WEBVTT
00:00:05.980 --> 00:00:12.300
Welcome to Pilates Elephants. I'm here with, now I'm going to need some help
00:00:12.300 --> 00:00:15.060
with your pronunciation of your name because I'm going to butcher it. I'm sorry.
00:00:15.900 --> 00:00:17.900
Sari Sadati. How did I do?
00:00:18.840 --> 00:00:22.160
Yes. Nice. Sari Sadati. Perfect, Rob.
00:00:22.260 --> 00:00:25.520
And Sari is actually short for, I'm not going to try and say it,
00:00:25.580 --> 00:00:27.880
but it's short for a longer version of your name, correct?
00:00:29.220 --> 00:00:31.940
Yes, it is. You want to try? Want to try to say it out loud?
00:00:34.620 --> 00:00:37.820
Sikarsari. Almost. You have to roll the R a little bit. All right.
00:00:38.060 --> 00:00:44.040
So, Sarri, you're in Bali, Indonesia, and you're a studio owner there.
00:00:44.340 --> 00:00:50.300
And so, yeah, would you just briefly introduce yourself and tell us – we're
00:00:50.300 --> 00:00:54.040
here to talk about your studio in general.
00:00:54.280 --> 00:00:57.160
I actually have a bunch of stuff I want to ask about your studios,
00:00:57.800 --> 00:00:59.820
should I say, because you have multiple of them.
00:01:01.080 --> 00:01:06.580
But particularly ClassPass and why you've decided to leave ClassPass. pass as a studio owner.
00:01:06.800 --> 00:01:12.360
And so, yeah, just give us a quick background on who you are and why we're here.
00:01:14.640 --> 00:01:20.160
So yeah, my name is Sari. And as you mentioned before, I'm from Bali, Indonesia.
00:01:20.620 --> 00:01:27.480
So I started actually becoming a class teacher in 2015 with you,
00:01:27.580 --> 00:01:30.700
Raph, back when you had that 7C red show going on.
00:01:32.840 --> 00:01:36.700
I remember that so clearly. And last year for diploma.
00:01:37.540 --> 00:01:44.320
But then on 2018, I started my first studio in Bali, Saya Pilates.
00:01:44.920 --> 00:01:51.240
And now we're bridging out to four different locations. So we have different locations across Bali.
00:01:52.640 --> 00:01:59.320
And yeah, so I started doing class pass on my second studio in Canggu, Bali.
00:01:59.320 --> 00:02:05.220
So if you're not very familiar with Bali, Changu is like this tourist area where
00:02:05.220 --> 00:02:10.060
we, you know, most of our clientele are from different countries,
00:02:10.100 --> 00:02:11.720
from tourists to expats.
00:02:12.080 --> 00:02:16.560
So, yeah, most of, you know, not in the clientele.
00:02:16.800 --> 00:02:21.260
And did you study with us at Northcote or were you back at Breathe Wellbeing in the city?
00:02:22.914 --> 00:02:28.834
Yes, I was in Melbourne, 2015. How long ago was that? That's a long time ago. Ten years.
00:02:29.414 --> 00:02:32.234
All right. A long time ago. All right.
00:02:32.374 --> 00:02:38.334
And so Canggu, is that the Canggu studio in particular that was kind of the
00:02:38.334 --> 00:02:42.154
catalyst for you deciding to leave ClassPass?
00:02:42.334 --> 00:02:49.814
So firstly, tell me, like, ultimately, firstly, why did you start ClassPass?
00:02:49.814 --> 00:02:55.554
Cause I remember like round about then, maybe, maybe like 2010 or 11,
00:02:55.834 --> 00:03:00.574
we were on, I'm not sure if ClassPass was even a thing, but there was like,
00:03:00.634 --> 00:03:04.274
there was a few different companies doing very similar thing.
00:03:04.294 --> 00:03:08.094
I can't remember the names of them, but there were a few different ones that
00:03:08.094 --> 00:03:10.994
we actually used in our studio in Melbourne CBD,
00:03:10.994 --> 00:03:16.274
but we stopped using it because they basically filled up our class with low-paying
00:03:16.274 --> 00:03:20.154
clients that we didn't want to sell.
00:03:21.114 --> 00:03:22.914
Yeah, I actually relate.
00:03:24.074 --> 00:03:29.034
Yeah. So, yes. It's just different times. It seems like the market has evolved
00:03:29.034 --> 00:03:31.654
and I didn't really keep a big eye on it for a long time.
00:03:31.754 --> 00:03:34.914
Like after we started, I don't think it was ClassPass in particular that we
00:03:34.914 --> 00:03:36.694
used. There was a different brand, I think.
00:03:36.894 --> 00:03:40.234
But they kind of all fought it out amongst themselves. It seems like ClassPass
00:03:40.234 --> 00:03:47.774
won and then I think they're the only big brand that I know of in the market that do what they do.
00:03:47.994 --> 00:03:54.654
And I think they got bought out by MindBody Online, the booking software. Yeah. That's right.
00:03:56.354 --> 00:04:03.914
So tell me, ultimately, when did you start using ClassPass? What year, roughly? Yeah.
00:04:05.809 --> 00:04:08.909
Um what yeah it was um 2000 when
00:04:08.909 --> 00:04:14.169
was COVID 2019 2020 yeah around
00:04:14.169 --> 00:04:22.349
that time so um I survived without class pass for about a year and then because
00:04:22.349 --> 00:04:27.589
back in back back then in Canggu there were only like three studios right it's
00:04:27.589 --> 00:04:31.809
like three of us so uh Pilates wasn't really a big thing back then.
00:04:32.509 --> 00:04:37.889
But then, you know, larger studios starting to come in and this one.
00:04:38.758 --> 00:04:41.718
Large studio which i won't you know i won't tell
00:04:41.718 --> 00:04:44.658
you the name or sound um they started they started
00:04:44.658 --> 00:04:47.678
doing class pass right but i guess it
00:04:47.678 --> 00:04:50.698
works for them because they could have so many
00:04:50.698 --> 00:04:53.378
people in the class per hour so i guess
00:04:53.378 --> 00:04:56.118
that's why they you know consider class pass
00:04:56.118 --> 00:04:59.038
to be one of their booking system so yeah
00:04:59.038 --> 00:05:01.898
so we survived without class pass for a year and then
00:05:01.898 --> 00:05:04.738
my partner starts to um you know get quite
00:05:04.738 --> 00:05:07.638
worried because one by one studio started to
00:05:07.638 --> 00:05:10.518
take on class pass and we started to
00:05:10.518 --> 00:05:13.858
notice that clients um our direct clients starting
00:05:13.858 --> 00:05:16.538
to ask us about why aren't you
00:05:16.538 --> 00:05:19.938
on class pass i'm like oh my god here we go here comes
00:05:19.938 --> 00:05:22.638
the class pass you know the class pass pandemic i would
00:05:22.638 --> 00:05:25.918
say um and so we have
00:05:25.918 --> 00:05:29.138
we have really no choice but
00:05:29.138 --> 00:05:32.538
not to you know other than to join ClassPass because our
00:05:32.538 --> 00:05:35.578
choice are either we're not using ClassPass but we're
00:05:35.578 --> 00:05:38.558
not seen or that we're using ClassPass but
00:05:38.558 --> 00:05:41.798
we can make that into a marketing tool yeah so
00:05:41.798 --> 00:05:44.898
like at least get the people to come in and kind
00:05:44.898 --> 00:05:47.778
of convince them that we're good enough for them
00:05:47.778 --> 00:05:50.898
to buy directly from us but unfortunately that
00:05:50.898 --> 00:05:53.898
wasn't the case so back then ClassPass
00:05:53.898 --> 00:05:57.078
was actually quite okay so uh we
00:05:57.078 --> 00:06:00.478
got a pretty good cut from class bus and
00:06:00.478 --> 00:06:03.458
we we had the um the say.
00:06:03.458 --> 00:06:10.158
To not say yes to a free passes right so they would ask us would you be open.
00:06:10.158 --> 00:06:15.858
Having uh free trials on your studios and clearly we're not no no way we would
00:06:15.858 --> 00:06:20.698
you know take on free pass um but then i think like.
00:06:21.318 --> 00:06:26.058
I think a year ago, they started to change their terms and conditions,
00:06:26.358 --> 00:06:32.578
and I had to sign this new agreement that's stating that I have to take on.
00:06:33.258 --> 00:06:36.358
Free pass right so it's either you sign
00:06:36.358 --> 00:06:40.338
or you're out so yeah the choice
00:06:40.338 --> 00:06:43.138
wasn't really you know benefiting for for us
00:06:43.138 --> 00:06:48.698
either way but um fast forward i think we're on class bus about two years for
00:06:48.698 --> 00:06:54.558
changu and then we had to close the studio because of it so class bus this was
00:06:54.558 --> 00:06:59.118
actually our main one of the main reasons why we had to close changu and i think
00:06:59.118 --> 00:07:02.658
i i told you this I just remember during the mentorship,
00:07:03.158 --> 00:07:05.158
like, wow, I'm really struggling for Changbu.
00:07:05.398 --> 00:07:09.078
It was a very small studio. It was only like six reformers.
00:07:09.918 --> 00:07:17.198
And we couldn't have six class bus users in one hour because we literally...
00:07:18.179 --> 00:07:21.099
Got nothing like literally nothing and it's even
00:07:21.099 --> 00:07:23.859
like we have to pay for the other costs especially for the
00:07:23.859 --> 00:07:27.479
teachers because i didn't reduce my teacher's fee
00:07:27.479 --> 00:07:30.319
maybe i should no maybe i no i shouldn't
00:07:30.319 --> 00:07:34.059
right because it's not fair for them right so um at
00:07:34.059 --> 00:07:37.299
the end the cost is really high and yeah
00:07:37.299 --> 00:07:40.179
and we got nothing so and then also the rent in changu
00:07:40.179 --> 00:07:43.379
goes a little bit higher so it just doesn't add up so
00:07:43.379 --> 00:07:47.059
that's why we closed changu um i to
00:07:47.059 --> 00:07:49.759
two years ago so yeah so and then we moved to a bigger
00:07:49.759 --> 00:07:52.939
place um and hoping that with
00:07:52.939 --> 00:07:59.379
class bus we could survive more yeah right but turns out yeah it's just getting
00:07:59.379 --> 00:08:05.879
worse and worse and yeah and at the end last month we were like this is it i
00:08:05.879 --> 00:08:10.539
mean it's getting out of hand and i think the momentum is really good because
00:08:10.539 --> 00:08:12.559
this smaller studio starting to, you know.
00:08:12.919 --> 00:08:18.659
Like saying the truth about class bus and bringing the facts out there.
00:08:18.679 --> 00:08:24.819
So I think the momentum is good for us to step back and really reduce class
00:08:24.819 --> 00:08:28.119
bus hours by half now, more than half.
