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Happy Tuesday. We're actually on no-top Tuesday, which is a new thing that we started

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at general, which meaning we don't have meetings going on, which is awesome because everyone

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just gets to GSD, gets stuff done. And so one of the things that I have my agenda today,

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I was actually on my agenda yesterday, was to make this video for you guys. And this comes

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directly from a report that was released by Zen planer, which I highly encourage you guys to

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go check out like different industry reports because they're very telling just to see where the

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entire industry as a whole is, obviously like that spans different types of studios, etc.

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But I thought that the report that they have is really, really valuable. So, and I just like

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having things confirmed what we preach about anyways, there were six things that were outlined

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that market leaders do that the average gym does not do. And so I kind of like I was originally

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thought like maybe I'll make a video about each one of them, but I don't want to waste your time.

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And so I want, like if it were me, I would just want one video with all of the findings so that

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you don't have to go through the 30-patreon report. So hopefully that's cool. I can save you some time.

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So the six things I'll go over are pricing, discounts, space utilization, payroll commissions,

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and marketplace. Okay. So one of the findings that they have was that industry leaders,

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so gyms that make the most money charge more, what a concept. And the average gym charges $132

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a month. Now this is different from the data that we pulled, which was $118 per month from all the

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gyms that we had it. And obviously that could be a difference in what types of studios they're pulling

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from. But you know, it's, it was $14 different. But anyways, just you know, multiple, you know,

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multiple data sources. But the industry average that they had was 172, which is an alignment with

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what we typically tell people to do, which is the minimum you should really charge to 167 a month.

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So that was their average. So I tend to skew a little bit higher than with their averages in

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terms of how much profit you should be trying to make for customer. But it's a good benchmark for

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Bronner. Now I think what's even more telling than the $40 difference between the laggards or people

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who are less profitable versus the industry leaders is the second point, which is discounts. So when

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they looked at what the gym was offering as their membership average, right? 132 versus 172,

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you see a small difference there. I mean, that's small. That's a 30% difference. But there's,

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you know, it's ballparking, right? Now, when you look at the discounts and I thought this was

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probably like of all the things I'm going to go over, this is probably the biggest one. Industry

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leaders didn't really discount. And so the average member at their gym was paying $142 per month.

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So 172 is their average membership. And then 142 is what their average member was paying. Now,

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guess what? The average laggard was paying or having their members pay. It was $72 or something

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on average per member. And so what does that tell you? It tells you all the, like, when we tell

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the story of like most people who start the gym early on and they get all these people, they

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promise them a lifetime rate for being a founder, right? What that does is it just forever draws down

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and drags down your average EFT. There's two ways to approach it. One is you can fix it by

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like filling up your gym first and then going back to those people and raising it and saying,

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sorry, we're at capacity like I have to make these changes. Or you can make money tomorrow and

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just tell them you want to raise the prices. We've done it both ways and you can, well,

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it's nice to just make more money tomorrow. But you can have your own beliefs around that. You

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have to break that being said, don't discount, right? Don't discount. A lot of people do these

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backdoor deals because they're really just trying to like, they're desperately trying to close

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and say, but what ends up happening is you just kill the profitability of your facility.

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And so you just perpetuate this issue. Now, just a side note on pricing,

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most people would then make the conclusion, so I'm skipping the number six on marketplace data.

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Well, these guys must be in markets where they're alone or they're like, they can control their

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own pricing. You know, there's not a lot of competition. But it turns out, and this is just directly

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from the report, that the market leaders tended to be in areas that were the most populated with

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other facilities. What does that tell you? It tells you the best rise is the top. The best way

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to get really good is to go to the jungle and cut your teeth with like the fiercest bees. So

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if you can go to the most competitive marketplaces, see it was winning, model that. I'm going to

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totally tune my heart right now. But when I quit my consulting job, I went to Southern California

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because I knew that that was the hotbed of fitness and I genuinely, genuinely believe that I told

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everyone I was like, if I can make it there, then I'll be able to make it. And so that was the

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thought process. And so I would implore you to probably use the same thing. And if you're in a

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market that's not super saturated, then like demise will just use leader tactics from the hotbeds

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of the fiercest competition, right? So those industry leaders also had the true belief that their

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product and service was better intrinsically. And so part of that is, you know, like the chicken

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or the egg, like do they have higher prices? And then that influences their belief about their

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quality of product or service, or does that enable them to have a higher quality product or service?

