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going on everybody happy Monday, we are back at it again with some gym lunch content. So I wanted

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to make a video for you guys about something that just comes up all the time and so I figured,

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you know, I had this ongoing list of like content things that come to be in the middle of the night

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or at lunches or in places that they shouldn't come for whatever reason and so one of them was

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related to where your gym is and what style of fitness you practice. And the reason I wanted

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to make this video is because there are always people who limit themselves and how it's

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funny because they give themselves this reason to show themselves about why their gym is different

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or why they're a special snowflake etc. And so I was looking at some of the pictures from our

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event this morning and unfortunately with Facebook I can't share my screen but if you guys look

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on our Facebook page you can see all of our million dollar plus gyms which at this point

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I think is over 24 or 25 that we have and we had one or two that happened last week that passed

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the million dollar run rate which is cool because they'll get those sweet swords. So if you guys

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have seen those pictures with the gym owners who have swords that's because they hit a million dollar

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run rate which is 80,000,000 in a month or more. So let me go fool. So let me let me reel it back

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in. The reason that I wanted to make this though is that as I was looking at this picture what I saw

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was kickboxing studios, martial arts studios, studios in the middle of nowhere Oklahoma, studios in

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Pat Staten Island, gyms in the suburbs of Atlanta, gyms in Denver, gyms in like basically in every

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type of market that you can imagine rich poor black, white, Hispanic, Asian, whatever, wealthy,

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East Coast, West Coast, North, South and practicing the style of fitness, style of fitness being whatever

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your fulfillment looks like, where you have a trainer and people receiving service, all of them

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were able to implement these steps and the framework that we outlined specifically in gym words

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to get their gym to a million dollar plus. Now why is that possible? So that's kind of what I

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wanted to dive into which is like how is that even possible? The reason that your style of fitness

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does not matter and the reason that your location does not matter is because humans are the same.

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Right? Women are going to die at five times a year regardless. So the only caveat is as long as

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you are comfortable offering a fitness solution or having a transformation aspect to your business,

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then the model that we espouse works, whether you want them to kick a bag or do martial arts or do

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boot camp or do crossfit or cross style, whatever, whatever your style of training is,

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is irrelevant. And to further reinforce that, they're only going to respond to the promotions

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that are that convert, right? They're only going to respond to the offers that convert and

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they're only going to pay for the price points that we already know work, right? Which for large

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group training is going to be between, and like where you should be, is between one 15 to 25

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a month, right? One 15 on the very bare, bare, bare low end if you have a very high capacity

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facility. And for most people, $200 a month is going to be where you should be. And if you're not

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there, you're not profitable. And I can tell you that with a very high degree of certainty,

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that you're probably not taking much home. Because the math doesn't work out. I've made tons of

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other videos around that. But the point is that there are different buying segments that exist

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within like the elasticity curve on pricing when it comes to weight loss for this specific service.

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People and women are willing to pay X amount for that result. And so the, and you know what,

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I'm going to bring this all the way back to when this started. So six, a lot of people don't know

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this. Six or seven years ago, I don't know the math. I moved out to California. I emailed 40 gym

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owners because I was putting my management consulting job where I did strategy and a market firm

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in DC. That's what I did right out of college. And anyways, I was like, I hate this. This is

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a soul sucking. I don't want to do this. And so I emailed 40 gym owners to head. I want to learn.

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Right. And I ended up in Chino, California, because only one of them got back to me. And at the time,

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the guy's name was St. Backyard. He actually owns the camp. And he was running, he had one location

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at the time. And they just opened a second one. That was kind of like a mini, a mini,

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smaller one that was like in Rancho, Pokemon. Anyways. And so they were offering a challenge where

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you lose weight and get your money back. Right. And he was doing it as a semi-private program.

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And when I came in, I was like, hey, do you want more of these? I found out Facebook marketing

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works. And like, there's this full stuff. And he was like, I don't know Facebook. I heard it

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doesn't work. And I was like, well, you know, let me try it out. So anyways, I tried out. And obviously

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it works. And what the conversation that happened was he said, we can't take any more in our

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semi-private like we're full. Right. And I said, not an issue. And I was like, just give him a

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give him a nutrition plan and put him in the in the bouquet. And he was like, you think you're

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going to pay $500 for that. And I was like, yeah, I was like, think you come here and do puzzles

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the three days a week. You know, and if they lost 20 pounds, they'll be stoked. Right. And that's

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because it kind of underlines the main concept, which is like, it does not matter how you get them

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to Maui, how you get them to the island that they're trying to get to. No one cares about the

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plane flight. They don't care. They don't care whether they take a train there or a boat or a plane.

