Chris Cooper's Blog, page 25

Gym Owners Are Thankful for This

With U.S. Thanksgiving just past us, I thought I’d give you a look at what some successful gym owners are thankful for.

I remember some years when I wasn’t thankful for much as a gym owner.

I started our fiscal year underwater because I hadn’t planned for the summer drop-off, and I was trying to figure out how to add revenue in fall. I was dreading the local competition season as well as the fun but high-stress Open season to come after that. Then I was worried about revenue lost to all sorts of winter vacations.

And so on. If you’ve ever run a business that struggles to turn a profit, you’ll understand the daisy chain of worries.

A mentor helped my wife and I realize you don’t have to run classes from 5 a.m. to 9 p.m., try to fill each slot with a dozen people, and pay trainers but not yourself for coaching. That insight changed the path of our business, and I’m grateful for it.

In the spirit of the season, I asked Two-Brain gym owners to complete this sentence: “I’m thankful a Two-Brain mentor helped me … .”

Here’s what they had to say.

“I’m Thankful a Two-Brain Mentor Helped Me …”

“… prioritize my tasks to get shit done.”

“… prioritize tasks and be accountable.”

“… realize that owning a business is more about leadership and delegation than it is about being a sole owner and operator!”

“… figure out how to overcome and develop my weak points to help me grow my business as an owner.”

“… save my business. If it wasn’t for Two-Brain, my business would have been closed right now. But instead it is growing and helping people to get better and fitter.”

“… quit my corporate job and maximize my gifts and abilities!”

“… charge what I am worth and not be scared about it!”

“… realize and understand how to define my own version of ‘success.’”

“… see that my own shortcomings are holding me back.”

“… realize my dreams are not big enough. I am capable of so much more than I thought.”

“… have the confidence to sell higher-value packages.”

“… regain control of my life and gave me the tools to build a brighter future.”

“… turn a hobby into a profession.”

“… navigate a hard price increase and leave a corporate job I had to pick up after the pandemic. My mentor is a sounding board every month for all that business ownership (and life) throws my way.”

“… extend opportunities that empower not only me but those around me as well.”

“… face hard situations and push us to the last price increase.”

“… navigate a tough price increase back in 2023 that I don’t think I would have done without them.”

“… buy my dream house (by strategizing finances, using resources available to small businesses and learning how to leverage those for personal financial freedom).”

The Big Picture

You’ll note that almost all these responses involve big concepts such as confidence, leadership, self-actualization and personal development.

That’s high-level stuff—and it carries over outside each owner’s gym.

For example, having the confidence to do hard things makes an entrepreneur better at life.

But it’s worth mentioning that big changes come from small positive actions that are repeated until they become habits.

Example: Raising rates. Our mentors give their clients clear directions and a toolkit to do the work. They don’t just say, “You’re worth it. Raise your rates. You’ve got this!”

They also say, “Let’s work through this spreadsheet to determine the exact rate increase. Then we’ll put a timeline in place to roll it out. Here’s the exact message to send when it’s time to announce the increase.” And so on.

The point? Major changes are supported by clear daily actions. Not just rah-rah, rally-the-troops speeches in the locker room.

If you want to build confidence, become a better leader and develop key entrepreneurial skills over the next year, do the small things to build your business every day. Don’t do them once in a while or until Feb. 22. Do them every single day.

To help you improve a little bit every day, here are two resources for you:

“The Golden Hour” by Chris Cooper

The Golden Hour Challenge—this six-week habit-building exercise is in progress in our private group for gym owners. Check it out and follow along!

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0 to 60 Percent of Fitness Revenue: How a CrossFit Gym Added PT

To watch this episode on YouTube, click here.

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Model Mistake: “We Don’t Sell Personal Training”

I’m going to tell you how our top gyms generate average revenue per member of $500 a month or more.

When we interviewed the owners of the Top 10 gyms on our leaderboard (see below), a few themes emerged. Here are their quotes:

“I focus on personal training and have gotten rid of group classes due to lack of interest. This leaves more hours in the day for one-on-one and semi-private training.”

“I focus on one-on-one and semi-private personal training as my business model and offer group classes as a supplement to private training.”

