WEBVTT 1 00:00:00.000 --> 00:00:03.960 Going on with everybody, happy, Humphrey, happy Wednesday. 2 00:00:03.960 --> 00:00:06.880 This is Alex coming from downtown Austin. 3 00:00:06.880 --> 00:00:08.960 And I had something on my mind this morning when I woke up, 4 00:00:08.960 --> 00:00:12.520 and I was thinking about it, and I figured I would share it with you. 5 00:00:12.520 --> 00:00:14.440 And it's kind of about the future of the industry. 6 00:00:14.440 --> 00:00:15.920 So it's a little bit more applying this guy, 7 00:00:15.920 --> 00:00:20.040 but I think it's something that when you think about it, 8 00:00:20.040 --> 00:00:21.720 it'll kind of give you, so this is something 9 00:00:21.720 --> 00:00:24.600 that actually could be some like piece, right? 10 00:00:24.600 --> 00:00:28.240 And so with the future of automation 11 00:00:28.240 --> 00:00:34.000 in terms of robotics and AI, and Amazon coming in, 12 00:00:34.000 --> 00:00:38.960 and being a behemoth in retail, it makes sense to ask yourself, 13 00:00:38.960 --> 00:00:41.160 especially if you're trying to do this for a while 14 00:00:41.160 --> 00:00:43.720 and make a career out of owning a gym, 15 00:00:43.720 --> 00:00:46.440 am I going to be, is this industry going to be here 16 00:00:46.440 --> 00:00:49.560 in 10 years or 20 years or 40 years or whatever, right? 17 00:00:49.560 --> 00:00:51.840 And the good news is I think that it will be. 18 00:00:51.840 --> 00:00:53.960 And here's kind of my argument around that. 19 00:00:53.960 --> 00:00:55.720 So I think we're the right business 20 00:00:55.720 --> 00:00:57.280 because we're in a service business. 21 00:00:57.360 --> 00:01:01.720 And if you look at the future of like little mini malls 22 00:01:01.720 --> 00:01:04.040 and shopping malls and more retail looks like, 23 00:01:04.040 --> 00:01:06.200 all retail stores are going to go, 24 00:01:06.200 --> 00:01:07.200 like they're going to disappear 25 00:01:07.200 --> 00:01:09.680 because you're going to have an online source 26 00:01:09.680 --> 00:01:12.080 that's going to have more variety and better pricing 27 00:01:12.080 --> 00:01:13.600 because they have a economy to scale. 28 00:01:13.600 --> 00:01:14.440 Period. 29 00:01:14.440 --> 00:01:15.600 Like there's nothing you can do about it. 30 00:01:15.600 --> 00:01:17.720 That's going to happen, right? 31 00:01:17.720 --> 00:01:19.960 And so it's going to free up a lot of space, right? 32 00:01:19.960 --> 00:01:21.760 And so when everyone's like, man, 33 00:01:21.760 --> 00:01:23.520 there's no space for my gig, there's always things, 34 00:01:23.520 --> 00:01:24.760 problems because all these other places 35 00:01:24.760 --> 00:01:27.000 are going out of business because of Jeff Bezos, right? 36 00:01:27.000 --> 00:01:29.760 But what is the future of those mini malls? 37 00:01:29.760 --> 00:01:31.440 What are they actually going to look like, right? 38 00:01:31.440 --> 00:01:33.840 And so it means that the things that people actually 39 00:01:33.840 --> 00:01:35.480 need to do in person still 40 00:01:35.480 --> 00:01:38.680 are going to be related to two things, really free. 41 00:01:38.680 --> 00:01:43.360 Food, services, experiences, right? 42 00:01:43.360 --> 00:01:44.640 Those are the things that people actually 43 00:01:44.640 --> 00:01:47.000 now have to go and take their bottom 44 00:01:47.000 --> 00:01:49.320 to the store to get their experience, right? 45 00:01:49.320 --> 00:01:52.320 A movie theater, for example, is an experience 46 00:01:52.320 --> 00:01:54.920 going to a restaurant and experience together 47 00:01:55.880 --> 00:01:58.720 or getting their haircut or going to the chiropractor 48 00:01:58.720 --> 00:01:59.600 or going to the dentist. 49 00:01:59.600 --> 00:02:01.600 Those are things you actually have to take the body 50 00:02:01.600 --> 00:02:03.640 into the store to go do, right? 51 00:02:03.640 --> 00:02:05.080 Like this, if you want other people to see it. 52 00:02:05.080 --> 00:02:09.560 Anyways, so how do you compete and survive 53 00:02:09.560 --> 00:02:12.320 and win in that new environment, right? 