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7 Habits of Winning Gyms - Habit 2 · 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, who will be held gemrollers, win, hear your hosts, ten lions, and Randy Axton.
0:28
[SPEAKER_02]: All right, welcome back to the built-to-grow podcast from your host, Tim Lyon's Joint in Studio.
0:34
[SPEAKER_02]: as always by Randy and say what's other good morning.
0:36
[SPEAKER_02]: Good day.
0:37
[SPEAKER_02]: Good morning.
0:38
[SPEAKER_02]: We're here.
0:38
[SPEAKER_02]: So we're we're continuing on on our seven part series, the seven habits of winning gems.
0:43
[SPEAKER_02]: We're in habit number two.
0:45
[SPEAKER_02]: Let's get into it.
0:47
[SPEAKER_02]: Habit number two, winning gems choose visibility.
0:51
[SPEAKER_02]: So visibility is funny because it's not something you can just pick up and move.
0:56
[SPEAKER_02]: Right.
0:57
[SPEAKER_02]: I can't just, you know, you're in a lease.
0:59
[SPEAKER_02]: You may own the building.
1:01
[SPEAKER_02]: But this this comes up for when it's time to renew your lease, relocate, open our new location.
1:08
[SPEAKER_02]: We need to choose visibility because think about this for a second.
1:13
[SPEAKER_02]: Somewhere.
1:14
[SPEAKER_02]: Well, if you ever look at any major brand, any industry, Starbucks, for example, you know, a high-end restaurant, a car dealer, like whatever it is that you're very well recognized, and think about Orange Theory.
1:30
[SPEAKER_02]: There's a reason, there's a reason they choose like the prime locations.
1:36
[SPEAKER_01]: Oh, I'm sure these when corporate brands have been hundreds of thousands of dollars on market research to know where those locations are right.
1:42
[SPEAKER_02]: Yes.
1:43
[SPEAKER_02]: What they're trying to do is go where the people are already are.
1:46
[SPEAKER_02]: They don't need to go in reinvent the wheel.
1:50
[SPEAKER_02]: The people are already, you know, the traffic patterns where people live.
1:53
[SPEAKER_02]: This is where they get off the freeway.
1:55
[SPEAKER_02]: This is the right they take.
1:56
[SPEAKER_02]: And this is the corner.
1:58
[SPEAKER_02]: That's all already existence.
2:01
[SPEAKER_02]: You're not going to change traffic patterns.
2:04
[SPEAKER_02]: from, you know, this is the way people are going.
2:07
[SPEAKER_02]: So they're putting their offer, they're putting their visibility in front of where the traffic is.
2:11
[SPEAKER_02]: And that's, you know, a very, very common thing when it comes to online marketing, there's websites that get traffic, Google, for example, you're gonna put your stuff there, right?
2:21
[SPEAKER_02]: You're gonna optimize for that traffic that already exists.
2:24
[SPEAKER_02]: Winning gyms choose visibility.
2:26
[SPEAKER_02]: Somewhere in the,
2:29
[SPEAKER_02]: past 10 to 15 years.
2:31
[SPEAKER_02]: There was some kind of like feathering your cap if you were to get the cheapest rent.
2:35
[SPEAKER_02]: Yeah.
2:36
[SPEAKER_02]: I'm, look, I'm all for trying to be profitable.
2:40
[SPEAKER_02]: I get it.
2:42
[SPEAKER_02]: But the way that gyms chose their locations wasn't to maximize profitability.
2:48
[SPEAKER_02]: It was just like, hey, I'm going to get the cheapest rent.
2:52
[SPEAKER_02]: And I know that I'm have to market more to get more people there.
2:57
[SPEAKER_02]: But how much more?
2:58
[SPEAKER_02]: How much more?
3:00
[SPEAKER_02]: That's the question mark that nobody can answer until this habit, to tell us they're doing some research on this.
3:06
[SPEAKER_02]: They could not figure out, they were just assuming, if I go and pay cheap rent and it's three grand a month instead of nine grand a month, that I will be able to outmarket the six grand difference to get more people in the door.
3:21
[SPEAKER_02]: There you go.
