Alex Hormozi discusses the common pitfalls gym owners face by believing their fitness business is unique, which limits their revenue potential. He emphasizes that the location and style of fitness offered are irrelevant to success, as demonstrated by the variety of his "Gym Launch" clients who have surpassed the million-dollar run rate across diverse markets. Hormozi argues that the key to profitability lies in understanding that humans have consistent behaviors and desires, and as long as a gym provides a transformational fitness solution, it can thrive. He outlines tested price points for group and individual training and stresses the importance of focusing on outcomes rather than processes. Hormozi concludes by advising gym owners to meet clients where they are and prioritize psychological needs to ensure long-term adherence and success.
"So I wanted to make a video for you guys about something that just comes up all the time."
This quote explains the reason for creating the video, indicating that the topic is a recurring issue in the gym business community.
"They give themselves this reason, the story that they tell themselves about why their gym is different or why they're a special snowflake, et cetera."
The quote highlights the self-limiting narratives that gym owners create, which Speaker A believes hinder their potential for growth.
"So if you guys have seen those pictures with the gym owners who have swords, that's because they hit a million dollar run rate, which is 83,000 in a month or more."
This quote provides a tangible measure of success (a million-dollar run rate) and a unique form of recognition (swords) for achieving it, illustrating the diverse success of gym businesses.
"The reason that your style of fitness does not matter and the reason that your location does not matter is because humans are the same, right?"
The quote emphasizes the universal nature of human behavior and needs, which Speaker A believes are more critical factors for gym success than the style of fitness or location.
"And for most people, $200 a month is going to be where you should be. And if you're not there, you're not profitable."
This quote presents a clear pricing guideline for gym owners, suggesting that a $200 monthly fee is optimal for profitability based on market research and customer behavior.
"Six or seven years ago, I don't know the math. I moved out to California. I emailed 40 gym owners because I was quitting my management consulting job where I did strategy at a marketing firm in DC."
The quote provides context for Speaker A's expertise and experience in the gym business, explaining their motivation for changing careers and the proactive steps they took to learn the industry.
"And he was doing it as a semi private program. And when I came in, I was like, hey, do you want more of these? I found out Facebook marketing works and."
This quote explains the initial business model and the introduction of Facebook marketing as a new strategy to attract more clients.
"And he was like, you think people are going to pay $500 for that? And I was like, yeah, I like, they could come here and do puzzles with me three days a week, and if they lost 20 pounds, they'll be stoked."
The speaker is suggesting that the value proposition is not the process but the outcome, indicating that clients would pay for results regardless of the method.
"No one cares about the plane flight. They don't care. They don't care whether they take a train there or a boat or a plane."
This quote highlights that the customer's primary concern is achieving their goal, not the specifics of the service.
"No one wants to hear about your meal plans or your macros or the cutting edge workouts that you're going to do and how great the trainer certification case. No one cares."
The speaker is advising that sales pitches should avoid focusing on the detailed aspects of the service, as it could deter clients by reminding them of the effort required.
"We know six week challenges at this moment, for the last six and a half years, have run basically untested because it's a long enough amount of time that people believe that they can achieve the outcome that is significant but short enough that they believe in themselves that they can achieve it."
This quote explains the rationale behind the specific duration of the challenges and their success.
"And that's actually if you can look at different franchises that have been in the weight loss space."
The speaker suggests learning from adjacent industries to determine effective pricing strategies.
"So you guys hear me talk about the Nik a lot, because Chris Poly is a good friend of mine."
This quote indicates the speaker values networking and learning from peers in related fields.
"And then they ended up upselling people on day five to a $1500 to $6,000 package the remainder of the year."
This quote highlights the upselling aspect of the business strategy, where customers are offered more expensive packages after an initial offer.
"The beauty of per process is that they don't tell people about the cost."
The quote emphasizes the strategic advantage of not disclosing the full cost to the customer immediately to manage their perception of value.
"It is significance of outcome multiplied by likelihood of achievement. How likely that you're actually going to get that significant outcome divided by time and effort equals value."
This quote explains the components of the value equation used to determine the attractiveness of an offer to a customer.
"If you were to give someone a pill like Xanax that helps someone go to sleep or relax... the time and effort required to do that is zero. And the likelihood that they're going to achieve it is basically 100%."
This quote explains why pharmaceuticals like Xanax are seen as high-value due to their ease of use and effectiveness, which contributes to their market success.
"The only thing that matters is the outcome that you are selling. And so as long as you have a fitness slant, then you're in the weight loss industry."
This quote indicates that success in the fitness industry is more about the results sold than the specific type of fitness service offered.
"You'd make 50% more money if you charge 600, you're just not making as much as you could."
This quote suggests that businesses may be undercharging for their services, and by increasing prices, they could enhance their profitability.
They do not care about the plane, they care about Maui. And don't talk about the plane because it's only going to lose you.
This quote emphasizes that clients are interested in the destination (their fitness goals) rather than the intricacies of the fitness method used to get there. Focusing too much on the method may result in losing the client's interest.
And that is why what type of fitness you have does not matter, provided you can have a sufficient amount of people in a space with a single trainer who says, do this and then they can follow.
This quote suggests that the type of fitness program is less important than the ability to effectively manage and instruct a group of clients in a simple and accessible way.
You have to meet someone where they are. You don't talk to a five year old the way you talk to a 15 year old.
This quote illustrates the importance of adapting communication and fitness goals to the client's level of understanding, much like how one would adjust their language and expectations when talking to children of different ages.
People in your family right now think that almond butter is a good source of protein... They have no idea.
This quote highlights common nutritional misunderstandings among the general public, implying the need for fitness professionals to educate clients starting from these misconceptions.
And hopefully that explains somewhat for those of you who are like, I'm not sure if gym launch will work for my gym model. It will.
This quote reassures gym owners that the Gym Launch model is versatile and can work for different gym models, as long as the end goal is to provide weight loss and fitness to customers.