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Risk is the Essence of Life

In almost all small business, owners fall into two categories: the ones who simply focus on hanging on to what they already have and the ones who seek growth and are willing to accept a little risk in the process. The first category is called maintenance people and the second group is called risk takers.

 

Maintenance owners focus on just one thing: keeping what they have already achieved even if what they have is not enough to be successful over time. Owners that plan their month by just matching the same numbers as the facility did last year are examples of a maintenance management style. Owners who hang on to equipment for an extra year past its life span, put off painting their facility for another six months, rip-off programming instead of buying proven systems and who hire the youngest and dumbest staff because they can be hired cheaply are all signs that this operator is more focused on just keeping things going rather than trying to grow the business.

 

Risk traders are much more rare in small business and are willing to take a little risk if it will give them an advantage in the market, or if that risk will allow them to grow their business to a higher financial level. Risk is also where life is lived, out there on the edge where the best things happen to those who seek adventure.

 

Moderation, or seeking to maintain everything and avoid any extreme, is where life is lost. Who, for example, ever shouted at the birth of their child, or during a wild vacation, or even perhaps the day you first fell in love, that "Yes, it was an unbelievably moderate day?” I would rather drink the wine and do a few extra pushups than deal with the restraints of living a moderate life.

 

The risk takers are also the owners who market each month, invest early in proven programs, have a more mature and better trained staff capable of generating income and who are willing to sacrifice a little now in the business, such as painting the club as needed each year, in order to achieve higher retention numbers later. Risk traders are willing to gamble a little if it will improve their business and are the ones who seek growth rather than taking the chance of becoming stagnant in the market.

 

In any small business, only about 20 percent of the players make money, about 60 percent just do enough to stay in business and the bottom 20 percent need to get out and get a job somewhere because they should have never, ever, opened their own business. Risk traders are in included in the top 20 percent and maintenance people are the 60 percent and perhaps a small percentage of the bottom dwellers.

 

Perhaps the biggest problem with becoming a hardcore maintenance management style is that you end up relying on tools and techniques that are no longer effective. There are the guys still out there in the market place who keep doing what they did 10 years ago and now wonder why it no longer works.

 

For example, in today’s market there is pretty good evidence that most of worked in the 90s doesn’t really work today for the club or the member. Long, slow cardio has been proven ineffective for weight loss, crunches destroy your back, circuit training has about a six week window and then fails for the client, and most standard club business practices, such as the pursuit of pure membership volume, is getting harder to do since so many owners are now flocking toward low price and there are now too many fighting for a shrinking segment of the same market share.

 

Staying focused on what is important in your business is the foundation of what it takes to be financially successful over time and often is what separates the maintenance people from the risk takers who make money. The key to developing a focused management style is learning how to keep your business focused daily on creating revenue as well as learning how to project your business into the future over time. Focused management helps you avoid the new, bad idea and makes the need to chase the bright shiny distraction less appealing.

 

Part of a risk taker management style is learning to be proactive in your business instead of operating as a reactive to your competition and to what they are doing in the market. To become proactive, you need to understand the importance of planning. Every owner should have these planning tools in motion at all times:

 

·A plan for the coming month

·A plan for the next 24-hours for your staff

·A plan for the next 90 days for growth

·Other planning tools you will need in your business

·A12-month marketing plan

·A staff training plan

·A member service plan

 

Most owners are totally reactionary by nature. If the guy down the street runs an ad, you run an ad; if the guy down the street lowers his price, you lower your price; if sales slow down for a day or two, you panic and run crazy price specials hoping you can pack the club overnight.

 

The guy down the street is not any better of an operator than you probably are, but he is trying to move forward, and even a weak plan is better than no plan or no action. He too is running ads under the same conditions that you are in your business — without a long-term plan, and probably in reaction to current market conditions or to what he views his competitors are doing.

 

There are many problems with being a reactionary manager, but perhaps the main one is that you let business happen to you--you don’t make it happen or create the business you want. This means you’re not creating or growing your business, or your revenue, by a plan, but rather you’re letting your business be dictated by the surrounding, short-term market conditions. Another name for this is situational management, which means you react to whatever situation or catastrophe that is in front of you at the time rather then working off a set, well thought out plan that keeps you focused on what is important in your business over time.

 

For example, let’s say a club owner wants to generate 60 new memberships a month. Most club owners do set a sales number they would like to achieve that month and most do some random marketing and then hope for the best. Their sales people may be given a few quotas and the owner may increase marketing that month; but there is still no actual plan in place to generate sales. Setting a number is just a small part of focusing your business. Remember that it is not just setting the number that is important, but the "how I will make money and make that number happen” and the "what is my written plan to make money” that is really the most important part of the equation.

 

What kind of owner are you? Do you constantly seek growth and are willing to risk what you have now for something bigger later or are you the owner that thinks good enough is good enough and you struggle to keep what you have?

 

This also applies to employees too. Many people get stuck in jobs they hate because the known, such as a consistent paycheck, is a stronger anchor than risking your security for something you do love and that would move your career forward. The problem with this is that at some point you wake up, maybe at a birthday that ends with a zero, which is always an event that gets most people thinking, and you realize that a large chunk of your life slipped by and you are nowhere now and going nowhere in the future. Sadly, you become what you fear most, which is a dead end job with no future and no chance for you to become the person you should have been.

 

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Perfection is the Enemy of Success

There is no such thing as perfect in small business and seeking perfection can often kill what could have been a successful operation.

Seeking perfection is based upon the premise, "Build it and they will come.” This old movie line strongly states the belief system of an owner who wastes immense time and money trying to buy the perfect club.

This is the owner who will spends three days at a trade show going from equipment booth to equipment booth assembling the "perfect” line of equipment. He tries every piece, makes a list and then orders random stuff from 10 different suppliers. His belief is that if he can just find the perfect line then members will seek him out and stay forever because he is the only one in the market who knows equipment.

This is also the guy who builds a new club and then goes $2,000,000 over budget building something too big and stuffing it with every piece of equipment he could cram into the shell. His thought here is that he will crush the competitors since he has more stuff and a bigger club than anyone else in the market. He obsesses over every detail and spends more than the club can ever return believing that the biggest training floor and the biggest locker rooms will be the determiner between failure and financial success.

Even the big chain players fall for that trap. How would you like to put $30,000,000 into a club and then discover that you have the same retention problems that the little guy down the street has, the one who you laughed at when you opened against him, and that this huge box you created does little to attract and even less to keep members.

Even the trainer heads suffer from the disease of perfect. If only he can attend enough workshops, join enough mastermind groups and get enough certifications he will become the perfect trainer able to create the perfect workout. This is the guy who runs his own picture in the newspaper and on the website and then lists all his accumulated initials behind his name. This trainer also becomes the guy who is the most frustrated when he realizes that all that education makes him knowledgeable, but hasn’t done much to create wealth in his life. This is also the guy who can spend two days with the Cosgrove’s or Durkin and not hear a word they say about business, but who will walk away with 20 pages of notes about the perfect dynamic warm up.

What we have to realize is that perfect is not a business plan. In fact, the search for perfection is what kills many fitness businesses, and many more trainers, because at some point everyone realizes that there is no perfection and if there was, the clients couldn’t care less anyway.

We also have to realize that anyone who spends that much time and money to educate himself or build the perfect box isn’t doing it for the client, he is doing it for himself and his own ego. Perfection is all about you and little if anything to do with the client. We can lie to ourselves and tell everyone that when this big $9,000,000 gym is done it will generate big money by attracting members, but in reality, the box is nothing more than a monument to our own ego and is nothing more than a shrine to little dicks everywhere

What the clients do care about is results delivered by someone who gives a damn about them. If the member were really the target, then the choices would be different. For example, the owner who buys five treads each from every major maker tells everyone that he wants to give the members variety and that this concept sells in the market.

The truth is, however, that the members would simply love a lot of good treads that have adequate replacement parts so nothing stays down long when it breaks, and it will. Will a guy with six brands on the floor stock parts for all six? Not likely, but the ego part of the equation is that the owner got a lot of attention from the vendors, probably got some free stuff, and can be a rock god at the trades shows getting invited to parties and dinners.

