I'm in Brooklyn right now with Grace,
constantly been at the top
doing incredible.
I just got to take a class.
know, people who are in the area looking for somewhere to train for higher ups.
The goal is to be the number one place for higher ups training in New York City. Wow. That's that's the goal this year.
let's say you were to sit down with Grace from a year or two ago, and you
What do you think some of the things she'd struggle with
think the biggest thing I've sort of learned and started doing is
I'm in Brooklyn right now with
Grace, who is somebody that I've been getting more and more inspired by every year that I get to know
her. Most recently, Grace, you inspired me because you had a kidney thing. What was going on? Yeah, I had an affection of both kidneys. An infection of both kidneys. While in Arizona. For our event, we shouldn't be advertising this.
This is not safe. Yeah. Don't do it. Grace did just know that this. She's a beast. You were in Arizona for GSD con, and you were, like, uneven. Sure, if you could make it cause you were having a hard time getting out of bed, right? Yeah. And then the plan was for you to go to GSD con and stay in Arizona for the high rocks event, and you're like, yeah, I don't even know.
I'm going to play it by ear, which no one does that if anybody's on high rocks before you're planning for months. And she's like, I'll play it by ear all of a sudden on game day. And next thing you know, I really didn't think you were gonna be able to do it just because I know you didn't do it.
And the next thing you know, I see you like posting your numbers at the High Rocks event. Yeah. So, yeah, you're a beast. And that translates everywhere the way that you, you know, operate in hierarchs, but also the way you run this F45, which is
constantly been at the top doing incredible. And I just got to take a class.
So let's start with the most important thing before we get into some of the things that would help every gym owner watching, which is what I just experience. I feel bad saying this. I actually told you I was like, I don't want to say this because I don't want to get anybody else who said, But I'm going to say it maybe at least to raise the bar for everybody else.
Yeah, this was the best class I think I've ever taken. And so I played sports. I told you this after the class. I played sports in high school. I did martial arts competitively after high school. So I remember the feeling of having people cheer for me when I was in competition. Physically. I haven't experienced that since then. Until today.
This whole room was like cheering and celebrating and like I felt like I had to go harder and faster and it felt easier until I let it go. And then I wanted to puke. Yeah. And I told you, you have nice floors. I don't want to ruin your floors. So congrats on, you know, just an incredible culture that you built here.
It's amazing. It's really cool. All right. So here are three things that we're mainly going to talk on today. And Grace is incredible at getting all three of these down. And that's why we're here I'm in Brooklyn for a cousin's wedding or actually Jersey for weddings. I figured I'd just dropped by and visit Grace wall here, but the first thing I want to talk about is High rocks integration.
So for those of you that are thinking about including high rocks or something similar to high rocks are a lot of cool things like that out there. Really what the benefits are to the business and also the members. The second thing we're going to talk about is numbers. Like as a gym owner, business owner, really the language of businesses numbers.
And so how you look at numbers and how you make decisions off of them. And then the third thing is really her secret weapon, which is how she is able to leverage other people in order to continue to grow as a business owner and person in general. Sound good? Sounds great. All right. Let's start with number one, because you're a high risk server at this point I'm getting high rocks events.
Have you done nine nine. Where have you gone and done that? So I started just over a year ago. So I mean, Chicago, DC, London, Paris, Auckland, Miami, Boston, New York, Phoenix, Phoenix. Yes. And a couple more. Can't even remember anymore. Greece Greece has a reputation in our company with all the members. And it's that you are just never home.
It seems like now you are. Obviously you are a lot. But you know, when we go to plan our monthly calls with the other members of the group, she's like, yeah, I can take it. I'm going to be in Fiji, or I'm going to be in London or whatever. So you're very good at you're what I call a cheetah.
There's, there's different type of business owner chase I'm a cheetah as well. So if you think about the animal, the cheetah, they can run really, really hard and really, really fast. But then they need to just chill for a while or I'll still die. And I'm like that. We're like, I can go really hard, really fast. I could put in crazy hours, but then, like, I need to get out of here, I need that you.
