CRAIG MAGINNESS: What you are doing is authentically and organically connecting with people who have the same world view you do about this thing, whatever it is. And so when they see your message, when they see you on social media, when they see your website, when they hear you talk about it, there's something in it that at an emotional level actually organically attracts them to your business. And when you have a real direct hit, wow, finally I found this thing.

I mean, yeah, you know, they're playing, I've been to that Pilates world, whatever, and I don't know what that was about. Yeah, it was okay, but it didn't rock my world. But now that I found you, "Wow, I'm in love. This is what I was looking for." And if you can hit those people, and this gets back to how your value proposition is your price ceiling.

Podcast Intro: Pilates business owners, welcome to The Pilates Business Podcast, brought to you by the people who own, operate, and instruct in a successful clinical Pilates studio in Australia. 

Our mission is to help you to discover Pilates business assets to build your clinical Pilates business success. And now, here's your host, David Gunther. 

DAVID GUNTHER: David and Goliath is a very apt description for what we've seen in the market conditions for clinical Pilates studios around the world. I've been looking forward to examining the situation for our listeners. You guys out there in clinical Pilates business land have all had that sinking feeling. And that unpleasant deflation of energy as you hear about another fitness Pilates franchise opening up in a new location close to your studio, not another one. Inquiry goes quiet as they spend big on their advertising of their brand of Pilates. 

You wonder how many of your potential clients are going to be attracted to their slick marketing, unaware of the real differences between large group fitness Pilates, and your own precision personalized Pilates. What do you do? How do you react? Who are you gonna call? Hey, relax, because the answer to that outside threat is within you.

We get you at the Pilates Business Podcast and we've got you with this series, David and Goliath, where we have called on our own Goliath of business, Craig Maginness, who is here to help us discover the real issues rather than the distractions, and help us all to focus our limited resources of our real solutions. 

Craig Maginness brings a wealth of marketing experience in the wellbeing sector. He has a well earned reputation for helping people who own businesses to become better business people. Craig works with all kinds of business people, including business people in the health, wellness, and exercise sectors, including some Pilates instructors, yoga teachers, and massage therapists. Craig currently coaches clinical business practice management in Colorado and has run businesses all over the world in six different continents in 47 countries.

So jump in your car or wherever you go to listen to great podcasts. Buckle up into the Pilates business podcast episode, who is Goliath in our new series, David and Goliath, discovering how you deal with the fitness Pilates Goliaths in your small clinical Pilates practice. 

Welcome Craig to The Pilates Business Podcast, and we're going to be talking today about independent clinical Pilates studios versus large fitness pilates franchises in a David versus Goliath type situation. So there's a lot of stories. There's a lot of information. There's a lot of misinformation that we can debunk and, welcome to The Pilates Business Podcast, Craig.

CRAIG: David, thank you. Thank you for having me. Looking forward to our conversation.

DAVID: Yes, and the conversation today about David versus Goliath will be focusing on the distinction between the clinical Pilates and the large fitness Pilates franchises and so our audience for the Pilates business podcast is very well aware of this situation. It's a difficulty, a challenge, and something that people that are listening to this podcast are facing all the time.

And of course, it's not only in our niche industry, but in wellness. I know you have a lot of experience with other different types of wellness businesses, and we're going to leverage on that knowledge quite heavily so that we can uncover some things that are going to help us to just think about that environment and how to best thrive in that environment.

So we'll draw comparisons between the real situations and the David and Goliath story. Have you got anything to say to begin with there, Craig?

CRAIG: I guess one thing I just say initially is I think the way you posit the question is understandable and a good way to think about it, except that to begin with, I think you're underestimating the size of Goliath's army.

Because you're sort of saying it's a clinical Pilates studio versus the big Pilates exercise chain. I would argue, if you want to think about it that way, your competition out there is way bigger than that, right? It's yoga studios, it's big 24 hour fitness workout studios with personal trainers. If you want to paint your market as things people do for physical activity, which inherently have some wellness benefit, the competition is huge.

So if you want to put it in your story context, Goliath's army is even bigger. Now I think there's a lot of good answers as to how to fight that army and how to beat David and, play to your strengths and use your one stone and your slingshot to make it happen. But anyway, so I guess I just start with even that I think I'd paint a sort of bigger picture about what really the market is, because we're going to be talking about how you establish competitive advantage, how you create value for your customers, because that's why people show up and pay you for stuff.

And a lot of that stuff, surprisingly, working in a lot of small business context, not just wellness businesses, but anything. I'm amazed how many people who run businesses don't actually understand what it is they do that creates value for their customers.

DAVID: I'd like to also couch the question in a slightly different way. As I went through the research for this and as I was reading what we'd put together again, it occurred to me that David doesn't need to kill Goliath. And doesn't really want to kill Goliath, there's several advantages in the marketplace from coexisting with Goliath.