Keeping the member in the top of mind position is where the money is made in the business, but often the member slides to the bottom of the pile behind personal ego, showing off to the competitors and creating a business that is a testament to your own self-satisfaction. This is why so many small training clubs make a lot of money; the trainer cares and gets results even if the place isn’t a beautiful physical plant and this is also why big boxes struggle these days. Members are beyond endless rows of equipment and actually want results, something the box players never designed into their business plans.

If the member was truly top of mind with the other trainers, the trainer would pick one guru to follow for information, attend a few workshops a year to stay current and then spend the rest of the time studying business, facility design and member service. The hardest part to grasp here is that once you achieve a certain level of competence as a professional everything else is then about delivering results to a satisfied customer, and all the information in the world is worthless if you can’t knock five pounds off a chubby housewife and then get her in shape over time.

The simple rule is that perfection almost always works against success for the member. Creating a member driven service business is the plan, but to achieve that you have to park your ego at the door and remember that the fitness business is nothing more than helping people get in better shape over time at a place where they are respected for the money they spend with you. Every decision you make has to reflect only one thing; the member has to stay at top of mind.

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Searching for the Perfect Club


 








Huge isn't Always Better

At some point you cross a line where just enough becomes too much.

One scoop of ice cream is nice; three becomes a stomachache. A few glasses of wine with friends makes for a relaxing evening, but after several bottles one of those friends often becomes a drunken ass. Muscle and strength is beautiful; too much and you’re a freak on Muscle and Fiction. And we don’t even want to start on the fine line between, "Wow, that woman is hot” and "Those giant fake boobs are so hilarious.”

Somewhere in the fitness world we also let, "More is better,” become the standard we all sought, but after searching for the perfect club for so many years I can safely state that enormous physical plants do not guarantee a good experience, and in most cases the bigger the club the worse the workout.

Fitness is shrinking and what used to take thousands of square feet can now be done better in smaller spaces. In the 90s, we used to put a premium on the size of the workout floor and every Gold’s Gym in America was proud to advertise how much workout space they had. It seemed logical at the time: the more space you had meant the more equipment you had, and the more equipment you had to use the better workout you could get. More meant variety and the larger the club the better it must have been outfitted for the ultimate workout experience.

Recently, I visited a large box club that was a part of a national chain. The club was over 100,000 square feet and I was there on a weekday night. It took me over 10 minutes once I was in the parking lot to find a space and get to the door. Check-in was packed and there was another 10 minutes getting a day pass. I was in this for over 20 minutes and was still no further than the front desk.

Just as I started back toward the workout floors, a sales person appeared and it took me another five minutes to convince him that I wasn’t a potential sale, but that I was from out of town and just there for a day pass.

It doesn’t seem like a big deal, but the locker rooms, which were also huge, were in the back of the club, which added a long wander about in a 100,000 square feet. Once out of there, I was off in search of the workout floor. This club had what seemed like acres of fixed plane, single joint circuit equipment with hardly anyone using it. The classes seemed to be going well, the free weight area had people and the small functional area was packed.

Working out in this behemoth was an exercise in frustration. We are talking about one of the bigger clubs in the country and yet there was no space for a warm up, there was no place to toss a med ball and there was no space to swing a kettle. If there was anything amusing about this place, it was that I found myself standing in a corner of a $33 million dollar club using a few dollars worth of equipment that the owners felt was secondary and stuck it in a corner.

Despite what they hype, working out with several thousand of your closest friends in not a sales point. This lack of space, the inability to move and workout, the shear waste of equipment and the stupidity of creating a huge club that locks people into tiny spaces are all reasons that not only the giant players are struggling but the low priced guys too. Somewhere along the line, the member has learned that it isn’t the tool that builds a good house; it is the skill of the carpenter.

What is the perfect club these days? To me it is smaller, with about 600 members max, has coaching for sale at various levels, yet I can come and workout on my own with a plan provided by the club. And what about the price? How much do you think the top 5% of the members of a $10 club or some mass production national chain would pay to get out of those hellholes?

The financial future of fitness, meaning which businesses will generate the highest net per member, is not trying to stuff an impersonal box with 10,000 members. The future is creating a service intensive, training-centric business where everyone who is a member gets the maximum help and, therefore, the maximum results.

If you own a box, the challenge is to create a price structure that allows you to generate a higher return from fewer members. This is a concept, however, that is so foreign to these operators that most will fail rather than adjust. Seeking volume as your only business plan must be like the person who takes that first hit of crack and then ruins the rest of his life seeking the next high. Training clubs with less than 750 members are generating over $2 million a year, which is often more than big boxes can do with 3000 members. Making that transition mentally seems harder than making if physically in the clubs.

The industry is changing and the perfect club in the future just might be that 6,000-10,000 square foot training club that has that intimate feel and that becomes something the consumer looks forward to several times a week rather than trudging through a giant parking lot and trying to get through a workout that must be endured or survived rather than valued.

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The Issue that Confuses Most Owners of Box Clubs or Training Facilities is Price

The issue that confuses most owners of box clubs or training facilities is price. When clubs hurt for business, the owner figures all it could be is the price, and immediately he lowers his price believing that once the price comes down, the memberships go up.

The low-price guys have believed this for a decade and the value chains, such as Planet Fitness, have built a company based upon price and the illusion that they exist solely for the beginner who is threatened by the bodybuilders, who don’t really exist anymore anyway. Talking about dated marketing: trying to scare a consumer with a boogey man that isn’t out there anymore. The low-priced guys are also now gobbling each other up like a starving jackal turning on its injured buddy. They are creating their own problems by mass copying of the same business plan by so many new players and those problems are going to get worse for them as more and more $9-19 players think the number is magic.

But what about the rest of us who don’t want to charge $9 for someone to rent a treadmill and who will never get any help as a member? You can compete against anyone if you stop chasing memberships as the primary source of revenue and start thinking differently about the market and your club.

The training clubs are killing the box clubs when it comes to generating revenue, but most box club owners just don’t believe the numbers these guys create in their businesses, or that they can do it in their own box. Selling nothing but memberships as your primary cash generator simply does not work anymore, and no matter how whacky you play with the $19 price, the volume will never be back again.

As I have noted in other blogs and on my Thomas Plummer Late Night Edition mini blog, if a box is doing a million a year in net membership revenue, but only about $84,000 a year in training where is the growth potential? Do you really think, with all the competition that is out there and more on the way at all price points, that you can continue to grow the million, or will you finally realize that the only growth potential left in the industry is getting the training revenue to match the membership revenue.

Most owners yell bullshit here because they can’t believe it can be done. Rick Mayo, owner of North Point Personal Training, generates $1.3 million a year in his facility, which is only 6,000 square feet. This business concept could easily be picked up and dropped into any box, such as the Gold’s Gyms that used to rule New Jersey for so many years, and in fact he is already doing this as a side business. But the number is so high it sounds impossible to achieve for guys who have spent their careers chasing nothing but memberships. It is hard to believe, but an owner who spends $4,000,000 to open a Gold’s can’t figure out how to get a few hundred members to pay for training.

But let’s look at it another way. Take $1.3 and divide that number by the 330 members he has, which equals about $328 per month per member average. You are telling me box owner that you have 2,000 members, but can’t find 300 who will pay more for some type of training? Even if you charge half of the numbers illustrated below, you can’t find 600 members in your base that would pay for the extra help and support? Rick’s prices, by the way, range from $99 for a template membership up to $2100 per month for unlimited 1/1 training, and this is north of Atlanta, not downtown Manhattan.

Of course these members are there, but no one can see them because everyone is blind from staring into the membership sun. Sell more memberships. Sell more memberships. Sell more… Try selling memberships, but sell the same gross dollar amount of training too each month. You would have to be a totally incompetent owner of a box to not be able to take a few hundred of your members out of thousands and turn them into training fools.