Yeah. And I would never chill if I'm here. Like, yeah, I'm always like, today I'll have a weekend day and I never do. Yeah, 100%. So with high rocks what what is the benefit? Let's start with the members. What are the benefits? The benefits to the members by integrating hierarchies to that 45? Well, what's really great about F45 and hierarchs is it's sort of came from the same place.
It's making. This is making lifting and hit training and this type of training accessible to to everyone. And that's what's hierarchs is doing that's been there. And then it just really goes hand in hand like with F45. The idea is it is group fitness but it's personal training in a team environment. So we always have our coaches there working one on one with our members.
So you can literally come in with never lifting awake before and be working out next to a like athlete, and you're going to get the same out of it. It's the same with higher ups. You going in there, you're going to take it at your own pace, you're going to do your own race. And it's it's really beautiful.
And, you know, on a more, you know, coaching side of things, things we do that functional training, it's preparing you for life. It's all the movements that you know your your body needs. And the same thing with a hierarchy event. You're never doing anything complicated. It's a push. It's a pull. It's a lunge. It's a squat, you know, very, very basic, but like making it competitive.
So yeah, really we were doing all the things other than the running and the wobbles. We were doing every exercise here anyway. And yeah, it's it just made sense that we move forward together. And yeah, it's it's been amazing. It started off with me and just a couple of other people wanting to do it, and now I'm.
Yeah, I can't even tell you how many people I think are going to sign up next week for the New York one, but I would say it would probably be, you know, over 50 people from this gym who learn about hierarchs through this gym. We'll be going. I was listening to people talking while I was resting after the workout, and they were talking about the High Rocks event that's coming up.
I think you were even talking with one of them. The guy that was sitting up here. Yeah. And you were like, are you going? And it's like he says, five, five weeks from now. So he's already counting it down. Yeah, yeah, he's off to London for another one. So I've traveled with him to Paris and a bunch of other places, him and his wife and yeah, we've done a lot of hierarchies together.
But yeah, they own the cafe next door and we've just. So they've started their own run club because of that. So they have like a run club from Cafe Cafe on the weekends. But yeah, it's brought this whole community together. Now what is the benefits of this to the gym? Like obviously it's doing a really cool thing by creating another little micro community within your gym.
But what is it doing for the gym itself? The business? In the beginning it was just, you know, an extra little pack. We'd all have fun getting together on the weekend, setting the room up for high rocks on a Sunday afternoon. And people loved it. So I brought in someone whose job is new programing and events, and she is doing a great job creating a full, fully fleshed out rocks program.
So F45 already have a F45 hierarchy Signature workouts, which will be incorporating into our weekly schedule. Running up to hierarchs. But then the great thing that she's doing is she's making those Sundays more structured. She's bringing in Sprint Club and.
A few different, like running clubs that are specifically for hierarchs. And then we've got some of our trainers who are going to be running run clubs at different paces so everyone can get in, you know, because that's one of the hardest things, especially for me, is that motivation to run. And yeah, so we're just adding it all through and we're doing a full program
and you know, it'll be available for members and then also selling it to, you know, people who are in the area looking for somewhere to train for higher ups.
The goal is to be the number one place for higher ups training in New York City.
Wow. That's that's the goal this year. So if I'm in New York, this is what I go to if I want to do it. Yes, yes, that's the plan. So is there an additional fee for that? Yes. So beforehand it was just, you know, the additional fee that you would have for flex hours.
So the flex hours are just coming into the studio. Like between classes, like now we can put the work on people to self work out if you're already a member. But now, yeah, we're increasing that fee for members. So it's not by much, just an extra $20 a week on top of your membership. But that will include, you know, early access discounts.
It'll include every Sunday training and all the rest that we add on, and the three set higher ups around clubs plus whatever other clubs they want. Yeah, involved. And for anybody watching this video that is as of today. So that's not lifetime fee. So if you're watching this two years from now just know the fees might change. I'm going to say that for you just to get okay.
