4.9 • 4.4K Ratings
🗓️ 1 August 2019
⏱️ 9 minutes
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Welcome to The Gym Secrets Podcast where you can listen in on the Top 1% of Gym Owners to hear the secrets of what they are doing differently to get more customers, make more profit per customer, keep them longer, and do it all without sacrificing their personal lives. We've got roll up your sleeves kind of hustle with a little bit of cleverness and a lot of heart. We are 1% of gym owners and this is our podcast. Hosted by Alex Hormozi.
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0:00.0 | Hey guys, real quick. So Layland, I are definitely working on our social media presence if you guys haven't noticed and we're just breaking now into linked in. |
0:06.4 | Alright, it's not as bad as I thought. |
0:08.1 | It's actually been pretty awesome so far and you guys have been really cool in there and people are sharing our stuff a lot. |
0:12.2 | So if we aren't connected on LinkedIn, go ahead and let's connect and let's rock and roll. |
0:17.1 | So for whatever reason my internet cut out and we're starting back at the top. |
0:19.9 | So this little video I wanted to make is about average cost and revenue per member. |
0:27.0 | And so I was looking over industry reports from Zimplanner and Wautify just to get kind of a bigger pulse on the industry and where it's moving and all that kind of stuff. |
0:33.8 | And I found something that was really interesting that I thought I would share with you, which was especially Zimplanner, they separated out facilities between small medium and large. |
0:42.8 | And then they also had a category of top or leaders, right? The ones who were making the most money. |
0:47.5 | What was most interesting to me was the fact that the cost of fulfillment for all four of those categories was virtually the same. |
0:55.4 | And the reason that I think that that's incredibly significant is that the cost more or less remains fixed, right? It's $80 to $90 per month. |
1:03.4 | But the difference between the small medium, large and leaders was one thing, how much they charged, right? |
1:09.2 | And that should be the biggest indication of the growth lever on monetization that pricing has on the business, right? |
1:17.8 | And so it wasn't this is it wasn't churn, it wasn't it wasn't acquisition, it was price, right? |
1:23.8 | And because with higher prices you have myer profit and with higher profit you can spend more money on fulfillment. |
1:30.0 | You can save this longer, you can bomb, there's all these other things that you can do with more profit. |
1:34.2 | And so what was interesting to me is that small gyms had the smallest amount of profit, medium gyms had the medium amount of profit, large gyms had larger amounts than the large medium and small. |
1:45.6 | And then the leaders had significantly more margin than the other three, like a lot more, right? |
1:51.2 | And so if you looked at the prices, it was like on average and I'm throwing rough numbers out. |
1:56.4 | It was about 80 to 85-ish dollars to fulfill a member for small and then they were charging about $109 per month on average, right? |
2:05.4 | For the medium gyms, same cost, but they were charging $116 per member. |
2:13.0 | And then the large gyms were charging on average, $124 per member. |
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