While you may not see CrossFit as a direct competitor, you may be surprised by what you can learn from them. And it’s not just CrossFit. There are a number of clubs that are getting $100+ per month including Orange Theory, but let’s just focus on CrossFit.
- Much like Empower Kickboxing, CrossFit clubs are affiliates, not franchises. CrossFit offers no territorial protection like COBRA or TASMA.
- CrossFit Corporate charges $3,000 a year to own a gym with the name and logo. That’s it. There is very little marketing support, unlike COBRA and TASMA.
- CrossFit conducts classes with trainers who pay on average $1,000 per certification to earn the title of CrossFit Coach. It’s required. MATA Certification is a fraction of that.
- Crossfit gyms typically charge two to fives times more than typical gyms. In Boston, for example, a typical gym membership costs about $85 while Crossfit gym memberships range from $200 to $300 a-month. Nationwide, CrossFit averages 150 clients paying $150 and up per month which averages out to about $22,500.
- Unlike Planet Fitness where 80% of the clients paying $10 per month never show up, CrossFit clients do show up and pay.
What can we learn from this?
- People will pay to get results. The martial arts curriculum model of “Keep paying and in 3 years you’ll be glad you did” is getting harder to sell. People want results yesterday, not 1,000 days in the future.
- This is not about selling out. It’s about curriculum design and shedding the fat and baggage that most systems have. The style should serve the student not the opposite.
- CrossFit clients are serious about fitness so that’s all they want and get. CrossFit doesn’t try to be affordable or accessible to everyone. Every market has a top third that will pay what you ask if you provide what you promise.
- CrossFit parents can take a class with their kids so they workout together. That’s great from a bonding and time management standpoint.
- CrossFit is now offering after-school programs. It only makes sense. 50%+ of families are paying $232 a week on average for after-school. It would be foolish not to grab some of that market.