WEBVTT

1
00:00:00.000 --> 00:00:04.880
You can adapt and buying is actually stronger if you have the correct messaging.

2
00:00:06.320 --> 00:00:09.280
Welcome to the gym secrets podcast where you talk about how to get more customers,

3
00:00:09.280 --> 00:00:11.760
how to make more per customer and how to keep them longer,

4
00:00:11.760 --> 00:00:15.120
and the many failures and lessons that we have learned along the way.

5
00:00:15.120 --> 00:00:16.960
I hope you enjoy and subscribe.

6
00:00:18.400 --> 00:00:21.760
What's going on everyone? Happy Tuesday. Hope you guys are rocking and rolling and

7
00:00:21.760 --> 00:00:26.800
ribbon and roaring and doing all the things that you are or should be doing for your business to

8
00:00:26.800 --> 00:00:31.920
grow. I wanted to talk about a couple things right now because we are in a recession or about

9
00:00:31.920 --> 00:00:38.880
to be in one. I wanted to cover what people pay for now and kind of A, how to change your messaging,

10
00:00:38.880 --> 00:00:44.000
B, how to change your product and pricing, and C, at least a special note for anybody who's in fitness,

11
00:00:44.800 --> 00:00:49.600
how to make more valuable services. What people pay for right now?

12
00:00:50.160 --> 00:00:54.640
The entire, if you look at all of gym lunches ads, we turn off all our old ads and turn on new ads,

13
00:00:54.640 --> 00:00:59.280
almost overnight to acquire customers and we are and we're doing it well.

14
00:00:59.280 --> 00:01:04.720
And the reason is because we switched from what I would consider prosperity doctrine

15
00:01:05.360 --> 00:01:11.680
to preservation doctrine. And so you have to make sure that you're messaging in terms of

16
00:01:11.680 --> 00:01:16.880
how your community and clients is no longer about the opportunity of necessarily crazy before and

17
00:01:16.880 --> 00:01:23.360
after transformation, etc. But more so preserving what they have already, like keep what you've

18
00:01:23.360 --> 00:01:28.880
already had don't get worse. Because right now, like all of buying behaviors 100% flipped and it

19
00:01:28.880 --> 00:01:33.200
happens for very short periods of time. And if you learn and adapt to that, you can actually capitalize

20
00:01:33.200 --> 00:01:36.160
on it. Most people aren't very adapted since they don't capitalize because they just keep trying

21
00:01:36.160 --> 00:01:39.920
to do the thing that was they were doing before and then they get stuck because people don't know

22
00:01:39.920 --> 00:01:44.560
how to adapt, right? But I'm telling you because you're smart and you're listening that you can

23
00:01:44.560 --> 00:01:51.440
adapt and buying is actually stronger if you have the correct messaging, okay? So what else do people

24
00:01:51.440 --> 00:01:58.160
respond to right now? Discounts, savings, all right? The entire all of Walmart and budget shopping

25
00:01:58.160 --> 00:02:03.520
was birthed out of the great depression, all right? That spawned an enormous, I mean, it's Walmart

26
00:02:03.520 --> 00:02:07.680
still, you know, fifth largest company or whatever it is, you know, the world, the huge, huge, huge

27
00:02:07.680 --> 00:02:12.960
companies, right? They came out of a changing buying behavior and it happened because people were now

28
00:02:12.960 --> 00:02:16.640
super budget conscious. It didn't mean they didn't spend money. They just wanted to make sure they

29
00:02:16.640 --> 00:02:19.840
were getting a deal, right? They want to make sure they're eating bargain. They want to make sure

30
00:02:19.840 --> 00:02:23.360
they're eating discount. And so we think about how you're marketing and how you're presenting

31
00:02:23.360 --> 00:02:28.640
offers to prospects. If rather than saying, hey, if you want to get the best thing, it goes from

32
00:02:28.640 --> 00:02:34.480
being the premium offer to being best value and it's literally every other time in the world,

33
00:02:34.480 --> 00:02:37.520
you always want to flip that, you always want to like in every marketplace, you've probably heard

34
00:02:37.520 --> 00:02:42.560
me say this, there's two winners, the best and the cheapest, right? And so in this little

35
00:02:42.560 --> 00:02:47.280
environment that we have right here, some themes that we've adopted that we've adopted at gym