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There's obviously some ways that are more comfortable than others, but they care about getting to Maui.

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And so whatever fitness style you have is the plane flight. No one cares. That's why in the

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sale, you shouldn't talk about it because all of that is cost. All of that is the stuff that someone

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has to do to achieve Maui. Right. No one wants to hear the TSA lines. No one wants to hear that

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they've to take off their belt and their shoes and they have to check their bags and they have to

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get served. And then they have to sit next to someone who's coughing. No one wants to hear about

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your meal plans or your macros or the cutting edge workouts that you're going to do and how great

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the trainer certification. No one cares. They don't care because all that's going to do is remind

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them of the cost and the pain that's associated with achieving their goal. Right. And so to circle

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this all the way back is that it does not matter whether you're doing puzzles with your clients

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or you're giving them martial arts lessons or you're doing a boot camp. The reality is what is the

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offering? What is the outcome? Right. And if we know that the price points are tested, which is

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why you test stuff. Right. And if we already know that, which we do, which is why we have, you know,

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all these things making all this money is that they're just running a model that's already tested.

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We know this promotion works. We know six week challenges at this moment for the last six and a

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half years have have run basically untested because it's a long enough amount of time that people

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believe that they can achieve the outcome that that is significant but short enough that they believe

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in themselves that they can achieve it. And that's the balance point. 12 weeks everyone thinks that

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they can achieve a lot then, but a lot of people don't think that they can finish it. That's why

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it doesn't work as well. It works. Don't get me wrong. It works for a type of customer, but not for

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large general population. Right. Hey, Mosin Asian quick break just to let you know that we've

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been starting to post on LinkedIn and want to connect with you. All right. So send me a connection

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request and note letting me know that you listen to the show and I will accept it. There's anyone

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you think that we should be connected with, tag them in one of my or Layless posts and I will give

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you all the love in the world. All right. So let's get back to the show.

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And so when you have a promotion that's already tested and you have a price point that you know

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that on the front end is what the market will bear which FYI is about $600 for a first time visit

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off of cold traffic $600 is right about the breaking point and that's actually you can look at

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different franchises that have been in the weight loss space. So I like studying other people

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that are in the adjacent industry. So you guys hear me talk about Thinique a lot because of Chris

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Paul is a good friend of mine. She ran they 220 locations. They're front and off were $600

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right. And then they ended up selling people on day five to a $1,500 to $6,000 package

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thermometer the year. Yeah without any income demographics. Most people are underestimating how

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much people pay for a result right. And the beauty of her process is that they don't tell people

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about the cost. And what I mean by that is that like all those people have to do is come in and

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once a week for 15 minutes to show their food log to show that they've that they've lost weight

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right. So there's not a lot of cost there with fitness we actually have more cost. So it would

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behooves us even though we know that fitness is going to be the way that they keep it off in the long

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term right. It would behooves us to not mention that because the only thing it does is it increases

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the cost on the customer. Their perceived value oh man I'm going to give you something good I'm

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probably going to make another video about just this one thing but I'm going to give it to you anyways.

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So I was writing so for someone selling secrets which is something that maybe coming out soon

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for our demonstrators which is really cool and we'll make a lot of money for them.

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Anyways there's one value equation that I was coming up with when I was making the

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presentations right. And it is significance of outcome multiplied by likelihood of achievement

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okay. So significance of outcome multiplied by likelihood of achievement how like how likely

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that you actually going to get that significant outcome divided by time and effort equals value.

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So here's an example. If you were to give someone a pill like Zenex that helps someone

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someone go to sleep right or relax which is probably a medium at magnitude depends on like

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how stressed out they are but like medium to high magnitude outcome the time and effort required

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to do that is zero and the likelihood that they're going to achieve it is basically 100% because they

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take it and then their body responds right. And so why so when people are like I can't believe

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big farmers a bazillion dollar industry that's why they have a huge significant outcome,

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a 100% likelihood of it happening and then they have zero time and effort. So what does that mean?

