Is it possible to have a single location $5,000,000 gym?
I’m not talking about a huge 50,000 square foot big box gym either.
I’m taking about a small personal training gym that focuses on 1-1 and small group.
I’m not even sure why a 5 Million dollar gym popped into my head but my left brain went to work to see if it was even possible.
I divided 5 million by 12.
That equaled $416,666…which would be the monthly revenue.
I never told anyone they could make 5 million and before this moment didn’t think it was possible.
Well, I’m currently in the process of creating a new business coaching option that costs $2,000 per month (hit me up if you want 1 of the 2 spots).
So, the number $2,000 was in my head.
I divided that $416,666 by 2,000 (the monthly fee people would pay).
…you’ll never guess the number that came up.
It takes just 208 clients each paying $2,000 a month to make 5 million dollars from one gym.
It shocked me but drove home the power of price.
In a climate where it seems that everyone is lowering their prices to try to make more money, this seems to be a bad idea.
Now, is this truly possible…to find 208 people to pay you 2K a month?
Maybe, if it’s the right area and you have a product that can exceed that kind of value consistently.
Admittedly, it would be tough but I do believe it’s possible.
But let’s say I’m half right.
Let’s say that you could only get 1K form those 208 people or even switch it around and charge 2K to 104 people.
You now are at a 2.5-million-dollar gym.
And if we skin it one more time to $500.
We’re at 1.2 million.
Not a bad living for a single location gym owner that only has to work with 208 clients.
I’m not saying you should go out and build a 5 million dollar gym and quite frankly that sounds like a big headache.
But this math drives home a very important point you need to take action on.
Start creating options where people will pay you more money per transaction…not less.
Lowering prices turns your business into a volume game.
That’s a game you will not win.
In the midst of a pandemic and social distancing, there is no room for volume in brick and mortar.
What’s the thing you need to get this done?
The courage to write down a big number on your price sheet is a great place to start, you can thank me later.
P.S. Not sure if this will work? In the last few weeks the average sale at my NJ based gym has ranged from $997-$1690…before the pandemic it was around $400…the only difference was we now have those more expensive options on our price sheet.
[P.P.S.] …Whenever you’re ready here are 4 ways to work with me…
1. Get Instant Access to My Covid-19 Special Edition Podcast Episodes
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Check out this special edition podcast page that’s solely built to help brick and mortar gym owners survive and thrive during Covid-19.
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2. Get a Free Digital Copy of One of My Books
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· The Ultimate Guide to Marketing your Gym
· The Ultimate Guide to Sales for your Gym
· Vince’s Hiring Book
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4. Chat with Me About Being Accepted into My Mastermind for Gym Owners
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There is so much more you get with this but the only way to apply is through a call with me and I unpack everything for you.
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