36
00:02:47.520 --> 00:02:51.680
launch are more for the same, right? So we're going to give you more than we ever did before for

37
00:02:51.680 --> 00:02:55.520
the same price. So that's number one, that's, that's an easy way for you to want to maintain

38
00:02:56.160 --> 00:03:00.560
the customers that you have. Start adding far more value than you were before to maintain them

39
00:03:00.560 --> 00:03:08.000
at that same level, right? And think what would I, what would I charge, like before this for $500

40
00:03:08.000 --> 00:03:12.880
a month? And now I need to continue to provide that at a $200 month level, right? And so the

41
00:03:12.880 --> 00:03:17.120
businesses that structure themselves for efficiency and operations are the ones who come out of

42
00:03:17.120 --> 00:03:21.840
this super strong. And then that is why that once the economy shifts around back to normal,

43
00:03:21.840 --> 00:03:26.560
they explode because they structure themselves in such a way that they focused, like if you look at

44
00:03:26.560 --> 00:03:34.160
Amazon, Jeff Bezos said, there are some businesses that are structured to provide value so that they

45
00:03:34.160 --> 00:03:40.000
can charge as much as possible. And there are other businesses that seek to continue to improve

46
00:03:40.000 --> 00:03:44.640
so they can charge as little as possible. He said, we are the latter, right? And that was,

47
00:03:44.640 --> 00:03:48.960
it's always been Amazon strategy. He said, your profit margins, my opportunity, that being said,

48
00:03:48.960 --> 00:03:53.440
he said a bazillion dollars in funding and he's almost had free money for like 10 years. And he's

49
00:03:53.440 --> 00:03:59.040
kind of a one a unicorn type style. But the fact of the matter so remains is that you're,

50
00:03:59.040 --> 00:04:03.680
now you have to look at your operations and think, how can I structure this so that I can be as

51
00:04:03.680 --> 00:04:07.440
operationally efficient as possible so that I can provide as much value as possible to the people

52
00:04:07.440 --> 00:04:12.640
that I have, right? So it's more for the same is kind of the the theme that we've had internally

53
00:04:12.640 --> 00:04:16.800
at gym launch. And that's that's kind of been our like north star in terms of how we're

54
00:04:17.840 --> 00:04:23.280
creating our products and the packaging, the pricing, etc. And then prosperity preservation versus

55
00:04:23.280 --> 00:04:27.680
prosperity doctrine in terms of marketing, right? And so from presenting an offer to a prospect,

56
00:04:28.560 --> 00:04:34.240
I might say, hey, there's these two programs. Program A is the premium program. Program B is the

57
00:04:34.240 --> 00:04:37.840
one that most people end up doing because they want to save a lot of money. Now in a typical

58
00:04:37.840 --> 00:04:42.800
scenario, if I said that, that might not be the main offer that I wanted to sell in this environment,

59
00:04:42.800 --> 00:04:49.520
that option B is going to be the highest converter. Because right now the conversion on savings and

60
00:04:49.520 --> 00:04:56.160
preservation is four times higher. And it's twice as high as what growth and prosperity was before.

61
00:04:56.160 --> 00:04:59.840
So typically prosperity compared to preservation is two to one in terms of response rates on

62
00:04:59.840 --> 00:05:03.840
advertisements, right? And that's why most people advertise that way for most of the time. But when

63
00:05:04.000 --> 00:05:10.880
it flips, it becomes four to one towards preservation compared to growth, okay? So it's a huge flip

64
00:05:10.880 --> 00:05:15.040
and buy dynamic. So make sure that when you're selling, you're hitting those points and when you're

65
00:05:15.040 --> 00:05:19.440
marketing, you're hitting those points in terms of discount, in terms of bargain, in terms of deals,

66
00:05:19.440 --> 00:05:25.520
in terms of it being a steal, etc. Because that's what the buyer universe is going to respond to.

67
00:05:25.520 --> 00:05:29.760
All right. So that hopefully I've carved that piece. Now what people pay for now,

68
00:05:30.560 --> 00:05:33.120
you may have heard me say this before, but I think it's very valuable to say again,

69
00:05:33.120 --> 00:05:38.000
is that people pay for you to pay attention, right? That is what they want. They want attention.