But to do this, you first have to realize several things. First of all, 1/1 training is too limiting and should be less than 15% of your entire training revenue. Secondly, stop selling sessions and packages dumb ass. There is not money in using this antique tools, just like there isn’t any money in paying aerobics instructors $40 per hour and then charging the members $19 a month. Just because we were once stupid doesn’t mean we have to stay that way.

Pricing has changed over the last three years and the emphasis now should be on showing the lowest price you can to attract the widest range of members along with a layered price structured that appeals to the different clients in the market sorted by interest, age and price.

Wow Thom, didn’t you use to teach us to be the highest price clubs in town? Yes, I did, but would anyone still be reading this nonsense if I was talking about the same things I did in 1995. Business changes, the members change, the competition changes, the economy changes, which all means you cannot use the same tools to make money we did 15 years ago. Many of you change spouses more often than you change your equipment or business plan. You will pay to get rid of the silly wanker you are married to, but won’t consider that your price structure and method of training are no longer viable and needs to be divorced too?

This also applies to training people too. Most training people build failure into their business plan by limiting their program to only the smallest segment in the market, which is the middle-age white business dude and his wife, counting on just 1/1 to pay the bills. Sessions and packages are also very limiting and have to be eliminated here as well.

All of Rick’s clients are on long-term memberships and the Cosgrove’s (Alwyn and Rachel), who could probably claim credit for virtually reinventing the training club model, won’t even do 1/1 in their club, and they are doing a million a year in 6,000 square feet with only about 280 members.

Here is a sample pricing model and whom it applies to in the market. This is the essence of what we will be teaching in 2012 in our workshops along with creating the role of the assessor who does nothing but feed the trainers. This model will have to be adjusted depending on the market. That means when you read this and yell, "This is BS, I charge $XXX per client now,” it means you have to adjust your prices for your market you anal retentive miscreant:

·Unlimited traditional 1/1: $899-2100 per month x 12 months. This is a guided program based upon full support. The more stuff you can add the more you can charge. The client would train with a coach 2-3 times per week and then be guided into other support training if he wants to come more often. This is targeted at the elite typical client most trainers seek.

 

·Limited 1/1 training, 5 times per month, no roll over for the sessions: $399 (based upon $80 per session) per month x 12 months. This is targeted at the elite typical client most trainers seek.

 

·Unlimited small group training (2-4 clients/members) offered at $249-349 per month with no limits on how many times he or she can attend: This is offered about 26-40 times per week depending on the clientele, age of the club and number of members. This tool appeals to a totally different segment than 1/1. Personal training is just to boring for too many people and there is an entire clientele that likes small group dynamics. This group will usually be in the 35-55 age range, a little more affluent and not the typical person who seeks 1/1 and the image that goes with it but also doesn’t want to be part of the big group energy either.

 

·Limited small group training (2-4) people per group, offered at $149-249 per month for 12 months: This group is limited to 5 sessions per month. Keep in mind that every level includes the one below it. This means that if you sign up for 1/1 training you can use the gym as you want, drop into small group or take part in large group training as you desire.

 

·Group personal training (12-15 per group with a coach): This is the heart of group pt and replaces your boot camp model. This is offered at $99-149 per month and is on the schedule for 8-12 times per week with unlimited attendance, although most clients die at about three times. This is tightly structured and you do the same workout for two weeks. This is nothing more than a group ass beating to music.

 

No one should be allowed to attend here unless they can keep up so beginners have to be brought up to speed using fundamentals for 30 days or so as needed. Contrast this with the small group that changes daily, is more intimate coaching and where everyone goes at their own speed. The client for this is not a 1/1 client. The client for this is not a small group client. The client for this is the 24-40 person who likes music, a challenge and the group dynamic. Most box clubs do not do well with this person and this potential member is happily doing crazy crap in someone’s garage somewhere because the box owner can’t figure out how to train this guy without a bench press, fixed equipment and curls, tools this client refuses to use or even try anymore.

 

·Template programs, offered at $49-99 per month. This program gives the client a workout/program design to follow for about 30 days. This is not personally designed, but more of a template. The training clubs would be on the high end of the rate and would spend about 20 minutes with a client once a month. The rate for box clubs should be about $20 more than you are charging for a base membership. For example, if you are charging $19, this would be $39. If you are already at $39, you can simply post workouts on the walls in the club that change weekly giving every member a "trainer” without the cost, giving you an advantage over the cheap players merely renting equipment and providing no help.

The keys here are that you are appealing to a wide variety of clients, there are price points for an even wider range of potential members and that you are offering totally different products. Do not make the mistake of trying to blend the levels by offering one of each product each month. This assumes that all clients are alike rather than targeting different clients for different products.

It is going to be a good year. Get your prices right, get your people trained, get an assessor in place to sell training and make some money this year. This could be your best year yet if you get ready for some change.

Next up for us is Charlotte, January 19-20 - Drop  by and get a plan for next year. 
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Joseph Chlubna 1 month ago
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Thom, so is every level based on a 12-month commitment or only the 2 limited options?
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Why the Trial Membership Works

Most of you are now working on your marketing for next year. The core element I still recommend; primarily because it is still such a successful tool, is some form of the trial membership. Here are the three main ways to use this tool and why it works:

The 21-Day Risk Free Trial

This is the tool that could be used by mainstream fitness facilities that do not have a lot of competition. Do not forget that all marketing is supposed to do is to get leads in the door. Many rookie owners get upset that people show up but no one signs up. That is a sales problem, not a marketing problem and the marketing worked if someone comes through the door.

In this trial, the guest would get full access to the club and should be part of the group personal training or small group offerings. Remember that if you treat them like members they become members.

This also replaces the older 14-day trial we used to recommend. The 21-day is a smarter version that has proved to attract more leads and has more perceived value. Do not use this tool to attract potential members, get leads into the door, and then drop close the person the first visit hard. Trial works because people expect to get a few visits in before they decide to become a member. Lying to them by promising them a trial and then banging them hard once they are in the door will work against you over time.

I still believe in offering incentives, such as a kick ass messenger bag and a free month, if they sign up by day 10. Incentives still work if they are positive and you should be thinking carrot not a bull whip on the ass, which is what the old take away drop the price today and today only close is.

The Paid Trial Membership

If you are a mainstream club, run this at half your monthly. For example, if you charge $39 per month for one member then run a paid trial for 30 days @ $19. If you are in a super competitive market, then you might try 30 days @ $9 to mess with the low price guys down the street.

Training clubs should be in the 30 days for $49-89 range in most markets except in New York or other major metro areas where it could be as high as $129. Again, most trainers fight this concept because they are afraid they have to train too many people too cheaply, but put everyone into groups if you can and give yourself a chance to get some new blood into the business.

Most training clubs average about 4-7 new sales a month but you can’t grow until you average 15 or higher and you can’t do that if you don’t get leads into the door. Also remember that you can be too elite and many of you slowly starve your business because you are so worried about offending the 20-30 clients you started with your first few months.

Closing rates for all trial memberships of any kind should be about 60-65% of everyone through the door over a 30-day period of time. If someone starts at the end of month, just count that person in the month they sign up and don’t go back to the first month. All we are looking for here is gross average and the number of new members you get over a 30-day period.

The Extended Paid Trial

I like an extended paid trial that allows the guest to get fully involved over a longer period of time almost as a course they would sign up for at a community college. Phil and Michelle Dozois and Alwyn and Rachel Cosgrove both do forms of these quite successfully and we have had huge success in our women’s-only club on Cape Cod using versions of the Biggest Loser to attract women we now know would have never shown up through any other marketing.

You can call this program NewYou60 and it is targeted at the person who is not experienced in fitness. It is an extended trial for 60 days and includes everything you can offer, such as nutritional guidance, full training, full classes and anything else you can throw into the mix.

Pricing for this depends on the market but you can be aggressive here. If you are using it as a true trial, keep it in the $69-99 range. If you have the stuff and team to add value, then price it in the $149-249 range and include items such as workout journals, team weigh-ins, tee shirts, etc. that give it a course feel.

This would work well in markets where you have competition but you also have been marketing for a while and need a new tool to pry out those leads that haven’t responded to the paid trials.

