Such a peculiar question had stumped Guo Licheng at that time.
Pei Qian continued. "What's your basic salary now?"
Guo Licheng answered honestly, "1,500 yuan."
Pei Qian asked again, "How do you calculate the commission?"
Guo Licheng answered, "Different coaches have different commissions. On average, it's about 30%. Two hundred yuan per private training session."
The price of private training sessions was the same as Pei Qian remembered. It was the same price for the private training sessions he held for his employees.
Of course, from the perspective of ten years later, it was indeed quite cheap. It could even be said to be the price of cabbages.
Pei Qian did some quick calculations. "If I hold three private training sessions a day without a break for a month, my commission would be 5,400 yuan. Together with my basic salary of 1,500 yuan, it would be 6,900 yuan in total."
That was quite a good income in Jingzhou at the moment.
Guo Licheng hesitated for a moment and said, "Actually, I don't earn that much. That's because many of my private training sessions were transferred to me by other coaches. I have to give them a portion of the commission. The money I actually get every month is about five to six thousand. "
Pei Qian nodded. He thought to himself that this big brother was indeed like his name. He was honest and said everything.
For private tutors, selling lessons was the core of their competitiveness. The more lessons they sold, the higher the commission. Many private tutors in big cities could earn thirty to forty thousand a month just by selling lessons. However, such marketing geniuses were rare.
Coaches like Guo Licheng, who did not like to speak and only spoke the truth naturally could not fool so many students to buy private training sessions.
Those coaches who could fool too many students to buy private training sessions but could not teach all of them would transfer them to coaches like Guo Licheng who had more time.
However, unless the two of them were very close, they would definitely not transfer for nothing.
Pei Qian nodded. "I'll give you a basic salary of eight thousand yuan. There will be no commission, but there will be food subsidies, housing subsidies, regular physical examinations, and other benefits."
Guo Licheng was stunned. "Er, Boss Pei, I'm not talking about the salary. I want to leave this industry mainly because …"
Pei Qian, "Ten thousand yuan then, with various benefits and no commission."
Guo Licheng, "…"
He was tempted.
A basic salary of ten thousand yuan. Even if he left the fitness industry, where else could he get a basic salary of ten thousand yuan?
Moreover, Guo Licheng really liked the fitness industry. He only wanted to leave because he was disappointed with the current state of the industry.
Now, the base salary of 10,000 yuan was already ridiculously high, and the words "no commission" surprised him even more.
This sincerity moved him.
However, that also made Guo Licheng worry for Boss Pei.
He did not want such a sincere Boss Pei to become a sucker and lose everything after taking over the gym.
Guo Licheng hesitated for a moment and asked, "Boss Pei, you didn't have a deep understanding of the fitness industry, did you?"
Pei Qian answered honestly, "No."
Guo Licheng revealed an expression that said 'as expected'. "To tell you the truth, your thinking is a little too simple."
"Although this condition is very attractive to me, 'no commission' is also a good thing. But this is bad for the gym! "
"With the commission, the coaches will work hard to sell their cards and lessons. Only then will the gym have enough profit to continue operating. If there is no commission, who would buy lessons if the coaches don't actively promote themselves? "
Pei Qian smiled. "There's no need to buy lessons. In the future, there will be no private training classes in our gym. "
Guo Licheng, "Huh?"
Looking at Guo Licheng's confused expression, Pei Qian found it very interesting. He briefly explained the various rules of Deposit Fitness.
Guo Licheng's expression changed from confusion, to shock, to hesitation, to confusion, and finally to pity.
After Pei Qian was done, Guo Licheng sighed softly. "Boss Pei, I'm sure now. You really don't understand the fitness industry! To be honest, in this industry, a gym with a conscience will not be able to operate for long.
"If you operate it this way, you won't be able to please either side.
"I'm afraid you won't be able to earn any reputation or money."
Oh?
Pei Qian was delighted. It looked like his plan had been recognized by the gym's senior industry insiders!
That was a good sign.
However, he buried this joy in his heart and asked, "What do you mean?"
Guo Licheng cleared his throat and glanced at Branch Manager Wei, who was discussing the contract with Assistant Xin. Then, he lowered his voice and said, "To be honest, Boss Pei, the fitness industry now is actually a gamble.
"People who work out bet that they will go to the gym every day after getting a card, and gyms bet that they won't.
"In the end, the gyms usually win.
"However, even so, gyms in the country are closing down and running away in batches. Some people don't go for a few months after getting a card, only to find that the gym is empty. That's not uncommon.
"Therefore, this is an industry where bad money drives out good money. It's similar to … other industries that are passionate about getting a card and running away.
"Only black-hearted people can earn money. Those who rely on their conscience and long-term goals to survive are as rare as phoenix feathers and unicorn horns."
The more Guo Licheng spoke, the more solemn Pei Qian became. The more he listened, the happier Pei Qian became.
According to what you're saying, the situation is more optimistic than I thought, right?
Pei Qian silently expressed that he loved hearing this!
"Tell me in detail." Pei Qian remained expressionless.
It looked like Guo Licheng also had a strong desire to complain. He lowered his voice and said, "Boss Pei, to be honest, you're not being able to please either side by charging 50 yuan a day.
"Most consumers would have to spend close to 10,000 yuan a year if they come four times a week. That's five times more expensive than an annual gym card! They would definitely feel that it's very expensive.
"However, in reality, gyms that sell cards for 2,000 yuan a year are relying on a large number of useless cards and private training sessions to support their profits.
"In other words, your pricing method would make consumers feel that it's expensive, but you might not be able to make much money. To me, this is simply a conscience, especially for those noobs who have no motivation. However, the noobs themselves don't think so.
