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Hey, what's going on everyone and welcome to the Jim Secrets podcast. This is Alex and it has been at least a week since the last podcast

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So I have we've been crazy busy and we had a hurricane and Puerto Rico if you heard about that it was nuts anyways

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So I'm here with my lovely wife Layla. We just had our dinner and date night and today we're going to be talking about an awesome topic

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About increasing your EFTs because that's what we talk about when we're at our romantic night dinners on day night

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But she was like you should record this because it's like this is this is useful

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So I hope that you guys find this useful

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So I have a lot of gyms that that we work with obviously

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And what happens is we give them an acquisition system that makes the money and then all of a sudden

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They've got you know half their members at a price that we tell them to put which is usually you know

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$50 to $100 higher than what their old price is and then their gym gets to full capacity and they're like

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I want to be making more but my gyms at full capacity and so we have to raise their prices right and so they're like

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But I have all these people who are grandfathered in their you know

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They've got a lifetime thing I told them I did a pre-sale that was like lifetime low rate and now these people and and then these people

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Mean a lot to you and they should because there are a lot of these people in the core of your gym and

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Hopefully this is resonating with you as a gym owner because I mean

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I'm virtually every gym owner that I talked to has some core people that they sign up in the beginning and they've been there forever

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So it's like you don't want to disenfranchise these people you also don't want to go back on your word because you said hey

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I was going to give you this lifetime rate

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but

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What you have to kind of confront is there's really just one basic choice because once the gym is at full capacity

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You're close to capacity you have only X amount of space and X amount of sessions that you can fit it

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That's like period. That's it right and so you have to say okay either I am

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Okay at this you know level of revenue

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Because you're full now

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Or you have to basically go back to people and say I made a mistake right like I made a mistake because I didn't have all of the

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Information that was necessary to make the decision that I like the correct decision for the business when I started it and I've

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Learned you know leaps and bounds about this business from the day that I started it to till today and I can no longer

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Provide the services

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That I could before at that rate and so you have to kind of like if if and when you are going to raise your EFT prices

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And you want to confront raising the EFT prices for some of these legacy members because you know

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I got off the phone with a guy yesterday and since he's been working with us

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You know he signed up a hundred people on a front-end offer

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And he's just and he's starting to transition them over and he's got the first

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24 over and he's starting them at a hundred and fifty dollars a month

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For his large group base right, but he had another hundred members that were at 67 or 97 for unlimited

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Bootcamp and I was like dude like we're gonna have to confront this you know a people talk but be like 67 dollars like

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We like this needs to get fixed right and so you know

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He had the same concerns everyone else is just fear that everyone's gonna like get really upset

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So the nice thing a benefit number one is if you fired if or if people leave who are paying not much

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You don't lose much because there weren't many much anyways right second benefit is that if you have an acquisition system that allows you to

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Flow your gym up you can always replace those spots very easily right so you don't have to

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As much fear a lot of it's just emotional right the third thing is that when you are gonna have that conversation

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What you want to do is you want to say hey listen agreements two ways you agreed to pay this price

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I agreed to pay the service I can no longer like I like I don't I'm releasing you from this contract

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I am no like I'm no longer able to fulfill those services at that price right

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And so at that point that person even if they signed up for a year you need to let them out of that contract because then you need to enter a new agreement

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That is is amenable to both of you right and that's where you say listen

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Because one of the core core values of my business now

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That I've been working with someone they'd be coaching me through this is that we need to be profitable

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We need to have profit at the end of the month and we can't fulfill services and give you unlimited training sessions

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For into $67 a month like we can't do it. It's it's impossible

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And then some people might be like oh my gosh, that's so low

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I can't believe you did it and some people may like that's me, you know

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67 and 99

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Virtually the same like it's too cheap like I it's very rare that I'll find a business who has the capacity to service

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Enough customers were like a $99 a month EFT can work it can if you can service

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40 people a session right they you can if you can do that if you can't

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Then we have then you have to raise your prices otherwise. There's no profit leftover right and then there's nothing to reinvest in the business

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And then ultimately you're just a slave to it and it never gives you the freedom that you wanted it to give you so

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If you don't have a lot of members at your gym

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What I wouldn't do is I wouldn't just send a mess email out

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I would

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Put the elbow grease in and I would call all my customers and I know that sounds like you know the big W word like work

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But like if you had the opportunity to sit down with

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67 customers who were the most qualified customers of all time because they were already bought with you already have a relationship with you

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To sign them up for EFT's wouldn't you make the time to meet with a customer that was like that of course you would right

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Most nation real quick if you are a business owner that has a big old business and wants to get to a much bigger business

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Going to $50 million plus we would love to talk to you

