A Deep Dive into Studio Profitability

Feeling stuck in the hustle cycle? Working long hours but still struggling to make ends meet? 

In this episode of The Pilates Business Podcast, host Seran Glanfield unveils strategies you can implement TODAY to work smarter, not harder, and double your studio's income. 

Learn how to optimize your pricing, leverage technology, upsell strategically, and retain loyal clients to achieve the financial freedom you deserve.

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Transcript

Speaker 1: 0:00

Hey there, studio owners, are you feeling overwhelmed right now by the constantness of your business, by that hustle, by the keeping on going and checking off the to-do items, working longer hours, but perhaps you're still struggling to really take home the income that you want? Well, I want you to know that if you are feeling that way right now, you are not alone. But there is a way to strategically design your studio business so that you can actually increase your revenue, raise your revenue, multiply even your revenue, without sacrificing your sanity or increasing your hours and continuing to work yourself to the bone. In this episode of the Pilates Business Podcast, I'm going to share with you a few areas to focus on and some strategies that you can implement now to work smarter, not harder, and increase your studio's overall income and revenue, but also, perhaps more crucially, what it is that you take home and pay yourself. Well, hi there, I'm Saren Glanfield. I'm a business and marketing strategist just for boutique fitness studio owners like you. If you're ready to be inspired and make a bigger impact, you're in the right place. All you need are a few key strategies, the right mindset. You need are a few key strategies, the right mindset and some support along the way. Join me as I share the real-life insights that will help you grow a sustainable and profitable studio.

Speaker 1: 1:34

This is the Pilates Business Podcast. Welcome back to the Pilates Business Podcast. I'm Saren Glanfield and I'm thrilled that you're here with me today. Again, we're talking about numbers. Today we're talking about revenue. We're talking about profit. Two things are not the same. This is something that, when you came into this world of business ownership, we find ourselves in this place, and when you do that in the beginning, that is something that probably is the reason why you are in business today. So I'm all about hard work, but I think there comes a point in your business where you need to find a way or that is helpful to find a way to strategically design your business so that it is not designed around you and for as long as you are working in it or for it, that we are able to design your business in a way that actually allows it to run and operate and to spin off revenue and income for you without you needing to be in it all the time, right, or at least give you some freedom to choose what it is you want to be doing in your business, and I've seen that you know, some studios owners come to me and they're at a point where they are, you know, really at the brink of that burnout point, where they've been doing this for a while and they have been working their behinds off and they're making decent income and the idea of continuing on at this pace, even if they're making the same amount of money or even if they make even a little bit more, is still kind of overwhelming to them. And you might be kind of in that place, you might have been in that place or you might be thinking or worried about approaching that place. And I totally, totally understand where you're at and this is part of, I think, the evolution of your role in your business, as a leader of your business, when you can see where you're in this transition point where you can move from one season to the next, where perhaps you're in a season of growth where you're throwing everything into your business and then you can move into a season of stability or where you're able to create a bit more freedom for yourself. This is part of the evolution of your business journey and it doesn't mean that your business will always operate the same way it runs today or that it will always operate in the same way it has run in the past, that you actually are in control and you have the power to design your business in a way that it actually supports you in doing the things and providing you the income that you want to do.

Speaker 1: 4:51

And I think the first thing we all have to kind of do is to get our head around that Right. And often our mindset around our business model and how hard you work, how many hours you work, is tied to a lot of influences that we have had over the course of our lives what other people are doing, role models, our competition, what we've experienced perhaps growing up around work and mindset around all of these things. Sometimes that doesn't always tie in with what you want to do, so there's sometimes a bit of a conflict internally, and maybe that's where you're at right now and sometimes there isn't. And either way, all is good. The first thing we need to do if we want to design a business that works for you instead of you just working for it is to think about how you want to design your business and what success truly looks like for you. And when I work with studio owners, what we are usually looking for what we're usually aiming towards is not necessarily adding more and more and more hours to your schedule, to your work schedule.

Speaker 1: 5:51

Right, sometimes people are very happy with the number of hours they're committing to their studio business. Oftentimes, more often than not, people would like to have the flexibility or the option, or that they truly want to work less, and it is possible to have a growing business without you working more hours. And in order for that to happen, we need to be thinking about our business slightly differently, because it's not about working harder In fact, making more money doesn't always mean you working more hours. It's about working smarter with the hours that you have, because there are strategic ways to leverage the time that you have available and the resources that you have around you to increase your revenue of your studio and the income that you are taking home, without sacrificing your wellbeing or the quality of the services that you offer. Truly, there is I've seen it. I support studio owners doing that every single week inside of Thrive, and it is truly transformational when you approach this with the right mindset and then take the actions that you need to take to switch gears in your business and to maybe make your business into a machine, an engine that can be run and doesn't require you to be there constantly making it run.

