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So for whatever reason my internet cut out and we were starting back at the top. So this

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little video I wanted to make is about average cost and revenue per member. And so I was looking

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over industry reports from Zen planer and modify just to get kind of a bigger pulse on the industry

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and where it's moving and all that kind of stuff. And I found something that was really interesting

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that I thought I would share with you, which was especially Zen planer, they separated out the

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facilities between small, medium and large. And then they also had a category of top or leaders,

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right? The ones who were making the most money. What was most interesting to me was the fact that

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the cost of fulfillment for all four of those categories was virtually the same. And the reason

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that I think that that's incredibly significant is that the cost more or less remains fixed, right?

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It's 80 to 90 dollars per month. But the difference between the small, medium, large and leaders

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was one thing, how much they charged, right? And that should be the biggest indication of the

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growth lever on monetization that pricing has on the business, right? And so it wasn't, it wasn't

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churn, it wasn't, it wasn't acquisition, it was price, right? And because with higher prices,

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you have my profit. And with higher profit, you can spend more money on fulfillment, you can

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stay this longer, you can, there's all these other things that you can do with more profit.

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And so what was interesting to me is that small gyms had the smallest amount of profit,

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medium gyms had the medium amount of profit. Large gyms had larger amounts than the large

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medium and small. And then the leaders had significantly more margin than the other three,

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like a lot more, right? And so if you looked at the prices, it was like on average, I'm throwing

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rough numbers out. It was about 80 to 85-ish dollars to fulfill a member for small. And then they

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were charging about $109 per month on average, right? For the medium gyms, same cost, but they were

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charging $116 per member. And then the large gyms were charging on average $124 per member. So you

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can see the incremental increases and how much money they were charging. And so by extension,

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you can see that they were making more profit per member. And it may not seem like much to add $10,

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but if you're, if you're making $24 versus $35 versus $45 per member, it makes a massive difference

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because you're talking about a 50% increase in how much profit is being taken home per month,

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all right? That is why pricing is so important. Now, the coolest one for me was that the industry

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leaders were not just an incremental amount higher, but significantly higher. And so the industry leaders,

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right, their cost or how much they were charging per member was between 50%, it was 50%

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higher than everyone else, all right? So if the small guys were charging 110, the the leaders

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were charging 150 to 170 per month, okay? And so that extra $30, $40 per month that they're

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charging is all profit. And so they were actually able to make three, four times as much money

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in take home money based on their pricing, right? And that's why pricing is so important. That's

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why discounting is also so not good for your business. And so one of the other trends that they

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saw across the board is that the leaders didn't really do any discounts and the people who struggle

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the most are the ones who always sold with discounts. And so if you can incorporate that in the

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behaviors that you have with your gym and your business, you will be able to profit. And the

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beautiful thing is that this is just the data, right? Like it doesn't care how you feel about it.

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If you're like, well, I'm special, my market's different blah, blah, blah, blah, no one cares,

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right? It doesn't matter. So take that into consideration when you're looking at pricing your

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business. If you're like, I, if you look at the averages of how much you're charging per member

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and it's falling in that 110 to 130 range, then it means that you're going to be on the more

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average side. If you want to be an industry leader, then do what the industry leaders do and charge

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on average $150 plus per member, which means that's the average, all right? That means that they

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have people who are much higher than that. If you shoot for that as your top number, you're going

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to fall below that, all right? And so that's why for us in gym lunch, we tell everyone that their

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pricing should be between 167 and 212 per month, which rolls out to $39 per week to $49 per week.

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And what's fascinating to me is that if I make a video about motivation, don't give up, like,

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don't quit, whatever, we get tons of engagement, tons of likes, tons of comments and all that kind

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of stuff like this is amazing. When I make this stuff that actually makes people more money,

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they're not interested, right? Which goes to show you where people put their attention, right? It's

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not on the things that actually drive the business that drive KPIs. And then people ask themselves,

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why am I not making money? Why am I not growing the way I want to? It's because you're not paying

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attention to things that actually drive the business, right? The KPIs that matter. So the big

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to it takeaway for me here, probably the biggest one was that the cost across all of them per member

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was basically identical. Cost was basically the same.

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Most of the nation wrote quick, if you are a business owner that has a big old business and wants

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to get to a much bigger business, going to $50, $100,000 plus, we would love to talk to you.

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And if you like that, we'd like to hear more about it. Go to acquisition.com and you can plan

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anywhere on the page and talk to one of our team and see if we can help you get there.

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And so when you look at that, for me, that just gives me this huge sense of relief and like

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certainty that then it's just a question of how much money do I want to make? And that's a choice

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that you get to have, which is how much money do I want to make per customer? And you, the beauty

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of it, is that you get to set that price. It's totally up to you. And what's funny is that we as

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business owners will complain that people don't pay us enough and yet we're the ones who set the

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fucking price, right? And so anyways, if you hear this and you're like, okay, this is how much

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you're costing me per member, right? And how much do you want to make on top of that? And so the

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incremental amounts, if you go from let's say $90 cost per member and you go from $120 a month

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to $100 and let's say $50 a month, that may sound like, oh, it's only a $30 difference.

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And if you break that up on a weekly basis, you're looking at adding like $7 per week.

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Doesn't sound like a big increase, right? But that $7 per week doubles to X your profit,

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doubles, right? Doubles your profit. And so when you do things like this, these are the things that

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have massive bottom line implications that aren't that difficult to implement within your business.

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And so that is why if we're to bring this thing full circle, that is why I get so pumped about

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hybrid because with hybrid, if you get 30% of the people to take you up on an extra $49

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week for 101 remote coaching, right? That you can add on top of any facility, right? Then that

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overall translates to $70 more per month. I just showed you with $30 more per month then,

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but it translates to $70 more per month per member, right? So that is two point, whatever,

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three, X with the two X was, all right? And so that is where you go from making $30 per month

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per member, which on average is what the reports were looking at, which confirms with our internal

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survey data is almost the same too, of people coming in is between $30 and $35 in profit per member.

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And if you can add $70 to that, you go from one X to three X. That means you three X how much

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money you make by implementing one change and how you fulfill your services and what service levels

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you offer, all right? And again, I'm going to say it. This was about math, which means it's a boring,

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right? It means the people who, the, the guys who dig this type of content are the ones who make

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the most money. The people who don't engage in this stuff are the ones who are always wondering

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why they can't make a profit every month because they want to have another motivational manifesto,

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they want to have a don't quit, keep, you know, keep going, fight the good fight. And like, I make

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that content because we need to, we need to have engagement, but this is the stuff that matters,

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right? And so anyways, hope you guys use this and take this data and implement it in your business

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so you can make more money. All right, have an amazing day, keeping awesome, lots of love,

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and I'll catch you guys on full set. All right.