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And if you like that

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We'd like to hear more about it go to acquisition.com and you can 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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And

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And so like you have to see these customers as like the most qualified prospects of all time and so I would

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Eat at the very least close it over the phone

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If not do as many of them as I could in person throughout the week

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Like as an unofficial start like that whole weekend and then anyone I didn't touch base with I would pound the phone over the weekend

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And then really just and the the easiest thing to do is just be honest. It's just say like I

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Did not know what I know now when I came into this space

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You know, there's as much as it may seem like you know, we're crushing it

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It's like there's not a lot left over at the end of the month and

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the for my first job as owner of this business is to make sure that this business continues to exist and so as such

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I've been working with a couple people who have you know been able to advise me on pricing

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And fulfillment so that we can ultimately provide you a better service because then we'll have profit that we can reinvest back in the business

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So that we can continue to grow it improve the

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The facility itself the equipment how much training I can provide my trainers all of that kind of stuff and it all comes down to making sure that our prices

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Make sense, right? And so I hope that you know the value that we've been providing you seasons since you've lost

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You know 50 pounds that you've been with us for two years. We love you. I want you to know that it's just that

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Because I didn't know then what I know now like I can no longer fulfill at that rate that being said I want you to stay

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And this is what the new rate is going to be now

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And I want to give you like I want to I want to honor you by by talking to you about it

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I didn't want this to be behind an email and if you say something like that to someone like

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Most like you have this fear that people are going to be upset and are there going to be some people who are like well

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I can't afford that anymore and it's like I totally understand

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It's just I can't afford

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To train you for $67 a month for unlimited sessions. I can't I can't afford it

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as a business owner

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And then and then that what and then what you can do is once you have the price you can't negotiate on the price

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If you stick into a price and you're doing a price increase it has to stay there, all right

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So then you can see if you can change in terms of like could you do buy weekly with that work if you if we go in your pay cycle

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Could you do weekly is that is that easier for you?

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That way it seems like you know like you're trying to make it work for them or like listen

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I can't change the price you feel like I can train change the terms upon which that you know that you're giving me this money

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Um, so hopefully that's helpful for you guys if any of you guys are in that spot like

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You can usually like if you have let's say a hundred and twenty customers paying you $99 a month

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That's your blended average a lot of people have their prices and I'm using like like quotations right now

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They say like these are my prices, but if you look at your EFT every month divide how much money you make on EFT

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By how many people you have that are paying you that's what you're really if he is right?

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That's what your blended average is and so look at that number and a lot of the gyms that I work with probably like

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70% plus have not have about a hundred bucks a month as their blended average and it just doesn't work

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It just doesn't work. I could sit down and give you all the math behind it

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Maybe I will do a video on that, but it just doesn't work and so

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You should just you just got to raise them and if you got a hundred people there if you raised it that you're blended average by

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$60 right first of all when you do raise it don't say $60 a month say it's 15 bucks a week

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It sounds like nothing. It sounds like a lot less at least. So hey, we're raised it by 15 bucks a week. Okay, that's one

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The next thing is though after you've raised

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The price I I'm just telling you I guarantee you if you if you do it in this way you talk to me say I want to honor you

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I wanted to like communicate this with you

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I didn't want this to be behind this computer screen

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I wanted to like be face-to-face tell you how much I appreciate you and just tell you that like this is why we're doing this right

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If you do all that you'll probably only lose maybe like 10

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20% of your customers and if you can lose 20% of your customers, right?

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So let's do the math you have a hundred people paying you a hundred bucks a month or 120 people paying you 100 a hundred bucks a month

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You're making 12,000 a month in the fts and you lose 20% right? That's 24 people. Okay, so now you're at 96

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customers, but you have 96 customers now at

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160 so we went from 12,000 to 15, 15, 4 and now we have

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capacity to fill up those other 24 spots that those people were taking so we're making more money servicing less people so now

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You just gave yourself a

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$40,000 a year pay raise just by being willing to confront the fact that the model that you had before the price of the

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Yeah, before it just doesn't work and that's why I cross fits in boot camps in large group and all these you know

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Micro gyms are going out of business all the time is because when I asked someone like where'd you get your pricing from they say?

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I just looked around and saw what everyone else was doing, but everyone else's broke

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Don't copy them

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So I will leave you with that think on that mullet over hope you guys are having an amazing day evening weekend etc

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If you are a gym owner and would like to see how we get gyms from zero to full capacity in 30 days go to I do not hate money

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It's actually I don't hate money.com

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And download the case study and you can apply on the next page to see a bunch of awesome gym owners that we worked with

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To get them to full capacity within 30 days

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So lots of love guys. Hope this was useful for you and I will catch you guys on the website