The TOP 3 Pitfalls of Converting a Gym to 24/7 – 24 Hour Gym Management Software


[0:00] Hello. My name’s Joshua Fleming and
welcome to this presentation that I’m calling The Top 10 Pitfalls
of Converting Your Gym to 24/7. I hope you enjoy it. [0:11] [music] [0:38] OK. Are you ready to discover what
the top 10 pitfalls of converting your gym to 24/7 are? OK. I’m happy
to share it, so make sure you take good notes with us. If you have
any comments or questions, you can just leave them down below
this video. Numbers that benefit you. [0:56] Since I’m presenting this, you should
know that I know what I’m talking about. I’ve converted over 100
gyms successfully to the 24 hour model. I don’t know how many gyms
have converted to the 24 hour model because of my efforts over the
past five years. [1:11] I’m sure it’s well much bigger than
that number. Your members. These numbers benefit you because
if you convert to 24 hour gym, your members on average are going
to get about 3,000 extra hours each year to use your facility
and it’s not going to increase your overhead. It actually reduces
your overhead. You’re going to be able to save ten thousand plus
dollars each year. [1:43] The reason I say save, instead of profit
is a lot of business owners just don’t understand profit.
They’re not paying themselves a paycheck, officially. They don’t
have systems to put in place. If they are paying themselves a
paycheck, it may be too much or too little. I want you to just think
about what an extra $10,000 in your bank account would mean. Would
that get you excited? [2:09] If you had $10,000 more in your savings
account or in your kid’s college fund, would that make a difference?
If it does, then you should really pay attention to this presentation
because I’m going to show you how you can save much more
than $10,000. Actually, by the end of this presentation,
if you really take to heart all the lessons I will teach you here,
you’ll going to be able to save hundreds of thousands of dollars
over the span of your business. [2:36] We’re going to do even more than that.
If you’re always in your business working, instead of enjoying
the fruits of owning a business. Then, what’s the point? You’re going
to be able to cut the time down in your gym by 50 to 75 percent
by becoming a 24 hour club, which will allow you both to have the
money and time to enjoy your life. [3:01] If you stay until the end of this conversation,
I’m going to give you a concept that I call the 24 Hour
Premium Security Concept. This concept will save you on average
50 to $100 a month and over the span of you business, you’re
talking about tens of thousands of dollars. It’s a very important
concept and I’m going to give that to you for free at the end of
this presentation. [3:26] If you are already a 24 hour gym, this
is still going to benefit you. There’s going to be stuff in
here that you’re going to immediately be able to leverage. If you aren’t
yet a 24 hour club and you’re thinking about converting, then
this information is crucial to both success and failure of your
business. Pitfall number one to consider is not considering
all the benefits. Not understanding all the benefits, so there’s
three main benefits that you get. [3:58] There’s probably close to a dozen benefits
we could work out, but three main benefits. The first benefit
is for your customers and your clients. They get extra
time to use your facility, which this positions you differently
in the marketplace, if you are not a 24 hour club right now. The
next is it allows you to cut overhead. When you have a 24 hour gym,
you literally could run a manless operation. A shadow crew, if
you wanted to. [4:25] Not suggested for most business models,
but you could do that. Cutting that overhead allows you to
put that income into your pocket or into your business. If you don’t
have money to market your business right now, imagine if you could
start cutting overhead in half. You could use those extra
funds on your business. The next thing is your autonomy. As a business
owner owning a company, the idea here is that if you want
to own a job that’s one thing. [4:54] I’m not talking to people that want
to own a job. I want to get my message to those that want to own a
company and company is a group of people with a shared vision that
are working to facilitate an end goal. They all benefit from this corporate
partnership. If you want to jump from owning a job to owning
a company, where you have people supporting you and backing you,
then in this day and age you really need autonomy. [5:33] You need be able to stretch your wings,
and be able to really run your business from anywhere quite
frankly. You can almost run any business from anywhere. The
owner of the business, the company, can almost run it from anywhere.
That’s not all businesses, but most businesses nowadays. [5:53] You get autonomy. You can unplug, and
you don’t have to be in your business all the time. You are able
to cut expenses, and you are able to give your customers and prospects
more value for the same price if you chose to do that. [6:12] Pitfall Number Nine is “Worrying about
all the wrong things.” How do you avoid this pitfall? What
you simply need to do is get a piece of paper out, and draw a line
right down the middle of it. One side of that line write “Pro,”
and the other side of the line write “Con.” [6:32] Next you need to go to our website
fitness360online.com, and setup a strategy meeting. We’ll walk through
the pros and cons. The most cons I’ve ever helped a client develop
in this process is around six cons. Five of those cons were one
of those fears that you can’t really stop anyways, and it’s probably
never going to happen type thing. [7:02] The best way not to worry about the
wrong things is to setup a strategy call with me, so we can go through
the pros and cons. If you’re not going to do that, then get with
your business advisers and coaches, people that understand business,
and talk with them about what you’re wanting to do, and create
your own list of pros and cons. This will help you to focus on all
of the benefits, which you could list out dozens and dozens of benefits.