“We offer comprehensive packages; i.e., PT plus nutrition, small group plus nutrition, or PT plus small group.”

“We start everybody with a base of personal training two or three times a week for as long as they need and then transition them to one or two days of PT and add on small-group PT as their base. This allows them one day to focus on their goals, and on the other days they jump into community workouts.”

Power Trio: PT, Semi-Private and Group

We take a similar path at my gym, Catalyst. At the end of on-ramp, we say, “You’re making good progress! Would you be most comfortable continuing one on one or in a semi-private group?”

Many people select one of those two options, but some will say, “I’ve got some friends in your group classes. That’s what I want.” When that happens, we offer group training.

We once focused on group classes, but they aren’t the main program anymore, and we don’t run as many classes as we used to. The people in the sessions are great, and they’re having fun, making connections and gradually getting more fit. But our semi-private and PT streams are the bread and butter now.

We also use the group classes as a “safety net”: If a semi-private client is going to miss time due to holidays, work, etc., they can make up missed sessions with the group.

This is a big change from the time when most gym owners rushed people through on-ramps and funneled them into group classes without presenting other options.

Using a similar model, some gym owners—I quoted two above—offer hybrid options: group training plus one-on-one training, personal training plus nutrition, small group plus nutrition, personal training plus small group.

All these models produce greater ARM than “everybody does group classes and that’s it.”

And the cool thing is that you don’t have to scrap what you’re currently doing if you want to pivot to a model in which you can offer high-value services.

You can add easily these things with the help of a Two-Brain mentor, and you don’t have to stop running group classes. No one is saying group classes are bad. I am saying that some fitness clients prefer other options—premium options.

Your Method and Your Model

The trap comes when you confuse your method with your model.

If you run a CrossFit affiliate, for example, that’s your method. You use CrossFit. Your model is how you deliver that method to people.

CrossFit, for example, can be delivered in one-on-one, small-group or big-group classes, but I know many gym owners who for years thought CrossFit is done in groups only.

Love your method but develop your model—and that’s best done in a partnership with clients.

In a No Sweat Intro or free consultation, you tell people what’s best for them, and they tell you what they prefer. When those two things come together, that’s your model. And if you don’t have a personal training or a small-group option in your model, you can’t connect with people who don’t want group training.

Conversely, the one-on-one-only model has limitations, too. You only have so many hours in your day, so with PT you’ll hit capacity quickly, likely with a high ARM. But will you have enough clients to live the life you want? The gym business is all about balancing metrics like this.

I’ll give you an example. Check out this ARM leaderboard again:

The Top 10 average is $608 a month, but the average client head count of these gyms is 56, for an average monthly gross of $34,048.

With 56 clients, you don’t need a huge amount of space or a ton of equipment, so you could take home a nice chunk of the gross.

The flip side—and I’ve lived this—is that you will have extreme demands on your time. Imagine if each of your 56 clients wants to train three times a week. That’s 168 hours of coaching. Even if each one only trains once a week, you’re at 56 hours of coaching if you don’t have help.

You can see the challenges in that model right away.

That’s why Two-Brain recommends a good mix of one-on-one options with some kind of group option. It might be small-group or big-group training—it’s up to you. But to build your business, you can’t turn a blind eye to the options your clients want.

You must be client-centric and focus on what they want and what they need. When you do that, you get an amazing business. Not a cookie-cutter business. A gym based on a sound model that reflects the clients’ desires and the owner’s method of choice.

If you’re in the Two-Brain family, you already know your mentor is helping you optimize your model so your clients get great results and you earn a great living.

If you don’t work with us yet but want to find out how we can help you improve your unique business, book a call here.

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Why Group Coaching Is Your Discount Option

Average revenue per member is generally very high in gyms that focus on selling coaching in a one-on-one or small-group setting.

Think $500 to $900 a month—I’ll give you our Top 10 below to show you the exact figures.

Do these stats mean you should ditch group coaching?

No. But you should probably offer one-on-one and small-group coaching as options at your gym. If you don’t, you’ll miss out on high-value clients who want your coaching delivered that way.

If you do add these premium options in a gym that sells coaching in larger classes, group coaching is your de facto “discount option.”

That doesn’t mean it’s “cheap,” bad or ineffective. Group coaching will produce results—just not the best results possible as fast as possible for every client.