70
00:05:38.000 --> 00:05:43.920
They want you to pay attention to them, okay? So if I were doing live workouts, right? Which many of

71
00:05:43.920 --> 00:05:48.320
you guys have transitioned to doing live workouts right now, it's not about the workout. It's never

72
00:05:48.320 --> 00:05:52.080
been about the workout. It's been about the attention that you give to the individual. Now how do you

73
00:05:52.080 --> 00:05:58.800
do that in a in a remote setting? If it were me, I would demonstrate the exercise that I needed

74
00:05:58.800 --> 00:06:03.440
them to do at home. I would do it in 10 seconds, right? 15 seconds tops. All right. And then I would

75
00:06:03.440 --> 00:06:08.640
start my timer and say, you guys go and then the rest of that minute while the timer is going,

76
00:06:08.640 --> 00:06:13.200
I'd be calling people's names out. Be like, Amy Beth, thanks for hopping on. You're doing awesome.

77
00:06:13.200 --> 00:06:17.600
Get a little bit lower. Ryan Carson, thanks for being here, man. Make sure you keep your pelvis

78
00:06:17.600 --> 00:06:23.120
fork kind of tuck in. You know, Jason Cook, keep rocking it, dude. Keep the pace up. Don't slow down.

79
00:06:23.120 --> 00:06:27.760
Erica, hey, it's not time to eat a cookie right now. Like we're in the middle of it, right? And so the

80
00:06:27.760 --> 00:06:33.440
thing is, as we say that, people know that someone is checking on the fact that they're there.

81
00:06:33.440 --> 00:06:38.240
People won't credit for showing up to the workout. That's why people come to the gym. It's a small

82
00:06:38.240 --> 00:06:42.080
group studio is because the trainer knows their name and knows that they're going to be expected

83
00:06:42.080 --> 00:06:46.560
to be there. That is what people pay for it. The expectation that someone is waiting for them,

84
00:06:46.560 --> 00:06:49.040
right? And the attention that they get while they're doing the session.

85
00:06:51.440 --> 00:06:55.920
Real quick, guys, you guys already know that I don't run any ads on this and I don't sell anything.

86
00:06:55.920 --> 00:06:59.280
And so the only ask that I can ever have are you guys that you help me spread the word so we

87
00:06:59.280 --> 00:07:03.680
can have more entrepreneurs, make more money, feed their families, make better products, and have

88
00:07:03.680 --> 00:07:08.160
better experiences for their employees and customers. And the only way we do that is if you can

89
00:07:08.160 --> 00:07:12.800
rate and review and share this podcast. So the single thing that I have to do is you can just leave

90
00:07:12.800 --> 00:07:16.960
review, let's take 10 seconds or one type of the thumb. It means the absolute will to me and more

91
00:07:16.960 --> 00:07:19.120
importantly, it may change the world for someone else.

92
00:07:19.680 --> 00:07:26.480
And so how do we mimic that in a remote setting? That is how you have to be able to call people out,

93
00:07:26.480 --> 00:07:31.280
buy name, give them feedback in the remote setting, in the live workout. So they feel that they're

94
00:07:31.280 --> 00:07:36.800
going to continue value. That is something that no app is going to be able to do, right?

95
00:07:36.800 --> 00:07:40.800
Beachbody online is like nine bucks a month, right? Kayla, it seems got the sweat out for 20 bucks

96
00:07:40.800 --> 00:07:46.400
a month, right? They have amazing, clean, beautiful workouts, right? And you got the pelotones and

97
00:07:46.960 --> 00:07:50.400
I don't think they call people's names out, correct me from wrong, but I'm pretty sure they don't

98
00:07:50.400 --> 00:07:55.120
personalize it like that. Like that, these are the these are the competitive advantage a service

99
00:07:55.120 --> 00:08:00.800
base facility has and that you should use to be able to continue to get your customers engaged

100
00:08:00.800 --> 00:08:05.200
because then they know that you a saw that they were there, be feeling they got status and credit,

101
00:08:05.200 --> 00:08:08.960
see that they're getting called out. Everyone loves to hear their own name. And then D,

102
00:08:08.960 --> 00:08:12.480
they're still getting form corrections. They're still getting motivated. They're still getting

