Business
Raphael Freedman and Lachlan Rowston are known for their 300+-episode strong podcast, The Mind Muscle Project. They’re also known for their Sydney, Australia-based gym Creature Fitness, which since they joined NPE, grew from one to three locations and increased revenues to more than $1 million a year.There was a problem: Their business model was based on group training, and that was suffering from increasing commoditization. Competitors such as F45, CrossFit, and Orange Theory were flooding the market with group training offers, and putting pressure downward on prices. Raph and Lach were looking for a way out of the race to the bottom. They wanted to be able to charge premium prices, but they weren’t sure of the business model that made the most sense. Then COVID-19 hit and they were forced to shut down from March to June. It turned out to be a blessing in disguise. With their NPE coach, they set to work strategizing. When they reopened under new space restrictions, they had a new model in place: Semi-Private Training for high-end clients willing to pay higher prices for greater value. They delivered customized programming to create specific results aligned to the goals of each client. Within a couple of months, their revenues are back to where they were before they were shut down. But they are more profitable, have happier staff, and serve their clients better. See acast.com/privacy for privacy and opt-out information.