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Welcome to the Jim Seekers podcast. My name is Alex Schmosey and I will be your host on this magical carpet ride that we call owning a gym

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Last episode talks about

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Jim numbers or acquisition processes that I find superior to LBOs or low-barred entry offers

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If you didn't listen to that one listen to that one first and then come back to this one

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But the next question is okay. What happens once your gym is full?

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Okay, so I'm a big advocate of having a value ladder

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Which I would say that if you don't have one you should

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Um, but not having one core. I mean you should have core uh services

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But they should be able to naturally ascend people from one level to the next um, which then says okay

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Well, let's see you have a bootcamp at a hundred and fifty dollars a month. That's what most people

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Have I would say that I talked to who's who can't cross but it's about the same price

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Is about 50 now they say about 50 but then they have all these people who are

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Grandfathered in and they're they're blended averages like a hundred and ten dollars, but I wouldn't even get into that

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um

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And uh, but but what you need though is that volume on the front door is important

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Okay, the volume's important because then it allows you to do a lot of cool stuff allows you to sell

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One-off programs very effectively which are what I call cash plates which I'll get to in another podcast

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um

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What it also allows you to besides that is that when you have like the buzz of the gym you can sell supplements

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You can sell a peril and there's specific ways that we have learned after trial and error and error and error and error to finally get the way that actually

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freaking worked

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Um, and as soon as you do that it's like once you it's like if you have the right information

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It feels really easy because you like just try this thing or you just do an email blast and like

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All of a sudden all these people come back and they give you money because you did the right sequence like

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It's mind blowing, but it just takes time to get to that to that point

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But um, but anyway, so what do you do after you have your gym full right? So you have you know

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250 300 EFTs at you know buck 50 a month something like that right um

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This is where I'm bigger advocate of instead of opening and mind you this is someone coming from someone who had six gyms

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If I could do it all differently and do it all again, I would have grown more slowly

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I know I think for me a part of it was like, you know, I had an ego and I wanted to you know beat my chest and say how many gyms I had but um

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I would have

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grown the EFT even even further by implementing high ticket stuff way sooner. Okay now

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I'm telling you the high ticket game is life changing. It's game changing. It's amazing. It's awesome

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It's just like as soon as you get into it you'll never want to do anything else

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But you need to suffer

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Through your your low ticket offers that you can have an appreciation for for clients who pay four hundred five hundred dollars a month

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To beat your gym

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Because they are way better. They will stay longer. They will love you more. They will get better results and like they're the easiest people in the world service

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But the question is where do you find these mythical unicorns now?

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You need to do this sequentially because at least I believe that you need to do you know

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You should fill up or at least have a very busy low end offer because then it justifies the introduction of a higher ticket offer

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Because if you have something that's three hundred four hundred five hundred dollars a month

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um

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Then it makes sense because you can then say hey, you know, I have such high demand on my time

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Uh, if you want if you want, you know a piece of the special cheese

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Then you need to pay more right now in the beginning if you're owner operator

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Then I would recommend being the person to start it because then it'll naturally attract people because a lot of people love you

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Which is why your gym successful right

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um

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And

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Excuse me

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When you get there you'll automatically if people want to ascend and be with you so it'll kick it off very easily

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From that standpoint

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But the other reason is that uh, you'll also learn some of the roads now if you already have multiple locations

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Then you're just gonna have to you know have a manager or a higher trainer who's high quality um to run that program now

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The reason that I love it so much is that if you're charging something four times or five times a price of what your normal offer is

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um

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Then you only need like one fifth of the amount of people to match the revenue, okay?

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Now let's say like we had

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250 EFTs right to 250 EFTs at a buck for two a month that's 32,000 a month

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Which might you everyone for a gym still isn't that much money um because most gyms especially if you're gonna be

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Not like truly owner operated, but have someone who does sales for you and maybe the manager and then you've got your front desk girls

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Then you've got the then that's be a girl can be a guy

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Um and then uh and then your trainers like your overhead all in probably will be looking at like 18,000 a month maybe 20,000 a month

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so

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You're not gonna have a ton left over um

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But anyways, so

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That's that's the uh that's the first level

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But if you had another membership that was four hundred dollars a month and you had 60 people in it right you're making another 20

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24,000 dollars a month so almost the same amount that you're making. What is that?

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Three quarters right 75% of the amount of money that you're making right now from servicing

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250 customers you're making from servicing only

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60

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At four hundred dollars a month, okay, so it just shows you the power of having a higher ticket offer now

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um

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Like you should have that ascension because it just it just shows clear differentiation and you and mind you

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I know a lot of guys who who I talk to are usually trying to do like

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They're like oh, we have two levels of membership. We have like 135 and and 155 you know what I mean um

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I'm not I'm not the biggest pro phone under that

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I think that people make decisions in like pricing decisions in in bigger jumps than that

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So I think that 135 and 150 and 120 and 160 are all more or less the same pricing decision, right

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Once you break you know into the 350 400 category

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It's the same deal and the nice thing is that the higher the ticket price the bigger the rungs of decision making

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Which means you have more latitude and how much you can charge so let's say you do if you sell someone on a

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$2,000 turning package you probably could have sold them on 2500

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That's my guess now

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$2,500 is $500 more for the same service

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Like it sounds and sounds like much right when we're talking about it

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But but that would be five months of someone buying your hundred dollar a month again

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It is significant, right

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Um, but it doesn't seem that way because it's uh, it's a conscious principle