103
00:08:12.480 --> 00:08:17.440
pushed to move through the entire workout while it's going, all right? So it doesn't necessarily mean

104
00:08:17.440 --> 00:08:21.840
you need to just workout eight hours a day because I'll kill you, right? For eight full hours,

105
00:08:21.840 --> 00:08:24.880
you're trained to do workout for eight full hours, I'll kill them too, is that you just need to

106
00:08:24.880 --> 00:08:30.080
demonstrate and then make sure that all the rest of their time and attention is put on the screen

107
00:08:30.080 --> 00:08:34.480
so they can call people out individually for doing a great job because right now that is what

108
00:08:34.480 --> 00:08:38.560
people are going to pay for it. They're going to pay for attention, right? That's what they want.

109
00:08:38.640 --> 00:08:45.920
And so the more that you can think to yourself, how could I, what would I do in the old setting

110
00:08:45.920 --> 00:08:51.840
for $500, $600,000 a month, right? And of those things that I would do for that value that I

111
00:08:51.840 --> 00:08:57.440
would normally charge, how can I still provide those and structure my business from an operational

112
00:08:57.440 --> 00:09:03.520
standpoint? How can I put systems in place so that I can do that at $200 a month or $300 a month,

113
00:09:03.520 --> 00:09:07.840
right? And like when you think about it that way, you're going to be able to come out ahead because

114
00:09:07.840 --> 00:09:11.520
you're going to be able to offer more than anyone else is going to be able to offer. I'm not saying

115
00:09:11.520 --> 00:09:16.000
that change is not going to suck. It is, right? Most people don't like change entrepreneurs. We

116
00:09:16.000 --> 00:09:19.520
tend to deal with change better. If right now, if there's been a part of you that's been kind of

117
00:09:19.520 --> 00:09:23.680
excited about this because you're like, yeah, we get to break shit and make new things, that's just you.

118
00:09:24.240 --> 00:09:28.160
Everyone else is scared, shitless, right? And so just remember that when you're

119
00:09:28.160 --> 00:09:31.680
when you're presenting change to your team, I talked about that yesterday, like how to present

120
00:09:31.680 --> 00:09:35.680
those changes and then also with your customers, making sure that when you're communicating

121
00:09:35.680 --> 00:09:40.480
change to them, talking about how it's going to be more valuable than what you did before and how

122
00:09:40.480 --> 00:09:45.680
they're going to get a better deal and how it's discounted, right? And so for most of our gyms,

123
00:09:45.680 --> 00:09:49.840
for example, when they sold hybrid, it was at $99 a week, all right? That's what the 101

124
00:09:49.840 --> 00:09:56.880
cent was for. Now, most of them had a price point for group workouts for $169 to $200 a month

125
00:09:56.880 --> 00:10:02.560
roughly is what most of our guys charge, right? So what are we doing? We're giving the 101

126
00:10:02.560 --> 00:10:09.680
remote, one on one being the key here, remote services for half the price, right? So if you,

127
00:10:09.680 --> 00:10:15.440
if you just keep your membership, you're getting what we used to sell for $400 or $500 a month

128
00:10:15.440 --> 00:10:20.880
for only $169 or $200 a month. And so this is where you're starting to, you have to maintain

129
00:10:20.880 --> 00:10:26.080
your value discrepancy, right? And so right now people value things less because the dollars are worth

130
00:10:26.080 --> 00:10:31.360
more, every dollar two people now is worth more to them. And so you have to give them more for

131
00:10:31.360 --> 00:10:36.960
the dollar that they are spending, all right? So big picture, I hope that that made sense in terms

132
00:10:36.960 --> 00:10:40.960
of how you, how you structure your workouts, how you structure your marketing in terms of the,

133
00:10:40.960 --> 00:10:45.760
the wording around the copy, the offers that you make, like right now, trying to sell premium,

134
00:10:45.760 --> 00:10:48.400
probably not going to be the best, not going to be the best call and be real with you.