However, the con side you’re not going to have that. [7:35] Pitfall Number Eight is “Thinking you
can’t do it yourself.” If you’re thinking you have to hire a company
like ours to convert you to be a 24 hour gym, that’s not quite
accurate. You could actually become a 24 hour gym by yourself
using a Best Buy and Home Depot. [7:57] The system is not going to be integrated.
It’s not going to be a Smart System. It’s not going to have
all the bells and whistles that come with our system, but you
could be a 24 hour gym and begin to reap some of the benefits of
that decision. [8:14] You can do this yourself. You need
a very small education about wiring schematics, and things like that.
The other thing you can do is leverage relationships in your gym.
Inside your gym right now, you have master electricians. Master
electricians can run and wire anything, they’re a master electrician. [8:33] If you can get all of the components,
you can have this master electrician do the install for you.
Give him a free membership, or something. You can do this
yourself. We’re not trying to lose your business. We really believe
that the most sound thing you can do for your fitness business
is become a 24 hour club. To say that we’re your only solution
for that, that wouldn’t be fair to you, right? You can do this yourself. [9:00] Next, paying too much or too little
for a Done For You System. If you are considering converting
your gym to a 24 hour model, you probably are looking at gym management
software, surveillance systems, security systems, all
over blogs and Internet, and all of that. You’re going to
have several options. [9:27] When we started converting gyms about
five years ago, we were the only company doing this. We didn’t
set out to do it. We just had clients that asked us to help them,
so we helped them. Now we’re the godfather of converting gyms to
the 24/7 model, just because we’ve converted so many gyms. We have
developed some marketing strategies around 24 hour clubs. [9:54] It’s one of the things that we specialize
in now. Our systems aren’t cheap, but they are complete.
They work. They have a good record so far. If you’re considering
converting your gym, and you’re looking at different solutions out
there, you want to look at ROI. What we try to do is whatever our
system costs, and on the low end, we can convert a gym as low as $1,000,
$2,000, $3,000, if you had all the components, and you know we’re
just working with you, and up to as much as $15,000. [10:31] It just really depends on your particular
project. But, if you are looking at the number to convert your
gym to 24/7, and if you’re considering the ticket price and not
considering the ROI, then you’re going to miss out, because, though
our systems can be expensive, they come with a 90-day coaching
program with me. [11:03] My goal, in the first 90 days, is
to help you generate enough capital from the conversion to pay
for the system. If your system cost $10,000, my goal, in the next
90 days, is to help you generate an extra $10,000 profit — not just
revenue, but profit — by leveraging your 24 Hour presence and some
other things that we can do for you. That’s our goal. When you
consider a system, make sure to consider the ROI. [11:36] Pitfall number six — not looking
into the legal components. If you are converting your gym
to a 24 Hour model, you’re going to have all sorts of legal stuff
that you need to be aware of. Insurance is the big thing. A lot
of insurance companies that will insure a gym won’t insure a 24 Hour
gym. [11:54] We have some partners that will insure
24 Hour gyms, so we can help you with that solution. But, if you
are going to be a 24 Hour gym, you need to know your county and
state statutes also. Because there are literally thousands of different
counties, cities, and states with statutes, whatever,
we don’t know what all those are, so the best way to figure that
out is three-year relationship with your insurance company and
just going down to the building department to make sure that any
code issues in relation to being a 24 Hour facility are met. [12:42] Pitfall number five — not leveraging
the marketing value. When you become a 24 Hour gym, you have a
great opportunity. It’s a unique opportunity, because, if you are a
new gym, you can launch with a massive amount of momentum and really
become the alpha dog in your community as far as 24 Hour gyms go. [13:03] If you are an existing gym and you’re
thinking about converting, you need new buzz going on around
your facility, probably, and your community. Becoming 24
Hour allows you to rebrand yourself in the marketplace, and reinvent
yourself. Think about Madonna or Britney Spears: they reinvent
every three to five years. [13:29] I recommend our clients that we do
the exact same thing. We keep things fresh, exciting, entertaining,
and effective. If you can leverage the marketing value of becoming
a 24 Hour gym, you can make a lot more money than just not doing
that. [laughs] Don’t miss that opportunity. Make sure you leverage the
marketing value. [13:54] Pitfall number four is not having
an integrated system. Right now, you see the gears and all of that.