00:08:28.459 --> 00:08:34.379
Okay, yeah. So that kind of makes a lot of sense with what I've seen kind of
00:08:34.379 --> 00:08:37.459
as an outsider now, you know, for the last few years.
00:08:37.459 --> 00:08:41.379
That, you know, I think ClassPass,
00:08:41.719 --> 00:08:49.119
their business model is such that they attract people who are real bargain shoppers
00:08:49.119 --> 00:08:54.059
because they're kind of the ClassPass is a cheap monthly thing where you get
00:08:54.059 --> 00:09:01.219
to sort of hop between different studios and they...
00:09:03.388 --> 00:09:09.148
And the class pass takes like a substantial, I mean, I don't know if they take
00:09:09.148 --> 00:09:11.568
a cut because it's really hard to work out their actual pricing because they
00:09:11.568 --> 00:09:17.788
have this kind of credit system where they don't disclose the price of the class to their members.
00:09:18.428 --> 00:09:22.648
You know, when you're a class pass member, you get a certain number of credits per month.
00:09:23.108 --> 00:09:25.828
And then, you know, the class, when they come to your studio,
00:09:25.928 --> 00:09:28.288
it might be a certain number of credits to the class or, you know,
00:09:28.368 --> 00:09:31.128
depending on which time of day it is and whatever that number of changes.
00:09:31.128 --> 00:09:36.588
And so it's really hard for the member to figure out how many dollars or repair
00:09:36.588 --> 00:09:40.528
or whatever they spent on that class.
00:09:40.968 --> 00:09:46.508
But for sure, you as a studio owner get something like 40 or 50%,
00:09:46.508 --> 00:09:52.248
you know, or even less sometimes I think of what you would be able to charge
00:09:52.248 --> 00:09:55.228
a full price member for that spot.
00:09:55.228 --> 00:09:59.348
And if you've got a relatively small studio with six reformers,
00:09:59.408 --> 00:10:01.408
which I count that as a small studio,
00:10:01.948 --> 00:10:07.208
well, if you've got half of those places taken up by people paying half price,
00:10:07.568 --> 00:10:11.308
it's like it's basically impossible to make a living.
00:10:13.237 --> 00:10:17.357
Exactly yeah and the rent especially um
00:10:17.357 --> 00:10:20.077
and actually let me just put it out there i
00:10:20.077 --> 00:10:23.117
think like personally as a business owner i think
00:10:23.117 --> 00:10:25.997
whoever invent plus bus this lady
00:10:25.997 --> 00:10:29.097
she is fucking brilliant you know like she she
00:10:29.097 --> 00:10:33.277
could have so many little margins all studios
00:10:33.277 --> 00:10:35.977
across the globe rough like who would have thought of
00:10:35.977 --> 00:10:38.817
that i mean it's brilliant and the way
00:10:38.817 --> 00:10:41.937
they use credits um they kind of disclose
00:10:41.937 --> 00:10:44.757
the price to us the studios and
00:10:44.757 --> 00:10:47.657
also to the members so they could you know the members
00:10:47.657 --> 00:10:50.597
couldn't say to their friends well i paid
00:10:50.597 --> 00:10:53.917
this much how much did you pay because your credit
00:10:53.917 --> 00:10:56.937
is very blurred you know you never know like what's one credit is
00:10:56.937 --> 00:11:00.197
equal to what rupiah or like what dollars but that's
00:11:00.197 --> 00:11:03.137
just amazing and how they use algorithm they were
00:11:03.137 --> 00:11:06.157
saying you know it changes every 10 minutes and
00:11:06.157 --> 00:11:09.417
yeah 10 minutes i think so every time we had complains
00:11:09.417 --> 00:11:12.097
it's the algorithm it's the algorithm you know
00:11:12.097 --> 00:11:15.357
they never had the specific
00:11:15.357 --> 00:11:18.537
reason why such thing happened but
00:11:18.537 --> 00:11:21.317
it's the algorithm and yeah so i
00:11:21.317 --> 00:11:26.437
guess i guess they're really they're really yeah and so like you know i know
00:11:26.437 --> 00:11:31.117
that i've listened to class pass people talk uh and i've read their website
00:11:31.117 --> 00:11:36.917
in preparation for this conversation and you know they do say that Like ClassPass
00:11:36.917 --> 00:11:40.157
is not designed to be like a marketing tool to fill your studio.
00:11:40.417 --> 00:11:45.577
It's designed to be like the cherry on top to get incremental extra revenue
00:11:45.577 --> 00:11:47.797
for classes that you can't fill.
00:11:48.017 --> 00:11:52.157
And that idea does make a lot of sense to me. And that's why we originally got
00:11:52.157 --> 00:11:55.277
on board. Again, I can't remember if it was ClassPass or whatever brand it was.
00:11:56.340 --> 00:12:00.280
You know, like if you've got a class at, you know, 8 p.m.
00:12:00.480 --> 00:12:05.560
That you're finding it really difficult to fill and you can pick up a couple
00:12:05.560 --> 00:12:09.760
of extra people for that class at half price, well, it's better than having no one.
00:12:10.020 --> 00:12:12.900
You know, it's better to have that income than to not have it.
00:12:13.240 --> 00:12:16.520
And so that does make a lot of sense. And back when we were members,
00:12:16.760 --> 00:12:21.940
you could specify like how many places in each class you wanted to make available for ClassPass.
00:12:21.940 --> 00:12:24.540
Class and you could in some classes you could
00:12:24.540 --> 00:12:27.560
say hey we're not going to let class pass people book into this class
00:12:27.560 --> 00:12:30.620
or we're going to make two places available or four places available for
00:12:30.620 --> 00:12:34.620
class pass or whatever it might be um and but
00:12:34.620 --> 00:12:38.040
my understanding is now it's kind of basically it's the algorithm
00:12:38.040 --> 00:12:41.880
kind of does all that for you like you can't really manually drive
00:12:41.880 --> 00:12:46.060
it is that is that correct yeah so
00:12:46.060 --> 00:12:49.420
the first time class bus people um
00:12:49.420 --> 00:12:52.180
came to us exactly what you
00:12:52.180 --> 00:12:56.960
said they were saying that we're going to help studios like like yours fill
00:12:56.960 --> 00:13:03.260
up empty spots and they kept you know kept saying that you know class bus users
00:13:03.260 --> 00:13:09.700
and direct buyers are different clientele so they were saying direct buyers won't ever.
00:13:11.212 --> 00:13:13.912
Switch to class bus they because they're loyal to
00:13:13.912 --> 00:13:16.812
you like why would they right um so i
00:13:16.812 --> 00:13:20.532
guess when they told me that it seems
00:13:20.532 --> 00:13:23.732
like they they were going to help me feeling those
00:13:23.732 --> 00:13:26.672
spots first it sounds great because well yeah
00:13:26.672 --> 00:13:29.332
i mean that makes sense because as you
00:13:29.332 --> 00:13:32.532
said rather than have zero dollars i could have like five
00:13:32.532 --> 00:13:36.412
dollars like the loads um but
00:13:36.412 --> 00:13:39.652
then yeah and then the algorithm keep changing and then
00:13:39.652 --> 00:13:43.212
as we progress i noticed that um
00:13:43.212 --> 00:13:46.512
somehow our rate becomes low lower and
00:13:46.512 --> 00:13:50.132
lower our credits becomes like lower than before and
00:13:50.132 --> 00:13:53.012
every time we ask them you know what's going on why
00:13:53.012 --> 00:13:55.812
are rates going so low now and yeah and
00:13:55.812 --> 00:13:59.392
they kept saying that it's the algorithm and one
00:13:59.392 --> 00:14:02.672
point they were saying maybe it's because your class
00:14:02.672 --> 00:14:05.432
is um slow you know like
00:14:05.432 --> 00:14:08.292
it's very slow and it's as if they're saying like
00:14:08.292 --> 00:14:11.412
my studio does not really sells but then
00:14:11.412 --> 00:14:15.072
if you're talking about that way like we could fill with
00:14:15.072 --> 00:14:17.932
class pass like lots of spots and half
00:14:17.932 --> 00:14:23.612
of it from direct buyers so if you're saying like my studio is um quiet well
00:14:23.612 --> 00:14:29.032
not really you know i mean it's just the algorithm gets so quick that we don't
00:14:29.032 --> 00:14:34.192
have the chance to pick up our own direct client sales because then ClassPass
00:14:34.192 --> 00:14:36.672
would put them beforehand. Does that make sense?
00:14:38.372 --> 00:14:42.372
And the way they made this… Sorry, just to jump in there just to make sure I do understand.
00:14:42.632 --> 00:14:47.252
Yeah. That, you know, the idea of ClassPass, which I think is a great idea,
00:14:47.252 --> 00:14:52.212
like you said, is that you have your members and they pay full price and then
00:14:52.212 --> 00:14:56.172
if you have some part of your classes that are not full,
00:14:56.312 --> 00:15:00.532
well, then you can top that up with ClassPass people paying less than full price.
00:15:00.532 --> 00:15:04.652
And so that all sounds good. Like you get your members and then you get a little bit of extra on top.
00:15:05.379 --> 00:15:10.239
But what seems to have been the reality for you, and I think this is the,
00:15:10.319 --> 00:15:11.979
I've got a few clients that were
00:15:11.979 --> 00:15:16.619
on ClassPass and have transitioned off ClassPass for this exact reason,
00:15:16.839 --> 00:15:24.459
that what happens is those ClassPass people actually book in and displace members from your class.
00:15:24.459 --> 00:15:30.419
Now, the members can't book in because it's full of people paying 40% of the price. Yeah.
00:15:31.679 --> 00:15:35.439
Correct. That's right. because now
00:15:35.439 --> 00:15:38.379
the tricky thing is because it is connected to mind body
00:15:38.379 --> 00:15:41.919
so we were using mind body now we're not but still connected
00:15:41.919 --> 00:15:44.919
um so class bus could see like
00:15:44.919 --> 00:15:49.819
whoever's in basically whoever's in uh you know filling up the spots right like
00:15:49.819 --> 00:15:55.139
how many spots are filled in and not filled in yet so this algorithm that keep
00:15:55.139 --> 00:16:00.279
changing every 10 minutes will read into that and they will keep looking for
00:16:00.279 --> 00:16:02.599
people to come in with ClassPass, right?
00:16:03.239 --> 00:16:06.519
And the tricky part thing is there is no count.
00:16:06.999 --> 00:16:11.659
So there is this button that will say minimum of ClassPass users,
00:16:11.919 --> 00:16:15.579
something like that, which I thought at first it was supposed to be maximum.
00:16:15.819 --> 00:16:20.519
So we put on three. It says like three maximum of ClassPass users.
