These three fitness studio owners are proving that no matter what’s going on, no matter what time of year it is, gyms can experience revenue growth. Period.
And Beth Crain, owner of Beyond Studios, and Jillian Fabar & Justin Gordon, co-owners of Extreme Body Shaping, explain how any studio can take their revenue to the next level.
All 3 have done incredible during Loud Rumor’s #2590 Challenge.
The #2590 Challenge focuses on helping gym and fitness studio owners increase revenue by 25% over a 90 day period.
So every 90 days, we want you to experience revenue growth by 25% over the course of a full year. That’s 140% growth. That’s the goal.
Before the 90 day mark, these studio owners surpassed their 25% revenue goal and they explain how they did it.
How Gyms Can See Revenue Growth At Limited Capacity
Beth Crain’s Beyond Studios gym hit revenue growth of 30% in 13 days before the 90 day mark. But it wasn’t easy…
“So our biggest constraint has been that we’re a reformer pilates studio. We need an exact number of machines. With the capacity and social distancing, we had to put about a third of our equipment in storage.” Beth says.
What the best, most successful gym owners do is pivot and move forward. They don’t wait it out, they figure it out. That’s exactly what Beth did… and she increased revenue during it.
“To increase capacity, we hired and trained more instructors so we could add more classes to our schedule,” Beth says, “So right now, we’re running almost 60 classes a week, which is about 10 more than we had when we closed in March!”
That’s not the only thing Beth did. It gets even better.
Beth put an emphasis on selling retail. This is key… and it requires sales scripts.
Revenue Growth Starts With Knowing Your Numbers
“We always had a very strong retail business between fitness apparel and then a little bit of supplements. On top of that, being a pilates studio, our toe socks are a huge part of our retail sales. That netted us $20 to $50 per member, per class,” she says…
“So I set a goal to increase that by $6 per member, per class. One of the biggest sellers, and it’s so simple: Water.”
One of the big things to point out with Beth’s success is how well she knows her numbers. That’s key.
Because Beth knows her CLV (Customer Lifetime Value), billings, what she has, what she needs, and how to earn what she wants to succeed through anything.
The long-term goal is 140% revenue growth over the course of a year… in less than 90 days, Jillian Fabar & Justin Gordon, co-owners of Extreme Body Shaping, increased revenue by 140%.
How Gyms Can Turn Their Entire Team Into a Powerful Sales Force to Earn a 140% Increase in Revenue in 90 Days
Jillian Fabar & Justin Gordon are brother- and sister-in-law and they co-own Extreme Body Shaping. Being located in Minnesota, they’ve been forced to operate at 25% capacity.
How does a business not only survive with that kind of limitation, but actually thrive and grow?
“Justin and I have been in business together for seven years,” Jillian explains, “Until recently, we were the only ones focused on growing the business. Our team did their job, and did it well. But they didn’t view growing the business like we did. It was just a job for them.”
“That shift changed everything for our business,” Justin says, “We built an entire team focused on increasing sales. From our trainers to our front desk, everyone looked for unique opportunities to hit their quotas and help us grow at 25% capacity.”
Everyone on their team looked for ways to bring in more people to their gym without having them take spots away from current members.
One of the ideas someone on their team came up with was getting some of the traffic from the Farmer’s Market across the street to come into their studio… on a day they’re normally closed.
“Our team came up with this sort of ‘Grand Opening’ idea that pulled a lot of new people and new business into our gym,” Jillian says.
When you empower your team, you lead them to generate sales regardless of their role… you train them, you role-play sales script with them, etc… you’re going to see exponential growth.
The Most Important Aspect of a Gym’s Revenue Growth is Asking
The book Ultimate Sales Machine did a massive study that proves this works.
What Jillian and Justin are saying about turning their entire team into a sales force and what Beth was saying about retail sales and water really works.
What the study found was that 33% of the members you ask to purchase additional products like water or apparel, will say “Yes.”
Think about the revenue increase your gym can experience with that alone.
On top of that, upsells and cross-sells actually increase fitness studio retention rates. It’s one of the major reasons Frank Nash’s Stronger PT earns 6.5X more profit and retains members 2.5X longer than the industry average.
The other key aspect to increasing gym revenue quickly is getting referrals.
Double Your Memberships For Free (“Double” Should Be The Minimum)
It’s incredibly rare that a member at your gym doesn’t have friends or family that live nearby and would want to join them for workouts. But have you asked?
Referrals are basically free and have the potential to double your memberships.
“The big thing is just having these conversations,” Justin says, “I had one conversation with a fitness studio down the street that was unfortunately shutting down, and that one conversation turned into nearly 20 referrals members.”
To piggyback on that, Jillian explains how a simple mindset shift can help you increase your sales and referrals, “One of the things that’s really helped is reminding myself that every phone call, every conversation is an opportunity to change someone’s life and the people they hold close in their lives… that alone has had an incredible impact on our revenue growth.”
Gym Referrals Create “Infinite Returns”
This is what Loud Rumor Performance Consultants and CEO Mike Arce call “infinite returns.”
Here’s how it works…
Unless they’re a walk-in or referral, you always pay to acquire a brand-new member.
You spend money on marketing and advertising, that drives in leads, a percentage of those leads become members, and each of those members has a CPA (Cost Per Acquisition).
From that point, you start driving down that CPA to next to nothing by converting on a cycle of referrals.
At the point of sale, you follow a referral script to turn that brand-new member into 3 more members.
Then, you turn those 3 members into 3 more members each. You’re at 9 new members from one paid-for member.
Keep going down the line. Those 3 new members become 3 more members.
This is the concept of infinite returns and why it’s so critical to have a referrals process and scripts in place.
The two final factors that can not only help you increase your revenue like these 3 fitness studio owners have, but also help you become the best leader and business owner you can be.
Gym and Fitness Studio Owner Community and Consulting
A lot of successful people from Jeff Bezos to Elon Musk are portrayed as having reached success all on their own. They were in their garages and their business took off from there solely because of who they are.
Only part of that is true. There’s always a missing aspect from the story that’s told about them, but they themselves will tell you the missing aspect: Community and Consulting.
The most successful people surround themselves with great minds and coaches. They’re always finding ways and seeking out people to help them grow.
Our most successful gym owners communicate with each other, motivate each other, challenge each other, and work with industry expert performance consultants.
Beth Crain, Jillian Fabar and Justin Gordon all do this.
They lean on LRVT courses, their Loud Rumor Performance Consultant, and the Loud Rumor Members Only Private Facebook Group.
Of course, they go beyond that as well, but this is their foundation for community and consulting. These three resources are solely focused on helping gyms and fitness studios grow and be more successful.
If you want to join and even get to know Beth, Jillian, and Justin, email me and I’ll get you set up with a discovery call and demo: firstname.lastname@example.org
No matter where your gym or fitness studio is at right now… no matter what is going on in the world… you absolutely can increase your revenue by at least 25% in 90 days.
BONUS: Beth Crain’s Final 90 Day Gym Revenue Number Is Astronomical
This is unbelievable…
While going through some of the successful stories from this challenge like Oskars Zapackis hitting 132% increase in 90 days, others hitting above 100%, above 80 and 90%, etc., Loud Rumor CEO got to Beth Crain’s results.
Beth Crain’s Beyond Studios in Texas increased revenue by 227% in 90 days. 227%!
“If things ever got really bad with my studio, I’d pay my rent, I’d pay my staff, and I’d pay Loud Rumor.” – Beth Crain.