Speaker 1: 7:14

And so I want to share with you today a few things to think about in your business, a few of the gaps that I typically see, that are often holding people back, and just some things that you might want to do differently or to think about differently in your business. And so you know when we think about your business and your business design and what you want for your business. So I'll be totally honest with you. You know, as some people come to me and they want to grow, grow, multiply their revenue, they want to have multiple studio locations, they want to be big, big, big. And that is amazing. And I also have studio owners that come to me and say I want to build a business that looks like this, that looks like me being able to have flexibility and freedom that has influences and impacts the health and wellness and wellbeing of people in my community.

Speaker 1: 8:01

I want to teach and train and work with people who are energizing and passionate about movement, just like me. I want to help other people to feel the amazing benefits of what I do, and somewhere between the two of those is where most people kind of sit right, and so to me, it doesn't matter whether you want your business to stay the same size in terms of the number of people you're teaching or the number of people on your team, or if you want to grow and expand your business. It doesn't matter to me which of those two things. It's not for me to decide what your version of success looks like, but what I do within Thrive and with the studios that I coach and the people that I help to grow and to be successful in their business is I help them to reach their goals right. And so, as I'm sharing this with you today and I share that with you because there is context to all of these things there are things that exist in your business and the ways that you do things in your business that other folks may not be doing, and I think sometimes that's why we listen to podcasts like this to get some context, to see, outside of what we're already doing, the things that might be able to be done differently, and sometimes it might be better and sometimes it actually might not work for you. So keep that in mind and always be thinking about okay, how am I doing things and what do I want to get to and where do I want to go with my business, and then take what you're picking up here and see how that can apply.

Speaker 1: 9:26

Okay, because I do not think, and I know that there is not a one size fits all, cookie cutter approach to running a business or growing a business or scaling a business, and for most of you listening to me today, I know that you came into this world looking to share what you love with other people and you want it done right. You want the people in your studio to get a fabulous experience from their sessions. You want to build community. You want to develop a place where people feel safe and comfortable and happy and joyful, and you want to be able to do all of that as well as get paid for what you have dedicated to delivering on that, and you're absolutely able to do that, okay. So I'm going to share with you just a few of the things that you might want to take into consideration as you think about how you want to design your business for more profit, okay, and without necessarily adding more time to your schedule, okay.

Speaker 1: 10:22

So the first thing we want to make sure we're doing is that you are optimizing your pricing. And when you are optimizing your pricing, we want to make sure that number one you are priced at the appropriately competitive price point for what you offer to the people that you want to offer it to. So it's really important that you are very confident in your pricing and that it is competitive, that it reflects the true value of what you have to offer, but, most of all, that it is profitable for your business. So you should know and one of the key pieces of data that you should have at your fingertips and be top of mind for you is the profit margin that you have on your business and for each class what your break even looks like. And once you have that data, a lot of things become very, very, very, very clear and apparent to you when it comes to making business decisions, especially when it comes to business design. So when you have that information, you can make decisions about how you want to structure your pricing and your classes in order to make the most money in the least amount of time, within the context of who your audience is and what they are looking for from you.

Speaker 1: 11:38

Okay, so we want to make sure that you are not undervaluing your services and that you're priced competitively and that it is profitable. And this is sort of like one of those checkbox things that we just want to make sure is absolutely okay in your business before you start to make any big changes. All right, now you might want to, once you have that piece of information, think about how you might be able to adjust or tweak what you are offering in terms of your packages or pricing, and think about how you can perhaps bundle things together or position your pricing to be desirable to different client needs, and this really comes down to knowing your clients and understanding what it is that they are looking for. So, as you are thinking about some of these tips I'm sharing with you today, you think about what your clients are looking for and the people that you want to work with are looking for, and it's really helpful to keep that in mind as you go about setting not just the price point but the designing the packages that you offer. Now, what we know and what we've observed in the world in the last I would say post-COVID world, with the access to technology that we have and software that we have is that there is a level of personalization that a lot of people expect, and typically the higher the level of personalization, the more premium the price point can be. The level of personalization, the more premium the price point can be, and so keep that in mind as you're thinking about.