00:16:20.719 --> 00:16:24.999
But it turns out it's minimum, right? So, which is why we were thinking like,
00:16:25.219 --> 00:16:31.199
why there were like five ClassPass users in the class while we put in the button like three?
00:16:31.379 --> 00:16:33.479
Turns out it's minimum, not maximum.
00:16:34.079 --> 00:16:37.859
So, that was our fault. But that was just tricky for ClassPass for doing that
00:16:37.859 --> 00:16:43.779
because then we don't have the chance to find our direct clients because that was just so quick.
00:16:44.079 --> 00:16:48.379
I don't know if it's misleading or what, but it seems like the opposite of what
00:16:48.379 --> 00:16:52.239
you'd want is you'd want to limit the maximum, not the minimum.
00:16:52.239 --> 00:16:54.599
That's it. That's it, yes.
00:16:55.259 --> 00:17:01.379
So there's no, yeah, there's no solution there. Also, because they...
00:17:02.525 --> 00:17:08.645
So they turn on and off class pass from the class, the title of the class.
00:17:08.785 --> 00:17:10.225
So say I have five classes, yeah?
00:17:10.445 --> 00:17:13.305
So I have A, B, C, D, E classes.
00:17:13.685 --> 00:17:21.325
So if A class is on on class pass, that means all classes, which is A class, will be on class pass.
00:17:21.845 --> 00:17:25.485
Does that make sense? And I would turn off B class, right?
00:17:25.665 --> 00:17:30.305
So then I would have A class on class pass, B class not on class pass.
00:17:30.305 --> 00:17:34.805
And A and B might be like level one and level two or beginners and open level
00:17:34.805 --> 00:17:37.665
or something like that. Yeah, exactly. Yeah.
00:17:38.205 --> 00:17:46.085
So the tricky part is we have to kind of like set our schedules so that the
00:17:46.085 --> 00:17:51.705
classes that are not on class paths is the one that we're targeting for direct bias.
00:17:51.905 --> 00:17:54.925
But it's complicated because then we have to create, like you said,
00:17:55.005 --> 00:17:58.785
like level one, it has to be like on specific hours.
00:17:58.785 --> 00:18:07.085
And level two has to be on specific hours because it's based on the name of the class, not the hour.
00:18:07.565 --> 00:18:12.065
Does that make sense? That's why it's very true. You end up having these essentially two markets.
00:18:12.345 --> 00:18:17.265
One market is your internal members and they're paying full price and they have
00:18:17.265 --> 00:18:20.145
one set of privileges and then there's the class pass people who are paying
00:18:20.145 --> 00:18:24.985
half price or less and they have a different set of privileges and they're in
00:18:24.985 --> 00:18:27.765
kind of competition with each other because the class pass people,
00:18:27.765 --> 00:18:33.825
you know you want to get them in second to fill in whatever's not you know whatever's
00:18:33.825 --> 00:18:38.485
left over but in a lot of the times they end up getting in first and then they're
00:18:38.485 --> 00:18:40.525
competing with your with your internal members.
00:18:42.243 --> 00:18:49.003
Exactly. So what we did was actually, Ralph, we changed, we made a new class.
00:18:49.243 --> 00:18:50.423
We called it the classics.
00:18:51.123 --> 00:18:57.803
So the classics were the only class that was on ClassPass.
00:18:58.023 --> 00:19:01.203
This was a year ago. right the classics were
00:19:01.203 --> 00:19:04.383
taught by one of my instructors my most popular uh
00:19:04.383 --> 00:19:07.223
instructor back then um so we
00:19:07.223 --> 00:19:11.883
could get all of the direct buyers to you know come into those uh to the classics
00:19:11.883 --> 00:19:17.723
right it's available every day but then my schedule will be so weird because
00:19:17.723 --> 00:19:24.283
it looks like 7 a.m to 10 a.m classics classics classics classics classics because
00:19:24.283 --> 00:19:26.483
the other classes are on ClassPass.
00:19:26.883 --> 00:19:33.283
So it's just a weird schedule, right? But our main goal is to have classes that's not on ClassPass.
00:19:34.363 --> 00:19:39.843
And then we realize if we have, for example, the Classics, right?
00:19:40.023 --> 00:19:46.623
We would like to have five classes of the Classics with ClassPass and five classes
00:19:46.623 --> 00:19:48.483
of the Classics without ClassPass.
00:19:48.483 --> 00:19:55.083
If we change one of the letters to small letters, for example, it's a different class.
00:19:55.463 --> 00:20:00.983
So, we kind of hacked that, right? So, we decided to have, like,
00:20:01.103 --> 00:20:07.663
more normal-looking schedules, but with different capitals of letters,
00:20:07.703 --> 00:20:10.223
which is, like, so dumb. But it helps.
00:20:10.683 --> 00:20:13.243
Like, we hacked the schedule right there. So, I feel like, yeah, such win.
00:20:15.263 --> 00:20:20.143
But then, but yeah, but we were still struggling. So, yeah, this is before we
00:20:20.143 --> 00:20:21.723
deduct class perspectives. Yeah.
00:20:21.883 --> 00:20:25.503
And I think another part of the problem, like you said, is that,
00:20:25.503 --> 00:20:31.483
you know, when a lot of studios go on ClassPass, like I understand,
00:20:31.763 --> 00:20:34.123
you know, I understand the technology.
00:20:34.970 --> 00:20:39.130
I think that the positioning of class pass that, well, it's incremental income
00:20:39.130 --> 00:20:41.350
in theory, it's adding to your existing income.
00:20:41.530 --> 00:20:45.790
And so you'd better to have $5 than no dollars, right? For that, for that spot.
00:20:46.350 --> 00:20:52.930
But the thing is that you end up selling half of your spots at $5 when you could
00:20:52.930 --> 00:20:54.630
have sold them at full price.
00:20:54.910 --> 00:21:02.530
And then, you know, we end up training this whole cohort of people that our
00:21:02.530 --> 00:21:08.870
boutique studio, you can get in for $5, you know, and so there's,
00:21:09.090 --> 00:21:13.370
you know, I mean, like you say, the ClassPass, they use credits specifically,
00:21:13.370 --> 00:21:17.090
so the ClassPass members don't know exactly how much they pay,
00:21:17.250 --> 00:21:19.110
but they can kind of figure it out.
00:21:19.230 --> 00:21:22.450
Okay, well, I paid $100 for my membership this month.
00:21:22.790 --> 00:21:26.210
I got a hundred credits, therefore a credit is about a dollar.
00:21:26.310 --> 00:21:29.670
Now, I don't know, that's not how it exactly works.
00:21:29.710 --> 00:21:33.950
Like you might pay $179 and get 21 credits or something, but you can do the
00:21:33.950 --> 00:21:36.890
math and you can figure out how much it cost me per credit.
00:21:37.290 --> 00:21:40.270
And then you can say, okay, well, when I did my class at Saris Studio,
00:21:40.310 --> 00:21:41.690
it cost me eight credits.
00:21:41.810 --> 00:21:46.810
So therefore I can figure out how much that cost me, right? It's not impossible to figure it out.
00:21:47.330 --> 00:21:51.310
And so then they can talk with your regular members because when they're in
00:21:51.310 --> 00:21:55.650
your class every Tuesday, it's like, okay, they're paying you half price,
00:21:55.770 --> 00:21:59.150
but they're basically in all other ways, they're behaving like a member.
00:21:59.250 --> 00:22:02.130
Like they show up at the class, they love your studio, they do the stretches,
00:22:02.290 --> 00:22:05.470
they smile, they sweat, they, you know, they laugh, they cry,
00:22:05.590 --> 00:22:06.790
they, you know, all of those things.
00:22:07.070 --> 00:22:10.030
So they get to know your regular, your, your internal members.
00:22:10.170 --> 00:22:13.090
And they probably talk in, in the change rooms and say like,
00:22:13.210 --> 00:22:16.730
oh, well, you know, I'm on ClassPass and I only paid, you know,
00:22:17.030 --> 00:22:18.730
$5 for this class or whatever.
00:22:19.090 --> 00:22:22.450
Oh, well, I'm, I'm a member of Surrey Studio and I paid $25,
00:22:22.910 --> 00:22:25.450
you know, like, how do I get on ClassPass? You know?
00:22:26.570 --> 00:22:30.110
And so did you find Did you find that you lost any members to ClassPass?
00:22:30.250 --> 00:22:31.650
Was that a substantial thing for you?
00:22:33.998 --> 00:22:39.958
It was because, yeah, ClassPass were saying as if clients don't talk.
00:22:40.658 --> 00:22:45.198
Like, as you said, they talk. And then especially there's this thing called
00:22:45.198 --> 00:22:51.358
the referrals where if I'm a user of ClassPass and then I refer ClassPass to
00:22:51.358 --> 00:22:54.518
you, Rav, I would get like a more discount.
00:22:55.038 --> 00:22:59.458
So the ClassPass users are actually incentivized to actually essentially like
00:22:59.458 --> 00:23:03.398
solicit your members onto ClassPass. Yeah.
00:23:04.038 --> 00:23:07.438
Yes because i started um receiving
00:23:07.438 --> 00:23:11.498
these referrals from my friends um they
00:23:11.498 --> 00:23:14.318
they they don't have any idea what happened to
00:23:14.318 --> 00:23:18.718
studios with class boss they were just users right so i started getting these
00:23:18.718 --> 00:23:23.978
referrals from my friends uh you know try class boss for you know like other
00:23:23.978 --> 00:23:27.838
studios across bali i'm like what are you doing like i don't want to get into
00:23:27.838 --> 00:23:32.358
this and then so that's when i realized I was like, this thing's like, yeah,
00:23:33.058 --> 00:23:37.898
it's like a pandemic, you know, because people are starting to refer to their friends.
00:23:38.138 --> 00:23:44.218
And then what started with Changu, now in Denpasar, so the other location of
00:23:44.218 --> 00:23:47.798
Bali, which my other studio is. And Denpasar is the major city in Bali, right?
00:23:48.842 --> 00:23:51.962
Yes so in denpasar we target most locals
00:23:51.962 --> 00:23:54.882
like 90 i would say 98 percent
00:23:54.882 --> 00:23:57.922
locals um so locals before didn't
00:23:57.922 --> 00:24:01.342
know about class bus right it's only tourists and expats but
00:24:01.342 --> 00:24:04.142
because of these referrals they started to know class bus
00:24:04.142 --> 00:24:07.142
and they started to ask uh my other
00:24:07.142 --> 00:24:10.382
studios which look within denpasar why aren't
00:24:10.382 --> 00:24:13.162
saya renon or saya got to
00:24:13.162 --> 00:24:15.902
have class bus and then so
00:24:15.902 --> 00:24:18.902
they figure it out um and of
00:24:18.902 --> 00:24:22.322
course in changu and umalas which targets the um
00:24:22.322 --> 00:24:25.642
tourists and expats of course my direct clients
00:24:25.642 --> 00:24:28.442
one by one started to shift to class pass
00:24:28.442 --> 00:24:33.642
i mean if i were them like why not it's so much cheaper and it's exactly the
00:24:33.642 --> 00:24:38.342
same class exactly the same quality because we couldn't you know we asked instructors
00:24:38.342 --> 00:24:43.722
we can't say okay you're from class pass you will be having like 30 minutes
00:24:43.722 --> 00:24:46.502
class while the others have like 55 minutes.
