Rebranding Failure
If you're a douchebag, changing your appearance alone won't help. The same is true in business.
And like that, it’s November.
Highly recommend that every microgym owner considers leaning out their schedule as we get closer to Thanksgiving and Christmas. I know it’s lots of fun playing martyr and bragging about how you hosted 4 classes on Christmas Eve while your kids cried themselves to sleep and your wife was Googling divorce doc templates
For real, this is the only time of the year you can significantly lean out your schedule, give you and your staff some much needed time off.
And guess what?
Nobody has ever cancelled due to a temporary holiday schedule change. Never happened. Probably never will.
So go for it. Cut those dead classes and take off more time than you have in the past.
It feels great and the long-term ROI is 10x.
Much love,
Stu
Today’s Rundown
✔️ Rebranding alone can’t save your broken gym model
✔️ Microgyms need to play nice with fit-tech wearables
✔️ Advice for those getting into content creation
YouFit Rebrands, But Will It Be Enough To Save Them?
Some questionable business decisions from another bloated globo-gym….
While I've highlighted some solid globo-gym models in previous issues, this one has cringe vibes, reminding me that many players in the globo-gym industry still don't get it.
Last week, YouFit Health Clubs, headquartered in Florida, rebranded as YouFit Gyms.
The YouFit rebranding includes:
a new logo to go with the new name
$20 million in upgrades at its 80 clubs in 10 states
nutritional resources through a partnership with EatLove
on-site personal training for as low as $30 per session (WTF?!?)
YouFit On Demand, a series of virtual classes created for at-home workouts through a partnership with Les Mills.
MY TAKE
This rebrand is like putting lipstick on a pig, and to fully understand why you have to take a deeper look at what has happened in YouFit's recent history.
Like so many others (TSI, Gold's Gym 24 Hour Fitness, to name a few), YouFit Health Clubs filed for bankruptcy during COVID.
Why? They were leveraged out the ass.
To start up a globo-gym facility costs a boatload of money.
Their massive physical footprints and obnoxious overhead, like rent and staffing, make it very difficult for these models to become profitable.
Then, use an equipment model that is an endless money pit. We're talking treadmills and ellipticals that last maybe six months without maintenance and tech-enabled equipment that become outdated within three years.
It's just an inferior business model, and that's why YouFit and companies like them had to file for bankruptcy during COVID, while others that operate a more streamlined version were able to survive.
Now, fast forward a year later to the announcement of YouFit's rebrand. As outlined above, the rebrand includes a few aspects, but let's dive into their brand name first.
They are dropping the "Health Clubs" and supplementing with "Gyms," reinforcing what I always preach: brands need to be relatable at a conversational level.
And what I mean by that is, who in the hell has ever said, "Hey, honey, I'll be back in an hour. I'm going to hit up the health club for a workout".
Nobody. No one ever has referenced their health club, even if it is the business's name, as a health club.
They say, "Honey, I'm going to go hit up the gym," or "Hey, bro, do you want to go to the gym with me?"
Making this pivot from YouFit Health Clubs to YouFit Gyms is really only a formality because I guarantee 99% of their customers were already calling it a gym anyway.
Now, YouFit is finally getting with the times, realizing their naming convention was wildly outdated and updating their brand name.
Great, but is it enough? Probably not.
Next, let's look at the $20 million in upgrades at its 80 clubs in 10 states.
Here's the skinny: Throwing money at a poor business model is never the answer.
When you look at the economics of a low-price, high-volume gym model like Planet Fitness, those work because they are smaller facilities with lean payroll budgets. As a result, their overhead is manageable and allows for solid profit margins.
But when a business adopts a low-price, high-volume gym model for a gym with a huge footprint, such as YouFit, and couples that with extremely discounted additional services (YouFit is offering $30/hour personal trainer rates), that is a recipe for disaster.
Rebranding will not save a broken business.
First, understand that a superficial rebranding of your business will not save it, fix it or differentiate it. As you can see here with YouFit, they've changed the name and the logo, but they will still experience the same business problems.
If you are going to rebrand your microgym, I highly recommend consulting with somebody who understands exactly how to digitally, aesthetically and operationally complete your rebrand, so you actually have a chance to evolve the brand into something different than you were before.
The simple math that few understand.
Next, let's talk basic gym economics.
It is simple, really...
Large buildings + higher expenses = higher membership volume. High membership volume typically requires a low membership price.
And vice versa.
Smaller building + fewer expenses = lower membership volume. Lower membership volume can allow you to charge a higher membership price.
This is just the basic economics that every microgym owner should recognize.
While I am not trying to add more fuel to the "hate on globo-gyms" fire that most microgym owners have, I think YouFit Gyms will serve as an unfortunate cautionary tale that we can all learn from.
Do Microgyms Need To Get On Board With Wearables?
I'd bet money that over half of your members wish you would…
Last week, health wearable maker Oura (now valued at $800MM) launched its newest device, unveiling Oura Ring Generation 3.
Expanding its offering and strengthening its business model, the company also introduced a monthly membership.
With a $5.99/month subscription, the company adds recurring revenue to the one-off purchase of its $299 smart ring.