3:22
[SPEAKER_02]: Instead of paying that six grand,
3:25
[SPEAKER_02]: in rent, I'll pay three grand or two grand in marketing, and it will equal the loss of visibility.
3:33
[SPEAKER_02]: That's the thought, right?
3:36
[SPEAKER_02]: well, not so fast for reasons.
3:40
[SPEAKER_02]: Number one, okay.
3:41
[SPEAKER_02]: So let's just get into, I don't know if you've heard of Warby Parker.
3:44
[SPEAKER_02]: So Warby Parker is a eyeglass company.
3:48
[SPEAKER_02]: Okay.
3:49
[SPEAKER_02]: They have a really high-end e-com website.
3:52
[SPEAKER_02]: You can like, look at the glasses on, like virtual thing, you could choose, and they do a lot of volume.
3:58
[SPEAKER_02]: Like, like, Warby,
4:04
[SPEAKER_02]: They're a value model, but high volume of classes, okay.
4:11
[SPEAKER_02]: So they start as online retailer as a lot of those e-commerce do with technically the definition of e-commerce is online, right?
4:20
[SPEAKER_02]: So they said, they did a test.
4:24
[SPEAKER_02]: They said, hey, what if we had a brick and more location?
4:26
[SPEAKER_02]: So instead of like getting leases and just doubling down right off the jump, they did what we call pop up stores.
4:32
[SPEAKER_02]: And so they would do pop up store down in New York City and some training areas.
4:36
[SPEAKER_01]: And they started looking at the numbers, which I'm sure they were strategic on where they went.
4:40
[SPEAKER_01]: Oh yeah, right?
4:41
[SPEAKER_01]: Oh yeah.
4:41
[SPEAKER_01]: And it wasn't just lobbing it out in the middle of Eastern Kentucky somewhere where there's corn fields and nothing.
4:48
[SPEAKER_02]: No, they were very strategic in New York City, for example, where all the people were there were doing these pop up stores and they started getting a lot of business from it.
4:56
[SPEAKER_02]: And they started saying, like, what if we
4:59
[SPEAKER_02]: did actual brick and mortar stores.
5:01
[SPEAKER_02]: So they started doing some test stores and some test stores and they started being real successful with it and they're like, okay, wait a minute, there might be something here.
5:08
[SPEAKER_02]: Instead of just being online, what if we complement our online with brick and mortar?
5:12
[SPEAKER_02]: And I guess if I were to ask anybody in that's listening to this show, I would say is our marketing cost going up, are they going down?
5:23
[SPEAKER_02]: Are they going up or going down?
5:27
[SPEAKER_02]: the cost to acquire traffic, the cost to acquire a customer is only going up, it doesn't ever come down.
5:34
[SPEAKER_02]: So like you may get a teaser of a month in there or a good campaign, but then it just automatically goes right back, right?
5:40
[SPEAKER_02]: So knowing that, they said, what if we were to
5:43
[SPEAKER_02]: Get brick and mortar and look at the cost acquisition and they found the stat is mind blowing for every dollar that they spent in rent they say over spent in rent They save two to three dollars on marketing costs from paying Google and Facebook What does that mean that means their Physical plants location the brick and mortar is worth two to three x their marketing spend so they were cut they basically cut it in a third or two thirds
6:13
[SPEAKER_02]: their acquisition costs by putting the brick and mortar in front of where the people were.
6:17
[SPEAKER_02]: Not going in the back of a industrial park and trying to then continue to spend money on marketing to send people there like they were doing their online store.
6:26
[SPEAKER_02]: Yep.
6:27
[SPEAKER_02]: They put it right in the dam they overspent in rent that what they said was overspent.
6:33
[SPEAKER_02]: We overspent because we don't have to spend this type of money but we overspent.
6:42
[SPEAKER_02]: That's right there.
6:43
[SPEAKER_02]: That answers the question, can I save the difference between the additional cost and rent and what I would spend in marketing?
6:52
[SPEAKER_02]: The answer is no, it just isn't.
6:55
[SPEAKER_02]: And I'll give you another real-world gym owner case study, right?
7:02
[SPEAKER_02]: There's a, the gym owner in LA area, he's in our iron circle.
7:06
[SPEAKER_02]: He was in the same location for 10 years, 10 years.
