Hey Everyone,

2023 was a pretty remarkable year for us at Round 1 – and so far, 2024 is really shaping up to be the ‘best’ year ever.  

First off, in the boxing gym we are just around the corner from converting back to running what are now apparently called ‘Moving Classes’ 365-days of the year.  Of course, once-upon-a-time they were just called “Boxing” classes, but then COVID came, the Cell-based system had to be introduced and the Round 1 world was forced to pivot!

It really is hard to explain the ‘change’ to my original vision that the COVID-related move to the Cell-based system has caused us…but with the issues associated with equipment sharing in the rear-view mirror we will finally be reverting to ‘circuit’ style boxing training every day of the year from March 1st 2024 onwards…I will be moving some gear around next weekend as stage one of the ‘Change-Back’ project…I know I for one am pretty happy about that.

Next, in the Functional Training (Strength) gym, we are running hard with our updated programming model (Warmup, Strength, Metcon, Mobility) everyday and supplementing our core ‘Functional Fitness’ sessions with an increasing range of supporting classes.  Our Strength-only ‘Fully Loaded’ class will be moving to 5x days per week from Monday March 4th and we will be introducing a new Olympic Lifting class (weekly), a daily ‘At Home’ workout plan available to all via the FitBox app AND are pushing ahead with a plan to better utilise the Hammer Strength equipment within the group training environment.

Simply put, there’s a bit happening.  Further, as part of the changes to the class structure in the boxing gym, we will be installing new rowers, new rubber flooring and a couple of other ‘surprises’ all during q1 and q2.  And all going well, the planned rehab and recovery centre will be up and running during the 2024 calendar year…there’s a fair bit to do in this space right now but it is progressing and what can I say?  GET EXCITED!!!

Now – back in March 2022 we introduced an updated pricing structure for all NEW members (those who signed up AFTER March 1st, 2022).  You can see those prices on signs up all around the gym ($30/week for boxing, $37.50 for both boxing and strength class access).  When we did this, we applied the concept of ‘Mates Rates’ for our existing members – primarily to reward all those amazing people who continued to support us during the myriad of COVID closures.  Sadly, after the most significant cost change in our 14-years of being open (a major revision of our rental agreement in Q3 2023) – and following a business planning meeting with our accountant – I have reached the uncomfortable decision where a price change is required in order for us to: 

1. Continue operating/keep the doors open.  This is really points 1, 2 + 3 according to the finance guys!
2. Execute the plans we have to continue developing and improving the gym moving forward.  

This price change will INITIALLY only affect those members currently on “Mates Rates” pricing but in coming months will impact ALL of our members.

The details of the planned changes are as follows:

* FIFO and Family package pricing will also be increasing by similar/equivalent amounts.

Now whilst I know that what others charge really shouldn’t impact our situation, our Finance Partners did complete a market review (they know me – they know I hate any suggestions of price change) as part of their “we need to make a price change” presentation.  Without naming the other facilities, the table below shows a list of other local gyms and their WEEKLY membership pricing:

When I looked at this list – and I DO appreciate not every business offers the ‘same’ level of service and facilities so the price chart is certainly not an apples-to-apples comparison! – I really was taken aback at exactly how much lower our prices were than every other facility.  In many cases, we are charging less than HALF.  Furthermore, I would challenge everyone to compare the facilities and range of equipment available at our 1000m2 facility against those offered at some of the competing facilities – most of which have less than 300m2 of floor space, have a vastly smaller equipment range and operate a single training regime versus the 9x programs we are currently offering. 

To quote our accountant:

“I really don’t understand how you continue to offer the level and variety of services you do at the current price point based on the other examples I have found in the market place.  That said, based on the cost pressure you are currently experiencing if you want to continue investing in your gym and further improving your offering to members, you simply MUST increase your prices”.

Before signing off, I really want to say thanks to each of you for your continuing business and for trusting Round 1 with your fitness journey…I do hope you understand how much I appreciate each and every one of you and just remind you that if you ever need any help or assistance, well, all you need to do is reach out and ask!

See you in the gym,

Michael.