How to Have Your InGym Cake & Eat it Too Ep 144

In a discussion about the future of gym ownership, the host outlines a central decision for gym owners: whether to maintain an in-gym training community or pivot to a hybrid model. If choosing to preserve the in-gym experience, owners should consider a "bolt on" service, offering clients a choice between group sessions or one-on-one hybrid training, thereby increasing revenue without significant changes to operations. Conversely, for those leaning towards a hybrid model, the strategy involves either transitioning an existing gym by gradually building a side hybrid business or starting fresh with a fully hybrid facility, focusing on scalability and reduced overhead. The host emphasizes that this streamlined approach to gym ownership hinges on a single choice with two distinct paths, each with its own set of operational and financial benefits.

• Speaker A had a productive week and wrote something called the hybrid manifesto.
• The manifesto examines historical trends and current events to propose future paths.
• It outlines a central choice with two divergent paths regarding gym facility management.

"I came off a really great week, got a lot of stuff done, and I among those was writing something that I'm calling the hybrid manifesto."

The quote indicates the speaker's accomplishment of writing the hybrid manifesto, which is a comprehensive document analyzing trends and suggesting future directions for gym facilities.

• The manifesto boils down to one central choice: whether to maintain an in-gym training community.
• This choice determines the subsequent path for the gym facility's operational model.

"The single question that has to be answered at the beginning before you go down the path of whether you want to convert into a hybrid facility or not, is simply, do I want to have an in gym training community?"

The quote presents the fundamental decision gym owners must make, which influences their business model. It's about choosing between preserving an in-gym community or not.

• If choosing to maintain an in-gym community, the path involves adding services rather than changing the existing model.
• For those opting out of an in-gym community, a different path is available, which the speaker intends to explain.

"If you want to keep your facility and the community and the training that you have intact at your facility, then the only thing that you are going to do is simply add it as an additional level of service, which is what we call bolt on."

This quote explains the first path for gym owners who want to maintain their in-gym community, which involves adding additional services to their existing offerings, referred to as a "bolt on."

• The bolt-on model is an addition to existing services such as semi-private training.
• It avoids the costs and logistics associated with expanding physical space and resources.
• Revenue and profit per customer remain consistent with the bolt-on approach due to similar coaching fees.

"So instead of, or in lieu of having a semi private training, which you might have, and that's what I espoused for a really long time, instead of needing to spend the money on the equipment, use the extra square footage, deal with scheduling and logistics around trainers for semi privates, you could have the same revenue per customer, except, and the same profit per customer, because HCP is also 20% goes to the coach."

The speaker compares the bolt-on model to semi-private training, highlighting that it maintains revenue and profit margins without the additional costs and logistical challenges associated with semi-private sessions.

• Offering clients a choice at the end of the sales process is a sustainable method.
• Clients can choose between group workouts at predefined times or one-on-one sessions at their convenience.
• The process up to the point of choice remains consistent, not requiring changes to promotion, landing pages, or pitches.
• This method employs an AB close, an assumed sale, and is prescriptive.
• It allows for personalization to match client needs, maintaining the gym's community and in-training workouts.
• Adding this choice to existing memberships can significantly increase profit per member.
• It's important for acquisition to prevent the gym from relying on a single offering.
• Clients can choose their preferred option, enhancing the gym's service levels.

And that's simply the question. So everything up to that point is the same. So it's the same external promotion. You don't need to change anything there, you don't need to change your landing pages when they come in, you don't need to change your pitch.

This quote explains that the sales strategy up to the point of offering the client a choice does not require any changes to the gym's existing marketing approach.

And the nice thing is that it's an AB close, it's an assumed sale, and it's relatively prescriptive.

This quote emphasizes the simplicity and effectiveness of the AB close technique, where the sale is assumed and the client is guided towards making a choice between two options.

And so you simply just say, do you want to do this as workouts in a group here at predefined times in the gym? Or would you rather work out with me individually, one on one, outside of the gym, at your own convenience?

This quote provides the exact phrasing used to offer clients the choice between group workouts and individual sessions, highlighting the customization of the service to the client's preferences.

That means that all you're doing is you add the additional level to your existing members, which means you're ascending them. So you add your profit per member, which will massively increase.

This quote discusses the financial benefits of this sales strategy, where offering additional service levels to existing members can lead to a significant increase in profit per member.

• The podcast's growth relies on word of mouth, with no use of ads or sponsorships.
• The speaker requests listeners to share the podcast as they were introduced to it.
• Sharing and recommending the podcast is a way to support the content and help other entrepreneurs.

About how you found this podcast, somebody probably tweeted it, told you about it, shared it on Instagram or something like that the only way this grows is through word of mouth.

This quote explains how the podcast primarily grows through word of mouth, with listeners learning about it from personal recommendations on social media or through friends.

My only ask is that you continue to pay it forward to whoever showed you or however you found out about this podcast, that you do the exact same thing.

This quote is a request from the speaker for listeners to spread the word about the podcast in the same way they discovered it, to help expand its reach.

• Gyms can offer both in-person workouts and additional services to increase client value.
• By combining services, the gym can potentially increase the monthly earnings from each client without incurring additional costs.
• The concept is part of a larger strategy outlined in a manifesto created by the speaker.
• The strategy is aimed at gym owners who wish to maintain and grow their business.

And with those situations, you can actually sell both, too. You can sell them in the in person workouts and then also tack on Bolton or hybrid on top of that.

This quote suggests that gyms can increase revenue by selling a combination of services, such as in-person workouts and additional options, to provide a more comprehensive offering.

So you can actually get your eFT to around $400 a month for that client with really no additional costs.

This quote indicates that by implementing this strategy, gyms can significantly increase their earnings from each client (eFT refers to electronic funds transfer, which in this context means the monthly billing amount), enhancing overall profitability.