135
00:10:48.400 --> 00:10:51.360
Probably is unless you have super wealthy individuals, you have a great way to target them,

136
00:10:51.360 --> 00:10:55.440
right? But if you're talking gym pop, which most of us are, it's going to be free and discount

137
00:10:55.440 --> 00:10:59.760
offers. That's it. That's what they're going to be your sponsor for for at least the next six months,

138
00:10:59.760 --> 00:11:02.960
right? Whether or not the, the coronavirus thing is done or not in the next six months,

139
00:11:02.960 --> 00:11:07.680
doesn't really matter. The buying behavior isn't going to shift that quickly after they've had

140
00:11:07.680 --> 00:11:11.120
this panic and fear. All right, so free and discount offers are going to be the way that you're

141
00:11:11.120 --> 00:11:15.520
going to have to lead. And then you have to build the monetization system behind it so that you

142
00:11:15.520 --> 00:11:19.920
can still make money off of it, right? There's a zillion ways to make money off free offers and

143
00:11:19.920 --> 00:11:24.080
discount offers. All right, like I can, I can name 11, right? You have a free plus penalty, you have

144
00:11:24.080 --> 00:11:30.000
free with deposit, you have free with commitment, you have a limited free, which is you have a free

145
00:11:30.000 --> 00:11:34.000
offer that you're marketing, but then you try up sell a better offer, right? That's another version

146
00:11:34.000 --> 00:11:38.320
of free. You can do a free bribe offer, which is they come in free, you give them the program,

147
00:11:38.320 --> 00:11:42.000
if they just sign up and become a member for free today. All of these are different ways that you

148
00:11:42.000 --> 00:11:46.480
can run free. Same thing works for a discount offer. Hey, this is, we're discounting the first month

149
00:11:46.480 --> 00:11:50.960
by 84%. Then come in, you can still have a one-time fee for enrollment or you can choose to wave

150
00:11:51.040 --> 00:11:56.080
that as a matter. The thing is is that if you have a, as long as you have the mouse trap, the monetization

151
00:11:56.080 --> 00:12:01.280
system behind it, these are the types of offers you're going to have to run right now. And believe it or

152
00:12:01.280 --> 00:12:06.480
not, people are more responsive to the free and discount offers now than they ever have been before.

153
00:12:06.480 --> 00:12:13.040
And as I said earlier, impressions are 60% off. Advertising is off. Google and Facebook are going to

154
00:12:13.040 --> 00:12:19.360
lose 44 billion this year in advertising because of Corona, right? And that means $44 billion

155
00:12:19.520 --> 00:12:24.160
advertising isn't going to get spent, which means that everything because it's an auction-based system

156
00:12:24.160 --> 00:12:29.680
is half off, right? And so if you have a monetization system behind it and you know how to make a

157
00:12:29.680 --> 00:12:33.360
discount or free offer and you know how to monetize that so that you can acquire customers,

158
00:12:33.360 --> 00:12:40.880
you don't have to necessarily give up. You can actually get through this and structure business

159
00:12:40.880 --> 00:12:45.520
in such a way that when you get out of this on the other side, you create an operationally efficient

160
00:12:45.520 --> 00:12:50.560
model, more efficient, potentially more profitable and more valuable consumers, which is exactly

161
00:12:50.560 --> 00:12:56.080
what happens in recessions. The people who have the lowest value get kicked out, right? And so it

162
00:12:56.080 --> 00:13:00.480
squeezes everyone else to become more efficient and more profitable. The guys who make it through

163
00:13:01.040 --> 00:13:05.840
grow more than they did before the recession happened. So you can think about it in terms of,

164
00:13:05.840 --> 00:13:08.480
let me be grateful for the fact that we have the opportunity to make our business better,

165
00:13:09.120 --> 00:13:11.920
which is how you should think about it because at the end of the day, like I said,

166
00:13:12.000 --> 00:13:16.800
Superman ain't coming. It's just us, all right? So anyways, hope that made sense. That is what I would do

167
00:13:16.800 --> 00:13:19.920
if I was doing live workouts. That is how I changed my market, which is what we're doing for our people

168
00:13:19.920 --> 00:13:24.880
right now. And how I would structure the actual programs and offerings and pricing on the back end

169
00:13:24.880 --> 00:13:29.840
in order to get people to paying now just as much as they were before. More for the same.

170
00:13:29.840 --> 00:13:33.120
Lots of love, keeping amazing, please drop a like or a comment if you thought it valuable,

171
00:13:33.120 --> 00:13:35.520
and I'll catch you guys on the flip side. Bye!