Again, I’m not throwing shade at group classes. I loved running them. I’m just reminding you that they aren’t the best option for every single person who might want to join your gym.

Some high-value clients want more attention, and they’re very willing to pay for it.

Service Tiers and Speed, Convenience, Privacy, and Attention

Imagine a client said this: “I have to lose 20 lb. in the next six months. It’s a matter of life and death.”

Or this: “I want to give myself the best chance to make a professional football team this year so I can earn a living and support my family.”

Or this: “It’s critically important to me that I perform my very best in the national-level race in four months.”

In all cases, the best way to get the desired result is to provide one-on-one coaching. These people obviously need and want more attention, and they’re on specific timelines. They aren’t looking for community or general fitness.

You don’t have to get rid of your group training program to serve them, of course. You do not have to stop offering CrossFit classes or HIIT groups or bootcamps when you offer one-on-one and small-group training.

But you should stop inadvertently pushing people like this away by not offering one-on-one or semi-private training designed to produce results faster than group coaching will.

Let’s face it: A lot of people want to do hard workouts and stuff that looks and feels like CrossFit, but they don’t really want to do that in a group. Or maybe they don’t want to do it at noon. Or maybe there’s another reason why they want the one-on-one option. Same deal with any other fitness method.

When they select one-on-one or small-group options, people are paying for privacy, schedule flexibility, extra accountability and undivided attention. Or maybe they just want to come in with their spouse and train together.

The reality is that we are providing a professional, high-value service as coaches. When coaching is delivered one on one, the rate should be higher than when it’s delivered in a large group. And when coaching is delivered in a semi-private setting, it should be priced below one-on-one and above big-group coaching.

Let me say it again even though this line always gets me into trouble when people pull it out of context: The group-training program should be your discount option.

When your attention is split seven or 10 ways, the service is still valuable, but it’s less valuable than your undivided attention. This should be obvious to everyone.

With all that said, our ARM leaderboard shows what’s possible when you offer premium service packages:

How to Improve ARM

You might look at these numbers and think they’re beyond the scope of possibility, especially if you’re a CrossFit gym charging $130 a month for an unlimited membership.

But treat these numbers the way you would look at Matt Fraser’s or Rich Froning’s Fran time. The stats might be beyond your capability, but they show you what’s possible.

When I release our Top 10 every month, I want you to see the high-water mark so you can move toward it.

Maybe you never hit $800 ARM, but what if you move from $130 to $205? That’s a life-changing improvement. Just imagine how your business and life would improve if every client paid you $20 more per month, let alone $75.

So how did these gyms get here, and what can you do to improve your own number? Here’s the answer: These gyms might have a group coaching option, or they might not, but if they do, it’s their least-expensive option—and not everyone wants it.

They use a very specific process to find out exactly what prospective clients need and want.

The Prescriptive Model

To find out what prospective clients want, the owners of our Top 10 gyms offer a free consultation, which we call a No Sweat Intro.

You sit down with the client, you find out about the client’s goal, and you lay out the fastest path to the goal. For most people, the fastest path involves one-on-one coaching. At worst, it’s small-group coaching, where the client gets a lot of attention but not one-on-one attention.

Present those options. If the client can’t afford them, present the next best option—maybe it’s group coaching with one PT session a month. If that’s a no-go and the budget is about $200 a month, recommend your group program after a one-on-one on-ramp that’s designed to maximize results in the group setting.

The group-training option is the least expensive of the three. It will still produce results, but not as quickly.

After the person signs up, book a Goal Review Session 90 days down the line to review progress and adjust the plan, if needed. Meet with them and ask, “Are you satisfied with your progress?” If the answer is “no,” provide options to speed things up. These options of course require more attention from you and more accountability—so they cost more.

This process—the Prescriptive Model—pulls ARM up. A lot. On average, about 30 percent of clients upgrade their services by 30 percent in Goal Review Sessions. And many people sign up for PT in the very first consultation.

It’s not uncommon for gym owners to tell us a brand new PT stream blew up simply because they started telling people one-on-one training was the fastest way to accomplish their goals.

“I had no idea so many people wanted this!” they often say.

