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State of the Industry, 2017 (And What I Learned in 2016)

My friends, I think we’ve begun to turn the tide. 2016 opened as a year of uncertainty for many microgym owners. Some doubted our brand; others doubted their ability to survive. We heard pleas, blame and–frankly–desperation. But in hindsight, most of this self-doubt and questioning of authority was just part of the maturation process. To put it another way, 2016 was the year many gyms grew up: from breakeven hobbies to profitable businesses with a real future. The most common theme we published in 2016 was this: if you want to help more people in the long-term, fix your business right now. I know other groups followed the TwoBrain lead. And now, happily, we’re entering 2017 with a new sound ringing in our ears: Success. We’ve all been successful at fitness for years. CrossFit has been a turning point in the fitness of many people, and it’s been the catalyst for launching thousands of small businesses worldwide. But a fitness model isn’t a business model. As 2017 dawns, so does the realization that the affiliate world needs models of success, and clear steps t get tohere. Sustainable business doesn’t come from great programming. It doesn’t come from data. Good business comes from good business coaching. Why do I think we’re turning the tide? Here are few reasons: 1. If I said the word “profit” in public two years ago, I’d have been skewered. “I’m not in it for the money” was the rally cry of the affiliate owner. It was once mine. No longer. Now we don’t confuse “profit” with “greed”. We know WHY we need money. Right? For stuff like this:   2. No one falls for the “projected revenue” story anymore. And no one takes gross revenue at face value. We’ve all figured out that spending is easy. People ask about net, or profit, more often than ever before. 3. We’re buying houses and cars and having families. ...
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The “Free Trial” Is Over

In the last week, two separate gym “authorities” have told me – an actual owner of actual gyms – that a “free trial” is the best way to take in new clients. What do these guys have in common? Two things: they’ve been doing CrossFit for a LONG time; and they’ve never owned a gym. Ten years ago, a ‘free trial’ was a great entry point. Early adopters to CrossFit, novelty-seekers, and gym-hoppers just wanted to dip their toes into functional fitness. They had already jumped through several hoops: they had decided they needed to exercise,and were probably already exercising; they were bored with their current routine; they were adventurous enough to try something they knew nothing about; they had already done background “research” on CrossFit (they were pretty much sold when they walked in the door). And all those people DID a free trial. It was enough. Now it’s not.In 2017, a “free trial class” – or even a “free trial personal training session” – is no longer the best way to build a long-term clientele. Here’s why: We’re now into the third tier of client engagement with a new idea (the “Late Majority”.) They have preconceptions about CrossFit, but probably haven’t done thorough research. They’re less fit than the early adopters will. A ‘free trial’ workout is more likely to discourage them than encourage them. A ‘free trial’ doesn’t show they how you’re going to solve their problem. You’re overweight? Let’s make you throw up! Think about this: how did you choose your dentist/lawyer/accountant/wedding planner/tshirt printer? Through a “free trial”, or through a consultation? We’ve been tracking data for hundreds of gyms for years. The best way to meet a new client, help them plan their training, sign them up and keep them is the No-Sweat Intro. We even have data on the name! Mentoring clients get the full script, and training for themselves and their staff. They have the philosophy ...
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Why We Don't Have Sales

You are not selling a product. You’re selling a service. Your goal is not simply to sell more because your most valuable resource (time) is finite.Product companies want to sell high volume because the cost of production decreases as they sell more units. They can buy parts in bulk, they can negotiate volume discounts with suppliers and they can streamline production. We can only sleep less. Or exercise less. This means it’s important to sell our service at the rate that will make us profitable, maintain a professional image and avoid problems that make our business unstable. Here are the reasons we don’t discount our rates, or have “sales”—from both sides of the coin:  1. Discounts attract the wrong people. Because we don’t have unlimited time and attention, spending that same time and attention on a client who pays 20 percent less is robbing us of what we could earn in the same time. Our rent doesn’t go down 20 percent when we give a client a discount. All the “savings” come from our profit.  2. Sales teach the right people bad habits. Who is most likely to purchase a one-year paid-in-full (PIF) membership? The client most likely to stick around for a year anyway. So why discount? A 20 percent discount for paying up front seems like a great idea in January: All. The. Money! But a discount of 8.5 percent is equivalent to a free month. A 20 percent PIF discount means your best clients—the ones most likely to stick around anyway—are attending for free after Oct. 15. Worse, it teaches these great people to wait for another sale before signing up again. When you cease the bad habit of “sales,” they don’t think, “Ah well, it was good while it lasted. I was getting a bargain!” Instead, they think, “Now I’m going to pay 20 percent more for the same service.” Discounts and limited-time sales are a ...
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Surveying Your Clients

