Run a Profitable Gym

The Race to the Bottom: How to Set Your Gym Apart From Competitors

Jul 1, 2024

Chris Cooper, Founder of Two-Brain, joins the podcast to discuss battling commoditization in gyms. He highlights the Prescriptive Model, finding out what clients truly value, and not competing on price. Emphasizing to be a five-star steakhouse and charge rates reflecting value.

35:23

Episode guests

Chris Cooper

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Quick takeaways

To combat commoditization in the fitness industry, gym owners should shift focus from price to value creation through personalized coaching and tailored services.

Gym success depends on creating ongoing value for clients through content marketing, showcasing expertise, and building trust for long-term client retention.

Deep dives

Understanding the Race to the Bottom in the Fitness Industry

In the fitness industry, racing to the bottom signifies a focus on price over value, leading to commoditization. This race creates a spiral where margins decrease, businesses struggle, and clients prioritize cost over quality. The emphasis on certifications or equipment by gym owners may not align with what clients truly value, perpetuating the commoditization cycle.

Focus on Client Retention for Gym Success

01:15

Understanding Value to Differentiate

01:17

Intro

2min

Building Value and Differentiation in the Gym Business

10min

Analyzing Gym Business Models and Client Retention

4min

Challenges of Gym Utilization and Establishing Client Value

2min

Importance of Providing Free Valuable Information in the Fitness Industry

4min

Value-driven Client Retention in the Fitness Industry

13min

Many gyms are “racing to the bottom” with lower and lower prices that destroy their value.

This happens because of commoditization: When clients can’t differentiate between options, they choose the cheapest one, so many gym owners feel pressure to compete on price.

But this approach shrinks the profit margin until the gym is forced to go out of business.

In this episode of “Run a Profitable Gym,” host Mike Warkentin discusses how to battle commoditization with Chris Cooper, Two-Brain founder and CEO.

Chris shares how gym owners can use the Prescriptive Model with constant refinements to build more value for clients. He also supplies listeners with a strategy for finding out exactly what their clients value—and it’s usually not what you think.

You don’t have to compete on price if you aren’t trying to be the cheapest gym in town. Instead, “be a five-star steakhouse” and charge rates that reflect your value.

Links

The Prescriptive Model

Gym Owners United

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0:30 - Racing to the bottom

3:13 - First-to-market challenges

10:10 - Value and the client’s perception

17:30 - Establish value and retain value

26:59 - Client focus

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Run a Profitable Gym

The Race to the Bottom: How to Set Your Gym Apart From Competitors

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Understanding the Race to the Bottom in the Fitness Industry

Challenges of Early Business Growth in Fitness Industry

Value of Personalized Coaching in Fitness Business

Establishing Value through Content Marketing and Client Focus

Focus on Client Retention for Gym Success

Understanding Value to Differentiate

Remember Everything You Learn from Podcasts