Use one of these for your marketing starting in January and stick with that tool for at least 90 days. You can mix these and follow one, 90-day period with another using a different tool since each one is designed to target a separate potential member.

Remember that "to know you is to love you” and that trial marketing is designed to get leads into your club for an extended period of time where you can prove your patience and caring attitude. As always, you are still looking for a 60-65% overall closing rate, or conversion into regular members, no matter what trial you use.

Market well and kill it next year.

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We Chose to be Who We Are

Perhaps the most amazing thing about the broken housing market is the blame game that everyone connected seems to playing and the complete lack of any type of responsibility by anyone, which is also something I see everyday in this industry too.

 

There was an article on one of the news services talking about how bad the housing market was hit in the lower west side of Florida, and although it is showing signs of life and coming back, there are still many homes in foreclosure and people in trouble. The troubling part is that no one, and I mean absolutely no one, is accepting any responsibility for the position they are in now.

 

One particular woman stood out. She rode the wave, cashed out of her house, acquired a new loan, which of course was done with little down and little qualification, and purchased a house dependent on her ability to pay her bills if nothing at all changed in her life. She also took the cash equity she had accumulated in her first house and spent it on a car, trips and updating the new place.

 

Now she lost her job and is getting foreclosed and is blaming the terrible banks and mortgage companies for "letting” her get into this mess. It also went on to say that she cashed out the equity and spent it, saved nothing, had little reserves and in other words should have never, ever been in that new house.

 

Why doesn’t anyone blame her for being stupid? She made the decision, she spent all her cash, she saved nothing and she signed the papers by choice. Her situation is 100% her fault no matter how much she whines and no matter how sad the situation is.

 

Sadly, there are too many fitness business owners in the same situation. They hire stupid staff, don’t train them, follow 13 different advisors looking for the magical cure, leverage all their money into ego projects, refuse to change when things don’t work and then blame everyone else for their lack of money, failing marriage and failing business. People arrive at bad places in their life through a long string of decisions that constantly lead to the present. You not only made the first decision, you probably made them all and where you are is where you deserve to be.

 

Here are a few rules of life and personal responsibility that can be listed in just a sentence or two:

 

  • You hired them, they are only as good as you make them: Too many managers or owners are so insecure that they hire people they can step on or dominate and end up with people that can’t perform at any level. Don’t blame your people, blame the person who hired them and then didn’t train them. Bad employees who are constantly in trouble? Stop hiring children and start hiring adults and always try and hire people smarter than you are.
  • If you are wearing it, you ate it: Fat is self-induced. Lack of fitness is self-induced. I would like to blame my travel schedule for 10 pounds but it is my lazy ass that won’t get up before the workshops and move.
  • If you’re unhappy in your marriage, you are the one that agreed to get married. Stop blaming your spouse for not "letting” you reach your potential. No one is holding you back except yourself and your unwillingness to fight for what you want. Yes, your significant is a pain in the ass and if you don’t like it pick up your ass and move it somewhere else.
  • If your kid is a prick it is because you made him that way: The schools didn’t ruin the kid. The friends didn’t ruin the kid. You had him and he is a prick because you didn’t do the work.
  • If only my boss would….: It isn’t your boss that is stopping you from being brilliant, it is your inability to stand up and get a job you like and can do. It is smarter to work hard in a job you love than being forced to work hard in a job you hate and now you have to bust ass to just keep a crappy job.
  • If you’re broke, stop spending money: I know your cell phone is six months old…poor you, but walk away from the spending the money. If you don’t have six months of reserve capital for your life in the bank you don’t understand money. This is especially true if you are still living in your parent’s house, but drive a nice car. Grow up, get your own place and own life and be thankful that you realized what a loser you are and moved on.
  • But you don’t understand how bad this area is: I do understand, which is why they make big bus things to haul your butt to cities where things are better. Yes, sometimes you can’t simply pick up and leave but more often than not you can make a break. Seek the money and where it can be made.
  • I tried that once and failed: Everyone fails and that means everyone. Failing at something doesn’t mean you are a failure; it just means you weren’t ready for the adventure. If you do fail, take the responsibility and move on and just win bigger next time.
  • My parents are anchors: There is often truth in this one but if you are over 18 ignore the bad advice and do what you have to do. Letting the mistakes of your parents ruin your chance of ever trying is wrong on so many levels. Parents want to protect their children but you have to try, fail, try and win before good stuff will ever happen. Learn from the younger kids and just ignore the old people.
  • I am not good at…: Not good at sales? Take a course. Not good at program design. Take a course? Not good with money. Find someone who is and have that person teach you. There is a big difference between being uneducated in something and just plain stupid.
  • Weird personal habits getting in the way? You choose to smoke, drink too much, eat too much, cheat on your spouse too much, do drugs too much, waste too much time and whine too much. All that can end today.

 

Personal responsibility is what separates the doers and makers in our culture from the wanters and the needers. The current slang now is the "1%.” This group of people control wealth and make money because they have taken responsibility for who they are in life, the companies they build and the wealth they create.

 

The grunge guy in the sleeping bag at the park, who still lives in his mother’s basement and smokes a few dozen doobies a day (yes, showing age here) who cries unfair has yet to take responsibility for anything in his life. Have big school loans? You now have an education and if you couldn’t afford it then don’t go and no one made you major in novels of the 17thcentury.

 

The quality of your life is simply controlled by the responsibility you choose to accept versus the power you are willing to give others. Stated again, we chose to be who we are.

 

Comments
Pete Visintin 1 month ago
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Very real and very true. Thanks for sharing Thom. It's easy to take responsibility for the good stuff, but it's only when you take responsibility for the bad stuff that you can start to move forward.
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Where Will You Be in Your Life Five Years from Now?

This simple question has also become the most powerful question I can ask anyone who has come to me for help and guidance through the years. My point is, if you don’t know where you are going then no one, including me, can help you get there.

The point of this discussion always returns to one of the most basic concepts of personal development: if you know where you want to go we can build a plan to get there together, but if you are unclear on the direction you wish to travel there isn’t a person in your life who can offer guidance that matters.

It is save to say after over 30 years of coaching and mentoring, I can bluntly say that most people have no idea of what they really want from their lives, but most seem oblivious to the question and what it means in their life. But if you continue to ask more deeply you will also hear that these same people are fairly sure that they don’t have "it" yet. "It" is defined as the big thing, the meaning of your life, the goal you believe you should have that will lead to a fulfilled and satisfying life.

The point of contention is, just what is "it?" In other words, would you recognize "it" if it ran you over with a bus? "It" for most people is defined as something out there in the future that they will figure out someday but right now they would rather not think about it too much. Thinking requires growth and for many bus tracks on your back are preferable, and easier to take, than a few hours spent working and defining what your life could be.

This lack of definition leads to the randomness in so many of the careers of the people I have met through the years. Too many in our line of work are simply doing whatever job was available and it is rare to find anyone who has planned his or her life's work.

Most are doing work they don't like, for people they don't respect, living in towns that don't interest them and even stuck with significant others that they might have outgrown years ago and who work against finding your own direction and fulfillment. The first step toward achieving personal growth, and defining a life that you create yourself, is to take responsibility for your own life and choose to live at a higher level rather than accepting whatever comes your way. Again, why should you just take what you get rather than go after exactly what you want in your life?

Life is motion, and the process of constant progress toward a fulfilled life is the most important work anyone can seek. Happiness and satisfaction are the result of this progress, which can only be defined as your ability to set, target and achieve what you want, and only what youwant, and not wasting your life chasing the dreams of others.

What magic are we seeking here? Focusing your life forward, and answering where will you be in five years, is the simple act of writing goals that clearly state what you want, when you want it, and who you will be personally when you get there.

Focused goal setting is the tool you use to set your life in motion. We all have dreams that keep us occupied during idle times, while doing boring work or during that last five minutes before we fall asleep. But these are just dreams and fantasies and none will ever be achieved unless you constantly create written goals to turn those dreams into reality.

What is a goal? Goals are definable targets set in the future. Definable means that once you achieved, you can clearly recognize that you have accomplished that step in your life.