54 00:02:12.320 --> 00:02:15.000 And so the first thing is, you have to have high value 55 00:02:15.000 --> 00:02:18.040 services because if you're trying to do a cheap model, 56 00:02:18.040 --> 00:02:21.200 like a cheap gym model, high volume model, 57 00:02:21.200 --> 00:02:22.600 those, again, are going to consolidate. 58 00:02:22.600 --> 00:02:24.600 And they have to agree to step like a lot of business 59 00:02:24.760 --> 00:02:26.400 that's all day, and it's a race to the bottom. 60 00:02:26.400 --> 00:02:29.000 Who can have the nicest facility in the cheapest presence? 61 00:02:29.000 --> 00:02:30.760 And that's not a game that we want to play. 62 00:02:30.760 --> 00:02:32.400 We don't want to get into that game, right? 63 00:02:32.400 --> 00:02:34.280 Because we are service providers, okay? 64 00:02:34.280 --> 00:02:35.680 So just remember that whenever you're like, 65 00:02:35.680 --> 00:02:37.000 I'm about to take, I just need all this money 66 00:02:37.000 --> 00:02:38.080 using out the store here. 67 00:02:38.080 --> 00:02:39.640 We'll go buy more equipment. 68 00:02:39.640 --> 00:02:40.480 It doesn't matter. 69 00:02:40.480 --> 00:02:42.600 That equipment is irrelevant to your bottom line 70 00:02:42.600 --> 00:02:45.200 because you're not competing on that scale. 71 00:02:45.200 --> 00:02:46.080 That's not where you compete. 72 00:02:46.080 --> 00:02:48.280 You compete on the service. 73 00:02:48.280 --> 00:02:49.800 That's why people come to us is because 74 00:02:49.800 --> 00:02:51.840 they want more service, right? 75 00:02:51.840 --> 00:02:53.440 So just remember that, okay? 76 00:02:53.440 --> 00:02:54.720 Now, when I talk about high value, 77 00:02:54.720 --> 00:02:57.400 I'm talking about actual real high value, 78 00:02:57.400 --> 00:03:01.080 but also value in terms of dollars and cents, 79 00:03:01.080 --> 00:03:03.120 which means that if you are a high ticket, sorry, 80 00:03:03.120 --> 00:03:04.480 if you are a local business 81 00:03:04.480 --> 00:03:05.480 and you are someone's service, 82 00:03:05.480 --> 00:03:07.760 you need to be high ticket period. 83 00:03:07.760 --> 00:03:10.040 You have to be, this is the only way to survive. 84 00:03:10.040 --> 00:03:11.960 Because, hey, you can't sell widgets 85 00:03:11.960 --> 00:03:13.360 because Amazon dot you, right? 86 00:03:13.360 --> 00:03:15.040 Period, widgets are going away. 87 00:03:15.040 --> 00:03:16.360 You can't sell high volume 88 00:03:16.360 --> 00:03:18.800 because the guys who have $10 million gyms 89 00:03:18.800 --> 00:03:21.040 are selling them for 30 bucks a month. 90 00:03:21.040 --> 00:03:23.040 You're not going to win it that year, right? 91 00:03:23.040 --> 00:03:23.880 And so like I said, 92 00:03:23.880 --> 00:03:26.720 the only thing you got is service and time value service. 93 00:03:26.720 --> 00:03:27.760 And so if you're going to do that, 94 00:03:27.760 --> 00:03:30.680 it's the same thing you can't race at the bottom. 95 00:03:30.680 --> 00:03:32.480 You've got to go all the way up top. 96 00:03:32.480 --> 00:03:34.000 Now, everyone always knows that like, 97 00:03:34.000 --> 00:03:36.080 now we've got the reputation of being the high ticket, 98 00:03:36.080 --> 00:03:38.080 like we're the high ticket, actually, whatever, right? 99 00:03:38.080 --> 00:03:40.040 That's what, you know, Russell Paul is at this event 100 00:03:40.040 --> 00:03:41.720 and like, that's our thing. 101 00:03:41.720 --> 00:03:43.760 But the reality of high ticket is that 102 00:03:43.760 --> 00:03:45.720 the only way to be high ticket 103 00:03:45.720 --> 00:03:46.920 is to be the highest value. 104 00:03:46.920 --> 00:03:49.640 So we get absolutely, we are by far the most expensive 105 00:03:49.640 --> 00:03:50.760 if you're new to this group. 106 00:03:50.760 --> 00:03:53.120 Any stuff that you get from us is expensive. 107 00:03:53.120 --> 00:03:55.040 Like it's five, four, three, four, ten times 108 00:03:55.040 --> 00:03:56.960 is expensive as anyone else in our space. 109 00:03:56.960 --> 00:03:59.720 But it's because we're the best. 110 00:03:59.720 --> 00:04:02.520 And because what we sell you for 20 grand 111 00:04:02.520 --> 00:04:04.480 will make you 200, right? 