How creating Efficiency and Restructuring Incentives Transformed Toby's Gym into a Profitable Cash Making Machine

fitness gyms profits Sep 01, 2023

Toby's Gym was on the brink of financial ruin and came to JEA for help.  Quickly we uncovered two crucial elements that could turn things around. We focused on the training ratio and bonus structure, with the goal of increasing efficiency and rewarding trainers for bringing in more clients.


To start, we streamlined Toby's training options, offering just three choices: 1:1, 1:4, and large group 1:16+. No more confusion or complicated combinations. We even sweetened the deal for new clients by prioritizing the days with more openings, ensuring smoother session sizes. Plus, we renamed classes as training sessions to emphasize their value.


Pricing was another crucial aspect. We set the rates according to the value each training session held, with 1:1 sessions priced at $999/month, 1:4 at $599/month, and 1:16 at an affordable $167/month. To ensure commitment and accountability, sessions were scheduled ahead of time, and a no-show fee was enforced. This approach not only helped customers meet their goals but also improved Toby's gym's profitability and reduced churn.


To optimize the schedule, we adjusted session times to a convenient 45 minutes. We also split the popular 6:00 am class into 5:30 am and 6:15 am, which resulted in two mostly full classes, instead of one packed class and two with less than half capacity.  The members were ok with the shorter, more intense workouts to get them out the door for work quicker with the same result.  Toby was ok with reducing his morning trainer payroll  from 3 hours to 1.5 hours as well. :)


But the real game-changer came with incentivizing the trainers. Toby's fear of losing clients to independent trainers was holding him back from unlocking their sales potential. However, the increased profits allowed Toby to invest in his trainers like never before. They received benefits such as payments for certification classes and cash bonuses, making it more attractive for them to stay than to go solo.


We carefully calculated the amounts based on the gross profit margin and the business's financial health.  This ensured that everyone made more money at the same pace.


Although the results were initially gradual, each trainer soon realized the lucrative potential of the system. Before long, Toby's Gym experienced unprecedented success, increasing its monthly training revenue from $35,000 to $60,000 within a year. The bonuses paid off, turning Toby's gamble into a significant profit.


Don't miss out on the opportunity to transform your gym's financial future and increase the amount YOU get to take home each month. Contact us for a free financial mini-audit and see what progress we can make together!

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