The Personal Trainer
Brian D. is a personal trainer at a large, brand-name gym. He has 20 regular clients, who he sees once a week, plus another 20 clients who he sees for occasional sessions. He wanted to offer a product to his clients that would bring in a revenue stream for him beyond his hourly training rate. Brian found YouBar, and designed and launched his own brand of nutrition bars to complement the nutritional and dietary advice that he gives his clients every day.
A month after he launched, he wrote us this in an email: “My clients are thrilled! They love the bars, and I have finally gotten past my hourly rate! Thank you.”
Now, Brian’s clients get excellent post-workout snacks that are designed to help them achieve their goals, and they get this for the same price that the bars at the local market sell for. Better still, Brian is able to make money from his line of nutrition bars.
Brian manufactures his bars through YouBar. His total manufacturing costs, including all packaging and shipping, is $1.46 per bar. He then sells his bars to his retail clients for $2.99 per bar, giving him $1.53 of pure profit per bar he sells.
He sells his bars in boxes of 12, as packaged by YouBar, and so each box gives him $18.36 in profit.
Many of his clients now have standing 'subscription' orders. Of his 20 regular personal training clients, 19 of them buy 2 boxes of bars per month (by subscription). In addition to this, he has 45 additional subscription bar customers, which he got from a combination of other gym members and friends. This brings his total bar “following” to 64 people with subscription orders.
These 64 'core' customers each have a subscription for 2 boxes of bars per month (giving them a little less than 1 bar per day). So, he sells 128 boxes of bars to core subscription customers every month, which adds up to 1,536 boxes per year. In return for that, he makes in profit (not revenue):
1,536 boxes/year (subscription sales) x $18.36 (Brian’s per box profit) = $28,200
In addition to his 'core' following, Brian also has a website where he sells bars direct-to-consumer -- and he regularly gets press from bloggers and other health/nutrition journalists thanks to the networking he does (such as attending fitness conferences in his home town, and hanging out with his other personal trainer friends).
As a result of this fairly 'light' promotion, Brian sells an average of 5 boxes of bars per day on his website, or 150 boxes of bars per month. This adds up to:
1,800 boxes/year (web sales) x $18.36 (Brian’s per box profit) = $33,048
As a result, Brian's total annual PROFIT is:
$28,200 (subscription profit) + $33,048 (web sales profit) =
$61,248 in annual profit