4 Steps to Save a Failing Fitness Studio

Estimated read time: 2 minutes 4 seconds.

Dear Fitpreneurs,

Last week, we jumped on a call with a struggling studio owner (let’s call him “Fred”)

Fred has 3 membership options and can’t break through £6k per month.

Like many studio owners, he’s stuck, tired and in need of a plan.

So here’s the steps we put in place:

Step 1 - Get Some Time Back

Fred believed he had an acquisition problem.

But as we peeled back some layers, we realised his entire model was broken.

So we suggested cutting the 12 sessions per day to 7 sessions per day.

This will allow Fred to switch programming and increase capacity of each session to 1:8 (currently 1:4)

Now there’s less sessions in the day but more time to focus on growth.

Step 2 - Grow the ARM (Average Revenue per Member)

Fred is currently working 12 hours a day and can’t break through £6k/mo. That’s an issue.

A big reason is the 3 different membership options he has.

People want to be told what they need, not choose for themselves (they’ll choose the cheapest option).

That’s why every studio, at least when they’re starting out, should have one membership offer.

So we suggested he removes his cheapest plan and pushes everyone onto the other two.

This will take average revenue per member up by ~40%.

Sure, some members will grumble but the pivot is necessary if he wants to grow.

Step 3 - Fix Marketing Strategy

Fred currently has a front-end offer at £129 for 30 days.

We’ve seen first-hand the power of a 6 Week Challenge, so we floated the idea of switching to this and making it £249.

The extra cash up-front will not only attract higher paying members but will also subsidise a paid ad strategy.

This will present a nice flywheel so he can continue scaling the gym.

Step 4 - Refine the Sales Process

Now we’ve fixed acquisition, we can work on structuring the sales process.

Fred currently tries to sell his members on the phone (yikes) and doesn’t have any automations in place.

So we recommended all sales consultations are taken in-person and include the following:

• Visual Sales Deck

• Movement Analysis

• Body Composition Measurements

Remember, we now have 7 sessions per day—freeing up 5-6 hours for consultations.

The cherry on-top is Fred now has an opportunity to track all his metrics and make sales a breeze.

Final Words…

Fred is going to have to endure some initial pain here.

There will be tough decisions and some members will leave.

But a few people leaving is better than potential studio extinction.

If these steps are followed, Fred can look forward to a bright future. His studio can manage around 95 members and we projected:

• Revenue = £20,425

• Costs = £6,000

• Profit = £14,425

Now Fred can take a lumpy dividend, breathe and enjoy life with balance.

That’s it from us. Reply any time…

Cardy Brothers

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