00:24:46.942 --> 00:24:49.482
You know what I mean? We can't really differentiate that.
00:24:50.302 --> 00:24:56.902
And it's going to look back on us as well on ClassPass apps and that's not a good thing as well.
00:24:57.782 --> 00:25:03.802
Sia Pilates get like five stars which is good but then if we started to you
00:25:03.802 --> 00:25:10.622
know change some things from for ClassPass users our reviews will go down and
00:25:10.622 --> 00:25:12.582
I don't know it's just like there's no win-win there.
00:25:13.562 --> 00:25:18.342
But what I love about… So I was going to say, you become dependent on that income
00:25:18.342 --> 00:25:25.842
from ClassPass because you're filling up these places with half price clients or less.
00:25:26.382 --> 00:25:32.182
And so then your income from members goes down, but now you've got income from
00:25:32.182 --> 00:25:37.582
ClassPass that you now rely on that income because your membership income is not as good as it was.
00:25:37.842 --> 00:25:41.422
And so now you want to get rid of ClassPass so you can raise your membership
00:25:41.422 --> 00:25:45.442
up, but you can't get rid of. class bus because now you're reliant on the income to pay the rent.
00:25:45.562 --> 00:25:47.902
So it's kind of a vicious. Yes. Yeah.
00:25:48.933 --> 00:25:52.613
It is a vicious cycle that's what i said vicious cycle um
00:25:52.613 --> 00:25:55.753
but most of my clients are above
00:25:55.753 --> 00:25:59.473
let's say like 45 years old and
00:25:59.473 --> 00:26:03.953
these client sales which i love they don't have like the urge or the interest
00:26:03.953 --> 00:26:08.653
to go on apps and like figure what class bus what is that because they're just
00:26:08.653 --> 00:26:14.253
not into text right so these clients uh usually they i would just buy it from
00:26:14.253 --> 00:26:17.633
you because it's easier You have the admins,
00:26:17.633 --> 00:26:22.753
and the admins can help me whenever I feel lost on the apps,
00:26:24.033 --> 00:26:24.873
direct booking apps.
00:26:25.473 --> 00:26:28.793
So in that area, I think we're good.
00:26:29.053 --> 00:26:34.193
But it's the younger generation that it's a bit tricky because they're very
00:26:34.193 --> 00:26:40.533
tech savvy, and they know what's new, what's going on, and it's very hard for
00:26:40.533 --> 00:26:42.853
us to convert them to direct buyers.
00:26:42.853 --> 00:26:46.273
While we offer discounts so at
00:26:46.273 --> 00:26:49.593
the moment um my classes are
00:26:49.593 --> 00:26:52.793
you know the price has gone very low from what it was
00:26:52.793 --> 00:26:59.113
because we kind of have to like adjust our pricing based on you know what's
00:26:59.113 --> 00:27:04.813
what class bus is offering so now we're offering you know cheaper way cheaper
00:27:04.813 --> 00:27:10.593
rate like 500 000 that's like $50 AUD for three classes,
00:27:10.593 --> 00:27:13.593
which is very cheap for direct buyers,
00:27:13.873 --> 00:27:15.633
you know, just to make them, you know.
00:27:16.993 --> 00:27:22.113
If you book directly from us with this cheaper rate, you get more from us.
00:27:22.293 --> 00:27:28.153
Like, for example, you get dispensation when you're sick or when the weather's really bad.
00:27:28.393 --> 00:27:32.393
Or if you feel like you need some assistance, you can direct,
00:27:32.653 --> 00:27:35.793
you know, like WhatsApp us directly and our admin will help you out.
00:27:36.813 --> 00:27:40.913
Because with ClassBoss, because pretty much they're AI, right?
00:27:41.033 --> 00:27:44.093
They're like robots. so if you're sick or
00:27:44.093 --> 00:27:46.933
if you can't attend the class you cannot
00:27:46.933 --> 00:27:49.933
talk to anyone they just like cancel cancel it
00:27:49.933 --> 00:27:53.693
out but with direct buyers we studio
00:27:53.693 --> 00:27:56.633
we could you know like ask them oh what's going on
00:27:56.633 --> 00:27:59.633
is there anything that we can help you uh what makes you
00:27:59.633 --> 00:28:02.413
feel better and such so that's how we kind
00:28:02.413 --> 00:28:05.433
of convert the class pass users to
00:28:05.433 --> 00:28:08.213
direct buyers um and also
00:28:08.213 --> 00:28:16.093
i think we had a huge shift there because some clients do convert to direct
00:28:16.093 --> 00:28:21.533
buyers because one of the things that I told you about and also due to instructors
00:28:21.533 --> 00:28:26.433
so if my instructor is really really good and they have followers,
00:28:27.233 --> 00:28:32.313
automatically I will take the classes off from ClassPass because then these
00:28:32.313 --> 00:28:36.113
clients will follow their favorite instructors,
00:28:36.973 --> 00:28:39.193
so yeah they will pay directly.
00:28:40.293 --> 00:28:42.833
No second class. Yeah, so that's interesting.
00:28:42.953 --> 00:28:46.653
So I want to talk about your strategy there about transitioning off ClassPass.
00:28:50.233 --> 00:28:53.493
So my understanding is ClassPass, they have a seven-day booking window,
00:28:53.493 --> 00:28:56.213
so the ClassPass members can book up to seven days in advance.
00:28:56.213 --> 00:28:57.633
Is that right? Do you know? Yeah.
00:28:59.970 --> 00:29:05.410
Yes, but then we limit that. So now it's only, if I didn't get this wrong,
00:29:07.070 --> 00:29:09.050
three hours before the class.
00:29:09.230 --> 00:29:13.230
So that's when ClassPass could, you know, really look for clients.
00:29:13.410 --> 00:29:17.550
But sometimes it's just off and we end up having lots of clients from class anyway.
00:29:17.990 --> 00:29:21.970
So you can set that manually if you want at your end.
00:29:23.630 --> 00:29:26.710
Yeah but it's tricky at the end we have to keep talking
00:29:26.710 --> 00:29:29.470
to the rep from indonesian rep from class pass
00:29:29.470 --> 00:29:32.390
and it takes days and sometimes they don't respond because so
00:29:32.390 --> 00:29:35.150
you can't you don't do it manually you have
00:29:35.150 --> 00:29:40.830
to ask them to do it and they they implement it right yeah so so you you know
00:29:40.830 --> 00:29:45.270
so things that um other studios i've helped sort of get off class pass because
00:29:45.270 --> 00:29:50.970
it is kind of like getting off a drug i think in some ways that you become addicted
00:29:50.970 --> 00:29:54.870
to that income and you have to wean yourself off it so you don't get withdrawal symptoms,
00:29:55.130 --> 00:29:59.350
you know, like lose your profitability, is to create like more privileges,
00:29:59.550 --> 00:30:00.490
like you say, for members.
00:30:00.630 --> 00:30:03.370
So make special classes that only members with the most, you know,
00:30:03.670 --> 00:30:07.550
classes with the most popular instructors are only available for direct buyers,
00:30:07.550 --> 00:30:11.970
that maybe direct buyers can book further in advance, like maybe let them book
00:30:11.970 --> 00:30:15.230
a month, two months, three months in advance if they're direct buyers,
00:30:15.610 --> 00:30:17.290
whereas ClassPass people can only book,
00:30:17.690 --> 00:30:19.750
you know, like you say, three hours in advance.
00:30:19.750 --> 00:30:29.530
Um, uh, so do you, are those, are those the main strategies that you've used
00:30:29.530 --> 00:30:33.050
to, to wean off ClassPass or is there anything else? Yeah.
00:30:34.503 --> 00:30:37.923
Yeah, so the most efficient is the instructors.
00:30:38.383 --> 00:30:44.323
So we look at which classes are the most popular based on the instructors usually.
00:30:44.803 --> 00:30:50.463
And we took those classes off for that instructor's classes.
00:30:50.643 --> 00:30:54.663
So that's why I said before the schedule is weird. Yeah, with big says and little says.
00:30:55.983 --> 00:31:01.923
Yeah, it's just like a weird schedule. And then so that really helps.
00:31:01.923 --> 00:31:08.583
And the second one, we realized that most people had gone off to morning classes.
00:31:08.963 --> 00:31:15.303
So after we ditched all this particular instructor's class off PlusBuzz,
00:31:15.443 --> 00:31:18.763
and then we started to move on to all morning classes.
00:31:19.883 --> 00:31:24.623
But with that, we offer a very cheaper rate, as I said before.
00:31:24.623 --> 00:31:32.283
So clients could get like 500,000 rupiah, which is like 50 AUD for three classes.
00:31:32.703 --> 00:31:38.083
So much cheaper because we used to be like 200,000, so like 20 to like $25.
00:31:40.283 --> 00:31:45.143
And if they bring a friend with them, they could get more cheap,
00:31:45.283 --> 00:31:47.003
like cheaper rate, like way cheaper rate.
00:31:47.183 --> 00:31:53.203
So I'm kind of copying ClassPass, but do it for my own studio.
00:31:53.883 --> 00:31:58.583
And also we did this very kind of savage thing so now.
00:31:59.763 --> 00:32:03.003
Class bus users they don't get wet towels
00:32:03.003 --> 00:32:07.003
like you know like cold towels that's very like it's very
00:32:07.003 --> 00:32:09.823
something today they don't get cold
00:32:09.823 --> 00:32:12.703
towels but only direct buyers do get
00:32:12.703 --> 00:32:15.903
cold towels and then this actually don't
00:32:15.903 --> 00:32:19.163
really it doesn't seem very good on
00:32:19.163 --> 00:32:22.423
hospitality but then the class
00:32:22.423 --> 00:32:26.163
bus user starts to you know ask our admin why
00:32:26.163 --> 00:32:29.103
don't i get cold towels like why do they
00:32:29.103 --> 00:32:32.563
get cold towels and then my admin would you know very
00:32:32.563 --> 00:32:35.563
nicely very very nicely would say
00:32:35.563 --> 00:32:38.723
um well because um it's our
00:32:38.723 --> 00:32:41.803
gratitude for them for buying from
00:32:41.803 --> 00:32:44.803
us directly so we never say it's because you're
00:32:44.803 --> 00:32:47.643
from class bus but we kind of turn it around and
00:32:47.643 --> 00:32:51.583
say because we are very grateful for them for
00:32:51.583 --> 00:32:54.763
buying from us directly you don't see how the psychology
00:32:54.763 --> 00:32:57.783
i think the the choice of words
00:32:57.783 --> 00:33:00.523
or it really matters and then so the
00:33:00.523 --> 00:33:03.243
class bus uses they never complain about the wet
00:33:03.243 --> 00:33:09.003
towels or you know yeah they kind of like they now kind of get it okay because
00:33:09.003 --> 00:33:15.583
those people pay more than they are so um it strikes me that we can maybe learn
00:33:15.583 --> 00:33:19.543
something from the airlines here that they have you know they sell they have
00:33:19.543 --> 00:33:21.303
seats on the plane they sell at different prices.