Achieving goals requires you to focus your energy, time and thought into the process by first stating the goal and then working backwards by developing all the small steps it would take you to get there. For example, if you want to own your own business, you might first clearly define what this business will look like, how much money does it take to build it and where will this business be and how it will work.

Once you know this, you can create a series of steps over time to get there. In other words, start with the goal at some date in the future and then build a series of steps in that time period working backwards to get there. If it is a worthy goal, it will take more of everything you have and are to reach it, and often the bigger the goal the more reward on arrival.

It is important to understand that goal setting is just not "things.” Goal setting is who you want to be someday, where you want to go professionally, how you want to live your life and what you want in that life.

This information, and a new workbook I am creating for our clients next year, derived from what I have called the Starbuck’s moment. For over 25 years I have gone quarterly to the corner shop and set for several hours projecting my life ahead. What do I want to achieve in business? How do I want to improve my life? What do I want to learn? Where do I want to live and how much money do I need to get there? All these questions and more filled many journals over the year and the process has defined my life and has kept me focused on the things that make me happy and that lead to the biggest rewards while keeping me from chasing the flash of the moment that is bright and shiny but doesn’t get me to where I want to be.

Over the years I have been teaching this quietly to clients and asking them to do the same thing before we work together. As noted above, if they know what they want then putting a plan together to help them get there is a lot easier.

An outcome of this teaching is that a consistent theme appeared, which became Life in 3s™. Just set 3 goals, today, this week, for the month, for the year, for three years and for the next five, and you will achieve more than you ever thought was possible. Mastering goal setting is simple: get three things done today that moves you toward the big things and those larger life goals will take care of themselves. One day at a time focused on getting just a few things done that makes you happy and that will lead to a life fulfilled.

The Art of Setting Goals

Setting goals is not hard and the word "art” refers to the fact that goal setting is personal and will reflect who you are and what you want. Here are a few guidelines to get you started. The exercises themselves will help keep you focused but after awhile you might just resort to blank journal for your quarterly review:

  • Write the goals as if they are already done: For example, "I will be living in Denver, Colorado in five years working as a chef in a downtown restaurant.”
  • Concentrate on what you want in your life and eliminate what you think you should be doing to satisfy others. It is your life and you need to live it on your terms chasing your own dreams.
  • Don’t be afraid to write down everything that pops into your head. Keep your work private and don’t be afraid to write what you really want even if it would be embarrassing now for someone else to read it.
  • If it isn’t in writing, then it isn’t real. Goals written become the threads of your life. Goals unwritten remain dreams.
  • Forget the limits. Think big and create big.
  • Goals equal time/How much time do you have left in your life and what are the most important things you want from that time
  • Make the goal so clear you can visualize and see it in your head
  • Don’t forget the small goals
  • Write "I am” rather than "I will”
  • Realize that goals will change over time as you age and mature
  • Write every three months (your Starbuck’s moment) for the rest of your life/In a life fulfilled there is always more to see, do and accomplish
  • Accept full responsibility for your life. Your life is your fault and there are no excuses or no one to blame. Living in the past achieves nothing and the future seldom turns out as bad as we fear. Live today, set a path for tomorrow and take full responsibility for who you are and who you will be

Areas you might explore during your goal setting session and some examples:

 

  • Personal development (finish a course/sign up for a workshop/take camera courses/work on your personal health and fitness)
  • Family (spend time with your parents/plan a family vacation/quiet time with your significant other)
  • Money (new ventures/growing your personal income/financial planning/retirement goals/expanding your business/start a savings plan)
  • Career/occupation/your life’s work (getting further education for your job/attending workshops/learning new skill sets that give you an edge/planning to change careers and what you might need)
  • Fun/trips/adventures (run a marathon/enter a triathlon/plan a ski trip/plan a month off to hike the mountains)
  • Future dreams (anything counts here that is important to you/career changes/major life changes/moving to the city of your dreams/opening your first business/getting married)
  • Retirement (how much will you need/when is the date/when would you have enough to live your life on your own terms even if you decide to keep on working/where would you want to live)
  • Spiritual life/giving back in your life (If you have a good life what are you doing to give back or share with others/what are you doing to explore your spiritual side)
  • Your business (what can you do to grow it/where is it going/how will you eventually get out of it/do you want to open another one)
  • Toys (what toys, loot, personal goodies are on your someday list)

 

Here are some exercises you can use to get started. These are only just a guide and the more often you work with these the more variables that will pop into your head. The first time you do these, you might do them in this order:

  1. Your Day in 3s: What three things can you do tomorrow that will move your life and your dreams forward? Buy a box of index cards and write three things, one on each of three cards, and carry those cards with you that day. Don’t end your day until those three things are done. Do this every single day, even the days you don’t go to work. Remember that the single item on the card might be anything from calling your parents to enrolling in an advanced course. Just three things, done everyday, add up to a solid three months of accomplishments.
  2. List three things you will start tomorrow, and make them part of your life for the next three months, that will enrich your life. (Examples: spend an hour a day reading to your children, spend 30 minutes walking and holding hands with your spouse, calling old friends or mentors, reading something everyday for 30 minutes that motivates you)
  3. List three things that you will get done during the next 30 days that will improve your career, your life, your money, your business and your family, or any other area that is important to you.
  4. List three things that you will do in the next 90 days, which might be part of the smaller 30 day goals, that are important to you
  5. Where will you be one year from now? What do you want from your in one year? What do you want from personal development in one year? How about your business, family, community, friends or life. You might have three things for each of the categories.
  6. Where do you see your self three years from now? Write three big things you want to accomplish in three years in all the categories listed earlier.
  7. Where do you see yourself in five years? Where will you live, what will you own, where will you be in your career, how far are you along in five years financially and toward your next life and career?
  8. What three things have you left undone in your life during the last few months, or longer, that you need to fix (a fight with a friend, a client that left angry, old arguments that were left unsettled that make no sense now). Fix them now and move on. Leave nothing undone because you many never get a chance to fix it.
  9. What are the three "Big Things” you want from your life? What are the three biggest things you want to accomplish in your career, life, business, or personally? Remember that these can change as you grow but write three things down during each session.
  10. What are the 25 things you just have to do before you die? Write this list and start checking things off now. Why wait until you are too old to care?

This is by no means a complete list but it is a good start. Remember that the act of writing something down makes it real in your mind and you will be surprised how much of your list gets done between three month sessions. Start now, take care of yourself and create the life you want.

Comments
Joseph Chlubna 2 months ago
Poor Comment Good Comment
I've always appreciated your no B.S. style of writing, but it has really gone to a higher level recently. I love the fact that you are speaking much more to the "life well lived." Goal setting scheduled for the 25th. Thanks Thom!
Frank Kole 2 months ago
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Going to share this with the staff this monday at the staff meeting! Thank You!
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A Fitness Life in Motion

  Fitness is Motion—Motion is Life

Simple words and maybe the forgotten essence of what fitness really should mean.

Fitness should be defined to our clients as the degree which they can enjoy life. Fitness should set you in motion and motion is the very breath of life itself. Workout now and live longer. Seek a higher degree of personal fitness now and live a higher quality life later. Motion is freedom and the degree to which you can move determines the amount of freedom you can enjoy and retain throughout your life.

The problem with all of this is that we so often confuse the act of fitness with the results we seek. Far too many of us associate going to the gym as the act of fitness itself and the only way to get fit is to endure hard work in the beginning for a nebulous goal later that somehow states we are now, "fit.” If you are an old bodybuilder, the only definition of fit is muscle. If you are a cardio freak, then you define fitness as long workouts requiring high energy. Every specialist has his own definition and that definition is right for him but usually wrong for everyone else

Look again at the first statement: fitness is motion and motion is life. Motion is walk on the beach, or a gentle run through an early morning sun touched forest. Motion can be dance, gardening, animated sex or an extended tour through a new city. Motion is also biking with your kids, throwing a ball or chasing your grand child around the yard. Motion leads to fitness and fitness leads to a better life.

