300 Problems, No Profit

A gym owner stressing over revenue - 300 Problems, No Profit

Earlier in this series, I suggested that you start with a target of 150 clients.

Many of you wrote back (thank you!) with questions and comments that really got my wheels turning, and I’d like to address the most common themes here.

Hope this helps!

Issue 1

“I can’t charge enough to make it in my area. I live in the poorest (area, county, congressional district, state, country) in the (state, country, universe)!”

My response: Yes, you can.

You don’t need everyone in your area to join. You just need 150 people. The average family income is irrelevant; every area has professionals. If your area doesn’t have 150 professionals living nearby, don’t open a gym there.

Issue 2

“My clients won’t pay more than they’re paying now!”

My response: Yes, they will.

The greatest change people see in our mentorship program is a reframing of their service, which allows them to charge a lot more. And they’re always shocked—and delighted—when the first new client pays twice as much as what they thought clients would pay.

You can raise your rates, or you can add personal training or nutrition coaching. You have other options, too, and our mentors help clients find the path that’s best for them.

Issue 3

“But none of the other local gyms are charging this much!”

My response: That’s because their service doesn’t warrant charging more.

Here’s a tip: Instead of asking, “How much can I charge for CrossFit?” ask, “What service can I sell that’s worth $205 per month or more?”

We’ve helped gym owners make this transition hundreds and hundreds of times. It’s best done with a mentor to guide you through it.

Issue 4

“But if I raise my rates, I’ll lose all my friends!”

My response: No, you won’t.

Your friends won’t quit over a 10-15 percent increase (which is the average recommended increase in most Two-Brain gyms). If they quit, they’re not your friends. (Surprise: Your clients aren’t your friends anyway. Friends don’t pay for friendship; everyone pays for membership.)

Issue 5

“My coaches will rebel!”

My response: No, they won’t.

By increasing the value of your service, you’re “growing the pie,” which means there’s more money available for coaches. They’ll actually make more when you charge more (if you follow our Intrapreneurialism model). Click here to get our free ebook “Intrapreneurialism 101.”

More Members, More Marketing and Turnover

I get it: it’s very easy for me to say, “Make $100,000 per year off 150 clients.” It’s very hard to actually make the changes required.

But mentorship provides clarity and guidance through change. That’s why we have data. And that’s why we’re a mentorship practice.

There are many gyms out there making a great living from 150 clients. There are a few gyms out there making a great living from 300 clients. There are gyms with 150 clients but no profit. And there are gyms with 300 (even 600!) clients but no profit.

Remember this:

  • Gyms with more members have higher turnover.
  • Gyms with more members need more marketing.
  • Gyms with more members have to train “green” clients more often.
  • Gyms with more members have to “always be closing.”

Still, you might make the choice to pursue more than 150 members.

Whatever your model, use it with the intention to be profitable, not the intention to pump members in and out.


One more thing!

Did you know gym owners can earn $100,000 a year with no more than 150 clients? We wrote a guide showing you exactly how.