Nash

@BFW There’s a reason you’re a podcaster

I cannot believe Kirby called that timeout.

@raptalksk No way Franks on it after the Carousel incident

give me frank ocean & yves tumor PLEASE

@JoePompliano You forgot the “make it impossible for them to cancel their membership” part

Planet Fitness is a fascinating case study. They offer free pizza and bagels and kick out all the powerlifters by removing heavy weights from the gym. But their membership price hasn't changed in 25 years, and they now have 2,500 gym locations worldwide. Here's how it works 👇 The Planet Fitness story starts in 1992. Michael & Marc Grondahl came from a family of entrepreneurs and wanted to start their own business. So they bought a struggling Gold's Gym in Dover, New Hampshire. But instead of catering to bodybuilders (like Gold's Gym), they focused on getting first-timers acclimated to fitness. They added aerobics classes, child day care, state-of-the-art equipment, and introduced year-long payment plans. The model initially worked — but as they added two more locations, problems started to compound. Example: A kid would push another kid in daycare and start crying, or the aerobics instructor wouldn't show up for work and people would get pissed. So the Grondahl brothers returned to the drawing board for their fourth gym in Portsmouth, New Hampshire. They removed the heavy weights and introduced the "Judgement Free Zone," effectively kicking out bodybuilders and softening the gym's image. They ditched group classes, juice bars, and childcare facilities, filling the gym with nothing but equipment. And they changed the gym's hours to 24/7/365. But the real game-changer was the price. That's because getting rid of all the fluff typically associated with gym memberships (group classes, smoothie bars, steam rooms, etc.) allowed Planet Fitness to drop its price to just $10 per month. That's 80% cheaper than the average gym in the United States ($50/month) and 94% less than an entry-level membership at a luxury gym like Equinox. And here's the craziest part... The $10/monthly price hasn't changed in 25 years. Planet Fitness can do this because: 1) They sign cheap lease agreements with large retail locations that are struggling (Toys “R” Us, Circuit City, etc.). 2) They intentionally target the 80% of Americans that don’t have a gym membership. The $10/month price point is perfect for these people — affordable enough to get new members but cheap enough so no one cancels. And it allows Planet Fitness to significantly oversell its available inventory (aka gym space). For example, the average Planet Fitness is 20,000 square feet and has 7,500 members. But Planet Fitness knows that 60% of its members don't go to the gym for a 30-day period. So they oversell the space and collect more membership fees each month. The company then upsells a large portion (60%) of the members that do use the gym, convincing them to pay $25/month for a better package (all locations, etc.). And they scale this model through franchises. Planet Fitness only owns ~200 of the 2,500 locations. The rest are owned by franchisees (individuals, private equity funds, etc.) that pay between $1.5 million to $5 million in setup costs. These franchises then provide Planet Fitness a steady revenue stream of gym membership royalties (7%), national marketing fees, and even PF-branded equipment sales. Example: Planet Fitness sold $227 million in equipment to franchises last year alone. Planet Fitness 2022 Revenue Breakdown • Franchise revenue: $271.6 million • Corporate-owned store revenue: $379.4 million • National advertising fund revenue: $58.1 million • Equipment: $227.7 million –––––——— Total 2022 Revenue: $936.8 million (+60% YOY) And Planet Fitness doesn’t seem to be slowing down anytime soon. Their franchise model enabled them to open 158 new gyms last year alone — and by keeping their monthly membership rate steady at $10, same-store sales increased more than 11% from 2021. Planet Fitness Market Cap 2015: $1.5 billion 2023: $6 billion So the lesson here is simple: Sometimes it pays to think outside the box. ** This breakdown is an excerpt from my 3x weekly podcast (Top 50 in US Sports). Subscribe below so you don't miss any episodes going forward! Apple: podcasts.apple.com/us/podcast/the… Spotify: open.spotify.com/show/5PLKKWZNo…

@focusonumybby Big

Kanye can do all that and I STILL don’t ever wanna hear False Prophets by J Cole

@GeorgiaFootball Can’t help but smile. These dudes have so much love and respect for each other

Stetson and his biggest fans 🙌 #CFBPlayoff | #GoDawgs

@GeorgiaFootball @NASAMAINE Everyone can shut up about Stetson now

Throwing 𝕯𝖆𝖗𝖙𝖘 🎯🎯🎯 #CFBPlayoff | #GoDawgs