Sadly, we have become too pure in our definition of fitness and this affects how we treat our beginners in the clubs. We set impossibly high standards for almost all of our members by telling them that fitness is a structured activity that requires serious record keeping and at least six days a week of intense effort and sweat. Many of the current fitness books even claim that fitness can’t be achieved by mere motion but that it has to be intense in nature coupled with defined changes in the body meaning that walking and other sources of pure motion don’t even qualify as exercise.

This is all true if you are chasing advanced fitness coupled with looking fit, but most of our clients just want a better life but not always a great body. Fitness in motion is just plain feeling better with less stress and pain in our lives and is often associated with an overall stronger sense of well being. Move today and feel better tomorrow. Is losing weight and looking better the ultimate goal or should we lower our expectations and settle for simply a higher quality life through daily movement doing whatever feels good?

Is it really that simple? For fitness professionals the answer is no because the intensity it takes to achieve advanced fitness isn’t there. If you are a deconditioned female that is 40 pounds overweight; however, movement today can be life changing tomorrow and after a few months she is in a better mood, chasing the kids, riding a bike and having better sex. Movement is change and change is often accompanied by a new confidence. No, we shouldn’t stop chasing perfection, but maybe we should realize that fitness is relative to the client and her dreams and shouldn’t always reflect our narrow definition of what fitness is or should be.

This may be why we only have 16 percent of the population in this country in clubs and why we are over 62 percent in the overweight or obese category. Our definition of fitness is so severe, as defined by the masterfully portrayed negative image on the Biggest Loser, by the trainers who create an association in the audience’s minds nationwide that the only way to fitness is through pain and humiliation. Maybe fat is a better choice compared to having a semi-naked and abusive trainer in your face trying to embarrass you on television and in front of your friends. If it is that way for them on this television show, then it must be that way in every gym in America.

Fitness is life itself and any movement adds to the quality of that life. When you’re working with beginners, remember that what we consider fit may be something still in their wildest dreams and the standards we take for granted may represent something that is many years in their future if they ever reach that level at all.

When you work with someone new, concentrate on motion. Get them gently moving and keep them moving doing something that is fun and playful. Just taking some of your members to a park and kicking a ball and chasing each other in a game of tag might be the highlight of their week.

In our world, we are the coaches that set people in motion and there might not be anything more satisfying than realizing that what we start may lead to a life well led in their future.

Comments
Joseph Chlubna 3 months ago
Poor Comment Good Comment
I love that title Thom! On point as always.
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The Plummer Rules of Gym Etiquette

Good gyms are hard to find.

I want a lot of good equipment; space to move and play, a staff that doesn't come unglued if you do any kettle bell stuff and some place that is clean and decent. But I also realize that it is often the members that ruin a club visit and not the owner or staff.

Working out on the road is by the way always an adventure in the bizarre. Based on too many workouts done in alien clubs, I have come to the conclusion that there are now many more disgusting members working out than in past years. Here are my rules for the tribe of pathetic, nasty gym losers that give a struggling local owner a bad name:

You, the poseur! I don't care who you used to be. I don't care that you used to be big, were tough, scored a few touchdowns in high school or were the meanest guy in your fraternity. Dude, you are now in your 30s and you are a disgusting mess. Finally, by all that is holy in the fitness business, lose the string tank top. No one, and I mean not even the woman who has just walked out of prison after 30 years, really thinks that tuff of gray, scruffy chest hair works for you. You are fat, your kids are fat, your woman is fatter and those meaty arms you are so proud of are 13 inches of muscle surrounded by 4 inches of jiggling hamburger fat. Get a shirt, put down the bench press, walk away from the leg press and try a little full bodywork.

You, stinky man! There is no excuse to stink when you work out. Here is an idea stinky boy; try a clean tee shirt or shower before you work out, try some deodorant and stay away from too much garlic. You stink, we know it, and we hate you.

You stinky girl! Perfume is nice if I am drunk and it is 2:00 o'clock in the morning. Perfume is offensive if I am working out and you are standing next to me at 6:00 in the evening. As before, you stink, it is not sexy, it isn't your personal style and you are killing us out here.

You, old man in the running shorts! Reality check here for you old guy. Yes, you have had those shorts for 16 years and we know you take great pride in wearing the same outfit every day year after year, but you are scrawny, have a bony chicken ass and any short cut that high on the side lets far too many people see junk that was out of service when Carter was president.

You, body builder dude! Screaming is stupid. If you can't put it down, then don't pick it up and leaving plates on the leg press doesn't mean your huge, it means you have the penis of a sterile chipmunk. Grunting, dropping weights, leaving bars stacked, carrying jugs of green nasty crap and wearing 1990s clothes is not cool but only validates why there are only seven bodybuilders left in America.

You, horny boy! Women come to the club to have private time, get a workout in, relax without pressure and to enjoy just a few minutes of me time a day. They aren't there as your personal stable of potential dates that are sweating for your pleasure. Don't stare, don't flirt, don't wait for them in the parking lot and don't ask them out ever.

You, cell phone idiot! I don't care if you are the president of the biggest financial company on Wall Street. Talking big and loudly on a cell in the club is poor taste and only confirms that your daddy gave you the job because you are a moron. Have to take the call? Then walk away to the lounge but I do not want to sit two feet away from you and here your call. If you can't live without the phone then workout at home where you can irritate your future ex wife and leave the rest of us alone.

You, spit fool! Whatever possessed you to think that hocking up a goober the size of a house cat and then spitting it into the drinking fountain is socially acceptable? Do you really do this at home? Do you do this at work? Are you just f@#$%*ing stupid?

You, BMW boy! Hey nice you can finally afford that new 7 series car but parking it across two parking spaces so it won't get dinged is like putting a sign on it inviting anyone with anything sharp to gouge every inch of paint you have. Two spaces? Park it way out in the lot and enjoy the walk.

You, fat girl! It is your fault you are fat. Stop blaming your ex, your boss, your genes, your job, your kids, the trainers and your life. If you are wearing it then you ate it and you won't lose it until you move it. Weight is not accidental, it is usually an insidious process that takes years and only one person in the world can change the course, and that is the owner of the big jiggle herself.

You, lying members! You signed a membership agreement with the club and now you are too lazy to workout so you lie to the staff because you don't want to pay anymore. Try a little personal responsibility here and pay for what you signed for. Clubs are not gold mines, all those cars don't mean a lot of money and you are a liar that would be indignant if that happened in your business.

You, seat saver! Hurray, you got to class early but do not try and save bikes in the front for all your friends. One member, one bike and let the next person in take their own chances. You drive members away by being rude and you aren't paying nearly enough for the owner not to throw your ass out.

And the rest of you rude members out there, pick up your garbage, don't pee on the seat lids you disgusting human piece of trash, don't flush your personal thingies down the stool, don't leave gum in the urinals, wipe the sweat off the benches, don't shower and then get your soaking wet ass on a scale, don't stand there naked lecturing me abut the economy, don't hog three pieces of equipment because you just read about tri-sets in a magazine and don't by any chance try and offer advice because you have been working out wrongly for 15 years.

Owners have hard enough time without trying to make adults out of immature idiots who have no respect for anyone around them. Be courteous, be nice and help make the club a decent and enjoyable place to go.

And most importantly, to you fart boy, you might be the rudest of them all. There is a special room in hell for you populated by hundreds of flagellant factory workers amped up on cheap beer, hot wings and shots of bourbon just waiting to blow you into eternity.

Comments
Joseph Chlubna 3 months ago
Poor Comment Good Comment
Amen, Thom! Sadly true and hilariously stated. Can I just post this on my wall and give it as a hand out to the newbies?
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What is Really Killing the Low-Priced Guys

This will qualify as the shortest blog I have ever written, but has been the single hottest topic these days in our workshops so here is my take on why the low-priced guys seem to be struggling and will ultimately fail.

The business plan for a low-priced model is based upon the ability to service a lot of people cheaply and quickly. The primary tool used by the low-priced players is the circuit line (single joint, fixed plane equipment). Limit the free weights, load up on cardio and throw as much circuit style selectorized at the client as you can stuff in the room.

