We’ve been pushing entrepreneurs to use the Pumpkin Plan for years—but I recently heard about a result I didn’t expect.
Here’s the simplest breakdown of the Pumpkin Plan, made famous by Mike Michalowicz in his book of the same name:
1. List the clients who make you happiest and then the ones that pay the most.
2. Circle the names on both lists—they are your best very clients.
3. Go for coffee with each “seed client” and learn about them so you can find more of the same great people.
So what happens if no clients are found on both lists?
That happened to Toni Roy at Breathe CrossFit.
She did the exercise and realized:
- The clients on the “happy list” all did group training.
- The clients on the “money list” were all PT clients.
This is an uncommon result.
Toni chose to do something very special to “grow more pumpkins”: She created a new service to bridge the gap between the lists.
The service?
Hybrid training: “It’s not just ‘you do personal training or you do CrossFit.’ We came up with a blend,” Toni said.
Let me highlight exactly how important the hybrid idea is:
It literally would have generated millions and millions of dollars for gyms all around the world if someone had promoted the hybrid plan in the CrossFit affiliate community in 2008 or 2009.
I’m not joking.
When CrossFit really caught on, we all left money on the table because we were only selling group memberships at about $150 a month. We all underpriced our coaching services and thought “CrossFit is only done in big group classes.”
But that’s not true.
You can deliver CrossFit training in big groups, small groups, semi-private groups and one on one—and you can most definitely blend group and one-on-one memberships in a hybrid plan.
That client who just can’t seem to get a muscle-up when it shows up in a class? He might be on top of the rings if he had some one-on-one coaching.
The competitive client who’s frustrated to always finish last in workouts with double-unders? What if she upgraded her skills by working directly with you?
In both cases, the client would make swifter progress toward goals, and the gym would earn more. It’s a win-win.
In a CrossFit affiliate, a hybrid package might look something like this:
- Unlimited CrossFit group classes: $210 per month
- Personal training sessions: $80 each
- Hybrid membership: $300 per month, including group classes, 1 PT session and “homework.”
I’m tossing general numbers at you here—the exact prices for these services should reflect your unique business (a mentor can help you with pricing).
The point, regardless of the exact prices:
Group membership + PT add-on = increased average revenue per member (ARM)
Hybrid Programs and You
Do the math right now at your gym: Take your most common group membership and add on your rate for a PT session (if your PT rates are $50, they are too low!).
In almost all gyms that sell group coaching, the resulting number is far above the existing ARM.
Toni confirmed it: When she started offering hybrid packages, her ARM went up.
Other gym owners have had similar results.
So what’s the takeaway for you? It’s twofold:
- Do the Pumkin Plan exercise (instructions here). Everyone who does it discovers ideal ways to grow their businesses by replicating their best clients.
- Ask your clients about their struggles and desires in regular Goal Review Sessions (instructions here). Make sure you have optimal service packages that solve their problems and help them accomplish their goals.
If you do those two things, these metrics will improve measurably:
- Revenue
- Average revenue per member
- Length of engagement
- Client count
I love seeing our tried-and-true tactics used in gyms, and I was thrilled to hear about how Toni addressed an uncommon Pumpkin Plan result to improve her business. Using data to make smart decisions is the hallmark of elite entrepreneurship.
We’ve got a host of gym-growing tactics just like the Pumpkin Plan in our toolbox for entrepreneurs. To hear more about them and how they can be applied in your gym, book a call here.