7:10
[SPEAKER_02]: And I already told him to share his number.
7:13
[SPEAKER_02]: So I'm going to share his numbers.
7:14
[SPEAKER_02]: He was in this back of it, like, I have a picture of this.
7:16
[SPEAKER_02]: Like, very hard to find.
7:18
[SPEAKER_02]: And does she look like an office park?
7:20
[SPEAKER_02]: Like, if everybody's got one of these in their town, like we've got tons of these here.
7:24
[SPEAKER_02]: It's just like a block building with storefronts.
7:29
[SPEAKER_02]: And it's just like a parking lot.
7:31
[SPEAKER_02]: The signage is really small.
7:32
[SPEAKER_02]: There's may not be, it's usually just on the glass doors.
7:36
[SPEAKER_02]: And it's like, you're going to see people like,
7:39
[SPEAKER_02]: Um, who type of businesses would you see in these, uh, like, like an architect might live back there.
7:45
[SPEAKER_01]: Like print shops.
7:46
[SPEAKER_02]: Print shop.
7:47
[SPEAKER_01]: Yes.
7:47
[SPEAKER_02]: Print shop might be back in there, um, and I say back in there, because it is, it's literally back in there.
7:53
[SPEAKER_02]: And you only, only way that you know about that is you've got marketed to or you, you were sold design studios, like a picture like, yeah, everybody's got one of these.
8:02
[SPEAKER_02]: So he's in this location for 10 years.
8:05
[SPEAKER_02]: and he can net the his record all-time record month was $37,000 in a month, $37 all-time record.
8:13
[SPEAKER_02]: Well his lease was up at 10 years and we had a great conversation should I spend more money and go over here.
8:19
[SPEAKER_02]: It's going to be a smaller.
8:20
[SPEAKER_02]: I'm going to down size and I'm going to pay more for the square footage.
8:26
[SPEAKER_02]: So it's not like I'm going from A to A and then I just pay more.
8:30
[SPEAKER_02]: It's literally they're going from A down to B and square footage and up in the branch, right?
8:35
[SPEAKER_02]: So it's like a double landing skill.
8:37
[SPEAKER_02]: Let's square footage for more cost.
8:39
[SPEAKER_02]: But he's in a
8:40
[SPEAKER_02]: shopping center, anchored grocery store, tenant, big sign on the thing, and within seven months of moving into this new location, he's already over agreeing $60,000 in revenue.
8:58
[SPEAKER_02]: And he was too much, he moved two miles away.
9:00
[SPEAKER_02]: So two miles away.
9:03
[SPEAKER_02]: from a back of a freakin' industrial park office complex to a small sliver of a studio and he's doing 20 plus thousand dollars a month in new revenue without one dollar of marketing spend.
9:18
[SPEAKER_02]: That's the kicker without spending a dollar.
9:22
[SPEAKER_02]: He's getting walk in after walking, after walking, because
9:27
[SPEAKER_02]: the visibility.
9:28
[SPEAKER_01]: Yeah.
9:29
[SPEAKER_02]: So the question is, is he spending $20,000 more per month to be in that other location?
9:34
[SPEAKER_02]: Absolutely not.
9:35
[SPEAKER_02]: It's a fraction of that.
9:36
[SPEAKER_01]: Yeah.
9:37
[SPEAKER_02]: So let's just say he's spending two grand more a month.
9:40
[SPEAKER_02]: I don't know the numbers.
9:40
[SPEAKER_02]: I'll get this, you know, confirmed.
9:42
[SPEAKER_02]: But I want to say it's like $2,000 more a month.
9:46
[SPEAKER_02]: He's making $22,000 more dollars per month.
9:50
[SPEAKER_02]: The math says you win.
9:51
[SPEAKER_02]: 10 to like, the math says it's a great, so a great win.
9:55
[SPEAKER_02]: So in this particular situation, it's a for every dollar he's overspends in rent.
10:01
[SPEAKER_02]: He's getting 10 to one return.
10:05
[SPEAKER_02]: And it's probably more than that.
10:06
[SPEAKER_02]: Now if you take out the marketing that he's spending, because you're not spending anything on the marketing, right?
10:12
[SPEAKER_02]: Yeah.