Yeah I can tell like there were definitely different levels. Even our pod, it was new. You and my wife Marshon, who's back here. And that was a great example of me and my wife. Don't do F45. We do straight trading in our own unique way. And Grace was over there, just like, come on, Mike. And I'm gasping for air.
But we were at team throughout that process, so it was actually really fun. I want to talk about the numbers. You know, when I first met, you were already very, like, doing really well. Your numbers were good. I just don't think you had a lot of clarity around how good you were doing, because you weren't looking at certain numbers the way that you are today.
I feel like the last two years, you've just dialed in as an entrepreneur very, very well.
What are some of the things like, let's say you were to sit down with Grace from a year or two ago, and you were to talk numbers with her today. What do you think some of the things she'd struggle with to have a conversation with you about?
I think the
I think the biggest thing I've sort of learned and started doing is
following the trends from the last few years to, you know, identify those dips that we have throughout the year, especially New York. People come and go. People are away in the summer. People are away over the holidays, especially your clients, because they're affluent, right?
Like your fee, how much you guys charge per month roughly right now. So it's around 87 a week. So so you got to have money to be able to afford that, right? Which means you have the money to go away. Yeah. So we do we do still lose a lot of people over those periods. So we just planned all of our sales and, and price increases to sort of go along with those trends to, you know, and that was mainly just to sort of even it out.
But what we found is it sort of done the opposite. And that's when our peaks happen. Our December now, which was historically the worst month, is by far the, you know, by far the top month. You just had a record breaking month. Yeah, that was great. We had to make a trophy for you. We had to thank you, by the way, every time I have to create a new trophy, it cost me additional money to make a new print.
It's easier to just recouping. So we thank you for the additional cost. But it was wonderful. But yeah, you had a great December. But I think last December you did that to you like you've caught on over the last couple of years how to do it. Yeah. So we're just getting a system down for those months that we know people are going to be away.
And the sales team, we're just tightening it all up where, you know, we're not changing much each year. But and that was something that I learned through Pirate Cycle have something that people are expecting to come. So people are going to start expecting mid-year. There's going to be a six month sale at the end of the year is going to be a 12 month sale.
There's going to be 52 pack, 104 pack, you know, creating that because I just saw how much success those guys had it had with it in the program. And when you say like trends to I think I know what you mean, but I want to make sure it's kind of like a, I think a lot of gym owners, what they'll do is they'll compare July to the last month, June, like what happened, whereas you're like compared July to July to July.
Yes. Yeah, absolutely. All my moms are compared to the month the previous not the month previous because yeah it does really fluctuate here. Yeah. So for everybody watching listening like don't worry about growth from the previous month because you might have it and you might think you'd figured something out not realizing that next month just a lot easier or vice versa.
Don't be down on yourself. It's better to look at like we're in the month as we're filming in February. I don't know why I don't look at my watch what I did. So we're in February. So looking at last February going like, oh, we did 120,000. Now we did 135,000. That's great. Even if the month before you might have done 140 because you could see well, last January to February we had a little dip as well.
So now we dipped again, just not as much. And we're still on the up overall. So that's essentially what you meant, right? Yes. Yeah, absolutely. When you said you like to prepare ahead of time and now, you know, you have these spikes, but it sounds like you're okay with it because you care more about at the end of the year.
Like, what does it really look like? You see, that's how you plan your price increases. So like help me understand what that means. Like, how did that help you determine when you should change your prices? So we just looked at it and I just I knew I knew what months we had those dips. And then, you know, all the things that you need to do on a yearly basis and how I can slot those in at the right times and how they can benefit.
It's like right now your dip is well, like November, December. Right. So well one of your. Yeah. So February and then July, August, September, December. Those are your dips. Yeah. And so what did you learn now as far as when you do that price increase what do you do it. So we do for our single class packages.
So drop ins trials and anything where you're you're buying a pack that is 1st of March. So the second half of February will be a sale on class packs at this current price point. So people can bank them for the year. So that happens in February. Then into summer, we run a few different promotions to we will run like a sort of community event, like summer stamina.