112 00:04:04.480 --> 00:04:05.680 And that's the issue. 113 00:04:05.680 --> 00:04:08.400 And so if you're like, man, I want to sell high ticket, 114 00:04:08.400 --> 00:04:10.440 you got to get into that space of like, 115 00:04:10.440 --> 00:04:11.840 how can I provide, like if I want to sell 116 00:04:11.840 --> 00:04:13.200 $30,000 on our package, 117 00:04:13.200 --> 00:04:15.600 how can I provide $30,000 on our value? 118 00:04:15.600 --> 00:04:17.080 And if you got to think like that, 119 00:04:17.080 --> 00:04:18.520 you start thinking differently. 120 00:04:18.520 --> 00:04:20.320 All right, we start thinking about making services 121 00:04:20.360 --> 00:04:21.920 that aren't high value. 122 00:04:21.920 --> 00:04:24.320 You'll automatically be thinking from a different space 123 00:04:24.320 --> 00:04:25.520 than all the people who are in your space 124 00:04:25.520 --> 00:04:27.400 trying to do a $99 booking. 125 00:04:27.400 --> 00:04:29.240 All right, and that's how you win. 126 00:04:29.240 --> 00:04:32.120 Because then when your average price on value goes up, 127 00:04:32.120 --> 00:04:33.880 you can apart us more easily. 128 00:04:33.880 --> 00:04:35.720 They stay more easily. 129 00:04:35.720 --> 00:04:37.000 They're the best customers. 130 00:04:37.000 --> 00:04:38.840 They're happy with you because now you have a crop 131 00:04:38.840 --> 00:04:40.440 up to reinvest back into the service 132 00:04:40.440 --> 00:04:41.800 to getting the amazing results. 133 00:04:41.800 --> 00:04:42.720 Amazing experience. 134 00:04:42.720 --> 00:04:45.040 Just like I said, service and experience is why 135 00:04:45.040 --> 00:04:47.520 it was where the new economy was going, right? 136 00:04:47.520 --> 00:04:48.720 For brick and mortar. 137 00:04:48.720 --> 00:04:51.640 So, and from a niching standpoint, 138 00:04:51.640 --> 00:04:53.080 I'm just going to touch on this. 139 00:04:53.080 --> 00:04:55.080 There are, there aren't like, 140 00:04:55.080 --> 00:04:57.080 if you were a vegan powder lifter, 141 00:04:57.080 --> 00:04:59.520 you can find some dude online with a vegan powder lifter. 142 00:04:59.520 --> 00:05:02.800 You're like, you're a 42 year old mom who's, you know, 143 00:05:02.800 --> 00:05:07.240 Asian and a server, but like there is a person for that. 144 00:05:07.240 --> 00:05:09.600 And that person is a niche that they can expand on 145 00:05:09.600 --> 00:05:11.220 because they have ultimate scale, 146 00:05:11.220 --> 00:05:12.060 or the unity. 147 00:05:12.060 --> 00:05:14.600 And there's only going to be one winner in those categories. 148 00:05:14.600 --> 00:05:17.160 You can niche, there's only one winner, right? 149 00:05:17.160 --> 00:05:19.360 Which means if you are a brick and mortar, 150 00:05:19.360 --> 00:05:22.280 most of the time you're going to be focusing on 151 00:05:22.280 --> 00:05:24.040 general population in your area 152 00:05:24.040 --> 00:05:26.080 and then providing an experience that's superior 153 00:05:26.080 --> 00:05:27.120 than everyone else is, 154 00:05:27.120 --> 00:05:29.320 providing results that are superior than everyone else can. 155 00:05:29.320 --> 00:05:30.960 And then by so doing that, 156 00:05:30.960 --> 00:05:33.160 getting people to stick for longer, prefer their friends, 157 00:05:33.160 --> 00:05:34.440 having amazing experience. 158 00:05:34.440 --> 00:05:35.600 You can not spend it when they do it 159 00:05:35.600 --> 00:05:37.680 and you can keep it longer because now you have profit, 160 00:05:37.680 --> 00:05:38.920 they can be invested. 161 00:05:38.920 --> 00:05:40.600 All the people who are with us, 162 00:05:40.600 --> 00:05:44.000 they take it because I have a full American red blooded 163 00:05:44.000 --> 00:05:46.360 tech support team, I got 11 people full time. 164 00:05:46.360 --> 00:05:47.880 We have a five minute promise. 165 00:05:47.880 --> 00:05:49.120 You have any question you can't, 166 00:05:49.120 --> 00:05:52.080 like it's your pixel working, you can't figure out anything. 167 00:05:52.080 --> 00:05:53.840 We get back to you, listen, five minutes. 