[et_pb_section admin_label=”section”] [et_pb_row admin_label=”row”] [et_pb_column type=”4_4″][et_pb_text admin_label=”Text”][vc_row][vc_column][vc_single_image image=”10368″ img_size=”full” alignment=”center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]As the end of the year approaches, it’s a great time to take the temperature of your gym community. As with anything else, there’s a “right way” to do a client survey, and definitely a “wrong way”. When done well, a client survey can First, here are some of the most common mistakes gym owners make when surveying their clients: Their questions are too vague. “If I’d asked my customers what they wanted, they would have said, ‘a faster horse.'” – Henry Ford. Keep your questions very specific, with yes/no or rating-scale answers. The data isn’t actionable. “Overall, how do you like our gym?” is nice…if your goal is to stroke your ego. But this question tells you nothing about the client’s plans to remain with the gym, refer a friend, or quit in 2017. If you ask, “How clean are our bathrooms?” you should be prepared to make your bathrooms cleaner if you get a low score. The answers are irrelevant to growing the business. “How do you like our programming?” is a bad one. Clients weren’t thinking about alternatives to your programming before…and now they are. They do nothing with the data. Imagine the mayor comes to your house and says, “How can I make this town better for you?” You say, “I’d like my garbage picked up on Thursdays.” On Thursday, there’s no garbage truck in sight. Has your opinion of the mayor increased or decreased? The ask the clients to compare or rank the coaches. This is usually an ego trip for the owner–but erodes confidence in the brand. I’ve also seen it destroy the confidence of some coaches. As the owner, it’s YOUR job to write down what makes a good coach in your gym, clearly make those expectations known, and evaluate regularly. Next, here are some ways you can use surveys most effectively: Include a Net ...
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We are Grateful for YOU

At this time of celebrating family, friends and showing gratitude, we would be remiss if we didn’t express our thanks to you, our clients, and our mentors/ team members who “make it happen”. Our clients give us the gift and opportunity to do what we love. Our committed mentors live our values, and are committed to “help first”, they inspire us every day with their enthusiasm and drive. We could share many stories from the course of the year that illustrate the commitment level from each and every one of them, but have selected one to represent them all. Recently our mentor Ken had a post on the private member page on FB that illustrates the spirit TBB live by and we thought we would share it (i.e. brag) as an illustration of why we are so grateful to work with this team.  Below is a summary of that post: “I met Ken this year in March or April I’m not exactly sure. On Nov 1st, 2016 a house I have on Cape Breton Island flooded quite badly, I was in Calgary upon my arrival to the house I was devastated to discover 20 inches or so of water in the house . Hurricane Matthew did a real number on the whole town , after three days waiting for insurance people to come the insurance adjuster explain I was 188 on the list of the houses to visit . After explaining there was black mold forming on the walls she said take pictures and you will have to rip it out yourself . The next day I began by myself a very giant removal of a disaster , Ken Andrukow had texted me and asked how I was doing and I explained to him the circumstances of the disaster my deceased parents former house was in . Within an hour he texted me back saying help is on the way ...
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Is Your Awesome Community Killing Your Business?

By Ken Andrukow, Two-Brain Business Mentor As gym owners, we know how great the “community” in our box makes us feel. It’s amazing to see such a cohesive group having fun together. They work out together, they party together and they might even travel together.When I asked my athletes what they liked best about my gym, the most popular answer was “the community”. That answer scared me. Here’s why.My thought was this: “If the community is the most important part of why people come to my gym, then what am I doing there?” I want people to come because we make them reach their goals (and thus make them happy). I can assure you that no one ever joins your gym because of “the community.” A newcomer has no concept of what the community is all about. When they walk through the door of your gym for the first time, they have a personal goal. If you do a consultation instead of a “free trial”, they’ll tell you that goal. If you meet with them on a regular basis, you’ll stay on top of their progress and set new goals with them. If an athlete progresses straight to group classes, you’ve lost them to the community agenda. Coaches are leading a class based on the goals of the class. A coach would be hard pressed to tell you the why of any individual athlete in a group setting. What happens when the community fractures? If you are meeting with your individual clients regularly and working on THEIR goals, you can mitigate the sometimes negative hold the community could have on the individual client. Imagine a client who has had the goal of doing 10 pull ups unbroken for over a year but still has not achieved that goal. They could keep going to class, and incrementally work toward linked pull-ups as the class works on everything at once. But if ...
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