MY TAKE
The Oura Ring caught my eye because, honestly, I think it's the least attractive of all the wearables - aesthetically and business-wise.
First, my own personal bias - who the hell wants to wear a ring to the gym?
Next, it seems like they are eliminating a vital audience with this product.
How the hell will you target customers who aren't married?
Even if you enjoy wearing jewelry or your wedding band, are you really going to wear this ring 24/7 so it can lock in your performance data?
And how the hell are you able to wear the ring and still grip barbells and pullups bars in workouts? I'm sure they've tested this, but it definitely isn't ideal for functional fitness workouts.
However, my interest peaked upon realizing that Oura is currently valued at $800MM and commandeered Peloton's former VP of Global Marketing.
Three hours later, down the Google rabbit hole, I discovered various stats that have me completely rethinking the role that wearables can have within the microgym industry.
Did you know that almost 60% of everybody in the US has a wearable?
Think about that for a second. That shit cray...
That adoption can be attributed to the fact that the wearable market is no longer in the early adopter phase and has moved into the late majority phase.
Years ago, having an Apple Watch was seen as the bouji thing, a status symbol, because you were one of the few. A wearable is now available for almost any part of your body, creating more opportunities for consumers to techify their health and wellness.
Given this, I would be willing to bet that at least 50% of your membership owns, actively uses, and seeks data from a wearable.
So why aren't we seeing more innovative ways for microgyms to unofficially "partner" with the devices their members are already wearing?
Now, I am not suggesting microgyms all adopt the OTF model. Forget the branded chest straps and giant TVs that display heart rate.
As a smaller player in the fitness market, even without all the in-house tech, you are actually at an advantage.
If you choose not to Whitelabel or manufacture your own wearable, you can allow your members the freedom to use the wearable of their choosing, allowing you to tap into the tech they have already selected and prefer.
They have the gear. Now, you just need to create ways to gamify the data that correlates with your workouts and provide members an opportunity to share their data if they so choose publicly. It can be super basic; here are a few ideas:
Gamifying:
Daily challenges associated with strain, recovery, etc.
Prescribe an ideal heart rate for each workout
Create a monthly digital leaderboard focused on data consistency
Upgrade your personal coaching services by integrating the members' data from workouts and allowing your trainers to make recommendations based on the wearable's feedback.
Sharing data:
Create a private Facebook group for wearable stat swapping
Maybe you already pay for a workout tracking software in which people can upload screenshots and images of their data after a workout and create commentary and community in the discussions around that.
Encourage members to throw up screenshots on social media of their data and use a branded #hashtag
Whichever route you choose, the more ways we can get creative and integrate wearables into our brick-and-mortar services, the more likely we are to bridge that hybrid space between digital and IRL.
So, start talking to your members about their wearables. Why do they prefer one over the other? What metrics are they most interested in, and how would they like to see them incorporated with your workouts?
And then get fucking creative.
Getting Started With Creating Content Is Hard.
But so is being broke and nobody knowing your service exists, so pick your hard…
I've recently published and given public talks about content creation for those in the fitness industry. And while some business owners naturally flock to the camera or microphone, many cringe at the idea of putting themselves out there. So this is for those of you who are getting started with content creation and are looking for some framework to lean against as you dive deeper.
Step 1: Find Your Desired Medium
It's a pretty easy selection process. First, choose between video, photo/image, or audio. That's pretty much all there is. And when selecting your desired medium, it should be the one you organically are drawn to and would enjoy the most (not the one you think will get the most clicks). The main reason for this is that the medium that you're most comfortable with will allow you to create faster, which is precisely what's needed at this stage.
Step 2: Quantity > Quality
"Never let perfection get in the way of good enough." - Casey Neistat.
A perfect quote for any beginning creator. Just like your clients, you need a lot of reps before you're going to get good at this craft. So placing too much emphasis on the unimportant details or agonizing over making that singular piece of content perfect should be of no priority to you.
Think about yourself as a consumer of my content. Do you consume my content because it's perfect? Or do you consume my content because I've created so much, covering so many topics and providing value consistently, that you can trust me to deliver through the reputation I've built on my extensive portfolio of content?
Step 3: Create content that is educational + entertaining...but when you start, choose one.
I've made the statement many times before that your content needs to be educational, entertaining, or ideally, both. However, in the beginning, if you don't naturally create in the 'both' category, pick only one and stick with that for the first few months.
The logic here is that new creators get 'paralysis by analysis' far too often. So go with what you know, what you're instinctively good at and prefer. If you like educating more than making people laugh, then start with topics like "3 Reasons The High Bar Back Squat Is Better Than The Low Bar Back Squat".
If you like to put on a show, perhaps creating a series of IG posts that poke fun and highlight the ridiculousness of other fitness models you disagree with will be more your speed.
Regardless, the ultimate truth is that you have to start creating if you want to start earning. No matter if you are online or brick + mortar, influence is key, and awareness is the only thing that creates influence, and content is the only thing that creates awareness.
Some gym owners are stupid. Let’s help them out.
Share this with someone who needs to level up their business game.