10:12
[SPEAKER_02]: It's just, it's, it's, it's, it's, it's, it's, it's actually a thinking through this.
10:17
[SPEAKER_02]: Now I'm just, I'm just talking it loud guys.
10:19
[SPEAKER_02]: Let's just say the spending $3,000 a month in marketing at his old location.
10:23
[SPEAKER_02]: Now he's spending zero, but he's spending two more thousand and rent.
10:26
[SPEAKER_02]: It's a $5,000 spread.
10:27
[SPEAKER_02]: Oh yeah.
10:30
[SPEAKER_01]: right no it's a thousand dollars by making that decision and again and then the evidence is is already there right he's doubled his damn revenue because of the decision to put himself in a place of visibility yeah that that that's the whole point right guys I started we got off on a little bit of a tangent winning gems choose visibility so now that's a physical location
10:55
[SPEAKER_02]: It's not a badge of honor to go any more and go in the back of a complex.
11:01
[SPEAKER_02]: It was, for, you be honest with you, maybe 15 years ago, it was kind of cool and edgy.
11:07
[SPEAKER_02]: And I'm gonna back of a garage.
11:09
[SPEAKER_02]: And like that, that was a little bit of a thing.
11:11
[SPEAKER_02]: There was a little bit of a draw there and there was a very cross-fit-esque garage gym, dirty floors, type of gym for this price.
11:20
[SPEAKER_02]: And then Orange Theory shows up.
11:22
[SPEAKER_02]: with beautiful vent, you know, physical friends and storefronts, orange, it's all matching.
11:28
[SPEAKER_02]: It's professionally designed.
11:29
[SPEAKER_02]: And it's about the same price as what they were paying over there.
11:33
[SPEAKER_02]: And it's on their way home.
11:34
[SPEAKER_01]: Yeah.
11:35
[SPEAKER_02]: And it's like a block from their house.
11:37
[SPEAKER_02]: And they don't got a fight traffic to get over there.
11:39
[SPEAKER_01]: You mentioned one thing there though, right?
11:40
[SPEAKER_01]: Like the edgy factor is a trend.
11:43
[SPEAKER_01]: The edgy factor is a short term.
11:45
[SPEAKER_01]: You're betting on something.
11:47
[SPEAKER_01]: You're like you're taking a risk on that trend being the way that things go.
11:52
[SPEAKER_01]: Visibility isn't going away.
11:53
[SPEAKER_01]: You're not going to just all sudden not have.
11:55
[SPEAKER_01]: I mean,
11:57
[SPEAKER_01]: I guess maybe if you're a city redesigned the road, you know, or something like that, and traffic stopped going in front of your location, but if you're either way, you're taking a risk, you're betting on something paying off.
12:08
[SPEAKER_01]: I would much rather place the bet on the longevity of traffic.
12:13
[SPEAKER_01]: and visibility, then I would the trend of being cool by not having this sort of front, by being the dingy dirty dark, you know, in the back of a complex type of thing.
12:23
[SPEAKER_01]: That's your right now, I mean, obviously if you're coming up to a end of a lease, if you're looking to open up a jam, if you're in a position to wear,
12:32
[SPEAKER_01]: your location might change or has the option of changing this is probably the most valuable podcast you've heard in a long time.
12:38
[SPEAKER_02]: Yeah, I mean, just look at Ryan, for example, you have to be okay going a little smaller on your footprint though, because you could.
12:49
[SPEAKER_02]: out, spend the value, I guess, of the return, right?
12:54
[SPEAKER_02]: You could, you know, not in Ryan's case.
12:57
[SPEAKER_02]: Like, if he went for square footage for square footage and maybe he ended up spending even $10,000 more amount he's still doubling that.
13:04
[SPEAKER_02]: He's still on, yeah.
13:05
[SPEAKER_02]: But you could outspend, but like the point of the message is it's the traffic invisibility.
13:10
[SPEAKER_02]: So that's the physical plan, right?
13:13
[SPEAKER_02]: We're also talking about Jim owners that win
13:18
[SPEAKER_02]: They make sure they're Google, they're yelp.
13:21
[SPEAKER_02]: They're all their listings are accurate and up to date.
