A Better Model For Burnt Out Gym Owners 3/3

Uncategorized May 27, 2020

Part 3 of 3

 

Welcome to the future. The Active Life Model is the path to ensure that the healthcare clinic of the future is the gym, and that the healthcare provider of the future is the coach. 

 

Base membership includes: 

  • Up to 15 on site workouts/month (that’s the most they will need)
  • Weekly group check in call
  • Custom program design for the first half of each on site workout
  • Individualized design for second half of each on site workout so they can be in the group
  • Personal coach
  • Quarterly goal setting workshops
  • Client mentor (this is for gyms we work with who get to the advanced level of our model in which their members mentor other members)

 

Base membership cost: $399-$499/month depending on the market you are in. 

  • Deciding your market price is based on your median household income in the town your gym is in.
    • < $50,000 US = $399
    • < $60,000 US = $419
    • < $70,000 US = $429
    • < $80,000 US = $439
    • < $90,000 US = $449
    • < $100,000 US = $479
    • > $100,000 US = $499

 

How you pay your coaching staff

  • You will need 3 coaches for every 100 members, and 2 coaches for every 50. You can be one of the coaches if you would like to. If you are one of the coaches, add the coach pay to the net revenue remaining after expenses seen below. The math below is based on the $399 model.

*We do  not recommend a standard personal training pay rate of $50/session, this is used in the model below as a placeholder. Our actual recommendations are based on demographic and cost of sessions.

      • $40/class coached
      • $50/training session
      • $65/program design
      • $0 for weekly group calls (included in programming pay)
      • $0 for quarterly goal setting (built in opportunity for upsells)
    • If your gym has 50 members, or 100 members, each coach’s base pay would be broken down as follows:
      • 50 members = 25 members/coach.
      • *Numbers below are representative of each coach’s pay.
        • 17 classes/week = 8.5 classes/week/coach ($340/week, $1,462/month)
        • 25 personal training sessions/month = $1,250/month
        • 25 program designs/month = $1,625/month

 

  • Total coach pay based on base membership revenue only (does not include additional PT sessions, does not include on ramp, does not include remote clients, does not include nutrition coaching, does not include ANY additional revenue streams available to them) $4,337/month ($51,044/year)
  • Total weekly coach floor hours = 15
  • Total weekly work hours = 21 (6 hours of individual design work/week)
  • Blended hourly pay = $48.18/hour

 

      • 100 members = 33 members/coach.
      • *Numbers below are representative of each coach’s pay.
        • 34 classes/week = 11.3 classes/week/coach ($452/week, $1,944/month)
        • 33 personal training sessions/month = $1,650/month
        • 33 program designs/month = $2,145/month

 

  • Total coach pay based on membership revenue only = $5,739/month ($68,868/year)
  • Total weekly coach floor hours = 19
  • Total weekly work hours = 27 (8 hours of individual design work/week)
  • Blended hourly pay = $49.47

 

 

As you can now see, one of the largest problems that plagues gym owners is now gone. It’s the problem of trying to explain to your staff why the gym growing is good for them too!

 

In the Active Life Model, staff not only make more money from earning more hours, staff also makes more money from getting a naturally occurring pay raise as the volume of work changes. Not only does the staff receive hourly pay raises as their client load goes up, they also get a pay raise as their efficiency improves. It’s a win, win, win. The coach wins, the client wins, and the gym wins. 

 

How these financials work out from a profitability perspective if you have 50 members and 100 members respectively, without you coaching a single class or having a single client to program for or train one on one in a demographic charging $399/month. The total income on base memberships in this gym would be $40,000/month.

    • 50 members = 17 class hours per week, 73 classes/month ($2,924 monthly class payroll)
    • 50 members + 50 personal training sessions/month ($2,500 monthly personal training payroll)
    • 50 members = 50 individual program designs/month ($3,250 monthly program design payroll)

 

  • Total Payroll = $8,674
  • Remaining money to spend on a manager, front desk staff, marketing, rent, utilities, etc = $11,326 

 

    • 100 members = 34 class hours per week, 146 classes/month ($5,848 monthly class payroll)
    • 100 members = 100 personal training sessions/month ($5,000 monthly personal training payroll)
    • 100 members = 100 individual program designs/month ($6,500 monthly program design payroll)
    • Total Payroll = $17,348 

 

  • Remaining money to spend on a manager, front desk staff, marketing, rent, utilities, etc = $22,652. Can you make that work, coach? 

 



Remember, if you want to continue coaching clients, you also get to add one of the coach salaries to your total income.

 

The model you just learned about is a model we are teaching gym owners to convert to at Active Life every single day. 

 

If you think it might be a fit for you, we would love to talk about it.

 

#TurnPro

 

Dr. Sean Pastuch - Founder / CEO Active Life



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