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So compared to two comparatively it looks it doesn't seem like that much compared to two thousand twenty five hundred five hundred

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And seem like much of a difference, but it really is

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Um, it's like when you're buying a house and you know you're negotiating pricing and you go from

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You know 250, you know thousand dollars and then you know they counter with um

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You know to

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260 right it doesn't sound like that big of a difference, but it's 10 grand

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Right, but it's just relative scale

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So the bigger the higher the ticket the more margin you can actually induce because the decision point once you crack

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Once you break through that's just making process and they're starting to actually didn't really think about whether they want to do it

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The price is no longer like it's much more uh, wavy like it's it's movable

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Um, which is just a really important point because it just makes you a lot more money

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Um, but the question then is how do you get to find these mythical people right

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And that's what i was talking about earlier where uh in in last episode where having a middle ticket offer

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A five hundred six hundred dollar offer. I think works very well into two two hundred dollar monthly membership

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150 to 200. I think works really well there

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Hey guys real quick if you're new to the podcast

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I have a book on amazon called one hundred million dollar offers that over eight thousand five star reviews

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It has almost a perfect score you can get it for ninety nine cents on Kindle the reason I bring it up is that I put over a thousand hours in the writing that book

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And it's my biggest gift for our community. So it's my very shameless way of trying to get to you to like me more

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And ultimately make more dollars so that later on in your business career

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I can finish the part of it. So that's my gift. Go check it out. Amazon and back to the show

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Because most of the people who spent five hundred or willing to spend a buck fifty to

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To two to two hundred dollars a month

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So it's actually kind of a downsell so it's like huge your front end which I like having the front end more expensive

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Because I think logically it actually makes more sense because they're going to be the ones who take

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The most attention and they're the ones who you need to pay off the acquisition cost the most right

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Because you just spent money on Facebook or Instagram or whatever it was right to acquire these people as customers

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So I need to get that money back ASAP. So I charge them their membership fee plus a little bit extra for the for the hassle

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You cost me and having to pay for marketing money just to get you in the door to solve your problem right so

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That's why I believe in having more expensive front ends than I'd even do recurring because and you also have conditioned someone

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So they're like I just got this experience for two thousand dollars

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For 12 weeks, which is I don't know six six six six six I think

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Okay, well forget that but it's it's you know whatever six fifty seven hundred dollars a month

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for them

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To do that program

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But if off the back into that you downsell them into four ninety nine a month or four fifty a month or three ninety nine a month

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Then it seems like they're getting a deal right

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So I love that better than the hey you just we just gave you all this stuff for for nothing now pay us

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Four times as much for the same thing

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It's like it didn't it didn't liquidate the acquisition cost so you had to front the money do acquire them

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And then on the back end they don't feel like they're getting a deal they're like oh now I have to pay the full price

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You know what I'm saying? So that's that's how we've always done it and it's worked really really well for us

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Um, and so I would encourage you to to look at that

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But that being said so you're like what offers convert well for a

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A higher ticket recurring person

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And it tends to be either one of two things long duration such 12 week 12 week type deals or

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short duration it's never like this is just me from experience

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Six weeks since the work best for the

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Middle ticket guys sorry middle ticket into low ticket and then

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28 days and and

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And 12 weeks since the work best

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going into a

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Higher ticket recurring offer

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Um, and I think that's because there's different psychology around it. I think at 28 day

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Um, you can basically sign them up on the EFT the first day they walk in the door

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And you're just telling them you know, they're just gonna get this tiny tiny period time

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But like the thing is is that that 28 day program should still be

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Almost comparable to what the price is that they're gonna stay afterward. So it's really just signing up an EFT

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It's just not positioned that way, right?

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um

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If you do the if you do like a longer duration package, then you should really be able to jack the price

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um over and above what the normally FT is

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Um, and that's where you're getting you know 700 dollars a month instead of 400 dollars a month on the back end

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Uh, sorry on the front end uh, and what it does is it allows you to liquidate a cost

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So there's there's advantages to both. I think um, we've done it both ways

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I really like them both. I don't have a huge preference. I think it's just important to rotate the offers in the marketplace

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You'll oversaturate um

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But that's that is this is the next natural step. That's what you should be looking at

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Once you filled up your base level facility. So if you're like well, you know, we've got changed in 250 clients

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Open up the gym. I don't think that's wise. I think that you should

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Put another level of service in and then further boost your revenue

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Um, and have an ascension that shows people where they should be going because most people can do a higher level of service

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I mean most of us is fitness professionals

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Um, you know, a lot of us don't even train the way we train our clients honestly, right?

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So the close you can get them to training the way you train them or you can charge them

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And the more they're going to believe you because you know, they've they've they've moved past

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I just need to move my body and show up to the gym to like, you know

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Maybe I need some like actual lifting and it's some like real programming and all that kind of stuff. So anyways

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I promise you guys in the beginning that I would try not to uh

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To make these too long

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Mostly because my attention span is probably shorter than yours

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But I hope that was used before you in terms of the illustration of why like you should have a high ticket thing

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You should I would definitely not just stay with the low ticket. Um, you should have an ascension plan

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But ironically um

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You're going to bring them in with different vehicles um to ascend them into those programs

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Um, and that way you can maximize your facility maximize revenue per square foot

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And ultimately make yourself a stronger competitor in the marketplace. So hope you guys have an awesome day

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Rock and roll and I will talk to you soon