00:33:22.242 --> 00:33:30.802
You know, on the same plane. And the way that they make, they sell higher priced
00:33:30.802 --> 00:33:33.982
is, you know, obviously there's a situation with more leg room or whatever,
00:33:34.622 --> 00:33:39.102
but they also have this very big emphasis on status.
00:33:39.342 --> 00:33:42.882
And they literally call it status. Like I have gold status with,
00:33:42.882 --> 00:33:45.902
you know, with Virgin or Qantas or whatever.
00:33:46.722 --> 00:33:52.202
And you get, you know, a little gold thing to put on your luggage and your luggage
00:33:52.202 --> 00:33:56.002
comes out from the carousel first and you can skip to the head of the line when
00:33:56.002 --> 00:33:59.222
you're checking in and you can, you know,
00:33:59.342 --> 00:34:03.922
board the flight first through a special, you know,
00:34:04.822 --> 00:34:08.342
a queue that is, you know, shorter and is fast, you know.
00:34:08.762 --> 00:34:12.822
So, and you get a little gold, like your boarding pass has this gold thing on
00:34:12.822 --> 00:34:16.942
it and, you know, so there's a lot of status there that is, you know,
00:34:17.002 --> 00:34:19.142
it's like, of course, boarding on the plane first. It's like,
00:34:19.222 --> 00:34:23.202
well, everybody arrives at the same time because you're on the same plane, you know.
00:34:23.842 --> 00:34:29.942
But there's just – so boarding first doesn't actually confer any real benefit.
00:34:30.162 --> 00:34:35.542
It's just the status of going to the front of the line, like at the nightclub
00:34:35.542 --> 00:34:36.822
if you go to the front of the line.
00:34:36.962 --> 00:34:40.162
And so I think you're onto something with the white towels there.
00:34:40.382 --> 00:34:45.462
And I think if you could really –.
00:34:48.367 --> 00:34:52.187
You know, mine that idea of status,
00:34:52.527 --> 00:34:56.527
like just, you know, like even, it didn't go beyond gratitude and just say it's
00:34:56.527 --> 00:35:01.607
like, oh, well, our silver and gold members, you know, get the hot,
00:35:01.827 --> 00:35:06.107
the cold towels and they also get the little key fob and they also, you know, whatever,
00:35:06.327 --> 00:35:10.227
they get to enter their class first and choose their favorite reformer, you know.
00:35:10.387 --> 00:35:13.967
So ladies and gentlemen, the 7 p.m. class is about to start.
00:35:14.107 --> 00:35:17.187
I'd like to welcome all of our gold and silver members to, you know,
00:35:17.187 --> 00:35:18.747
select their reformers first.
00:35:19.087 --> 00:35:24.127
Okay. If you're in bronze or class pass, you know, please just wait a moment. And so I think.
00:35:25.547 --> 00:35:26.567
See, that's funny.
00:35:28.047 --> 00:35:31.167
That's, that's, but that's literally what the airlines do.
00:35:31.991 --> 00:35:37.451
I mean, you fly, so you know that if you're in the cattle class,
00:35:37.571 --> 00:35:42.111
the economy class or whatever, you wait until everybody else has boarded the aircraft.
00:35:42.531 --> 00:35:46.991
And if you're in gold or silver or platinum or whatever, you get to get on first, you know?
00:35:48.211 --> 00:35:52.331
Yeah, exactly. And I think it's the small things here.
00:35:52.551 --> 00:35:56.951
It's just the thing that we cannot change is the quality of the teaching.
00:35:57.111 --> 00:35:59.471
Same as pilots, you know? You know, the fellas can't just say,
00:35:59.811 --> 00:36:01.911
okay, follow me, we drop it here.
00:36:02.111 --> 00:36:04.931
And then this is close, we drop it here. Here's your parachute. They just can't do that.
00:36:05.651 --> 00:36:09.191
Yeah, here's your parachute. Bye. You can't really say that.
00:36:09.291 --> 00:36:12.731
So, yeah, so it's absolutely the same thing. Exactly the same thing. Perfect.
00:36:12.971 --> 00:36:17.231
So it's like, so we can't really negotiate on the way we reach, right?
00:36:17.951 --> 00:36:22.311
What we can do is those small things that, you know, it actually matters.
00:36:22.491 --> 00:36:27.071
Yeah, you're right. I think the status thing is a real thing where like
00:36:27.071 --> 00:36:30.051
I can imagine where like I'm
00:36:30.051 --> 00:36:33.931
trying to translate it into my mind of like if I was in some
00:36:33.931 --> 00:36:36.911
kind of like if I was visiting a hotel
00:36:36.911 --> 00:36:40.211
like because I travel a bit I'd stay in a hotel like
00:36:40.211 --> 00:36:43.271
if I could go and stay at like a really nice hotel like
00:36:43.271 --> 00:36:46.431
the Western or the Hilton or whatever for half the price
00:36:46.431 --> 00:36:49.131
by doing it through hotel pass or
00:36:49.131 --> 00:36:53.271
whatever it's like sure i'll do that but then when i arrive at the hotel and
00:36:53.271 --> 00:36:58.451
i realize i have to wait in the slow line to check in and then i don't get upgraded
00:36:58.451 --> 00:37:02.891
to the king size suite i get the like the crappy room you know down the end
00:37:02.891 --> 00:37:06.951
of the hall or whatever and you know i feel like ah yeah okay,
00:37:07.451 --> 00:37:12.211
this this seemed really cool but it's not the full experience that i wanted
00:37:12.211 --> 00:37:15.271
like i don't feel like i'm an honored guest as much even though they're very
00:37:15.271 --> 00:37:20.991
polite and every i don't have all of those kind of extra kind of status markers
00:37:20.991 --> 00:37:22.911
there that as kind of part of the experience.
00:37:23.311 --> 00:37:26.631
So I think there's something in that. I think you could, I think that the white
00:37:26.631 --> 00:37:30.051
towels are a really good thing, but I think if you just emphasize that it's,
00:37:30.131 --> 00:37:33.571
it's a status thing, not a gratitude thing necessarily.
00:37:33.891 --> 00:37:36.231
I mean, gratitude's great, but I think status is more important.
00:37:37.816 --> 00:37:40.716
Yeah, I think you're right. Yeah. I'll look into it.
00:37:40.816 --> 00:37:44.556
I think you should even, honestly, I think you should experiment with letting
00:37:44.556 --> 00:37:52.196
people into the studio, like into the literal reformist room first based on their membership.
00:37:52.416 --> 00:37:56.976
Like, okay, I'd like to welcome our gold members and just call the internal
00:37:56.976 --> 00:38:00.516
membership gold membership, right? It's just the same price here. We just call it gold.
00:38:00.696 --> 00:38:03.416
I'd like to welcome our gold members into the studio. They'll just show you,
00:38:03.496 --> 00:38:04.936
show me your key fobs, you know,
00:38:05.156 --> 00:38:08.556
as you come in and they show their little membership card or whatever,
00:38:08.716 --> 00:38:12.216
and they get to choose their favorite reformer because everybody knows that
00:38:12.216 --> 00:38:15.816
the clients have their favorite reformer that they like to be on.
00:38:16.036 --> 00:38:20.476
Yeah. And so if you get to elbow your way into the studio first,
00:38:20.756 --> 00:38:25.136
you know, and choose your personal favorite reformer, well, that's a real status thing.
00:38:26.636 --> 00:38:29.556
Yeah. Yeah. That could be really cool.
00:38:30.176 --> 00:38:35.436
Should we ask the direct buyers not to clean their reformers? I will do it for you.
00:38:36.156 --> 00:38:42.576
And the glasses. Too much, yeah? I don't necessarily think so. I mean….
00:38:44.451 --> 00:38:47.511
Yeah, I think it's worth – It's like just an extra thing. Yeah,
00:38:47.651 --> 00:38:52.131
yeah. I think it's worth experimenting with that kind of stuff.
00:38:53.591 --> 00:39:04.311
Yeah. Combined with an email and text campaign to the ClassPass users to invite them to upgrade,
00:39:04.591 --> 00:39:09.011
you know, to show them that you do value having them as customers and you'd
00:39:09.011 --> 00:39:12.591
really appreciate and welcome them to upgrade to gold status,
00:39:12.591 --> 00:39:16.851
you know um and what are the privileges of gold status so you get first access
00:39:16.851 --> 00:39:20.671
to the class you can book six months in advance you get the white towels we'll
00:39:20.671 --> 00:39:22.971
clean the reformer for you you know,
00:39:23.911 --> 00:39:30.311
um yeah uh you you know like you get whatever you know extra two late cancels a month for free,
00:39:31.411 --> 00:39:39.511
um you know i think those kinds of benefits are really um might be very attractive to people.
00:39:41.751 --> 00:39:44.631
Yeah and also parking i think that's one of the most,
00:39:45.451 --> 00:39:49.891
do you have parking on your premises parking yes
00:39:49.891 --> 00:39:53.271
but always the problem we have not we
00:39:53.271 --> 00:39:55.951
don't have enough space sometimes so we could
00:39:55.951 --> 00:39:58.891
say like park only for only for members
00:39:58.891 --> 00:40:01.631
only for gold members you get you get a park you
00:40:01.631 --> 00:40:05.911
get you know access to the parking it when you remember yes
00:40:05.911 --> 00:40:09.391
seriously i i highly recommend you implement
00:40:09.391 --> 00:40:12.651
some or all of those things uh and
00:40:12.651 --> 00:40:15.811
i i i think uh you know give a
00:40:15.811 --> 00:40:19.531
couple of weeks notice and say your members are going to love you for it they'll
00:40:19.531 --> 00:40:26.111
appreciate it you know yeah yeah it's a really good idea um yeah the parking
00:40:26.111 --> 00:40:27.271
thing especially i think that
00:40:27.271 --> 00:40:33.231
is something people will value very high yeah i think Because in Bali,
00:40:33.551 --> 00:40:38.491
sometimes we have to pay for the parking to just a local guy.