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Or is it reversed that the high the the great quality product is what gets the hyper? Like you

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can go either way back and forth. My belief is that the higher your prices, the more money you'll

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have left over in order to reinvest in the experience. And so then you actually do and are worth

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that higher price. And the reality is that most people are willing to pay more, especially when

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we're talking about 30, 40% more to have a much better experience. They just don't know that. And

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so you just have to prove that to them, right? And most people think that like initially when they're

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making the decision around the membership, like I can only afford X, which means this is only

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my only ability to perceive value relative to my membership is at this rate. And I have not been

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demonstrated value in excess of that. And so it's your responsibility to show them and demonstrate

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excess far sorry value for excess of that so that they will then stay at that higher. It's kind of

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like you you don't know until you know.

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Most of the nation real 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 million plus we would love to talk to you.

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And if you like that and would like to hear more about it, go to acquisition.com and you can

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

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So anyways, so that's about pricing. Make sure that you're on the 170 plus range, which you've

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probably heard a bunch of videos from me anyways, which works out to like 39 bucks a week or more

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if you're building weekly. Okay. Discounts don't do them. You're devaluing yourself. It's also a really

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bad habit because it just shows lack of conviction in your product, lack of conviction in the sales

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person, lack of conviction in what you're actually selling, which is results, not what you're not

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the actual service. And one of the big big netting ones that sucks about this in my, I did this

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earlier. So I'm not like trying to say what I didn't do. I told you this is that as soon as you

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make a discount early on, what is it happening is that that person owns you and now they think

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everything's negotiable. You know what I mean? Like I used to sell t-shirts to be like, well,

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I'll buy it for 20. I'm like, the price is 25 bucks. You know, like this isn't negotiable.

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You know what I mean? But when you start with that, then they say everything is negotiable. Also,

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makes you seem like a mom and pop rather than like a more established company. Like these are our

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prices. You know what I mean? Like this is what it is. And so I highly recommend sticking to your

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guns and they'll respect you more and they'll be way less of a pain in the ass customer. Okay. Now,

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when it comes to space capacity, that kind of thing. So on average, the industry leaders use

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half the amount of space per customer compared to the average kind of loser gyps. And so what does

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that say? So the tactics that I recommend highly are partnering people up, getting rid of movements

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that are not necessary that are very space consuming. I totally demonized double wonders and I

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know everyone's what in the CrossFit world, you know. My big point is this is that for general

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population, which is that the majority of us serve, there are other tools, there are other exercise

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that we can use to accomplish the objective of conditioning somehow that do not require as much

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space, as much complexity and a learning curve. So unless you have people who are competing,

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which that entire organization has made a huge move pivot recently against that because they don't

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want to deal with the worldwide organization of competitors against that. Like, most people are

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never going to compete and so they really just want to look good and feel good and there's a lot of

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ways to do that that they're taking really the amount of space that, you know, doing snatches for

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time. You don't even mean things like that. So the way that they're able to use a space is that

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they're selecting exercises that are not going to be as space consuming and that's the first thing.

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And the second thing is I highly recommend you partner people up so that one person cheers and

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the holds other, you know, one person cheers spots and rests while the other person does a

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strength-based movement, whatever. And so that actually allows you to pretty much one and a half

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x or double the amount of people that you can have at your facility. So if you're like right now,

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you can only service 16 people per hour and you're doing Barbara lifts for everyone, right? Like,

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you can probably remove that stuff, partner people up, and then immediately increase your capacity

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to 30 per session. Why is that important? Because you can decrease the amount of session time

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you have when you take your overhead and head. Might be something to look into. And so as a result,

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the next line down is payroll, right? Their payroll was on average half, half, okay, of the laggard.