So when I tell you that group training is your discount option, I mean that if you run a coaching business, your most expensive option should likely be one-on-one training.

Your “second” option should probably be coaching delivered in a small-group or semi-private setting.

And your lowest-tier offering should be coaching delivered in a group.

Each tier should be priced to reflect its value.

We help gym owners build, price and sell high-value services fast. If your ARM is low and you want to improve it quickly, one-on-one business coaching is the best option. To hear more about that, book a call here.

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When Every Client Pays You More Than $500 a Month!

To watch this episode on YouTube, click here.

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Six Key Stats—and How a Gym Owner Beat the Averages

Here are six key fitness-industry stats you must know as a gym owner who sells group coaching:

The average big-group gym takes in $24,946 per month.The average big-group gym uses classes to generate 88 percent of revenue.The average big-group gym uses PT to generate just 2.4 percent of revenue.Half of big-group gyms have 122 clients or fewer.Average revenue per member per month (ARM) is $167 in big-group gyms.Half of big-group gym owners take home $4,000 a month or less.

These are not great numbers—and they can be improved quickly if gym owners do the right things.

I’ll put the stats in perspective with data from CrossFit Reform, owned by a millionaire gym owner:

Monthly revenue is north of $50,000.Group classes generate 70 percent or gross revenue, with 20 percent coming from personal training and 10 percent from youth/nutrition/older adults.240 clients at $250 ARM.Net owner benefit in July 2024: $10,592.

Wow, right?

Revenue and client count are double the average, ARM is $83 higher, and owner earnings are into five figures.

The simple summary: Eric Conner, owner of CrossFit Reform, is earning more than $100,000 a year by acquiring and retaining more high-value clients than other gyms.

How’s he doing it? By working with a mentor to analyze his business and systematically improve it.

If you aren’t ready to work with a mentor, we still want to help you. All the stats I laid out at the beginning of this post are available for free in our 2024 “State of the Industry” report.

In 2024, our guide has 13 ratings scales you can use to evaluate your gym. You can check your numbers against each scale to find out if they are below average, average or above average. From there, you should take quick steps to improve in your weakest areas.

You can get the guide here: “State of the Industry.”

For even more perspective, Chris Cooper reviews the guide with me on “Run a Profitable Gym,” and he digs into it on “The Sevan Podcast.”

So what should you do to improve your gym after you’ve evaluated it?

If you don’t have fast answers to that question, talk to someone who does. Here’s the two-step plan:

Review your rankings in all 13 areas and list your areas of greatest concern.Book a call here and find out how you can move into the “above average” range as quickly as possible.

Here’s the link to the report one more time: “State of the Industry.”

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4 Surefire Ways to Get More Gym Members Without Discounts

To watch this episode on YouTube, click here.

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How to Get More Gym Members Without Discounting Your Rates

By John Franklin, Two-Brain chief marketing officer

As Black Friday nears, your rivals and big gyms are slashing prices.

I know it’s tempting to join the race, but discounting can do more harm than good for a premium gym like yours.

Discounting rates sends the wrong message. It suggests your coaching services aren’t worth the full price. This cheapens your brand and pisses off your existing members.

Instead, let’s explore ways to attract more gym members without discounting your rates.

With some creativity, you can win more new business than you can handle. Focus on what makes your gym unique and you won’t need to drop your prices.

Events: Give Members a Reason to Party (and Bring Friends)

This isn’t just a “bring a friend” day. We’re talking an event. 

The holiday season is ideal for social gatherings that double as growth drivers.

Every December, the local CrossFit gym I went to threw a Christmas party with a huge invite list. Over 80 percent of members showed up, often with spouses in tow. The partners connected with the gym community, which increased their chances of joining.

When I ran my gym, we rented a few tables at a popular beer garden in town and hosted a Christmas-themed party. It was a trendy local spot, and members often bumped into people they knew. This created a chance to introduce prospects to our gym.

Looking for inspiration on unique gym events? Take a cue from Mike Bouranis. He hosts a charity pumpkin-throwing contest each year.

The beauty of this kind of event? Those who enjoy hurling pumpkins probably also love lifting weights. Unique, memorable events are powerful community builders—and lead generators.

Protip: Host a big social each year. Make it the event of the season and use it as a low-pressure lead generator.