A lot of gym owners are actually one of the gears in the system,
and other fitness entrepreneurs are the little people on that
bridge that are pointing and directing. The big difference
is that the people that are directing, they don’t really have to be
there, but, if take one of those gears out, the whole system is going
to break and fall apart. [14:32] You don’t want to be a gear. You want
to be a director and a company owner instead of a business owner.
Right now, if you’re a business owner, you may be trading time for
dollars, you may be working in your business instead of on your
business all the time. How you can not be a part of the gear? [14:57] The way you do that is by leveraging
technology and systems, and, if you don’t have an integrated
system for the 24 Hour gym model, then you’re not going to be
leveraging all the potential. Remember, one of the things that
becoming a 24 Hour gym allows you to do is have autonomy, so you
don’t have to be in the gym all the time. [15:18] If you really want that, then you
need an integrated system. The three components that you really
want to focus on when you integrate into this type of business model
is, one, you want to make sure that you can hear and see everything,
you want to make sure that you can look at your money, all
your accounts and your billing, and you want to make sure that you
can control all your marketing efforts. [15:48] You want to be able to do all this
from your laptop, from a computer, or from a smartphone. If you can
do all three of those things from a computer, then you have successfully
detached yourself from your business. After that point,
you have to just get used to managing the system, and it’s very
hard for entrepreneurs to go from the mentality of being a gear to
being a director. [16:17] It takes help and coaching. I personally
have had problems doing that. I’ve worked with a coach now for
the past year and a half, and our primary focus is getting me
to delegate things to the system and quit being a gear. This is one
of those times [laughs] where being a gearhead is not smart, so you
want to integrate your system. [16:46] Number three is not following 24 Hour
gym best practices. If you are going to be a 24 Hour gym, there
are best practices that you need to follow, rules and regulations
that your members need to follow, and things that you need to do on
an ongoing basis to make sure that your business is secure
and profitable. [17:08] One of the best practices is making
sure that you have a release of liability and a club bylaw forum
for your new member to assign and your existing members to assign
when they become a member. You can see an example of this if
you to a Snap Fitness or Anytime Fitness and join. [17:37] You will see that they get bylaws.
You can’t bring a friend, and, if you bring a friend, then it’s
X amount of dollars, dah, dah, dah, dah, dah. You want to follow
these best practices, because, if your goal is to be the 24 hour
alpha dog in your community then consistency is a key and your
culture is a key. To build up your culture you need consistency
and to have consistency you need to have best practices or standard
operating procedures. [18:11] You want to develop those. We can
help you develop those or if you want to go the other route, you just
go and get a membership at Anytime or Snap Fitness and go through
their process. [18:27] Number two. The number two pitfall
is thinking it’s out of your budget. When you are considering the
investment price for converting your gym to 24 hours, if you look
at a piece of equipment, like a treadmill that’s going to
cost three grand, you’re looking at it all wrong. [18:46] You need to look at converting your
gym to 24/7 in the terms of ROI return on investment. If you
invest a dollar and can make two dollars, that’s a win/win every day.
Your goal is to convert and get a big ROI in that decision
in your business. [19:08] If you look at the sticker price,
if you decided to get a quote from us, great, or if you got one from
somebody else, there’s really a relative. If you look at that sticker
price to convert your club and are like, “Oh man, that’s a
lot of money just to be a 24 hour gym,” you don’t get it. You don’t
get it. Look at ROI. [19:30] If I convert to a 24 hour gym how
many more people can I sign up in my business. How many more police
officers, firemen, nurses, doctors, shift workers, night owls
can I attract to my business by being a 24 hour gym? [19:52] This is kind of leading me into pitfall
number one, but how much more money can I make by being a 24 hour
gym? Let’s go ahead and look at the number one pitfall of converting
your gym to 24/7. That’s not creating a premium upsell for 24
hour services. [20:18] Because we have converted so many
gyms we’ve experimented. We’ve had a lot of patient clients being our
guinea pig on this. If you can create a premium upsell for your 24
hour service, 30 percent of your existing members and future
prospects and customers will take you up on that, if it’s structured
correctly. [20:38] You may be saying, “Well Anytime Fitness
and Stat Fitness, they don’t have a premium upsell for 24 hour
service.” That’s exactly right. They’re leaving a lot of revenue
on the table. Day in, day out. Month in, month out. Year in,
year out, their franchisees are losing money. [20:58] The reason that is, the reason these
two models don’t do that, is because they sell the fantasy that
you can be extremely profitable by buying their franchise and not
ever going to work in the business. That’s not true. You’re going
to have to work in the business. You’re going to have to work to
get the business, to do your presell. [21:23] Who’s going to do your presell if
you don’t go do it? Who’s going to do your next promotion if you’re
a new business? I think it’s smart to consider making more money by
offering more value. There’s a strategic way of doing this. [21:43] We have created a blueprint, which
I’m going to tell you about in a second, where we walk you through
a lot of different components to becoming a 24 hour gym. One
of those components is helping you create an offer so that your existing
members and your future prospects can have an option to choose
from. [22:06] Now out of a hundred, and this isn’t
exact but, out of a hundred prospects that come in your business,
look at your business and decide to join, out of a hundred people
that join, 30 percent of them on average will take a premium upsell
if you offer one. That means that 30 people out of that hundred
are going to be paying you more. [22:32] Usually for no more out of pocket
expense, no more overhead or anything. It’s just for more options. We
can help coach you through that. If you want an example of what
I’m talking about here, I just want you to consider McDonald’s
for a second. [22:52] You go to McDonalds. You bought a
cheeseburger. They ask if you want fries with that and you get the fries.
