Would You Go To McDonald’s For Pizza?
What a ridiculous question to ask! Everyone in the world knows that Macca’s is the home of hamburgers! It is part of the brand’s DNA.
Can you imagine the success of The Golden Arches if they changed their menu from hamburgers to pizzas? Can you imagine the cost to rebrand and re-educate the billions of people who know what McDonald’s stands for?
Along a similar vain, was a discussion I had this week with several fitness business owners. This owner had met with a highly paid consultant (they charged way more than I what I charge!) and the first thing the consultant said “We need to change your business model from one to one to large group training.”
And for me this is like switching from hamburgers to pizza when everyone knows you sell hamburgers!
I totally agree that:
- Potentially there is more profit in group training.
- With group training you can make the product more affordable for people, so lowering the barrier to entry.
- Group training is better leveraging of a PT’s time
What I vehemently disagree with is a business with great history and brand presence in their community flipping their service delivery to something that is completely different. I believe this is fraught with danger!
I just have a gut feeling that you will:
- Confuse the market place;
- Need to work on your sales process;
- Have to change your website;
- No longer meet current client’s expectations as the product is so different and see them leave you; and
- Need to call on your cash reserves as there will be a drop in cash flow initially.
You can do exactly as Macca’s does, have promotions of a different service offering but don’t change the stable menu options. This means you may run a 6 week group training program for example. And this program is a lead generation tool for your other service offerings.
If you are launching a new business, then knock yourself out with large group training from the beginning.
If people know you for being the #1 personal training brand and the #1 gym in your community, then be proud of that! And stick to that product. Just work out how you can increase the profitability or efficiency of that product without changing the menu.
Justin is the Managing Director of Active Management, which he began January 2004. He offers coaching to businesses worldwide in everything from start up and design to marketing and sales systems. Justin also facilitates four Australian and New Zealand ‘fitness industry roundtables’ events, which allows him to see a huge cross section of business models.