168 00:05:56.640 --> 00:05:57.800 Real quick guys, if you can think about 169 00:05:57.800 --> 00:05:59.360 how you found this podcast, 170 00:05:59.360 --> 00:06:01.880 somebody probably tweeted it, told you about it, 171 00:06:01.880 --> 00:06:04.120 shared it on Instagram or something like that. 172 00:06:04.120 --> 00:06:06.560 The only way this grows is through word of mouth. 173 00:06:06.560 --> 00:06:08.840 And so I don't run ads, I don't do sponsorships, 174 00:06:08.840 --> 00:06:09.840 I don't sell anything. 175 00:06:09.840 --> 00:06:12.200 My only ask is that you continue to pay it forward, 176 00:06:12.200 --> 00:06:13.960 whoever showed you or however you found out 177 00:06:13.960 --> 00:06:16.120 about this podcast that you do the exact same thing. 178 00:06:16.120 --> 00:06:18.640 So if it was a review, if it was a post, 179 00:06:18.640 --> 00:06:20.040 if you do that, it would mean the world to me 180 00:06:20.040 --> 00:06:21.160 and you'll throw some good karma out there 181 00:06:21.160 --> 00:06:22.360 for another entrepreneur. 182 00:06:24.520 --> 00:06:25.360 Anybody else have that? 183 00:06:25.360 --> 00:06:26.720 Of course not, because no one else has the, 184 00:06:26.720 --> 00:06:27.560 has the margin to do it, 185 00:06:27.560 --> 00:06:29.600 but it's a need that was there and it was satisfied. 186 00:06:29.600 --> 00:06:32.520 That's why instead of having 10% of our customers succeed, 187 00:06:32.520 --> 00:06:34.640 we have 90% of our customers succeed. 188 00:06:34.640 --> 00:06:37.200 It's because we had the margin in order to make 189 00:06:37.200 --> 00:06:38.800 a service that was superior. 190 00:06:38.800 --> 00:06:40.440 So anyways, hope that makes sense to you guys 191 00:06:40.440 --> 00:06:41.680 in terms of what the future looks like. 192 00:06:41.680 --> 00:06:43.160 We're making more of four, 193 00:06:44.080 --> 00:06:46.960 what that new shopping model is going to look like 194 00:06:46.960 --> 00:06:49.800 in the future, the good news is we're in the right business. 195 00:06:49.800 --> 00:06:50.940 People will always pay another 196 00:06:50.940 --> 00:06:52.400 couldn't be able to hold them accountable. 197 00:06:52.400 --> 00:06:54.000 Like if there was a robot, I like, 198 00:06:54.000 --> 00:06:55.960 there was, it's like, even if there was a robot 199 00:06:55.960 --> 00:06:57.800 personal trainer who's literally at the end 200 00:06:57.800 --> 00:07:00.080 and starting you, you just don't care 201 00:07:00.080 --> 00:07:01.600 if you stand in that robot. 202 00:07:01.600 --> 00:07:03.600 You just don't, because it doesn't matter, right? 203 00:07:03.600 --> 00:07:05.040 But people are driven by status 204 00:07:05.040 --> 00:07:06.600 and if they feel like their status is decreased 205 00:07:06.600 --> 00:07:08.720 by them not showing up, they'll come. 206 00:07:10.160 --> 00:07:12.080 And that's, so all in all, 207 00:07:12.080 --> 00:07:13.200 and I don't think we're going to have like, 208 00:07:13.200 --> 00:07:15.000 personal training robots coming any time soon. 209 00:07:15.000 --> 00:07:17.440 We're going to work on that too much. 210 00:07:17.440 --> 00:07:19.240 But being in the day, relationships are going to build it 211 00:07:19.240 --> 00:07:20.640 and that's what's going to break people in. 212 00:07:20.640 --> 00:07:22.800 And that's when we get, that's what's going to 213 00:07:22.800 --> 00:07:24.560 solidify us in the future. 214 00:07:24.560 --> 00:07:25.960 So I'm not worried about it. 215 00:07:25.960 --> 00:07:28.400 But if you are in this low margin, 216 00:07:28.400 --> 00:07:30.280 trying to get high volume game, 217 00:07:30.280 --> 00:07:32.960 you're in the wrong game and you will lose eventually. 218 00:07:32.960 --> 00:07:35.360 So my zone start playing in a different way 219 00:07:35.360 --> 00:07:39.040 and up on board, the water's warm 220 00:07:39.040 --> 00:07:40.960 and we'll have to get there. 221 00:07:40.960 --> 00:07:41.960 Sorry, lots of love guys. 222 00:07:41.960 --> 00:07:42.960 Have a happy hump day. 223 00:07:42.960 --> 00:07:45.240 And I will talk to you guys soon. 224 00:07:45.240 --> 00:07:46.080 Ah.