Brett said the profit margin on a gym is pretty horrible. And honestly, he’s right.
He had a gym, revenue got stuck, and he was making a few thousand bucks a month in profit after all that work. Now his team collected over 40 grand in the last 30 days online, and he’s getting rid of the gym. He talked through it with one of the guys on my team and I wanted to go through what changed.
The gym math doesn’t work for most people
So Brett ran a gym. The host called them a dynamic trio, and Brett was the one on the call. He said revenue started getting stuck and the margin was terrible, so he’d have to bring in a huge volume of revenue just to keep a little off the top for himself.
That’s the gym model. Rent, equipment, staff, all of it eats the money before you see any of it. You can be busy every day and still take home a few thousand bucks a month. I mean, that’s basically a job with more risk.
He said he wanted to go online because he heard the margins were better. And he wanted to travel. That was a big one for him.
He already knew how to sell, just at the wrong price
This is the part I think most gym coaches will relate to. Brett wasn’t clueless coming in. He already understood sales. He knew how to get people in on a front end offer and then move them to a recurring membership.
The problem was he didn’t know how to scale it. He was stuck at a few thousand a month in profit and had no idea how to get bigger.
What changed was price. He learned how to take his tickets a lot higher and get comfortable on the phone. Before, he was selling super low ticket stuff and had to do a ton of them. He said doing a lot fewer high ticket sales was the key to having way more profit.
This is the same thing that happened to me. My fitness product went from $47 to $3,200 for 4 months. All that I did is I changed my price point and then I started running ads. Low ticket feels safer because more people say yes. But it’s actually harder to sell low priced stuff and make enough money to pay the bills.
Quick math. Let’s say you need 20 grand a month. At $100 a month memberships that’s 200 people paying you every month, plus all the people who quit that you have to replace. At a couple grand a sale it’s like 10 sales. Which one would you rather chase?
Then the volume came back, at a higher price
Here’s what I liked. Once he got good at the high ticket stuff, he didn’t stop there. He said now he’s doing a higher volume of those high ticket sales, and it’s completely taken off.
And it happened fast. He said they’ve been in the program about six months, but he didn’t start using the stuff until about two to three months ago, and he’s only gone fully all in for the last month and a half or so.
That’s when they collected over 40 grand in 30 days. A month and a half of actually pushing.
Working from his phone
He told a story about the gym I think a lot of people know. He used to sit in the gym waiting for appointments. If someone didn’t show, he still had to be there. He was just sitting there all day.
Now he’s working from wherever he is, on his phone all day, and he said that’s the best part for him. They just booked a one way flight, didn’t come back for two weeks, and he worked the whole time. He was doing the interview from home with his shirt off lol.
He said with the gym it was drowning him. Now he can take time off if he wants. And he said even if he chose to just stay at a couple five figures a month, that would be great. He gets to choose now.
What he did with the money
He bought his wife a Range Rover. On his birthday, which the interviewer gave him a hard time about. He got himself a V8 Jaguar F Type. They booked a 7 day cruise for the whole family, his wife’s side has 11 kids and they’re bringing the grandparents too. And he said they’re debt free now, everything paid off.
I’m not big on stuff, I’ve said that a bunch. But the family trip part I love. I pay for family vacations too and it’s honestly one of the best things money does. He said it himself, he’s not out blowing all his money, they’re just able to make some of those dreams happen in a short amount of time.
His take on coaching
Brett said he’s spent over $100,000 on different coaches, and he called this the most complete program he’s been in for going from zero to a big business. He said with other coaches he gets bits and pieces for certain parts of the business.
He also said he used debt to pay for the program and then paid it off, and that’s how he became debt free. Dave Ramsey will get you to think all debt’s bad. It’s incorrect. Debt that makes you money is a different thing.
His advice for people on the fence was basically, if you want your life to change, get coaching, because it’s just not going to happen on your own.
The takeaway
If you’ve got a gym and you’re stuck at a few grand a month in profit, your sales skill might already be fine. It’s the price and the model. Take what you know online, charge more, get good on the phone, then turn up the volume.
Brett did most of it in about a month and a half of going all in. Go from there.
Want to know what’s capping your business right now? Take my free 90 Day Ceiling Plan. Answer 18 questions and get a written plan, built on your own numbers, that names the one thing holding you back and what to fix first.