00:40:39.371 --> 00:40:43.431
So we could just say, like, if you're direct by from us, we'll cover your apartment.
00:40:44.748 --> 00:40:47.688
Parking space yeah and so like
00:40:47.688 --> 00:40:50.488
again i'm thinking i'm putting trying to put myself in in
00:40:50.488 --> 00:40:53.168
those shoes of those people like if i'm a if i go to a
00:40:53.168 --> 00:40:57.988
local restaurant and i'm with my wife and we pay full price and then i see some
00:40:57.988 --> 00:41:01.468
kind of coupon where i can go for half price to the same restaurant like let's
00:41:01.468 --> 00:41:05.608
do it right but then i get there and like some do you ever go like in fact they
00:41:05.608 --> 00:41:10.908
they literally do this at the restaurant right so they have in australia like
00:41:10.908 --> 00:41:12.828
you know specials during the works,
00:41:12.928 --> 00:41:17.028
I might have like Palmer and Pot Tuesdays or Steak Thursdays or whatever,
00:41:17.148 --> 00:41:21.828
where it's like you can get a steak for half price on Thursdays, right?
00:41:22.328 --> 00:41:26.908
And you go, huh, well, normally the steak's $50. I'll get a steak for $25. That's amazing.
00:41:27.048 --> 00:41:28.988
You know, I'm going to come on Thursday and get my cheap steak.
00:41:29.128 --> 00:41:32.088
Then you come on Thursday and you realize it's an inferior cut.
00:41:32.748 --> 00:41:35.368
It's half the size, right?
00:41:36.228 --> 00:41:42.048
You don't get it. Different expectation. There's no side vegetables or salad included, you know.
00:41:42.048 --> 00:41:44.988
And so it's like huh well it kind of sounded like
00:41:44.988 --> 00:41:48.368
a really good bargain and if you were like a super poor
00:41:48.368 --> 00:41:51.068
like university student who's like you just didn't have the
00:41:51.068 --> 00:41:54.608
money like that would be a good plan but if you can actually afford to get the
00:41:54.608 --> 00:41:59.048
proper one like i'd rather just pay full price and get the proper experience
00:41:59.048 --> 00:42:09.828
you know exactly so yeah and but like yeah i mean but the the thing with the bad quality cut,
00:42:09.848 --> 00:42:14.148
it kind of gives you the taste of the real one,
00:42:14.308 --> 00:42:16.708
right? Like, oh, this is pretty good.
00:42:16.948 --> 00:42:20.948
And as you said, I want the real thing, the better thing.
00:42:21.208 --> 00:42:25.628
So yeah, that's how we can do it. Yeah, so I think all of those things,
00:42:25.788 --> 00:42:32.168
like you say, you can't give people a different class experience inside the actual class.
00:42:32.268 --> 00:42:33.648
Although you can say, well, if you want
00:42:33.648 --> 00:42:36.088
to do classes with this particular instructor, I'll see you next time.
00:42:37.385 --> 00:42:42.865
Gold members only, you know. But then I think those other things like the towels,
00:42:42.965 --> 00:42:49.105
the parking, first access to walk into the studio, booking for a much longer booking window,
00:42:49.945 --> 00:42:55.365
couple of extra free late cancels every month, you know, no charge,
00:42:56.345 --> 00:43:03.525
you know, freezing your membership, those kinds of things, I think will be highly
00:43:03.525 --> 00:43:08.465
desirable to people, both because of the status and I don't think we should
00:43:08.465 --> 00:43:10.365
underestimate status. I think it's very important for people.
00:43:10.565 --> 00:43:14.865
And also the convenience and the flexibility of like, oh, I've got a much better
00:43:14.865 --> 00:43:19.365
chance of finding a parking spot if I'm a member because it's members only parking.
00:43:21.085 --> 00:43:24.765
Yeah. Yeah, that's actually a really good idea. I'll do that.
00:43:24.965 --> 00:43:30.325
And also I want to just share with you what else I did. This one's quite savage.
00:43:31.985 --> 00:43:37.745
I realize if we're the only studio who leave Class Pass and then so then the
00:43:37.745 --> 00:43:40.205
users will go to other studios who still.
00:43:41.337 --> 00:43:44.437
Offer class bus right but i know
00:43:44.437 --> 00:43:47.997
for a fact that all studios feel the
00:43:47.997 --> 00:43:51.317
same thing as i as i did so me and
00:43:51.317 --> 00:43:55.137
my fellow instructor we actually
00:43:55.137 --> 00:43:58.457
gather everyone together all the owners of
00:43:58.457 --> 00:44:01.417
uh you know studios uh pilata studios
00:44:01.417 --> 00:44:04.357
across changu and umalas those regions
00:44:04.357 --> 00:44:07.897
we actually did sit together and
00:44:07.897 --> 00:44:10.777
we kind of you know let's do this together
00:44:10.777 --> 00:44:17.537
because if if it's only one of us who do it it doesn't really affect anything
00:44:17.537 --> 00:44:23.597
because people would still you know go to other places um and so all of us owners
00:44:23.597 --> 00:44:29.117
we decided to you know slowly leave class bus and made a post together,
00:44:29.917 --> 00:44:32.897
why we leave class bus with all of our
00:44:32.897 --> 00:44:36.037
logos so i think this becomes a community
00:44:36.037 --> 00:44:38.977
thing you know like it's it's making our
00:44:38.977 --> 00:44:41.937
community stronger than class pass and it actually
00:44:41.937 --> 00:44:44.757
it makes us owners kind of
00:44:44.757 --> 00:44:48.097
like even though that we're competitors but we
00:44:48.097 --> 00:44:54.497
understand and we you know we feel the same thing and we um kind of struggle
00:44:54.497 --> 00:44:59.457
the same fight so why don't we all gather together and let's fight this together
00:44:59.457 --> 00:45:04.877
so it actually really you know it kind of brings me more hope you know,
00:45:05.017 --> 00:45:08.037
that we can actually come with this, you would say.
00:45:09.457 --> 00:45:15.917
So yeah, that's also another way. So now you're 50% off ClassPass, correct?
00:45:17.317 --> 00:45:21.597
In Bimbasat? Our morning classes are not. No, in Changu only.
00:45:21.877 --> 00:45:24.757
So none of my other studios. Ah, okay, great.
00:45:25.217 --> 00:45:30.177
Okay, and so like you had four studios and then you closed Changu.
00:45:30.697 --> 00:45:34.577
But then you opened another one. Sorry, Umala. Thank you.
00:45:37.142 --> 00:45:42.402
So the one that's using ClassPass is only Umalas. So one out of four studios.
00:45:44.162 --> 00:45:49.242
ClassPass did ask me whether I wanted to have ClassPass for the other three.
00:45:50.102 --> 00:45:56.222
You know, the ones in Denpasar. But I actually called the owners of these studios because I know them.
00:45:56.402 --> 00:45:59.342
So I called them, hey, you know, did ClassPass call you?
00:45:59.642 --> 00:46:03.482
And they ask you, yeah, you know what? I think it's best if you don't use it.
00:46:03.682 --> 00:46:07.682
And then they said the same thing. So we kind of have like unreaded agreements
00:46:07.682 --> 00:46:10.602
across the Bazaar of not using ClassBoss.
00:46:10.802 --> 00:46:14.722
So, yeah, good thing. Again, the community really matters. Okay.
00:46:15.102 --> 00:46:19.882
Because if it's strong, then they won't get into us. So I think that's a good
00:46:19.882 --> 00:46:23.362
segue into just more generally talking about your business.
00:46:24.482 --> 00:46:29.882
So you have from memory and also from what you just said, you have different
00:46:29.882 --> 00:46:31.922
partners in each studio, true?
00:46:33.562 --> 00:46:38.362
Yeah. So you've got four, you're kind of part owner of four studios and each
00:46:38.362 --> 00:46:43.782
of those studios has a different person who is on the ground in that studio.
00:46:43.782 --> 00:46:45.722
Is that right? How does that, can you walk us through how it works?
00:46:47.202 --> 00:46:53.942
Yeah, so I have four studios. Me and my partner, this one partner, her name is Indira.
00:46:54.222 --> 00:47:00.162
So we own all four, but we also have different partners for each of the studios.
00:47:00.162 --> 00:47:06.962
Um so basically it's me and indira owning say aquaris as a whole and other partners
00:47:06.962 --> 00:47:12.782
yes and what is like so and they're all group reformer right.
00:47:14.562 --> 00:47:22.022
Yes so except for our flagship which is in denpasar and renon we also have a
00:47:22.022 --> 00:47:27.602
room for private um private gym, also reformers, yes.
00:47:27.742 --> 00:47:30.402
So we have multiple classes going on at the same time.
00:47:31.102 --> 00:47:36.842
And so what is your approximate monthly revenue at the moment across all four?
00:47:39.357 --> 00:47:46.137
Oh of course all four like one studio is different from the flagship it's about,
00:47:47.097 --> 00:47:51.677
300 million i don't know aod it sounds so much what you say in repair,
00:47:53.737 --> 00:48:05.737
yeah i'm so rich like 30 000 i think yeah 30 000 um and the smaller one Yeah, 30,000 was it?
00:48:06.197 --> 00:48:10.717
Is that 300 million? I don't know. You know rupiah. I'm going to check on Google.
00:48:12.637 --> 00:48:18.337
Yeah, check on Google. I think it's 30. We keep having this issue with rupiah, you know, so many zeros.
00:48:21.457 --> 00:48:24.157
But the other ones are just slightly under, yeah.
00:48:26.537 --> 00:48:32.477
So, yeah, it's about 27,500 Australian dollars according to Google. So let's call it 30.
00:48:32.657 --> 00:48:35.757
It's close enough. which is uh probably like
00:48:35.757 --> 00:48:40.037
18 000 usd um roughly
00:48:40.037 --> 00:48:43.197
kind of sort of maybe um all right
00:48:43.197 --> 00:48:49.897
and so let's call it like 30k a month and then maybe like a little bit less
00:48:49.897 --> 00:48:57.397
for the other ones did you say yeah yes yes i'm sorry way less for umalas because
00:48:57.397 --> 00:49:01.217
of class pass and so what is so what It is the differential there.
00:49:01.437 --> 00:49:05.777
So, all my last, like, have you got another studio that's roughly the same size
00:49:05.777 --> 00:49:08.057
that's not on ClassPass that you can compare?
00:49:09.920 --> 00:49:14.600
No, actually, I have a number with before and after ClassPass.
00:49:16.000 --> 00:49:23.780
So just this September, we were on 53 million per month.
00:49:23.900 --> 00:49:25.640
So that's very, very low.
