Empire Gym · Bottleneck Assessment 092226

The Result: Is It Worth Solving?

A decision map. Four questions, answered with their own numbers.


Annualized bleed
$38.8k/yr
66 members × $48.99 × 12 mo
Conservative return
$7,642/yr
saving 1 in 5 of the 66
Per member saved
$588/yr
recurring, every year
Gap to goal
+626
874 → 1,500 members
Question 1

How big is the leak, really?

(940 peak − 874 today) × $48.99 × 12 mo = $38,800 / year

Sixty-six members slid away after an underpriced summer program. Nobody was contacted on the way out — the systems that could have saved them never spoke to each other.

Question 2

What does the fix cost vs. what does it return?

Cost of the fix

  • One GoHighLevel workflow build (one time)
  • ~30 minutes every Monday: export, compute the 14-day list, import
  • SMS/email send costs — pennies per message
  • No new software. No API to buy. Both systems already paid for.

Return, conservatively

  • Save just 1 in 5 of the 66 → $7,642/yr
  • Every member saved = $588/year, recurring
  • Saving 2 members covers any reasonable build cost
  • Each saved member also refers, reviews, and stays past month 12
Worth it

The cheapest fix on the board returns the most per dollar. Near-zero cost, four-figure annual upside.

Question 3

Should they just run ads instead?

No — now
  • Lifetime value today: $600 (12.2 mo × $48.99)
  • Break-even acquisition ceiling: ~$60
  • Real ad cost: $80–100/member + agency fees
  • Ads at this LTV lose money or tread water
Yes — after
  • Stretch lifetime 12 → 36 months, nudge pricing (CrossFit affiliation gives cover)
  • Lifetime value: $1,800–2,000
  • $100–150 acquisition becomes profitable
  • Then run ads as always-on brand builders, conversion tracking feeding Meta

Retention first unlocks advertising. The order matters more than the tactics.

Question 4

Does this reach the 1,500-member goal?

874 → 1,500 needs +626 members. At $48.99, 1,500 members ≈ $882k/yr in dues — the "step back from the business" number.

No single fix delivers 626 members. But without the retention fix, every new member is poured into a leaking bucket — acquisition can never win that race.

Honest caveats
Assessment verdict

PRESCRIBE

The bleed is material (~$38.8k/yr on stated numbers), the fix is the cheapest thing on the board, the owners are engaged this week, and every later move — pricing power, ads, the 1,500-member goal — gets easier once the back door is shut. Fix the leak first.

Signal & Story · Bottleneck Assessment 092226
(940−874)×$48.99×12=$38,800.08 · 13×$48.99×12=$7,642.44