The reality is, however, that circuit training is dead. The clients have moved past it, athletes have moved past it, any trainer worth more than $5 per hour has moved past it and there isn't a popular fitness magazine in the country that has ran an article on the benefits of circuit training in the last decade. Circuit training is done, gone, failed, worthless except for 1% of the population too weak to stand up and has been replaced by upright athletic based training

If your entire business model is based upon failing technology, in this case thousands of low-priced guys filled with circuit stuff, then what you are doing is not sustainable. Would you risk your fortune on opening a pager store? Would you open a bookstore in the era of E-readers? And how many businesses today are based upon technology that is over 40 years old, in this case Nautilus dating back to the late 1960's?

Circuit training as a technology is dead; the members don't use it much in the clubs, and the only people still advocating this method of equipment or either the equipment companies that haven't seen the light or owners stuck in 1995. Think circuit training is sustainable as a business model? Ask the Curve's guys how that is working for them these days or any other circuit based business model.

Get over it people. If you are still setting people up on a circuit and giving them a big card kept in a box on the edge of the floor you have been warned that the end of your business is near. You simple cannot compete with out of date technology that does not work and that no one wants.

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Why Trainers will Rule the World
During the last 50 years in the fitness industry, change has been initiated by only two sources: the chains started a new idea, which became quickly stolen by everyone else, or a new fad hit the trade show floor and it became a "must have” tool in the club.

In the first example, look at 24-Hour Fitness and the advent of EFT (electronic funds drafting/auto-deduct from the member's credit card or bank accounts). When 24-Hour first started this in the 80's, it became a national craze and everyone thought they had found the magical solution to members not paying. What a simple concept: sign the member up and just take the money automatically each month.

It wasn't long before most clubs in the country were, and still do, automatic EFT payments. There were probably two reasons for this. First of all, 24-Hour was based in California and dealt with more sophisticated markets that were in many ways early adapters to new technology so most folks in that region were more comfortable allowing this process years before other parts of the country embraced it. In fact, there are still parts of the south that still don't really understand the whole check book concept yet and still keep money under the bed.

The second reason was that Mark Mastrov was a pioneer in the business and was constantly looking for new ways to grow his business and create a more solid company. He was young, in California, and surrounded at the time by many people willing to take chances. Mark was a head of his time and led the way in many innovations. He was a risk taker, something we don't see these days.

The trade shows have also been a steady stream of new ideas and tools for the industry. The first true elliptical, introduced by Precor at a trade show, set the industry on fire for a decade along side other trade show phenomenons, such as the Stairmaster.

I think both of these avenues of change are now both somewhat dated if not outright dead. There is no more innovation from the chains because there is so little leadership or risk takers left in charge. Everyone is conservative and looking for the "going public” train to come through town. Risk takers and innovators, such as Mark or Tony DeLeede, are gone and may not be replaced since the culture has changed so significantly.

Change today is coming from the ground up matching the advent of instant information and social contact and most of this change is stemming from the next generation training facility owners. The innovators are still out there, but today they are running smaller clubs and doing bigger grosses than ever before.

Perhaps the perfect example is sports performance. In sports performance training, such as that used to train professional athletes, what you do either works now or is discarded today since that athlete you are messing with cost the team millions a year to keep in the game and to keep effective. The information developed in this arena is often years ahead of what you see in the research journals since the sports performance specialist's need for what works is so immediate. He tries it, it works, and several years later a PhD candidate validates it in a lab trial at a major university.

This cutting edge information used to take years to get from the trainer to the mainstream fitness professional. The sports guy spoke at a conference, a few trainers might try what he is doing with their athletes and several years later, maybe longer, the information might make it to the mainstream.

Now, guys like Todd Durkin, Mike Boyle, Bill Parisi and Gray Cook think up new stuff, test it on their athletes and then post it tomorrow on their websites, Facebook and YouTube: instant information today from the best minds in the business.

This information posted today becomes the workout tomorrow for the middle-aged fat guy at Fred's Training Gym. Some trainer, perhaps a Boyle fanatic, reads about a workout in the middle of the night, gets excited and starts using it the next day. Instead of years for information to go mainstream: it is now only hours between a posting and a direct application.

Throw in the advent of the functional training and you have a huge push from the bottom up led by new generation trainers that is changing the very core of what we do in this industry leaving the chain clubs and their 13 lines of circuit equipment asking, "WTF happened to my business plan to sell endless memberships and not service people?”

There is also a little serendipity working here as well, meaning the right time at the right place for this to work. The consumer is bored, the era of membership gyms is dying thanks to the low-priced guys that not only threatened the mainstream clubs but also shot themselves in the private parts by spawning so many copy cats, and by the immediate awareness on television and websites as to how real athletes train.

Just as a side note, when was the last time you saw an athlete on ESPN training on circuit equipment, or do new generation professionals spend their entire time upright doing cool stuff like 50' ropes? Joe Big Belly, on the couch at home and weekend athlete extraordinaire, sees his favorite guy doing cool stuff and he now becomes the last guy ever to go to a gym and do circuit crap.

In the case of change, the philosophy of training was first but the second wave, led by folks such as Rick Mayo, Alwyn and Rachel Cosgrove, Frank Nash, Phil and Michelle Dozois, Todd Levine, Jeremy Klugerman and other owners who are building training-centric businesses, are now bringing the delivery systems to the industry. First the information is developed and then someone figures out how to make a truckload of money with it. Guys like Mayo are now developing models and systems that they are installing in mainstream clubs to help those players make the shift from membership to results-driven upping the bottom line and keeping those clubs sustainable over time.

This information is available here too, and is what we have been teaching this year in the workshops and we are seeing a wider variety of players in the room then ever before because everyone realizes that the era of living on memberships is gone and the era of the trainer is just beginning.

Comments
Frank Kole 4 months ago
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Right on man good post! Just this morning i had 9 trainers on the floor all working on one on ones and one trainer in the group training room training a group of 15. its 745am We opened at 5am There are a total of 40 checks in and 30 of those people or being trained at a one on one or in a group training session this morning.
Pete Visintin 3 months ago
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Trainers and training systems that get results get people talking. This is a more effective business driver than any other marketing tool out there, and it is especially more effective than getting new equipment. Thanks for the post Thom. Keep up the good work.
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Is Group Exercise Dying???
Group exercise is fading and despite the claims, which are usually from group gurus who make a living from group exercise, it may not come back this time. Dead is dead, and this programming stalwart for most clubs is looking really ill these days. Weirdly, the signs are there but most owners are refusing to accept that reality that this part of their business might not last.

Many of you have heard me explain micro-trends in prior posts or in the workshops. Micro-trends are short-termed cycles usually around 12 years, which come and go throughout the industry. We are currently just moving past the "hot phase” for low pricing, for example, and many of the low-priced guys are already starting to fade.

Micro-trends usually have a fairly defined life span. There is a period of long, slow growth, a "hot phase,” a period of the quick fall and then a period of oblivion. Roller blades, for example, illustrate this phenomenon quite well, They caught on over time in places such as California, had a burst of "must have” popularity, faded quickly and today you don’t see many people on them…except that it appears they might be coming back again.

Group exercise, or aerobics for the older owners who refuse to change their mindsets, is subject to that cycle as well and if I had to place group exercise in the steps listed above I would say it is somewhere in the beginning of the fading quickly stage. This does not include, however, cycle, which seems to have a separate track these days and this also does not apply to group personal training, which is one of the factors killing aerobics based classes.

The last time aerobics faded, Billy Blanks saved it with his take on a martial arts based group approach in the late 90’s, which started the cycle again. Prior to that resurrection, group was in the oblivion stage and many clubs were pulling it out completely in the mid-90’s.

Just recently, we have been caught in the Zumba "hot period,” but Zumba is only a few steps away from the quick fade and I look for it to start a slow descent next year. Can’t happen you say? Zumba is too popular to die you say?

You only have to look back at the disappearance of step in the early 90’s to see a parallel. Step was almost a cult, Gin Miller was the step queen, and the Reebok Step has allegedly sold over 8,000,000 steps, but now what is the hot factor today of step classes? Do you still have lines for step classes? Is step driving your membership these days like Zumba is in some markets? It did at one time, but no longer.