00:49:26.440 --> 00:49:33.700
That's just, I think, 5,000 AUD. Yeah. So really bad, right?
00:49:34.740 --> 00:49:39.560
We didn't get any owner diffident or any profits whatsoever.
00:49:39.920 --> 00:49:44.300
It's just for us to cover the costs, especially for instructors and rent.
00:49:45.280 --> 00:49:51.380
And then October, we decided to take all morning classes off ClassPass.
00:49:51.920 --> 00:49:57.780
And then it ended up being like 100 million.
00:49:58.140 --> 00:50:00.300
So you doubled. 10,000.
00:50:00.760 --> 00:50:03.680
Doubled, yeah, doubled. We doubled, actually.
00:50:03.680 --> 00:50:06.560
Um but i wouldn't say
00:50:06.560 --> 00:50:09.580
it's because it's only because we're off
00:50:09.580 --> 00:50:12.540
plus plus there are other factors of course
00:50:12.540 --> 00:50:15.320
um but i would say like the
00:50:15.320 --> 00:50:18.800
most one of the most impactful um you
00:50:18.800 --> 00:50:21.740
know it's because we're off plus and we were able to
00:50:21.740 --> 00:50:25.240
sell you know the short-term memberships because
00:50:25.240 --> 00:50:28.080
we used to have like 10 packs eight packs four
00:50:28.080 --> 00:50:31.200
packs now we can't really do that because people likes to
00:50:31.200 --> 00:50:34.000
you know like hop into studios because of class
00:50:34.000 --> 00:50:36.860
pass they they're used to it now so we are
00:50:36.860 --> 00:50:39.920
offering like shorter terms only like three sessions
00:50:39.920 --> 00:50:44.860
two sessions so much cheaper and if they bring in you know their friends they
00:50:44.860 --> 00:50:51.200
got cheaper rates than the cheap so yeah i guess it really helps with the revenue
00:50:51.200 --> 00:50:57.460
and what is your ultimate goal like with the business do you want to open more
00:50:57.460 --> 00:50:59.440
studios or where do you want to take this.
00:51:01.971 --> 00:51:05.671
Funny enough, so I remember I was talking to you, Raf, during mentorship,
00:51:06.051 --> 00:51:09.731
and I said to you, I remember this clearly, I said to you, I wanted to have
00:51:09.731 --> 00:51:14.031
as much studio, Saya Pilates studio, as much as possible across Bali,
00:51:14.071 --> 00:51:18.131
and later on in Jakarta, and, you know, across Indonesia.
00:51:18.131 --> 00:51:21.251
Show and then you told me like would you rather have lots
00:51:21.251 --> 00:51:24.111
of studios but an average quality or even like
00:51:24.111 --> 00:51:29.831
bad quality because it's too much or a few that have you know better quality
00:51:29.831 --> 00:51:35.671
and so actually thought of it really deeply and now um in my current position
00:51:35.671 --> 00:51:41.131
i would like to just have face force studios um and just make sure that the
00:51:41.131 --> 00:51:44.031
quality is top notch that because you know.
00:51:44.911 --> 00:51:47.811
Bigger but cheaper studios start to pop up
00:51:47.811 --> 00:51:50.731
in denpasar so we really want to make sure
00:51:50.731 --> 00:51:53.631
that our quality you know amongst the best
00:51:53.631 --> 00:51:56.591
um and i actually wanted
00:51:56.591 --> 00:52:02.611
to start a mentorship program for group teaching in bali so i hope that works
00:52:02.611 --> 00:52:08.811
um yeah because as you know a studio pilates these days are a lot like you know
00:52:08.811 --> 00:52:14.311
it's just like selling peanuts we call it in indonesia it's a It's very cheap
00:52:14.311 --> 00:52:15.811
and very easy to open studios.
00:52:16.071 --> 00:52:24.711
I think we need to have a shift on our business strategy and kind of pivot to have a bigger impact.
00:52:25.231 --> 00:52:32.651
So you want to focus now on quality and profitability per studio.
00:52:34.199 --> 00:52:40.539
And I kind of have a simple life with only four studios. Yes. Yeah.
00:52:42.239 --> 00:52:45.659
That's it. Simple life. Simpler life.
00:52:45.679 --> 00:52:50.039
So aside from the obvious one of ClassPass, which we've already talked about,
00:52:50.979 --> 00:52:53.939
you know, what is the biggest challenge there?
00:52:53.999 --> 00:52:57.859
It sounds like, you know, there's lots of competition coming into the marketplace.
00:52:58.139 --> 00:53:06.399
That's a big thing for you. uh and so what you know what do you when you say
00:53:06.399 --> 00:53:10.179
like quality you know like what do you mean by that.
00:53:13.019 --> 00:53:20.879
Um i think what i do in saya pilates i'm very big on mentoring um so usually
00:53:20.879 --> 00:53:25.379
if when i take on new instructor they have to gone through like several hours
00:53:25.379 --> 00:53:30.639
or even like this takes like weeks and then turns into months of mentoring with me personally.
00:53:31.239 --> 00:53:36.979
So I would ask clients about, you know, the reviews of them teaching,
00:53:38.099 --> 00:53:44.819
maybe like take a peek from CCTV or whatever, you know, that I could get review
00:53:44.819 --> 00:53:47.359
insights about the way they teach.
00:53:47.579 --> 00:53:50.699
And then so I would, you know, have a conversation
00:53:50.699 --> 00:53:53.399
with each and one of them and then kind of like
00:53:53.399 --> 00:53:56.919
review their performance and
00:53:56.919 --> 00:53:59.979
basically you know if there's anything that
00:53:59.979 --> 00:54:02.859
needs to be um elevated then i would
00:54:02.859 --> 00:54:05.759
help them to do that so i don't think
00:54:05.759 --> 00:54:12.799
all studios do this especially those studio who you know employ cheap rates
00:54:12.799 --> 00:54:17.959
instructors and then the owners is not a palace instructor so they don't really
00:54:17.959 --> 00:54:23.219
know how the business like what's quality you know i mean like what's a good class and what's not a.
00:54:26.239 --> 00:54:31.839
It does not feel good for the client, so they don't get the details of it.
00:54:32.408 --> 00:54:39.288
So I make sure that all my instructors perform really well each class and also
00:54:39.288 --> 00:54:43.928
ask the clients directly, like one by one.
00:54:44.168 --> 00:54:48.048
Hey, have you done Pilates before? How are you feeling today?
00:54:48.388 --> 00:54:51.948
Any injuries? Sort of like that. So we make it feel personal.
00:54:52.308 --> 00:54:55.768
So my goal is to make group class feel personal.
00:54:55.768 --> 00:54:59.068
And the maximum the bigger
00:54:59.068 --> 00:55:02.188
class we uh the biggest class we have is only nine informers
00:55:02.188 --> 00:55:10.128
i think um you know those strategies pretty much um possible yeah for us to
00:55:10.128 --> 00:55:14.728
come into clients and how's your marketing and sorry how's your marketing like
00:55:14.728 --> 00:55:16.968
getting you know getting do you
00:55:16.968 --> 00:55:21.328
have a process for getting new clients and turning them into members Yes.
00:55:23.127 --> 00:55:26.107
Yeah for marketing uh i think
00:55:26.107 --> 00:55:28.867
one of my benefits is that say a
00:55:28.867 --> 00:55:31.667
lot has been around for a pretty long time so we've
00:55:31.667 --> 00:55:34.807
been around for eight years now um first and
00:55:34.807 --> 00:55:38.107
foremost our marketing is like we're one of the the
00:55:38.107 --> 00:55:41.167
first here like we're the uh what do you call it like the
00:55:41.167 --> 00:55:44.267
older studio you know we have better quality uh
00:55:44.267 --> 00:55:47.267
so you search you search rankings high you
00:55:47.267 --> 00:55:50.207
you show up the pioneers the one of the pioneers
00:55:50.207 --> 00:55:53.407
in bali so i think by just saying we're
00:55:53.407 --> 00:56:00.107
one of the pioneers we get trust from the clients and then um and you were saying
00:56:00.107 --> 00:56:05.747
about the status before so somehow our clients feel if they're going to saya
00:56:05.747 --> 00:56:12.287
pilates their status is higher than kind of the cheaper studios because.
00:56:12.987 --> 00:56:16.607
Um yeah i mean our rate is probably higher
00:56:16.607 --> 00:56:19.367
still and then do the quality that
00:56:19.367 --> 00:56:22.107
we're offering and also those simple little details that
00:56:22.107 --> 00:56:24.987
we give out to clients they kind of get it
00:56:24.987 --> 00:56:27.747
that we do extras you know compared to
00:56:27.747 --> 00:56:31.067
the cheaper studios so that's marketing itself also we
00:56:31.067 --> 00:56:34.007
also have a marketing team that's do
00:56:34.007 --> 00:56:37.667
uh videos photo shoots every month um
00:56:37.667 --> 00:56:42.847
good thing about indonesia it's not as expensive as australia i assume so we're
00:56:42.847 --> 00:56:47.967
able to do that you know hire an entire you know marketing team dedicated just
00:56:47.967 --> 00:56:55.687
for that um and also we do flash sales we don't call flash sales now we do something like um.
00:56:56.840 --> 00:56:59.500
Something more fancy i've got the english
00:56:59.500 --> 00:57:02.600
word sorry but um something more fancy but basically we're
00:57:02.600 --> 00:57:05.680
saying like if we have classes that's not
00:57:05.680 --> 00:57:09.000
full we you know we cheapen
00:57:09.000 --> 00:57:12.000
the rate and then they're able to book last minute
00:57:12.000 --> 00:57:18.600
just like class class so i basically copy class class and you know make it into
00:57:18.600 --> 00:57:25.080
my own marketing strategy like to direct buyers so i think yeah those are top
00:57:25.080 --> 00:57:30.980
marketing strategies yeah and is there anything is there anything else that you'd like to share,
00:57:31.580 --> 00:57:35.880
you know you've got this platform now is there anything we've missed or anything
00:57:35.880 --> 00:57:40.000
that you want i mean could be on the class pass topic or any other topic related to studios.
00:57:42.160 --> 00:57:51.440
Yeah i mean these days rough as you know like so many um cheap and really fast um certifications,
00:57:52.280 --> 00:57:55.240
they're just everywhere you know three-day certifications i remember
00:57:55.240 --> 00:57:59.000
when i took your certification it took me like what six months and
00:57:59.000 --> 00:58:02.300
then we had to go through lots of tests and
00:58:02.300 --> 00:58:05.780
exams um yeah but nowadays like
00:58:05.780 --> 00:58:10.820
certifications getting shorter and shorter um and it's getting cheaper i mean
00:58:10.820 --> 00:58:17.280
it's not a bad thing but then cheaper right it doesn't give you as you know
00:58:17.280 --> 00:58:19.280
as better quality as the one you
00:58:19.280 --> 00:58:25.120
know like uh more expensive but what i'm saying is that maybe as a owner.