Run a Holiday Challenge

Holiday eating is a thing from Thanksgiving to Christmas, so this is the perfect time for a nutrition or habits challenge.

At our gym, we ran one called “Slim for the Chimney.” We charged $100 to $200 for personalized nutrition coaching. We encouraged people to sign up with friends or family.

This challenge wasn’t just about engagement. It brought in new people who experienced our services firsthand. Many of them stayed as members.

Here’s why a nutrition or habits-based challenge can work:

• Accountability: People are more likely to sign up with a spouse, often a non-member. This expands your reach.

• Personalized Coaching: Habit formation requires individual support. This creates 1:1 chats and chances to invite non-members to the gym.

• No Guilt: We’d run our challenge from the day after Thanksgiving to the day before Christmas Eve. With this schedule, members enjoy the holidays without guilt but stay on track between Thanksgiving and Christmas. It’s a win-win.

Protip: Keep the challenge community focused and make it memorable. From “Slim for the Chimney” to “New Year, New You,” a themed challenge gives clients something to rally around—and share with friends.

“Quick Check-In” Email on New Year’s Day

Jan. 1 is a goldmine for member conversion. Reach out to all your unconverted leads with a simple, personal message. Something like this:

“Hey [Name], are you still looking to get fit in 2025?”

This isn’t a hard sell—it’s a friendly nudge. After a season of indulgence, people are primed for a change. They don’t feel great, and they’re more inclined to invest in something premium—like your top-tier coaching package.

Protip: Keep the email short, personal and direct. A simple message can generate a surprising response, especially when it lands at the start of New Year’s Resolution season.

Bonus: The Black Card Campaign

The holidays bring people together, and members who look fit and healthy get asked “what’s your secret?” by friends and family. Every Thanksgiving, Giancarlo Regni of G-Strength runs a “black card campaign” to capitalize on this.

He gives each of his best members a premium metal card. They can gift it to a friend or family member for a 30-day trial at the gym. It’s a gift and a referral wrapped into one. Think of it less as a “discount” and more as a referral bonus for your best clients.

And because these leads come directly from your top members, they will convert at a high rate.

The first time Giancarlo ran this campaign, it raised his recurring revenue by $10,000.

Protip: Don’t cheap out on the cards. Make them look special so your members don’t feel embarrassed giving them to their friends. A service like mymetalbusinesscard.com can help you design something special.

Do Something but Not Everything

These strategies can help you attract more members without discounting your rates. But, as a gym owner, it’s better to focus on doing one thing well than trying to do everything. Using multiple tactics at once often causes burnout and produces poor results.

To choose the best strategy for your gym, book a call with a Two-Brain mentor. And start the New Year with a full gym.

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Burning Earnings: The Brutal Math of Discounts in Gyms

Let’s say you sell your coaching services for $225 a month.

Your profit margin is 30 percent, so as owner you earn $67.50 after the landlord, the government, the utility companies, the staff and everyone else gets paid.

You’d like to get more clients on Black Friday, so you decide to offer a 15 percent discount.

Question: Where does that money come from?

Answer: It comes from your share.

By slashing your profit margin, you earn less and your family earns less.

Instead of earning $67.50 for helping a client improve health and fitness, you get $33.75. Half.

But you’re not going to give 50 percent effort, and you’re not going to spend less time on discount clients. You’re going to deliver the same great service—you’ll just earn half as much.

This math is based on selling training services at $225 a month. Most gyms don’t do that. They don’t understand their own value and can’t communicate that value to clients, so they’re already discounting their services with regular prices that are far too low.

In 2024, the average big group gym takes in $167 per client per month (average revenue per member, or ARM), according to our “State of the Industry” report. That same study revealed the average gym’s profit margin is 22 percent.

Here’s the math:

$167 at a profit margin of 22 percent is $36.74.15 percent Black Friday discount: $25.05After-discount profit: $11.69

This is bad. If you’re only making $11 per client, you need a lot of clients. So you need a lot of space, a lot of equipment, a lot of staff, a lot of marketing—it spirals very fast.

I’ll take it one step further to drive the point home:

ARM of $140 (numbers like this are far too common).Profit margin of 16 percent.Profit of $22.40.15 percent Black Friday discount: $21After-discount profit: $1.40

You might look at this last scenario and think “who would do such a thing?”

