Marty Flanagan, Brand President of Iron 24, discusses their staff-less gym model, highlighting its attractive profit margins by minimizing payroll costs. They explore the distinctions between high-end health clubs and budget-friendly gyms, and the rise of boutique fitness. They also discuss their zero staff gym model, fitness and recovery options, franchise pricing, and marketing strategies. Financial aspects of opening a gym and the potential role of technology in the industry are also covered.
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Quick takeaways
Iron 24 offers a staffless HVLP model that focuses on minimizing payroll to increase profitability and attract franchisees.
Iron 24 fills the gap between boutique fitness and larger gyms by providing a zero-staff fitness and recovery space for experienced enthusiasts.
Iron 24 emphasizes the importance of meeting the needs of experienced users by prioritizing quality equipment and allowing franchisees to set their own pricing based on market demographics.
Deep dives
Iron 24: The First Staffless HVLP Model
Iron 24 is an innovative fitness brand that offers a staffless High Volume Low Price (HVLP) model, focusing on increasing profitability by minimizing the payroll footprint. The brand president, Marty Flanagan, explains that their goal is to provide a clean, quality environment at an affordable cost of entry for average entrepreneurs. They prioritize the seasoned fitness enthusiast who is looking to evolve their fitness journey rather than the beginner. The facility layout includes functional strength and selecturized equipment, with a smaller emphasis on cardio machines. The focus is on personalized fitness experiences and giving members the freedom to choose their own coaching methods.
Solving the Problem of Life After Boutique
Iron 24 aims to fill the gap between boutique fitness and larger gyms, providing a solution for those seeking life after boutique. They cater to individuals who have graduated from the boutique fitness scene and no longer want the recipe-style workouts. The model is designed to create a zero-staff fitness plus recovery space, where members can work out at their own pace and choose their own path. The franchise model is specifically tailored to the average entrepreneur, offering a lower cost of entry and working closely with them to personalize their space and avoid common pitfalls.
Focusing on the Little Things for Experienced Users
Iron 24 emphasizes the importance of meeting the needs of experienced fitness enthusiasts by focusing on the little details. The facility layout includes essential equipment such as racks, durable flooring, bumper plates, kettlebells, and accessory pieces like landmines. They prioritize quality over quantity, ensuring that their franchisees have the necessary equipment and accessories that experienced users appreciate. The brand takes inspiration from the past and incorporates efficient, effective equipment while creating functional spaces for seamless workouts.
Flexible pricing and customization for different markets
Iron 24 offers franchisees the flexibility to set their own pricing based on the specific market they are in. They do not force a specific price point on franchisees, recognizing that different communities have different demographics and income levels. This approach allows franchisees to competitively price their memberships, taking into account factors such as local competition and the immediate household income in the area. Iron 24 emphasizes market diversity and customizes marketing strategies accordingly, recognizing the importance of tailoring marketing efforts to different communities. The franchise also promotes individuality in the franchisees' marketing and culture, allowing each location to have its own unique vibe and flavor.
Proof of concept and technology-driven operations
Iron 24 believes that a proof of concept is subjective, especially in the fitness space, where many successful franchises started without a flagship location or extensive data. The franchise focuses on proven fundamentals and understands the challenges faced by small business owners in a highly competitive market. Iron 24 provides its own technology-driven operations, including billing, CRM, automation, and more. This allows franchisees to have control over their own automations, marketing strategies, and member communication. By owning their own billing company, Iron 24 keeps operating expenses lower for franchisees compared to other brands. The franchise provides a tiered pricing structure that allows early adopters to enjoy lower prices while gradually increasing prices for new members, ensuring a transparent and fair model. Additionally, Iron 24 emphasizes the importance of market analysis and strategic territory placement to avoid oversaturation and protect franchisees' profitability.
When you open your gym, your largest expense is rent.
Eventually, the business sophisticates and payroll becomes your largest expense.
Iron 24 is running with a new-age model that requires zero staff (minus the cleaning crew), allowing them to offer extremely attractive profit margins to franchisees.
Their Brand President, Marty Flanagan, and myself sit down and talk shop on how this model came to be and why he thinks it's going to disrupt the HVLP model.