Case Study – Programs That Flop and Programs That Profit
What’s the Cost of Doing It? What’s the Cost of Not Doing It?
Yesterday I went over a projection for a group training program in our weekly free class. The program was based on a fitness business owner who wants to work with a golf conditioning program with a new relationship developed with a country club.
We estimated that the profit occurred at anything over $720 for participants who opted for one time a week and $780 for the group that opted in 2x a week. Typically there will be a mix of the two. at capacity of 10 participants in any one day the revenue was about $250 per hour if all did one time a week and $346 if they did the two times a week (there was a bonus service hour that reduced the hourly revenue slightly).
So projections would be on average close to $300 in revenue an hour. If you’re taking 50% commission that’s $150 per hour for that program over six weeks for twelve total hours.
Those are the hopefuls. If you have the right team, the right copy in the right places to be seen by the right people, and marketers don’t stop until it’s full, you have success.
If on the other hand, flyers are created, posted to social media where the average golfer is less likely to be hanging out, and there isn’t a stream of desire-building, interest stimulating content created and sent at intervals?
The program in reality got three participants total. Two did twice a week, one did once a week. The average per hour revenue was $92. The trainer who gets 50% gets $46 an hour. Instead of $150 an hour.
For a trainer who is a hobbyist rather than a career-driven professional $46 for free day care might be OK. When you can determine the capacity and a large gap between goal and reality there’s a lot of room for growth.
The club or business who does that kind of business has increased the revenue potential and decreased the revenue achieved, leaving trainers and bottom-line both working a career like a hobby.
As more trainers, more live streaming, more videos, more books, blogs, podcasts flood the fitness industry and go straight to the consumer…they may be getting more educated or not, but they surely are getting more information. They can ask for what they want and expect to get it. If the message they receive from you is cloudy, or murky, or less than directive and specific, you’ll lose them to the next fitness professional or trainer who is clear, confident and markets with a message.
If you feel a little of that pain and have a little of that open space for what would have been full studios, sessions and courses,