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So right now the laggard's half of their gross revenue, what's a payroll? Whereas the industry

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leaders who is 25% part of that is because they're prices higher. So relative to the price that

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they're charging, they are less of it is going to payroll. That's one of it that's just math, right?

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The other part of it is that I'm a big believer in this and I've said this before and it goes with

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the next line down, which is commissions, is that I'm a big believer in having lower base pay

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and then having lots of incentives around semi-private, around selling other products that you have

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at the facility, up, like actually doing front-end sales, converting people into memberships,

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all of these different things selling internal plays, like you're doing a 28-day stubborn

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belly fat bastard or whatever. Like you're selling that to your internal members, like give that

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as incentives. And so then the trainer's base pay is lower, but then their upside is higher.

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And so the actual amount that these facilities paid their trainers was actually more

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than the other places, but that was because they had two times the amount of commissions

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as the lagging gyms. So, all in all, if you're like, what are the notes to take home about this?

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One, make sure that your pricing is premium. Have a reason to have premium prices so you can have

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a premium product, right? If we were really cheap at gym lunch, I would not be able to buy

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customers, I'd not be able to have the crazy support team that we do. We wouldn't be able to continue

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to reinvest and spend money to try and figure out what the next thing is on a constant basis,

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new ad platforms, the ads, the funnels and whatever, right? Like we didn't have the money to do that.

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Then our product would be inferior, you wouldn't be able to market to anyone,

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it wouldn't be able to find people. And so it's like it's either a virtuous cycle or vicious cycle.

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And I've talked about that in the past, but so make sure that your pricing is premium, right?

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The next thing is never discount. Like don't negotiate with terrorists. I used to say that to my staff,

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like never negotiate with terrorists. Like the price is the price for a reason. Because if it's not

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that, none of us have jobs, right? And it is your responsibility as a business owner to uphold

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that standard. Like if you're the first, like you tell people, hey don't discount, but then like

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you always are the one making side deals because you're the owner, like you need a practice which

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you preach, stand tall, right? And then space utilization, look at your exercise selection,

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and then consider partnering people up. I think it's a great selling point. I sold it as safety,

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I sold it as motivation, I sold it as cheering, and then I also sold from a science component.

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Like listen, if you actually want to gain muscle, like I can't have you just working,

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I'm trying to use the right term, hard core for a 60-minute straight, like you can't do that,

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you need to rest, like energy systems don't work that way. So I need you to go hard for 45 seconds,

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and then we're going to have you rest for 45 seconds, and then you'll go hard again, right?

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You're going to spot the other person and make sure you catch your breath and you can do another set.

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So consider that, it also doubles your capacity of the facility. And then payroll,

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have a lower base, and then higher upside on the commissions, and you'll be able to get more

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performance and ultimately keep your fixed cost lower so that if for some reason someone isn't

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performing or you're not getting the sales or whatever that month, then you don't have as much

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fixed overhead that could skin you a lot. So anyways, those are, that's the, that's you're not

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having to read a huge document of what's going on. That's what the industry leaders are doing,

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and I would highly recommend that you hear those things because it makes sense. And the last

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point, which is marketplace, well, they must be in some, you know, standalone market, they must

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own their market. No, they were in the most competitive marketplaces, and those are the places

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that you have to, and where diamonds are formed, and that's why the best practices are made,

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because if they didn't have those, they'd go out of business. And so that's the place to know.

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Those are the hot bits. And so if you're in a competitive market, then you have more reason than

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anyone to follow the things that are just outlawed. So anyways, hope you guys are having a two-time

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Tuesday and amazing Tuesday. That's the look. Talk to you soon.