"They all think that they can train every day just by getting an annual card. They definitely think that it's not worth it.
"That's why I said that bad money drives out good money. There are too many noobs like that. It's not easy to earn money with a conscience, but it's easy to earn money with a black-hearted heart.
"2,000 yuan for an annual card and 3,000 yuan for a two-year card. It looks like a two-year card is definitely worth it. The gym is betting that you won't come often so the longer the membership is, the cheaper it is. On the surface, it looks like the gym is losing money, but to the gym, they just have to focus on the present! We'll talk about the two-year card in the future. Let's earn this 3,000 yuan first.
"In the end, when one gym did this, the other gyms could only bite the bullet and follow suit. Otherwise, all the customers would be snatched away by them.
"These gyms sell annual and three-year memberships as much as they can. After earning money in advance, they distribute flyers, pull people in, and sell private training sessions. They completely disregard the gym's actual capacity, but it is true that they have suppressed the other gyms in terms of momentum."
"They overdrew the source of customers nearby, making it impossible for other gyms to continue.
"If they opened a gym with a conscience and did not earn this fast money, they would not be able to persist for long before they were squeezed out by the publicity of these gyms. What future would there be?
"These gyms that made fast money disrupted the market and overdrew the potential of future consumption. When they saw that the situation was not good, they quickly ran away, leaving behind a pile of chicken feathers.
"Another key point is that fitness is a more painful thing for beginners. Consumers in our country generally do not have the correct concept of fitness. The fitness threshold is too high, the consumer experience is too poor, and there are too many noobs. That's why the current gym model is like this.
"If you want to earn money with a conscience, you have to at least be prepared to incur losses for several years. The resources and manpower you have to invest are far beyond imagination. Not only do you have to make good products, but you also have to cultivate the market and change people's living habits. It's too difficult!
"So, if you want to make a profit and run away, pretend that I didn't say anything.
"However, I know that Tengda is a company with a conscience. That's why I hope you will think carefully and not get involved in this mess because of a moment of impulse."
Pei Qian fell silent after listening to Guo Licheng's words.
He was ecstatic!
Listen, listen, my plan has been recognized by professionals!
What's more, it's highly recognized!
If that's what you said, it would be easier for me to incur losses, right?
Seeing that Boss Pei had fallen silent, Guo Licheng quickly said, "Boss Pei, they haven't signed the contract yet. It's not too late to back out now."
Pei Qian sniggered. "Back out? No, no, no. I've thought about this carefully.
"Since you said that bad money drives out good money in this industry and that you have to be prepared to incur losses for many years to earn money with a conscience … let me change this industry!
"From now on, you're the branch manager of Deposit Fitness' Handong University branch. You have three tasks in the next few days.
"First, recruit a team of coaches. The minimum salary will be seven thousand yuan. There will be benefits but no commission. All the coaches have to follow your template. Find those who are autistic. Reject those who are glib.
"The coaches will take turns to rest. They will rest two days a week. They will rotate in the morning and evening. On normal days, make sure that there are enough coaches in the venue to guide the students.
"You can calculate the exact number of coaches you want to hire. Try to hire as many as possible. I think about twenty people should be enough. If someone catches a cold and needs to take time off, you have to be able to change shifts in time. Under no circumstances are you allowed to work overtime for no reason.
"Second, find a construction team to redecorate and paint the entrance of the shop. Make it more low-key.
"Third, purchase fitness equipment. Make it according to the highest specifications. Don't be afraid of being expensive. Do you understand?"
Guo Licheng felt a little lost. He had said so much just now, but it was all a waste of his breath?
"But, Boss Pei …"
Pei Qian patted his thick shoulder. "No buts. Go and prepare."
On the other side, Assistant Xin had also finished talking to Branch Manager Wei.
"Boss Pei, it's settled. The gym is 1,800 square meters. Originally, we invested about 1.7 million yuan in this shop. The main expenses are: the equipment here are all mid-to-low-end, and some are second-hand. The total cost is five hundred thousand yuan. The other supplies are about fifty to eighty thousand yuan, including various equipment and equipment for private training, computers, office chairs, and so on. The renovation cost is about nine hundred thousand yuan. Apart from that, we have to pay for staff salaries, advertising, and marketing expenses, and so on.
"If we were to take over everything, the transfer fee would be about five hundred to six hundred thousand yuan. However, we only want the renovation of the venue and not the fitness equipment. That's why the final transfer fee is three hundred thousand yuan.
"Branch Manager Wei will move all the equipment away. We will purchase all the fitness equipment and hire coaches. At the same time, we have to pay rent for the venue …
"Considering that the fitness equipment we are preparing has to be of high standards and that the staff's salaries are higher than the average in the industry, the initial investment in equipment, transfer fees, and some miscellaneous items will be about 1.5 million yuan. The annual expenses, including rent, utilities, staff salaries, and so on, will be close to three million yuan. On average, it will be about two hundred and fifty thousand yuan per month."
Pei Qian nodded. In his heart, he thought that this investment did not seem to be a lot.
The initial investment was 1.5 million yuan, and the monthly expenses were only about two hundred and fifty thousand yuan. Even if there were no customers, it did not seem like they would lose much money.
However, on further thought, this was just a shop after all.
If he opened ten shops, wouldn't he be able to comfortably lose ten million yuan in a year?
He would open the shop first and see how it went. If no one showed interest, he would open a few more.
In any case, the more he opened, the more losses he would incur!
You've already exceeded your reading limit for today. If you want to read more, please log in.
Login
Select text and click 'Report' to let us know about any bad translation.