00:58:27.025 --> 00:58:35.365
It's better to kind of this is tricky um i guess pilates in some sense is very,
00:58:36.305 --> 00:58:40.245
oh you know i mean there's i don't want to be the pilates police here but then
00:58:40.245 --> 00:58:45.885
what you feel pilates is getting pilates is getting really different now you know what i mean like,
00:58:46.625 --> 00:58:49.605
um i mean i'm just gonna say this what
00:58:49.605 --> 00:58:53.045
i see in indonesia like instructors don't
00:58:53.045 --> 00:58:55.965
know how to teach you know i mean they don't
00:58:55.965 --> 00:58:59.885
know why they teach certain movements they
00:58:59.885 --> 00:59:02.665
don't know why um you know this
00:59:02.665 --> 00:59:07.785
certain movement targets the specific muscles they don't know biomechanics they
00:59:07.785 --> 00:59:13.125
don't know like how to cue you know they just look on textbooks and then after
00:59:13.125 --> 00:59:17.425
they look under this textbooks and they just say what's on the textbooks straight
00:59:17.425 --> 00:59:20.565
to class you know they don't understand the skill,
00:59:20.705 --> 00:59:24.665
what it takes to become Pilates instructors, to be a good Pilates instructors.
00:59:24.985 --> 00:59:31.845
And these super fast certifications don't even teach them textbooks, you know?
00:59:32.245 --> 00:59:39.625
They just teach them a very, very, very short course on how to move on reformers.
00:59:40.727 --> 00:59:48.467
And so because of these cheap rate certifications, these instructors don't expect a good pay, right?
00:59:49.487 --> 00:59:52.867
Because, yeah, they don't, they don't, yeah, you know that.
00:59:53.047 --> 00:59:58.347
And then so studios, the new studios, they could just pay these instructors
00:59:58.347 --> 01:00:04.507
very low rate, which makes the studios are able to sell really cheap rates.
01:00:04.507 --> 01:00:07.987
So at the end we have these big
01:00:07.987 --> 01:00:15.187
studios with a very you know standard I mean below standard instructors giving
01:00:15.187 --> 01:00:23.627
out super super cheap rates so aside from ClassPass that's our main that's our
01:00:23.627 --> 01:00:27.567
other problem dealing with super cheap studios,
01:00:28.587 --> 01:00:35.487
and Pilates these days is so booming right it's so popular right And these new
01:00:35.487 --> 01:00:39.507
clients who just got into Pilates, they don't know what's quality and what's not.
01:00:39.787 --> 01:00:43.787
All they care about is what's cheap and what's not.
01:00:43.987 --> 01:00:49.507
And what they can pay and what's too much for them.
01:00:50.367 --> 01:00:57.747
So they ended up doing this Pilates, this so-called, with no Pilates movement.
01:00:57.907 --> 01:00:59.307
Is that, you know what I'm saying?
01:01:00.766 --> 01:01:06.706
And every time I see these videos, I feel like, oh, I really want to get them
01:01:06.706 --> 01:01:12.746
to my studio, but I cannot pay my instructors that cheap.
01:01:13.186 --> 01:01:15.726
So it's like, it's just like my personal battle.
01:01:16.186 --> 01:01:20.946
I actually have a solution for that, by the way. What is the solution?
01:01:21.606 --> 01:01:29.066
It's just, what is the solution? So I pay my instructors pretty good.
01:01:31.866 --> 01:01:40.846
50 AUD per hour 45 to 50 For Bali, that's insane Yeah, that's insane Please
01:01:40.846 --> 01:01:42.726
tell my instructors that Your instructors,
01:01:43.886 --> 01:01:50.446
Well that's Australian wages In a country where The average annual income Is
01:01:50.446 --> 01:01:53.366
like a quarter of The annual income in Australia,
01:01:55.046 --> 01:01:55.706
Really?
01:01:56.026 --> 01:01:57.566
What's the average annual income in Bali?
01:01:57.946 --> 01:02:03.366
I'm going to look it up 50, 45 to 50. Maybe that's why most Australians come here.
01:02:04.766 --> 01:02:09.926
Because we actually pay them really good. We pay our instructors really well. Yeah.
01:02:12.388 --> 01:02:16.348
So what's your solution but um yeah but
01:02:16.348 --> 01:02:22.748
aside from that they're senior instructors yeah so i think they um i'm happy
01:02:22.748 --> 01:02:27.748
to pay them 50 that you know that much um but the thing is we have these new
01:02:27.748 --> 01:02:33.728
clienteles right who's very new to Pilates and is not willing to pay uh you
01:02:33.728 --> 01:02:35.848
know our standard class rate.
01:02:36.028 --> 01:02:38.268
Sorry, I just Googled it.
01:02:38.628 --> 01:02:47.428
According to Google, the average annual income in Bali is about 213 million
01:02:47.428 --> 01:02:53.348
rupiah, which is $19,600 Australian dollars.
01:02:54.888 --> 01:02:58.628
Is that the wage? That's the average annual wage.
01:03:00.128 --> 01:03:07.628
For Indonesians? or for Pilates? No, for Indonesians. For Indonesians. Ah, no, it's tricky.
01:03:08.868 --> 01:03:12.688
Because Pilates instructors were like higher. Right, right.
01:03:12.828 --> 01:03:19.188
But if, I mean, if you're a native of Bali and you think, okay,
01:03:19.188 --> 01:03:21.248
what job will I get when I grow up?
01:03:21.608 --> 01:03:26.108
It's like, well, if I go work for Saria and I get paid 50 Australian dollars
01:03:26.108 --> 01:03:31.728
an hour, it's like that is like literally four times what I would get paid if
01:03:31.728 --> 01:03:33.488
I worked in a regular job.
01:03:35.776 --> 01:03:40.156
No, because most studios are paying the same thing, especially in Canggu.
01:03:41.056 --> 01:03:45.016
So studios in Bali pay pretty much that rate.
01:03:45.536 --> 01:03:49.836
But in Enpasar, it's slightly lower. Because it's locals, yeah.
01:03:50.196 --> 01:03:52.556
All right, so I'm sorry I interrupted you. What's your solution?
01:03:54.396 --> 01:03:59.176
That's okay. So I had to do a negotiation with my instructors.
01:03:59.176 --> 01:04:00.436
You know, here's the thing.
01:04:00.636 --> 01:04:05.316
Our rate has to drop because of these new studios popping up.
01:04:05.316 --> 01:04:08.216
And you know offer really cheap pilates so we have
01:04:08.216 --> 01:04:12.076
to kind of get their client self as well otherwise you know
01:04:12.076 --> 01:04:14.756
we're we're just going we're gonna just go
01:04:14.756 --> 01:04:20.996
down so i negotiate what if we make a 45 minutes class and you don't have to
01:04:20.996 --> 01:04:25.776
teach too complicated movements like there's no like roll downs or it's just
01:04:25.776 --> 01:04:32.356
like a simple you know push and pull like um like squats or lunges you know,
01:04:32.456 --> 01:04:35.816
some pretty basic movements, only 45 minutes.
01:04:36.676 --> 01:04:43.396
And I will pay you $350,000, so $35 AUD, $35.
01:04:44.096 --> 01:04:49.656
First, I would like, no, that's too cheap. Yeah, but then your class isn't very full.
01:04:49.996 --> 01:04:54.116
And so which was better, having zero or 35? No, I sound like class class.
01:04:56.616 --> 01:05:01.656
But it works rough. It works really well because then we have this 45 minutes
01:05:01.656 --> 01:05:08.376
class we charge way less I charge the instructor way less it's only 45 minutes
01:05:08.376 --> 01:05:12.276
and we get the new client sales from these new studios,
01:05:13.387 --> 01:05:19.527
So it's a win-win solution. And then I ask my instructors during these classes,
01:05:19.687 --> 01:05:21.447
the 45-minute classes, they have to upsell.
01:05:21.687 --> 01:05:26.867
So if they see clients doing really good and keep popping up to this class,
01:05:27.627 --> 01:05:30.667
just tell them, you're doing so much better.
01:05:30.667 --> 01:05:39.087
I think you need to learn more movements or new skills that could only be available
01:05:39.087 --> 01:05:43.247
on the 55-minute or the signature classes, which is the premium one.
01:05:43.387 --> 01:05:48.927
So, again, I'm making those, I think, levels or what you call it, the status.
01:05:49.207 --> 01:05:52.627
I like it. Yeah, that's a big thing. Well, I'm a big fan of 45-minute classes
01:05:52.627 --> 01:06:01.167
back-to-back anyway because you can actually fit in 1.5 times the number of people in the same.
01:06:01.347 --> 01:06:05.367
Like if you do two one-hour classes versus you can do three 45-minute classes
01:06:05.367 --> 01:06:07.207
in almost that same amount of time.
01:06:07.747 --> 01:06:12.387
So you can just fit more people through in the popular times when it is peak.
01:06:14.323 --> 01:06:19.523
This has been a really valuable conversation. I think there are probably a lot
01:06:19.523 --> 01:06:23.143
of people out there, studio owners who are working with ClassPass.
01:06:23.383 --> 01:06:26.343
And maybe there are, I mean, dear studio owner, if you're listening to this
01:06:26.343 --> 01:06:29.303
and you're working with ClassPass and you're making amazing money and you love
01:06:29.303 --> 01:06:31.683
working with ClassPass, I'd love to hear your story.
01:06:31.843 --> 01:06:34.883
And so reach out to me on social media, you know, and let's get you on the podcast.
01:06:35.283 --> 01:06:40.363
But I imagine that there are a lot of people out there feeling pretty similar
01:06:40.363 --> 01:06:44.243
to how you felt and just really worried about their business and for independent
01:06:44.243 --> 01:06:48.723
on ClassPass, but at the same time, they kind of can't get off it.
01:06:50.483 --> 01:06:56.363
So, yeah, I think what you're doing is really, I think it's the right move for you.
01:06:56.423 --> 01:07:00.823
I think it's probably the right move for a lot of people to wean off ClassPass.
01:07:00.963 --> 01:07:06.783
And I think giving privileges to members and restricting the privileges of people on ClassPass is,
01:07:07.203 --> 01:07:11.723
and basically what you want to do is incentivize them to
01:07:11.723 --> 01:07:14.663
get off rather than just kind of asking them to get off you want to actually make it
01:07:14.663 --> 01:07:20.483
attractive to them to you know to to become members and so i think all of those
01:07:20.483 --> 01:07:25.603
things you're doing are great um yeah it's been really awesome having you on
01:07:25.603 --> 01:07:33.163
thanks so much sorry thank you raf thanks for having me so much fun thank you so much.