Speaker 1: 13:12

Okay, where is there opportunity in my business for more revenue without me working more or adding more to my schedule? What could I add into, perhaps, a membership option that has certain benefits or perks that could increase that sense of perceived value, increase the value of each of that particular price point and package and increase that overall perceived value of your offers? Okay, so we first of all with before we kind of head into anything else, we want to make sure that we have your pricing fully optimized. Then we want to think about how we can start to use some of the amazing software that we have at our fingertips to automate a lot of some of the tasks that tends to be very time consuming, all right. Or even to perhaps organize ourselves a little bit better so that we aren't letting things slip through the cracks.

Speaker 1: 14:07

And I think this is an area I've talked about a lot here on the podcast and I talk about it a lot inside of my Thrive program where I share a little bit more insight into what you can be doing with some of these automations, and I actually help a lot of my studio owners in that program to set up their automations and make sure that they are working for them. And it's amazing how many opportunities there are for us to really make sure that we are tapping into those revenue potentials without overwhelming our clients, without feeling pushy to them, but using the software that we have to understand a little bit more about your client behavior and making sure that you are showing up in front of them at the right time with sort of those little unique pieces of encouragement or inspiration that supports long-term retention in your business. And the number one way to really scale your business is to make sure that you are not losing folks through a lack of retention efforts or a low retention. So we want to make sure that we are exploring all of the marketing automation tools that we have available to you to streamline your outreach and nurture all of those warm leads or even cold leads that come into your business. You also want to make sure that you are utilizing a really sensible online booking system or client management system to make it really easy for your clients and your potential clients to schedule their sessions with you and to manage their memberships and to find ways that they can help hopefully manage a lot of the admin that goes with scheduling and payments themselves.

Speaker 1: 15:47

And for the most part in our world today, we all have subscriptions in all different places, so it is not new to most people these days to be going online and managing their own memberships pausing, freezing and so on and if you are able to make sure that your clients know how to do some of these things which is where you can kind of perhaps train them a little bit and give them some tips you will be able to take a lot of admin off of your plate. So don't be scared of putting a little bit of that power into the hands of your clients. You can usually set some sort of like guardrails around it so that you give them certain access and not others, and you can put limits on all of that as well. But you want to make sure you are utilizing the automations and the booking system that you have to enable your clients to facilitate managing some of their own admin, and this will all free up a lot of time for you and a lot of headaches and stress that might come from trying to figure out some of these things for your clients. And then, on top of that, you can use some of these tools and systems to set reminders and tasks for yourself, but also for some of perhaps even your team members, to help make sure that no one or nothing gets missed or that slips through the cracks.

Speaker 1: 17:08

So truly, in this world that we are in today, you do not need to have pen and paper and index cards and note cards and anything like that to manage your business. You need to have your business, be online and have software that is supportive of you and your business growth and scale. It is out there. There is a lot of different options available, many of which I absolutely love and you can find which ones I love on my resources page on my website and you will find that the more you lean into using the software automations that you have available to you that is out there, the more opportunity actually that exists for scale in your business, which means more revenue, more income for you, in less time. The third thing you want to be thinking about is where there might be opportunities for upsells and cross-sells, and what this means is that when someone comes into your business and they buy one thing from you, maybe they purchase a package of classes, right? You might find that, you know you might find that that might not be the best option for them, but you're not really sure how you can support them into making a better choice for themselves, right? So perhaps they would really benefit from having some one-on-one sessions to help them to understand a particular sequence or movement. Perhaps they are not, you know, they're not quite at the place where other people in the class are and you're feeling like it's a little difficult. Or perhaps they want more. Perhaps they are looking to reach a certain goal that they have for themselves, or perhaps they are in a place where they could really use a little bit of extra support.

Speaker 1: 18:48

And when I work with my studio owners inside of Thrive and we dive into this actually specifically inside of my marketing intensive we build out a customer journey that is aligned with your brand and your brand values and your brand message and your brand promise. So, instead of just throwing a whole lot of more stuff into the mix, we're actually very strategic about what it is that you offer to your clients and your business, what it is that you offer to your clients in your business, and what the outcome of that is is that you ultimately end up with a customer journey that has a lot of opportunities for more revenue growth, because you're designing a customer journey that is specifically for getting an outcome that you know is possible for your clients. And when you design a customer journey around that, you're able to make recommendations along the way that are very, very personalized for your clients and you can make recommendations at every point throughout that customer journey that will be relevant to them and that will help them to meet their goals faster or more easier. So it really is important to think about that customer journey and where, along that customer journey, you might be able to perhaps make a recommendation for relevant products or services at various points along that path that they're taking. And when you're thoughtful about that customer journey, you will see where opportunities exist for upsells and cross-sells, and by upsells it might be adding on, like I suggested, one-on-one sessions here and there, or that was just an example, but there are a lot of other things you can do.