That was kind of the distillation of, like, if you want to keep your gym, this is the best way to do it.

This quote summarizes the speaker's manifesto, suggesting that the strategy presented is the most effective way for gym owners to sustain and grow their business in the long term.

• The discussion is centered on the transition strategies for gym owners considering a full hybrid model.
• Different scenarios are presented based on whether the owner already has a gym or is starting from scratch.
• For existing gym owners, the strategy involves starting a hybrid model as a side business while maintaining the current in-person gym.
• The goal is to build up the hybrid business until its profits can sustain the transition from an in-person to a hybrid facility.
• A target of 50 to 75 hybrid clients is recommended before making the full switch to cover costs and ensure financial stability.
• The process is simplified for those without an existing facility, as they can focus on building the hybrid model directly without managing an in-person gym.

If you have a gym already, then what you have to do is essentially start it as a side business.

This quote explains the initial step for existing gym owners to transition to a hybrid model, which involves treating the new hybrid model as a side business while still operating the in-person gym.

And then the nice thing is, because the profit is so high on this one, this will essentially cover the decrease that will happen in your main business because you're no longer feeding it right.

The speaker highlights the advantage of the hybrid model's high profit margins, which can compensate for the reduced focus and potential revenue drop in the in-person gym during the transition period.

I think you should shoot for 50 to 75 hybrid clients before making the full switch.

This quote provides a specific benchmark for gym owners to aim for in terms of client numbers before fully transitioning to a hybrid model, ensuring financial security and sustainability.

So if this is you, it works the exact same way, except you don't have to deal with the other business at the same time.

The speaker contrasts the situation for those starting a hybrid gym without an existing facility, pointing out the advantage of not having to juggle two businesses simultaneously.

• Personal trainers or entrepreneurs starting a hybrid gym without an existing facility have a simpler path as they do not have the burden of managing an in-person gym.
• They can dedicate full attention to the hybrid model without the distraction of running a separate business.
• The absence of an existing in-person facility allows for a more focused approach to building the hybrid business model from the ground up.

So for you, it wouldn't be a side business, it would be the main business.

This quote clarifies that for those without an existing gym, the hybrid model would be their primary focus and business venture, unlike existing gym owners who have to manage it as a side business initially.

And someone posted in here earlier where they sta

This incomplete sentence suggests that the discussion was referencing a previous comment or post made by someone else, but the content of that post is not provided in the transcript.

• The hybrid gym model combines online and in-person training services.
• It offers high profitability due to low overhead costs.
• Pure profit is generated from sales without significant equipment or space investment.
• Existing gyms can become more profitable by integrating the hybrid model.
• This model simplifies logistics by eliminating the need for equipment outlay and space allocation.
• It avoids the downsides of semiprivate training such as scheduling and coordinating with trainers.

And that's the beauty of it. There's not a lot of overhead. And so all of the sales that come in are just pure profit, which is fantastic.

This quote highlights the financial advantage of the hybrid gym model, emphasizing the low overhead costs and the resulting high profit margin from sales.

You don't have to put square footage and allocate that. So you don't have to decrease your class sizes, and you don't have to deal with scheduling and coordinating with trainers.

This quote addresses the logistical benefits of the hybrid model, noting that it does not require additional physical space or complicated scheduling, which are common issues with semiprivate training.

• Group training facilities can add hybrid services to increase revenue without altering the core gym structure.
• The acquisition process involves presenting clients with both in-person and online training options (AB close).
• The hybrid model supports the growth of both in-person and online services, maintaining above-average profits.

Pretty much any group training facility can add this as an additional level of service, make more money, really not change anything fundamental about the gym.

This quote suggests that the integration of hybrid services into a group training facility is straightforward and does not necessitate significant changes to the existing gym operations.

Even the acquisition just becomes an AB close of which direction they want to go. And you feed both businesses simultaneously, which allows you to keep above average profits by a long shot compared to facilities that aren't executing that.

The quote explains the client acquisition strategy in a hybrid gym model, where clients choose between in-person and online services, ultimately benefiting the business through diversified revenue streams and higher profits.

• Gyms can transition to a full hybrid model by scaling online services to replace existing in-person revenue.
• The full hybrid model is characterized by low fixed costs and variable costs that adjust with client numbers.
• Business owners must decide whether to maintain in-person training or move entirely to the hybrid model.

And then the alternative is you want to go full hybrid. You like that model of just having a very small fixed cost with the rent and then having 20% cost. That's variable.

This quote describes the cost structure of a full hybrid gym model, emphasizing the low fixed costs and the flexibility of variable costs that correlate with the number of clients.

Do I want to keep in person training? Do I not want to keep in person training? And then once you've made that decision, the path is fairly straightforward.

The quote captures the core decision gym owners face when considering the transition to a full hybrid model, which dictates the subsequent steps in their business strategy.

• The speaker aims to clarify the hybrid gym model for those with questions.
• There is an emphasis on simplifying complex scenarios into a single framework for decision-making.
• The speaker encourages engagement and questions about the hybrid model.
• The tone is positive and motivational, ending with well-wishes and an upbeat farewell.

I hope that clarifies it for anybody who was unclear. I know that I've had multiple scenarios that I think some of the case studies that we have have five scenarios. I think this kind of distills it down into, really, the one decision that needs to be made.

This quote shows the speaker's intent to demystify the hybrid gym model by reducing it to a primary decision-making framework, aiming to make it more accessible and understandable for gym owners.

So I hope you guys have an amazing Sunday. I hope that answered some of the questions that you might have had surrounding hybrid. I love the questions. So thank you. Keep them coming.

The quote conveys the speaker's enthusiasm for continued dialogue and interaction with the audience, showing appreciation for their engagement and questions about the hybrid model.