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Money lots of value. Here's the flip side. If you were to say hey I could give you that same level

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of relaxation and or preparation for going to sleep when all you have to do right is learn how

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to meditate and then in 30 minutes you will be like as pristine as whatever and you won't have

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the side effects of having a chemical addition right. What is that? Same magnitude of outcome

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likelihood of achievement much lower because you have to actually learn how to meditate right and

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do it right. And then what's the time and effort? All the time that it's going to take to do it,

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all the effort of sitting down and being distracted and not actually succeeding in the learning,

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learning, learning, all of that is cost right. So why don't meditation lessen self or why meditation

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lessens a bazillion dollar industry instead of zenis? They have the same outcome. Why not? Because

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it's not as valuable. That's why right. And so to go super super duper full circle that is why

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the type of fitness that you have does not matter. The only thing that matters is the outcome that you

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are selling. And so as long as you have a fitness slant that you're in the weight loss industry,

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you can accept that or not. That's fun. But if you do accept that, then that's the industry that you

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are in and the the rest of it is just the widget. It's just the plane. But your price point is going

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to need to be between 150 and 225 a month period. If you have a large group facility that can

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service over 16 people per session, that's what it has to be right. And then your upsell and

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to sell my privacy is going to have to be between 500, 700 dollars a month period. It's math. It

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doesn't work out any other way. Can you make money the other way? Yes. Will you make a lot? No.

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And my argument would be that if you find somebody's like, well hold on. I charge 400 dollars a

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month for my summer private and we make money. I'd be like, cool. You'd make 50% more money if you

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charge 600. You're just not making as much as you could. And that's really the argument. So

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anyways, I probably should have covered the where your gym doesn't matter. I'll probably do that

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in another video because it's probably hopefully I said enough things in this video. But the

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silent fitness that you practice doesn't matter because they do not care about it. They do not care

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about the plane. They care about Maui and don't talk about the plane because it's only going to

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lose you sales. Okay. And yeah. So anyways, I hope you guys found this valuable. So I hope this was

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high magnitude, high likelihood of you understanding the information in the time of effort for you

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to understand it as well. But anyways, that is the value equation and that is how you can apply

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to fitness. And that is why what type of fitness you have does not matter provided you can have

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a sufficient amount of people in a space with a single trainer who says do this and then they can

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follow. And it doesn't require a ton of skill or effort to onboard people, which is why we are

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advocates of not having super complex things for general population mostly because it doesn't

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matter for them because most of them are just trying to not drink coke. And so we are fitness

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purists and we always assume or at least I did for a very long time that I need to give people

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exactly what I needed to give myself. Right. I wanted people to start lifting weights and counting

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their macros immediately. But the reality is that is not what they need when they start because

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that overwhelms them and it stresses them out. And when I say, Hey, you're going to lose a pound and

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a half of fat every week. And then a 50 or a hundred pound overweight girl says, Hold on. I'm

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going to have to do this for two years is what you're telling me. You've lost them. And so you can't

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do it that way. You have to give them a big immediate psychological win in the short term so that

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psychologically they are bought in. And then they will listen to you so that you can say, Hey,

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now that you've lost 40 pounds in your first eight weeks, whatever. Listen, I want you to start

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trying this. I want you to start logging stuff on my fitness. I want you to learn how to count this

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so that we can actually get some of those who did you like back in. You guys know this conversation.

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But we have this purest feeling that we have to tell them this in the beginning. And if you're

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like, if someone doesn't do it, they don't want it. No, that's stupid. You're not meeting someone

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where they're at, right? You have to meet someone where they are. You don't talk to a five-year-old

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the way you talk to a 15-year-old, right? And some of these people are five-year-olds and their

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fitness understanding. I can't say that. Like people that you know, people in your family right now

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think that almond butter is a good source of protein. People think that sweet potatoes are a good

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source of protein. People think that quinoa is a good source of protein. People think that beans

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are a good source of protein, right? Like they have no idea. So like you have to meet them where

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they're at. And then be okay with giving them the thing that they need right now, which is not

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perfect from a physiological standpoint, but will be exactly what they need from a psychological

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standpoint to get them to the next step. So anyways, sorry, maybe, I don't know, was that a rant,

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or was that like just like a, I don't know, expounding on anything. But if you guys found this

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valuable, please throw a throw a like so that another gymowner can tag their trainers in it who

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want to just do macros and lifting for everyone on their first trial. And hopefully that explains

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somewhat for those of you who are like, I'm not sure if gym lunch will work from my gym model.

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It will as long as you're providing weight loss and fitness to your customers as it never

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solved. It really doesn't matter as long as you can, you can fit that model on top the gym

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lunch model on top of any business that is a fitness based business that is brick and mortar

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and service. It works. And that's why we have, you know, every month we're minting one or two or

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three or four more million dollar plus facilities, which is super exciting for me. And it's really

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cool because with each one more people run the four minute mile and then it stops being this

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unattainable thing. And it stops being the names of the groups. It just becomes something that your

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gym should be doing. If you're doing it right. So lots of love, heaven amazing Monday. And I will

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see you guys on the flip. Bye.