Speaker 1: 20:21

But it might also mean adding on a signature program for you, or it might also mean adding on some specific recommended products that you're selling in your studio, right? So this might be a really nice way to increase your revenue, to increase your income and to add to your average client spend, right, and we really like that. So you're keeping one client, but now they're spending more money in your studio. That is scale, okay. So you want to think about how you can strategically do that, and I'm not a big fan of just kind of picking out random stuff and saying, hey buy this, hey buy that.

Speaker 1: 20:59

I find that that does fall flat. You kind of there needs to be, in my mind, a specific intention and purpose behind it. Now, above all and you've heard me say this word a lot on this podcast today but above all we're focused on we're thinking about how to drive revenue and profit in your business is we really need to be focused on client retention, and so what that means is that we need to be focused on engaging and connecting with your clients, not just at the point of that first purchase, which is where I find there is like this huge emphasis and sort of maximum like outreach but at every point along that customer journey thereafter. So your client should not feel that once they have purchased their membership from you, or once they purchased that first package from you, that then they are kind of disappearing into the abyss, that they don't never see you or hear from you again. We want to make sure that, once they're in your studio, that they feel like they belong, that they feel a part of your community and that you are doing things in your business to support all of that.

Speaker 1: 22:01

And inside of Thrive we talk a lot about the different things that you can do that make it super fun for your clients and super fun for you too, to make sure that you're making this atmosphere and experience for them that is really positive and something that they want to keep coming back to. And I know that there's a lot that we can do with referral programs and loyalty programs as well, to incentivize your clients to spread the word and even to reward clients that keep coming back and show them your appreciation, and all of that truly matters. And all of that matters to drive and boost and increase and maximize your retention, which is one of the key focus areas that we have inside of Thrive Alongside, of course, top of funnel marketing and attract marketing, which is your lead generation and visibility, bringing people into your business, because we need both of those things to truly fuel your business growth. So there you have it A few ideas, approaches and things that you might want to focus on to increase your studio's revenue without adding more and more and more and more to your plate and sacrificing your wellbeing or the quality of your services.

Speaker 1: 23:15

What I found is, when you strategically assess your customer journey, like we do inside of Thrive, you find opportunities for revenue growth, for more profit, where there are gaps right now in your business, because we don't want to scrap what you have and start from scratch. We want you to, I want you to, I should say work a little bit smarter with what you have. Make sure that this, what you have right now, is operating like a well-oiled machine. And so, when you're optimizing your pricing and you're levering technology and software and you're strategic about what you're selling, when, with great messaging and great marketing, and you're able to really create that very sustainable and profitable business that allows you to perhaps focus on whatever it is actually that you want to focus on Maybe that is more marketing, or maybe that is more teaching, or maybe that is actually perhaps being out of the studio a little bit more Okay.

Speaker 1: 24:11

So if you're looking for more in-depth guidance and support on all of these things and you'd like to do a full assessment of your customer journey and find out where there are gaps in your revenue right now that you could be filling, then you might want to check out Thrive, and enrollment is open right now. There are a few spots left, and I will tell you that the folks that come into this program find that the momentum it creates for them is something that just allows them to continue to evolve and to grow, both professionally and in life, and be able to take and do the things that they really want to do, whether that is, like I said, more in their studio or more outside of the studio. So until next time, remember, this is all possible for you. There is a ton of opportunity out there for you and all you have to do is be willing to go out there and get it. So I hope this was helpful to you as you go about building your boutique fitness business.

Speaker 1: 25:14

If you enjoyed this episode today and I hope that you did I would be so appreciative if you could go and take a quick minute to go to wherever you're listening to this and rate and review the podcast. It would mean so much to me and would help to get this out there into our beautiful community, so that more teachers just like you can feel encouraged and supported on their journey in our industry. Did you love this episode and want more? Head to spring3.com and check out my free resources that will help you run a profitable and fulfilling studio business. And before you go, one last reminder there is no one way to do what you do, only your way. So whatever it is that you want to do, create or offer, you've got this. Thanks again for joining me today and have a wonderful rest of your day you.