13:25
[SPEAKER_02]: Their website is professional.
13:27
[SPEAKER_02]: That's a big one too.
13:29
[SPEAKER_02]: That's online real estate, right?
13:32
[SPEAKER_02]: You have to show up in search engines.
13:33
[SPEAKER_02]: You have to be optimized.
13:35
[SPEAKER_02]: You have to, like that is all, like the best gyms, they all got that nailed.
13:40
[SPEAKER_02]: They got it nailed.
13:42
[SPEAKER_02]: and it's not okay to not have a website.
13:45
[SPEAKER_02]: It's not okay to have a website that doesn't have your address on it.
13:48
[SPEAKER_02]: It's not, well, yeah, not only for the fact that it's going to go, it's going to hurt you in directory search optimization and SEO.
13:58
[SPEAKER_02]: You're not getting, like if I've looked at so many websites, I don't know.
14:02
[SPEAKER_02]: I don't know where they're at.
14:03
[SPEAKER_02]: They see the city name, but I don't know what's state.
14:06
[SPEAKER_02]: I don't even know what country it is.
14:07
[SPEAKER_01]: I sometimes don't even have that.
14:09
[SPEAKER_01]: I mean, I can't tell you, my research with Jim owners, the calls I have every single week, it's mind blowing.
14:16
[SPEAKER_01]: I mean, the fact that you have a website that doesn't have your physical location or a phone number to get a hold of you, like guys, that should be number, like what else are you putting in your website aside from where you're located and how to get in touch with you?
14:31
[SPEAKER_01]: Without throwing out a exaggerated number, I mean, it's got to be 10% of gyms I talked to you that don't even have that on their website.
14:37
[SPEAKER_02]: Yeah.
14:38
[SPEAKER_02]: Winning gyms do.
14:39
[SPEAKER_02]: Winning gyms follow the habit of online and offline visibility.
14:44
[SPEAKER_01]: And I'm not to cut you off.
14:46
[SPEAKER_01]: But we underestimate this.
14:48
[SPEAKER_01]: I spoke to a gym owner yesterday.
14:49
[SPEAKER_01]: They don't have a website.
14:50
[SPEAKER_01]: They're doing all of their traffic is primarily coming from organic Instagram.
14:55
[SPEAKER_01]: At the end of the day,
14:58
[SPEAKER_01]: We had a conversation about the potential of the potential earnings outright.
15:04
[SPEAKER_01]: Their footprint, what they sell, all of that, we got to those numbers.
15:07
[SPEAKER_01]: Got to get like max capacity with everything all in.
15:09
[SPEAKER_01]: Here's what your gym could do with what you guys are doing right now.
15:14
[SPEAKER_01]: If that number, right, it was, it was underwhelming, I'll be honest, right?
15:17
[SPEAKER_01]: It was underwhelming for both the gentleman I was speaking with, the kind of open desires to, okay, maybe we do need to change some things, because that's not gonna pay that type of keep my family happy, you know what I mean with that type of income.
15:28
[SPEAKER_01]: But then on top of it, it was, are you doing the things that are even gonna give you the option to hit that number?
15:36
[SPEAKER_01]: and running a brick and mortar business with just an Instagram page is not doing that, right?
15:42
[SPEAKER_01]: You need some SEO, you need your website, you need to be omnipresent, as we've said before, right?
15:47
[SPEAKER_01]: You should have your website, you should have a blog, you should have some of those, you know, all the benefits of keyword searches and back linking and things like that.
15:54
[SPEAKER_01]: And if that's not your specialty, then lean on somebody who does that stuff for a living.
16:00
[SPEAKER_01]: Um, you know, a Facebook page and Instagram, having all of those and they don't have to, it doesn't have to be your full-time job necessarily staying active on all that, but if you don't even have a website,
16:12
[SPEAKER_01]: That's like literally putting up the sign in the front of your building.
16:15
[SPEAKER_01]: I don't remember the stat offline, but offhand, but we knew that number, it was something like 80% of people that are researching a business pull up the website before moving on.
16:25
[SPEAKER_01]: And if you don't have that representation, you don't get the business, right?
16:30
[SPEAKER_01]: It's a form of legitimacy, of course.