Far too many gym owners do exactly this because they make two monster mistakes.

1. They don’t know their numbers, so they can’t do the math and discover that a discount is a horrible idea. Example: I know a gym owner who gave a certain group of members a 50 percent discount. They paid about $5 per class, so when three of them were the only clients in a morning session and the coach got paid $20, the owner had to cover the wage and fixed-costs shortfalls personally. He was literally paying for his clients to train, and he was working 14-hour days.

2. They think that if they sell more memberships, they’ll make up the discount in sales volume. Except it never works out like that. It’s hard to acquire and retain a huge number of clients. And—let’s be real—if you have low rates to start, after-discount profits are tiny, and multiplying them with new clients doesn’t solve your money problems.

One final issue: If you discount your rates for amazing service, it starts to make your service look “cheap.” That’s not what you want if you sell coaching. You don’t want to train bargain hunters for three months; you want to train people who see your value and will pay your rates for years because you’re helping them accomplish their goals.

And you definitely don’t want your current members to ask, “Why does New Guy get a discount when I don’t?”

 I make this no-discounts argument every year at this time because discounts kill gyms. We have the data. This is not hyperbole.

If my message has hit home, here’s how you start telling people that the price is the price.

Say This Stuff

1. “We don’t have discounts.”

Just say this when someone asks for a discount. Keep it simple. This line solved the “discount problem” at my gym almost a decade ago.

2. “We don’t play those games.”

Use this one when another gym is giving discounts.

Because the nature of discounts is subjective (it requires a human “decision” instead of an automated process), it’s always easy to cast doubt on the intent on the discounter.

When I was selling high-end fitness gear, we were always in a losing price battle against Sears and other department stores that ran frequent “sales” on treadmills. So when someone requested that we match a price or asked when we’d have a 40 percent off sale, we’d say, “We don’t play those games.”

It worked: You could see a visible shift in the purchaser as they became suspicious of the chains offering the discount. It helped that one of the department stores was sued for advertising a regular price on tires that it never actually charged—they were always on sale. I occasionally brought that up.

3. “We treat all our service professionals equally well because we know our service is critical for your safety.”

Members of some service groups receive discounts from other businesses, so they’re inclined to ask for them. The line above is the best one to use.

The service you provide to military personnel, police officers, firefighters and other safety workers isn’t five bucks off: It’s keeping them alive. Remind them (gently), and use the peer anchor if you need to: “No one else gets a discount, and you don’t want to be different from the crowd, do you?”

Bonus: If you’re a former soldier/cop/firefighter who owns a gym, you’ve sacrificed enough (thank you for your service). You should be paid fairly for your work.

4. “This rate is as inexpensive as possible for this level of service.”

Use this when someone asks why you’re more expensive than other local gyms.

First, don’t ever say “cheap” unless you’re talking about the competition.

Second, you’re sticking a wedge into the conversation: “for this level of service.” That phrase should prompt an opportunity for more explanation. But don’t expand unless asked.

Additional Advice

Don’t over-explain. All these responses consist of one sentence. The more words you use, the more handholds you give the person asking for a discount.

Keep it black and white. If you give a discount for one person in your gym, you’re ripping off everyone else.

Remember that your primary duty is to your current clients. Scrambling to recruit new clients with discounts your current clients can’t get is a breach of trust.

Don’t run through all the scenarios in your head before a conversation starts. You’ll be trying to “remember lines” instead of giving honest answers, which come naturally. Especially if you use response No. 1 above, communication is easy and transparent.

If they say “I’ll go join the cheaper gym,” that’s good. You don’t want everyone. Don’t pour your knowledge and care into fickle clients who are only after the cheapest rate.

Finally, don’t presume anyone wants a discount. This is the No. 1 error business owners make: We project our own budgets onto other people.

Lower Prices Require More Clients

Every time you give a 20 percent discount, you increase the number of clients you need to reach your perfect day.

You weaken your business and impoverish your family.

You know why no one ever asks me for a discount?

We don’t give any.

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“We Don’t Have Discounts”: How to Keep Your Profit on Black Friday

To watch this episode on YouTube, click here.

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