Run a Profitable Gym Two-Brain Radio: An Economist Walks Into a Brothel With Allison Schrager
Ever thought about what you can learn about risk management from a brothel? As it turns out, a lot—and that's just one of many risk-management examples author Allison Schrager uses in her book "An Economist Walks Into a Brothel: And Other Unexpected Places to Understand Risk."
In this episode of Two-Brain Radio, Chris speaks with Allison to understand how the risk-management principles that guide other high-end service providers can apply to microgym owners.
You'll also learn how to compete with big chain gyms charging $10 a month, how the commoditization of fitness training with technology could actually help your business and how to best position your offerings in the face of a recession.
Links:
"An Economist Walks Into a Brothel: An Other Unexpected Places to Understand Risk."
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Timeline:
1:59 – Allison’s passion for teaching risk management.
3:02 – Risk management: Lessons from the pro poker world.
6:31 – How to mitigate risk when opening a gym.
8:12 – Don’t just take risks for risks' sake: You need a clear goal.
9:26 – Defining risk.
11:07 – There’s a recession looming. Should gym owners be worried?
13:42 – In the face of an economic downturn, focus on high-touch services.
14:39 – How Equinox got Allison hooked.
17:40 – The industrial revolution and personal training.
19:33 – There’s no escaping Jeremy.
21:21 – On differentiating yourself in a commoditized market.
26:37 – Virtual personal training: a high-touch service at a more accessible price.
28:52 – The second wave of industrialization: technology.
31:43 – Eliminating the mediocre and how technology can enhance your service without replacing it.
33:34 – Allison’s first trip to the brothel.
36:27 – Learning negotiation and risk-management tactics at Bunny Ranch.
39:34 – Balancing the personal and the technological in fitness service.