Here are four reasons I think group exercise will fade, and perhaps disappear altogether this time. I have been a big believer is group for years and have endorsed it heavily through the workshops, but everything has its season and perhaps this activity is doomed to be part of our history:

The average age of the instructors: Any female getting into the industry today is becoming a trainer. You only have to attend a Perform Better Summit and see that about half the 900 people that attend are females. Most group instructors currently working in the industry are last generation instructors and are a decade or more older than the average trainer. The exception is the former group instructor that left group and is now primarily a trainer. Instructors will be hard to find in the next decade as more women pursue opportunities as trainers.

The average age of the participants: Old habits die hard and nothing proves this more than looking at the average age of the group classes. This does not apply to group personal training as mentioned above, but only pertains to group aerobics style classes. The members who attend these classes are usually a lot older than members using other services in the club. Many of them have been doing group for over 20 years and it is hard to change something so ingrained in their life. But as they get older, these members will be harder to replace and there is no new base of members waiting to fill their slots.

The advent of group personal training: Results are the killer app here. You get the group experience, but better results, doing group personal training. Strength training rules and the only way to get sustainable results over time, as illustrated by weight loss, increased mobility, agility and overall strength, is to do strength-based training.

The new members either understand this concept or are learning it quickly driving them to group training rather than group classes. Look no further than boot camps here for proof. Look at the ages and conditions of 50 women involved in group over a year versus 50 women involved in just classes and tell me what you see. Who is in better shape and who can sustain that shape over a longer period of time? Muscle rules and will be one of the deciders in the future.

Return on investment for the club owner: This is perhaps the biggest killer. We have been taught for years as owners to include group with our simple access memberships. Pay $39 for example, and group is included as part of your membership. Two issues here, however, are putting an end to this thought process.

First of all, the cost of offering these classes is rising. Many clubs in the east are paying $30-40 or more for a group exercise instructor due to how hard they are to find and to the simple rising pays and specialty instructors, such as yoga people, can command $60 or more.

This pay wasn’t an issue if the club can charge $49 or more for a simple membership, but it is a real factor if you are now charging $39 or less for a membership and a killer if you are at $19. It simply costs too much to offer group as a major programming offering these days.

Secondly, owners are learning that you can offer the group experience, in the form of group personal training, and charge additional for it. That same club that is charging $39 per member, for example, can offer group personal training at $79 a month or higher depending on the market and the training clubs are getting $149 a month or higher for small group training. Why give group away free when you can charge more for a better product.

Cycle will survive on its own and shouldn’t be treated as part of group. I think the breakout of group is due to the support trainers give it in the smaller training clubs. I recommend that any training club that is over 3000 square feet still offer cycle classes as part of their group personal training. It doesn’t take up much space and the concept fits the training philosophy of most good trainers.

Is group dying? Check your numbers, look at the ages of the players and determine where your financial future lies. Group personal training is the big trend now and will last for a number of years, which is the stake through the heart for the old style group programs.

The old saying goes: Never be first at anything in this business but be sure to jump off the wave before it crashes on the beach.

Comments
Kym Wimbis 4 months ago
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G'day Thom, it seems like much of what you have to say lately supports your thesis that group/functional training is where it's at... are you predicting the demise of the traditional health club model? Is there a way to integrate group/functional into the traditional health club model or is it an "either or" proposition? By the way did you ever get those new reports I sent you?
Rick Mayo 4 months ago
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All hail Group Personal Training! The social benfits of group exercise with the benefits of PT, all while producing more revenue for the owner. Kym- we have had great success integrating Group PT into traditional clubs using the systems that Thom coaches. Progressive club owners see this coming and are looking for a solution. I can't tell you how cool it is to see 2500 feet of open space, full of folks kicking ass with ropes, kettlebells and etc. All of this right in the middle in the middle of the weight floor at a Golds Gym. Pretty awesome sight and a sign of things to come.
Ryan Hogan 4 months ago
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Hey Thom, interesting read however I would like to add one more question to the equation. In certain parts of the world (here in OZ and NZ, certain parts of America and Canada) group exercise is making a come back under the branded, also known as, pre-choreographed programmes like those offered by Les Mills. They offer a certain level of instructor quality control that traditional group ex doesn't and from my experience have a lower average age of instructor. Whilst still a new phenomenon in America, these branded programmes seem to be defying the trend of disappearing group ex. Any thoughts on them from your end? Cheers.
Thomas Plummer 4 months ago
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Hi Ryan, I don't think group is making a comeback there but rather is just in a different phase. One of the advantages of being in the States is that we can screw things up before they spread around to other places. From my recent experience in the UK, for example, I think that most clubs are several years further back in the curve but on the same track. Group PT will get to the independent clubs around the world and when it does the same pattern will most likely occur. Les Mills has a big reputation in the rest of the world but has only had moderate penetration here. We also have BTS here as well that is a solid group player. I think both will suffer here due to the reasons stated above and I think that will eventually (2-3 years) be felt elsewhere. The big kicker will be that owners will tire of rising group costs and giving it as part of the membership versus the return you can get for charging for additional products such as group training. The instructors are good here but females entering the industry are mostly trainers today. I think there just isn't any status or glory left in being a group instructor and most would rather make more money training people and that too will eventually spread. The only thing in favor for many parts of the world that has protected group in recent years is that it cost so much to get a lot of fixed equipment shipped to a club in places such as NZ. That too is changing since I need kettle bells, ropes and bands that are so much easier to get and cheaper to ship compared to a line of fixed plane out of date circuit stuff.
John Heagle 4 months ago
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Whoa Thom! How did I miss this posting? Thank you, thank you, thank you. I have been saying this for years...particularly the last couple since I have had my most recent gym. I believe a year or so back I also wrote it as a prediction in one of my posts on here that group exercise was dying. The numbers do not lie and you can use these as an example if you wish. When I took this gym over 2 years ago it was deeply in the red...dying...actually quite dead. The only people coming in were a few old time members to lift because it was close to their home. There was a small group program (10-12 classes weekly..I will not get into too many details). Anyway, during the past 2 years I have quadrupled the number of members. Two years ago the gym was 55/45 female to male. Average of all members was mid-forties ( 40 for men, 49 for women). Now the gym is 60/40 male to female. Average male age is 32 average female 46. We are slowly getting more women and the ones that are joining are in their 20's and 30's. Guess what? They do not do group exercise. They do strength training. We are beginning to offer more small group training and soon it will be the only offering and group exercise (aerobics for those of you still in the 80's or early 90's) will be officially declared DEAD!....at least in my gym. I understand there are some of you still paying instructors 15-20 bucks a class and that is probably what your instructors are worth. It also probably reflects the results your members are getting. Those of us that are in major metro areas cannot get away with that type of compensation and quite frankly I do not want a trainer that is will to work for $15 an hour....they probably suck at what they do. Further, I bet if most of you did a true cost analysis of group exercise in your clubs you would find it is at best a break even venture, many times you are losing money on it and that doesn't even include the headaches that go along with it. I am willing to be that the vast majority of your complainers and miserable patrons are your group exercise participants. It is the perfect example of 90% of your headaches coming from 10% of your clients. It is time to change....be brave. Get rid of it once and for all!
John Heagle 4 months ago
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oh yeah, of course the small group training is and will be paid only....no more free rides!
Thomas Plummer 4 months ago
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Hi John, Good to hear from you. Yes, it seems to be fading in different degrees in a lot of places. I think what will really kill it is that owners will get tired of paying so much for group and only charging the membership to get it back. The ones who have figured out that you can charge extra for group personal training are already losing interest in paying group instructors $40-50 per class. Thanks for writing John.
Thomas Plummer 4 months ago
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John, We are going to be in AC the 27-28 this month. Please come as my guest and get updated on our training-centric business model. We have a number of guys doing some $880k to $1.3 in only 6000 square feet using versions of this model. Call the office if you can make it and come as my guest.
John Heagle 4 months ago
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I am in Thom. Missed you at office, but left message.
John Heagle 4 months ago
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Thank you very much.
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