In today’s episode of The GSD Show, Mike interviews Nick Page, of The Trainer Page in Ronkonkoma, New York. This 24-year-old entrepreneur has proven, in just five months, that he’s in it to win it. And he doesn’t even have a sign on the building! Nick began to actively focus on executing systems and processes, improving member experience, and raising gym membership rates with less than a 1% change in close rates.
From October 2020 to January 2022, they had 75 paying members. From January to May 2022, Nick drew in an additional 86 new members, a 114% jump! Watch the full episode here!
The Big Changes That Made A Big Difference
In 2021, The Trainer Page, a facility that focuses on the mental benefit of working out and offers what they call Sweat Therapy classes, was raking in new clients hand over fist, thanks to Nick’s laser focus on sales and new membership numbers. However, they didn’t stick around. After running the numbers, he learned that they lost over 250 members making his attrition rate an abysmal 20 to 25%.
He had to find out why members were leaving in droves so Nick picked up the phone and called every single one. While this was a humbling experience, it was also a huge opportunity to reveal his blind spots on everything from value delivery and staffing to engagement and follow-up.
Nick was so obsessed with getting new members that the people who were already paying him didn’t feel valued. Today, the Trainer Page team has slashed their attrition rate to an average of 7.5%. Members previously stayed only 4 months but now the average was 13 months.
He went out and asked his market what they needed and Nick made it happen. This level of skillful execution had a direct impact on the lifetime value of a customer and therefore his bottom line.
Do you want to understand your lifetime customer value so you can multiply your memberships and maximize gym profits? In this article, Mike breaks down the numbers you need to know!
Why He Wasn’t Afraid To Raise Gym Membership Rates
“I wanted to increase price in a positive way… Our most popular package, instead of it being $167 or even $129, now it’s a minimum of $149 but utilizing certain sales tactics I’m able to sell it at $199 in the beginning.
When people do pay more they will commit harder. One thing we do say is that we’re more expensive than all of our competitors. I’m proud to say that because our price is value. And when we tell customers that, they respect it.”
At the Trainer Page, they see 95% of people signing up the same day to waive the $99 sign-up fee. Even with the increase in gym membership rates, their closing numbers started at 68% in June and ended at 67% in July. Virtually no change in closing rate, further proof that raising gym membership rates isn’t all that scary. Actually, it’s a topic Loud Rumor guides many fitness studio owners through in our consulting program, click here to learn more about it!
The Lowdown On Experience Execution
With his previous disastrous attrition rates, he knew what he had to do. “One of the biggest things is how well we create a new customer experience,” says Nick, right before he shares that his location is in the basement of a semi-creepy unmarked building.
He knew if he could perfect all of the right things, the things he could execute on and control, while still in a less than ideal circumstance, the payoff would come later. When his location and facility are eventually upgraded, all of the systems and processes he worked hard to put into place will seamlessly align and Nick will then be free to simply capitalize on it.
Right now, the driven entrepreneur operates as the studio manager and hopes to semi-retire in early 2023 when he brings on an official Studio manager and Fitness Director. We have no doubt he’ll hit his goals.