By: Leila Burrows, Co-founder of The Pad Studios
WHAT YOU’RE GOING TO LEARN
I’ve been getting emails from studio owners almost daily since the VICE article “Classpass is squeezing studios to the point of death” came out and so I wanted to share my story and thought this was the best medium to do it.
The take away is this — Classpass created a big mess within my business. Having reached my wits end with CP and their behavior, I dropped in October 2019. Within 30 days of being CP-free, not only did my revenue not go down, it INCREASED. More specifically, my Yoga program revenue increased by 15% YoY and my Pilates program increased by 20%.
I honestly didn’t think this was possible. If you are a boutique studio in a major city, I’m guessing you feel similarly. I felt bait and switched by CP; I also felt trapped given that such a significant percentage of my monthly revenue was coming from them. The only thing stopping me from dropping was fear. Fear that if I did, the clients wouldn’t follow. Fear that if I did, the dollars wouldn’t migrate.
Well to say it was a success is putting it mildly. My studio is tracking to show positive profits, my community has never been stronger, and I haven’t felt more in control of my business and its future since the years before Classpass. I’m not one who typically writes blogs but I feel so strongly this needs to be heard because the results are astounding and I feel many studios can directly apply my same approach and get similar results if they are equally frustrated with Classpass and want to take back their community and business.
Read the Leila's full story here: https://medium.com/@leila_33411/how-i-dropped-classpass-reclaimed-my-community-and-increased-monthly-revenues-by-15-c9df4dc1dc92
Faced with the daunting task of figuring out how to replace this $12K/monthly revenue I went to the smartest people I know in the space on the topic of pricing and revenue management — Matt Capizzi and his team at Zenrez.
CONCLUSION AND LEARNINGS FROM MY EXPERIENCE
Converting off was not simple. I created a really big mess by going on Classpass. To undo this mess required a complete rebuild of my pricing structure, a carefully orchestrated communication strategy, and a refinement of my entire tech/software capabilities.
I also must mention that I absolutely could not have done any of this without the help of Zenrez’s software and pricing expertise. Their team is probably the smartest group in the world when it comes to maximizing revenue for boutique fitness studios.
They gave me the tools to be able to manage my own business and clients more effectively to replace CP’s revenue. If you have the desire to get off of CP and take back your business I would not attempt it without reaching out to Zenrez first, as The Pad could not have succeeded without their expertise and their tech.
This article was originally published in Medium. Continue reading the full story here and Leila's lessons learned after dropping ClassPass: https://medium.com/@leila_33411/how-i-dropped-classpass-reclaimed-my-community-and-increased-monthly-revenues-by-15-c9df4dc1dc92