So people will want to, you know, like the idea is that they don't pause, that they carry on coming in. And also our price raids raise for memberships is always mid-year. So, you know, people don't cancel when they go away for summer. We can keep them involved with the community because we can. We've got passport, we've got online workouts, we've got ways to for them to still not, you know, drop off with their their goals and their, you know, their fitness journey while the while the summer months are going on.
It's all about class packs. These guys do some. You're probably you and Megan I think. And Scott you guys do leverage class pass very very well. Yes like and you guys do a great job of having a revenue stream through class pass as well as class packs. A lot of people struggle through it like most people's revenue comes from occurring revenue like overwhelming amount.
But you guys do a lot of revenue from that. What's your thought on ClassPass and has it changed over time? Well, for class packages, I definitely when we first opened, I did not run them. I felt it was important to build a community first. Once that community felt strong enough, then it was okay to open up to people coming in because we had that community that would help them out.
And, you know, those are the room rather than, you know, if we just opened their doors and it was all, you know, people that came once a month or, you know, everybody looks like they don't know what they're doing. Yeah. So it was really important just for what I wanted to build for us not to have class back.
So for I think a good two years, I only sold repairing memberships. And then when that community was built, that's when we could start, you know, bringing different things in last past, I think it, you know, it does feel like the Amazon of of fitness and, you know, but it exists, people use it. And it's great for some people who do want to find, find their tribe, you know, but also, yeah, some people want to just do a bunch of different stuff a week.
And we really just leaned into making them feel like part of our community. And I think that really shows we have so many return visitors, so many people that I don't even realize are on ClassPass and I just assume are a member because I'm seeing them so much. So, you know, it's it's learning to work with it and not work against it.
Well, because at first you were like a lot of people were you were kind of annoyed with it or frustrated. Oh, absolutely. And that's that's an example. There's this really cool quote I posted the other day. But, one of the signs of wisdom is the ability to change once a month. Right. Like to be able to be like, you know what?
Is there a way I can lean into this, my thinking about this wrong. And that was really cool to watch you do that. Where? And I think you and Meghan and Scott did that to where you took something that you had enough people to make you feel confident about your opinion. Yeah, this is frustrating. The frustration you just said, you know what?
How do we just make it awesome? And then you made it a really great thing where you welcome these members in and a lot of your revenue, both of you guys comes from ClassPass. Yeah. No ClassPass. And then with our other third party, like this gym pass and there's weld one pass, right? Is that the old one? Are you guys don't do hug.
Oh, yeah. Well, hub sorry. Which is gym used to be called gym. Sorry. Says well hub now and then there's weld. And which is like one pass we given the centers to come and use because they've already paid for their they've already paid for it. And then we just need to get them in the door. It's not like we're selling them anything.
We're just going to remind them to come in. And so we incentivize coming in. We have a raffle every month for them so that they are actually using, you know, what they've already paid these companies for. Yeah. Yeah. How many members do you guys have right now? Active occurring. Recurring. So not including a year paid and around 258, around 250.
We've got 252 wickets. She knows her numbers. We have exactly due to the eight. And then do you know, percentage wise about how much of your revenue comes from non-recurring. Because it was decent amount like with PACs and ClassPass I would say probably at 40% ten. Yeah, that's a heavy mountain. Like most of the members we work with, it's like 80 to 90%.
That's great. I think it could be. Yeah. Even more than. Yeah, yeah, yeah 40 to 50%. Yeah. Now, by the way, that doesn't mean I encourage you to not have recurring. Recurring is ultimately that's that's the bread that we need. I feel like we can have that other side because what have we created? Exactly. Your recurring revenue numbers are already better than what most people would set as goals.
So as long as you have this already, where do you want it to be? This is like you. This is just icing on the cake. Yeah. That you have that so creates opportunities and a lot of lead flow for you. And I mean, we're just constantly, you know, if we're noticing they're coming in regularly or they change their goals, we're making sure that they know what our memberships are.
