In a gym, mistakes compound.
A great example: Setting your rates too low can cost you thousands of dollars a month for years.
But good decisions compound, too. If you do any investing, you know that already.
Here’s what a few good decisions can do to your gross monthly revenue.
From $24,000 Months to $31,500 Months
Let’s say you only offer group coaching right now.
You charge $150 a month and have 160 group clients for $24,000 in monthly revenue. (You should charge much more than $150, but I’m using that rate here because it’s common.)
If you’re taking in $24,000 a month, this leaderboard might blow your mind:
Back in the day, I couldn’t get my head around how a gym could gross $10,000 a month, let alone $100,000.
But don’t let these numbers dishearten you. They’re closer than you think.
Check it out:
Instead of just selling group fitness for $150 a month, you use a mentor to do a 10 percent rate increase to $165 per month.
Now you’re at $26,400 per month—which is an extra $28,800 per year, and you earned it without acquiring a single new member.
This rate—$165—is still too low, but we’ll leave it for now.
Now consider this: You start selling PT at $75 an hour. We’ll be very conservative and say you’ll only sell four sessions in the first month, perhaps to a current member. That’s an extra $300 a month, taking your total to $26,700.
You’re a great coach, so your new PT client is getting amazing results. After his first month, you ask him if his friends are interested, and you acquire another one-session-per-week client, so you’re selling eight PT sessions a month, for a total of $600.
That’s $27,000 per month.
Let’s say you add just one more once-a-week-PT client per month. In a year, you’ll have 12 people booking one session a week at $75. If you have 48 sessions a month, that’s $3,600, so your monthly group-plus-PT take is now $30,000.
Wow, right? Your annual revenue has jumped from $288,000 to $360,000.
Let’s take one more step.
What if you acquire just two more PT clients who train twice a week and one who trains thrice per week?
Here’s the math:
- 12 once-week clients buy 48 sessions a month.
- 2 twice-a-week clients buy 8 sessions a month.
- 1 thrice-a-week client buys 12 sessions a month.
- That’s 68 sessions at $75 for $5,100 a month.
- Add your PT revenue to group revenue and you have $31,500 for the month.
Instead of grossing $288,000 for the year with a group program, you’re grossing $378,000 with a group program and just 15 PT clients. That’s $90,000—31.25 percent more revenue.
I’ll stop there, but you can go further.
What if you had 30 PT clients? What if you had two special challenges each year that brought in $15,000 each? What if you added a high-value semi-private program priced above group but below PT? What if your group rates moved closer to $205?
Suddenly, you can see exactly how the gyms on our leaderboard generate so much revenue.
A Final Question
What would 31 percent more revenue do for your family?
Think about that for a minute. Maybe a few minutes.
Now ask yourself if you can find just 15 people who badly need your help to reach their goals in a one-on-one setting.
Can you do that? Of course you can.
This is exactly how Two-Brain mentors help new clients score quick wins. We look at your business, find your greatest opportunities and tell you exactly how to increase revenue fast.
The to-do list for our mentees has a lot of other tasks on it, but they’re much easier to accomplish when you’re earning more cash every month, right?
If you look at our revenue leaderboard and feel intimidated, I hope this exercise turned intimidation into inspiration.
To take the next step and start increasing revenue with an expert’s help, book a call here.
