPEAKER_02]: Hopefully that helps you guys.
• 19:58
  [SPEAKER_02]: tweak some things, adjust and have a great grand opening or re-grain opening.
• 20:03
  [SPEAKER_02]: That's it for this show.
• 20:03
  [SPEAKER_02]: Until next time, keep changing lives.
• 20:05
  [SPEAKER_02]: We'll see you on the next show.
• 20:06
  [SPEAKER_02]: Bye.
• 20:07
  [SPEAKER_02]: All right, thanks for listening to another episode of the Builds Grow podcast.
• 20:10
  [SPEAKER_02]: If you want more help growing your business, join our free Facebook group, profit accelerator, hoping training gyms grow to thirty thousand dollars a month and beyond.
• 20:19
  [SPEAKER_02]: We'd love to see you there.
• 20:20
  [SPEAKER_02]: Go check out the show notes for the link and keep building something great and we'll see you in the next episode.