On this episode of The GSD Show, you’ll learn how the one and only Rick Mayo—the mastermind behind Alloy Personal Training—keeps members committed for 36+ months, increases their Lifetime Value (LTV), and sold 100 units of his new franchise within a year.
Inside the Mind of Rick Mayo (0:00)
There’s no cap on what you’re able to accomplish with your fitness studio. The reason you started it, probably won’t change… but how it grows and evolves, must.
Rick doesn’t dip into the trends or flavors of the month in the fitness industry, instead, “We’ve had the same brand promise for 31 years. Now, the things we do behind it, like the way we train it, the way we service it, have evolved.”
That’s why Rick started white-labeling what Alloy Personal Training does until it became a full-blown franchise. But here’s the key, his brand promise never changes…
Keeping Your Brand Promise (6:46)
In 1992, Rick Mayo had a vision for personal training that was actually personal. It was limited, exclusive, and all about the individual paying for a service tailored to them.
The evolution came when Rick “combined the specificity of personal training with the sociability of a group setting of up to six people.”
But, the brand promise is the same: Look good, feel great, and live life to the fullest.
For 31 years, this promise outlasted fitness industry trends, and a global pandemic, and remains the core of his highly profitable franchise.
Quick Tip #1: Member Habits
Help your members build healthy habits. Habits attract habits. This is where you go beyond the transformation your members see in the mirror, but their lives as a whole.
Rick Mayo on High Value Pricing (16:02)
“People come for the fitness goal, they stay for the community,” Rick says. So the key is to view your fitness studio as more than just fitness for your members.
People get together at Starbucks, church groups, book clubs, etc. for community. Which means…
“Can we systematize those things that will make us Starbucks-like (as an example) and the answer is YES,” Rick says, “and it means not compromising on the little things like greeting people within 10 seconds of them walking in, physical contact, all of those things matter.”
$300 a Month Membership
This system of community is also why Rick Mayo and all Alloy Personal Training locations are able to charge members $300 a month on average…
It’s true that charging more creates “perceived” value, but that doesn’t last if you don’t deliver on it. That’s why it’s high “value” pricing instead of just high pricing. For Rick:
- He has proof that his system works (creates belief).
- His available slots are extremely limited at a maximum of 150 (creates scarcity).
- Then, he builds personal bonds between members, and between members and trainers (creates retention).
At a high level, this is why Rick Mayo is able to charge $300 a month on average and retain members for 36+ months.
Even though Alloy is now a massive franchise, check out Rick Mayo: Grow, Scale, Retain, Repeat with One Move. You’ll see how his core principles haven’t changed—even back when he had just one location.
Quick Tip #2: “Surprisingly Personable” (20:29)
Rick actually budgets out personal touches to show members (and his team) how much everyone means to Alloy. “We’ll take 200 bucks and buy random gifts for people,” Rick says…
“I’ll give you an example, one of our members just moved from Chicago during COVID and she was unable to visit her dad. She and her dad love the Chicago Bears, so we bought her a Bears sweater. We told her ‘we know you miss your dad and you both love the Bears, so we got you this sweater and just wanted you to know we’re thinking about you.’”
Add “Surprisingly Personable” to your budget and look for opportunities to show members how much you care.
Increasing the Lifetime Value (LTV) of Your Members (25:55)
At $300 a month for 36+ months, Rick Mayo’s average lifetime value of a member is $10,800. That’s 10X the typical LTV for someone in the gym space.
“It comes back to putting more juice into being more relational with our members rather than transactional.” Rick says.
He also explains how solving a niche problem for a niche audience not only benefits you, your business, and your team, but your underserved avatar as well.
But when you serve anyone, or you have a broad avatar, you’re likely to experience a lot of churn. This is where LTV goes down even more. You’ll get members at $130 a month who only stay for 5 months—a lifetime value of $650 (versus $1,500 or $10,800).
What Rick Mayo Looks For in a Franchisee (34:03)
Knowing the value Alloy Personal Training provides to members, and the revenue potential of each location, Rick doesn’t compromise when it comes to finding the right franchisee.
“It comes down to two things: First, it’s the location—we’re not going to let you put it in the wrong spot. Second, is the people running it. We have to choose and lead the right people.”
This is why Rick and his team developed an in-depth screening process. With any position at your gym, even if it’s not as lucrative as a franchisee with Alloy, your screening process to attract the right people—on top of your training and leadership to help them be successful—makes all the difference.
As Rick says, I want to know “Can this person attract and lead good talent?” It’s important to be very intentional with who you hire. You’re investing in them. Good talent nets a return.
Rick Mayo’s journey in building Alloy Personal Training from a highly successful location to powerhouse franchise is nothing short of remarkable. His commitment to fulfilling his brand promise, implementing a unique training model, and building lasting relationships is worth duplicating.
If you’re a gym owner looking to grow your business and be surrounded by people like Rick, then you might be a good fit for our Mastermind program. Just a heads up, this is a limited training group. Not everyone who applies gets in. Learn more about the program by clicking the button below.