Then they upsell you into the fries. Then they cross sell you
into the drink. Then they get you on their back end continuity
program with their toys. They’re getting you from every angle. [23:17] You’re not mad at McDonalds for offering
you fries, right? You just say, “No, thank you.” Sometimes you
say, “Hey. I would like fries with that hamburger.” I don’t know
why anyone would choose McDonald’s fries over Checker’s fries,
but that’s just personally me. Back on track here. [23:36] If you don’t create a premium upsell,
you’re missing out on profit. That’s the long and the short. We’ve
created a blueprint. If you want to get our blueprint for converting,
which basically is an inventory list of everything we would need
to convert your club, and an estimated price to do that, you can
always request one of those from us. [23:59] Since this is the end of the presentation
I’m going to go ahead and give you your 24 hour premium security
concept. Instead of paying a security company 15 dollars to
100 dollars a month to “monitor your facility,” why don’t you go
in and attract in police officers, firemen, EMS workers, FBI agents,
CIA agents, Homeland security. [24:23] Why don’t you get security enforcement
into your facility, use the facility? There’s a couple of ways
you can do this. One. You can give them all free memberships. That’s
a novel idea, right? You give all of them free memberships. [24:37] “That would be hundreds of memberships,
Josh.” OK. You just gave away a hundred memberships to some of
the best people in your community. Do you think your business will
benefit from that long- term? Of course it will. Right off the bat
you’re going to have squad cars, fire trucks and things like that
in the parking lot. [24:55] You may not like that. Maybe you’re
in a neighborhood where having a bunch of cop cars in your parking
lot would deter all your clients. For you this wouldn’t work but if
you want that type of security, real live people, the best thing
to do is get them in there. I suggest giving the first responder
or whoever you give the membership, just give it to them for free. [25:23] Then giving their spouse or family
members 50 percent discount. That’s what I recommend doing. It’s
an offer that’s hard to turn down. A free membership and then their
spouse gets 50 percent off. Over time it will grow your business
in many different ways. It’s very dynamic doing this method
here. [25:44] That’s that. I ran over. I’m very
all over the place. If you want to get a customized 24 hour conversion
blueprint for free all I need you to do is go to fitness360online.com/convert.
That will get you to our page that tells you about
our system. [26:07] We’ll give you an opportunity there
to fill out a form on the bottom of that page which will give us
the information to create an inventory list and that quote to
convert your gym. You can use this inventory list and shop everything
out yourself and price it all out, this that and the other. [26:25] If you decide to allow us to do the
conversion for you we do have a 30 day money back guarantee. We’ve
converted over a hundred clubs successfully. We have a pretty
good reputation in the industry. If you’d like more information on
that, again, you’re just going to go to www.fitness360online.com/convert. [26:47] You’ll also be able to set up a strategy
call, a free strategy call, with me right there on the
website. If you want to hop on the phone with me and talk about converting
your gym or talk about lead boxes or sales funnels or your
marketing plan for 2014, take advantage of that. It’s complementary
that we do off our website. We’ve done 300 plus calls this year. [27:16] We’d love for you to hop on the phone
with us so we can learn more about you and project. Add some
value to you. If we earn your business great, if not we’ll have at
least added value to your life. With that said, thank you for watching
this presentation and we’ll be talking to you soon. [27:31] [music]

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