16:32
[SPEAKER_01]: It's a form, especially for a brick and mortar, right?
16:34
[SPEAKER_01]: If you expect somebody to walk in your business and again, never underestimate the task at hand.
16:38
[SPEAKER_01]: We're trying to sell long-term memberships here for a living.
16:41
[SPEAKER_01]: If somebody's, if you're expecting somebody to come into your location and buy an annual program with you and you don't even have a website, are they confident that your business is going to be there in a year?
16:55
[SPEAKER_02]: No, they are not.
16:57
[SPEAKER_02]: It's fun because one of the very first, when I first opened the doors, that was a big question I was getting.
17:02
[SPEAKER_02]: If I sign up with you, how do I know you're going to be your brand new?
17:06
[SPEAKER_02]: Well, I never thought about it because I'm not going anywhere.
17:09
[SPEAKER_02]: This is my life.
17:10
[SPEAKER_01]: I put everything into this.
17:11
[SPEAKER_01]: I bad day, well, hope I'm here for you.
17:13
[SPEAKER_02]: And you know what this kind of goes, it's very interesting.
17:16
[SPEAKER_02]: So obviously, you see businesses come and go in every single shopping center in America.
17:21
[SPEAKER_02]: I was just driving over from over at start.
17:25
[SPEAKER_02]: I was getting a Starbucks earlier.
17:27
[SPEAKER_02]: And I was driving past and like,
17:29
[SPEAKER_02]: It wasn't that a like electric scooter place like three months ago now it's something else and wasn't that a taco shop and now it's something else and That that sign you can just see the outline of where it was on the building and I'm like thinking about the owner that took that risk.
17:47
[SPEAKER_02]: I was littered.
17:47
[SPEAKER_02]: This was going through my head.
17:49
[SPEAKER_02]: How do you just close your doors?
17:52
[SPEAKER_02]: How do you just disappear one day?
17:54
[SPEAKER_02]: How do that make you feel?
17:56
[SPEAKER_01]: Best runs all the time.
17:56
[SPEAKER_01]: I can think of two offhand that are that in normal day today, you drive by.
18:02
[SPEAKER_01]: There's cars in the parking lot.
18:04
[SPEAKER_01]: We can't do their busy that type of thing.
18:06
[SPEAKER_01]: But both of them seem to have decent locations, but this is where I think the other half of it comes into play.
18:12
[SPEAKER_01]: They're not doing anything to support the location beyond the drive by traffic, right?
18:16
[SPEAKER_02]: Well, I'm just talking about the the physical toll on the family that yeah, you're just in this split all because I'm thinking about what I opened and probably everybody else that's listening to this you told everybody guys are open to gems could be on this day grand open you need to be there man.
18:32
[SPEAKER_02]: Hey, send your family do all the stuff it's like yeah, yeah, and then one day you just take the sign off the door off the wall and it's just like disappear like
18:42
[SPEAKER_02]: Where did you give up or where did it just follow go on yeah and where did you just decide that I'm not going to fight for this or sell it or I'm just gonna literally turn my keys in.
18:53
[SPEAKER_02]: I don't know.
18:53
[SPEAKER_02]: I just don't know how that would feel
18:56
[SPEAKER_02]: I don't feel good.
18:58
[SPEAKER_02]: I don't know winning gyms don't do that.
19:01
[SPEAKER_02]: They they they they choose the visibility They they they got the online presence they support their their physical location with online presence and they don't choose the cheapest back of the complex office industrial park for their gym they go and put their gym where the people already are and that's what winning gyms do
19:23
[SPEAKER_02]: Hopefully that helps you guys I know changing your location isn't just something you just pick up a move, but it does, you do need to think about it for the for the least renewal or your next location or whatever.
19:35
[SPEAKER_02]: I figure we throw it in there.
19:37
[SPEAKER_02]: The best gyms do do choose visibility.
19:39
[SPEAKER_02]: Hopefully that helps you guys until next episode we'll keep we'll see you on the next show.
19:44
[SPEAKER_02]: Keep changing lives we'll see you.
19:47
[SPEAKER_02]: Alright, thanks for listening to another episode of the Built Girl Podcast.
19:50
[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.
19:59
[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.