And that's why we're, you know, building more value into the memberships by having, you know, bringing the sauna and, and, you know, perks that members will get over people from the outside. Because I really, honestly believe in this product that 45 is your one stop shop for, fitness goals. We do, you know, we make sure we have our strength training three times a week with 48 hours between it.
And then in between that we're doing it like more, cardio based hit classes and yeah, I, I, I believe that if people were coming here more regularly rather than popping around different gyms, one less risk of injury and two, they're going to. They're going to meet their goals faster. So we are always trying to. Yeah. To me because like I, I could already like I feel like there was a couple people I would already be cool with, like just talking to in the class because I just said hi to call people in the personality.
I know there's like already I saw 4 or 5 people I become friends with, and then I just want to come for that at that point, you know what I mean? All right. So the other thing, the last thing I want to dive into is there's this really great book that if you haven't read it, you don't have to, but it's a good book.
But the title tells you how all you need to know it's called who, Not How, it's written by Dan Sullivan. And you have to do a really good job of this where you don't think you used to be a helper, like, all right, I got to figure out how to do this. And now you're very quick to tap into the community of all the other gym members we have in Jack company, JK gyms.
So talk a little bit about what changed over the last few years with your mentality around that leading to others. Yeah, absolutely. I mean, I'm single owner of this studio and it's very lonely. And you sort of you that had to figure out yourself or, you know, that's pretty much it. Yeah. Figure it out. No other option. Yeah.
So and especially when we were like, leading like the top performer and at 45, there wasn't many other people to go to. So yeah, joining this community, if there's any sort of anything that I've got to think about, I can just ask the community if they've done it and how they did it, and it's crazy. You'll get sent like, oh, this is a spreadsheet we use.
And this is exactly how do you want me to jump on a call with you to show you how to set up the spreadsheet for yourself? And, you know, it's amazing. Yeah. What's really cool I do to leverage it that way was, is and you probably know, like, if there's somebody you wanted to let's say you wanted to figure out your email campaign.
Do you know who you would go to right away, like who you might call your email marketing? Who would have been Kim? Kim if it was, let's say, around retention or customer experience, and if it was something around accounting or like if you want to be like, you get to know the people and everyone's strengths. And so and everyone's got them like nobody is equally good at everything.
And that's how everyone's there. You're this successful because of what you're great at there, the successful because of what they're great at. For for me, what I see I mean, I think at certain levels of success, you probably see this as a class, a class have like eight classes, everybody doing a million a year. They have usually like 3 or 4 really good strengths, your ability to build a community.
This experience I got see firsthand. This was great. Like that was great. But then also your work ethic, your discipline, I you know, one of the things me and some of my friends talk about is if I could sell discipline in a model, like everybody would be successful, everybody would be successful. And then also like your commitment and understanding to like the numbers, a lot of people, they just want to work all the time.
But you like you will actually do the work to learn the numbers. Sales also really great. So I think a lot of people just know, like with that, that's who I go to. Grace. Is that person so true inspiration. I would say if you guys are ever in Brooklyn, just know that she's totally okay with packs, right? If you're ever in Brooklyn and you want to feel like what a great class could feel like, whether you're a gym owner and you just want to get inspiration for what your gym could run like, or if you're not a gym owner and you just want to be like, maybe I am in Brooklyn, let me come and
get a great workout. This is this has to be the best workout in Brooklyn. It has to be in the world. Yeah, I think that's where I've ever had, at least in here. So yeah. Thank you so much, Grace. And for everybody that's watching listening. If you want to learn more about being in a program like this, where you can learn from people like Grace and some we've seen on the show, just go to my Instagram GSD gyms and then just type the word semi at the end, the word GSD.
And then I'll send you pricing details and how it works, and then you can get started and you can hang out with us all the time. But Grace thank you. That was amazing. What a great workout. And I did puke when I was like right there, right there. All right, we'll see you guys next time.