Episode 128– Increasing ARM with Josh Price


Last week I gave you a pop quiz. I asked: between two affiliate owners, one with 40 clients and one with 400 which was more successful? The truth is, you really can’t tell unless you have additional metrics such as length of engagement, average revenue per member (ARM), and profit.


The average CrossFit gym is only going to maintain around 150 members at any one time. This means that each client must be paying enough to cover the fixed costs associated with your gym, pay the coaches, and allow the owner to make a profit. If a business does not generate a profit, it is not a successful business!


In this episode, we talk to Josh Price about what it takes to increase ARM. Once you begin to create a meaningful career with your business, it is time to diversify your revenue streams and to create a less fragile business. These are the beginning steps to increasing your ARM.


Josh Price is from Loco CrossFit located in Leesburg, Virginia just outside of Washington D.C. He is an expert at diversifying a gym’s revenue streams and also increasing a gym’s ARM. According to Josh, the most important part to increasing your ARM is to focus on the vision for which you want to create for your gym. This means going past just the day to day roles and tasks and focusing on what you really want to create within your gym. Additionally, developing the right culture is extremely important to not only a healthy gym but also to increasing ARM. This means more than just putting up posters in your gym but actually defining your culture and living it. The coaches within your gym need to be bought in to your vision and what you are trying to show them. This is the foundation for creating a wildly successful gym that has a high ARM. Apart from this, the four specific ways to increase profit are as follows:


  1. Increase the total number of customers for your CrossFit Gym
  2. Increase the average transaction size
  3. Increase the frequency of transactions (Courses, Seminars, Etc.)
  4. Raise the prices within your CrossFit Gym


Join us today as we walk through these methods and learn how to create a more cultured and profitable gym!



1:07 – Introduction to Increasing ARM

5:08 – The most important factor to increasing ARM

7:55 – The eleven qualities of a strong leader

13:05 – Building the right culture within your team and organization

17:09 – Tactics to grow ARM

19:10 – Four ways to increase the ARM of your gym

23:20 – Question and Answers regarding ARM

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