So we're going to talk about that. And again, it's just about ways of thinking about, this situation. And so how do we thrive, in the presence of the Goliaths? As you say, there's not just one Goliath, there's a whole community of Goliaths out there in our world and, we need to do well in that world.

We're going to jump into that. The fitness Pilates is often cheaper, for the individual who is attending on a weekly basis and paying a fortnightly or monthly for their Pilates offering. And, it's not to say that it is more value. That we're not more cost effective with what we do. We're going to focus on those sorts of things as well. How you become more cost effective, more valuable to your clientele and how that helps you in that survival, but not only survival, but thriving in the marketplace.

The other thing about the marketplace is that there's now a perception that Pilates is the large franchises, okay, because their marketing dollars are large. Their pockets are deep, and they spend a lot of money on marketing Pilates, on owning the word Pilates, and so there is a general perception in the general marketplace that Pilates is fitness franchise businesses. So because the marketplace just sees what is served up to it, right? So it's our responsibility also to not only provide the service, but to educate the marketplace as best we possibly can. Have you got any thoughts on that, side of things, Craig?

CRAIG: Yeah, a couple things. First of all, yeah, I absolutely agree with you at where you started is our goal is not to kill Goliath. And in fact, there are indeed benefits in the market of having Goliaths out there because among other things, they at a minimum, increase popular perception or awareness that this is even a thing that I ought to think about, right?

I would draw a distinction between what you said of conflating Cost control with value creation, okay? Cost control is definitely a strategy that helps you manage your financial statement.

It increases the percentage of dollars you can get from your top line to your bottom line. But it does not create more value for your customers. Okay, so, that raises the other thing where you were going. A little bit with that we should talk about is just pricing strategy, right? Because at the end of the day, prices for different things in the same marketplace can be all over the place.

And I got lots of stories and examples to sort of illustrate that. But if you are really running your business right, if you are creating real value for your customers, and you understand how you do that or what you do to do that, what I say is your cost is your price floor. You can't go any lower than that or you're just going to lose money, right?

 Your price ceiling is the strength of your value proposition. And so, that's what you have to understand. And I can talk about all kinds of markets where there are prices in the spectrum all over the place. From cheap to very expensive. And of course in a lot of markets, the more expensive or the higher priced purveyor is actually more successful and more wanted in the market, at least relative to who their customers are and who they're creating value for. And then that gets back to understanding what is it you're doing that actually creates value. So anyway, I heard you, to me they're both strategies, but they're doing different things.

And cost control can certainly be important in terms of managing your financial statement and earning a better profit, therefore a better return on your investment, which is your ultimate goal as a business person. But that's different than creating value for your customers. 

DAVID: A really important concept there. Thank you, Craig, for that. We're talking about pricing and we're talking about price ceiling value proposition. Was that the term that you used? It was a very snazzy term there. I think you said price ceiling value proposition.

CRAIG: I said your price ceiling is the strength of your value proposition. And the value proposition is really the connective tissue that draws your customers in. I mean It's called a value proposition because it is the thing you are proposing to provide to your customers that actually provides value to them.

It's the thing they are willing to pay for. Okay, and so therefore it drives what are they willing to pay for it, right? So it relates very directly to pricing strategy. To understand what is your value, what is a value proposition, and what is your value proposition. And how does your value proposition compare with all the other people in the marketplace?

And not just your Goliath, but, big yoga franchises, fitness franchises, everybody else who's out there at some level competing for the same people's dollars they're going to spend on movement, fitness, wellness, etc.

DAVID: Okay, so let's dive a little bit further into emphasizing our unique selling proposition, our value proposition. They're the same thing, right? Selling proposition, value proposition.

If you are a clinical Pilates studio owner, you already know the feeling competing against big brand Pilates franchises with big budgets and slick marketing, but you don't need to outspend Goliath. You just need a better strategy. That's why our wonderful team at the Pilates Business Podcast have created a set of tools that we call David's competitive Edge, practical Action steps to compete with Goliath in the Pilates marketplace.

It's free, it's easy to use, and it's action oriented. And it's built from the best insights in this David and Goliath podcast series. There's even a scorecard so you can pinpoint where to focus next in your business. Whether you are just getting started or looking to scale up. This checklist is your tactical roadmap to thrive in today's competitive Pilates business landscape.

Download it free at www.pilatesbusiness.com.au or via the links in our show notes, and take the first step to owning your advantage.

CRAIG: Yes and no. Ha. I wouldn't use those words quite interchangeably because to me selling involves sales, right? So that's actively closing the deal once you sort of have somebody in your space thinking about it. Creating values at the inherent root of the business. It really stems from the whole reason you are in this business, and not just this business generally, but your own personal business, right?

What do you bring to this? Why did you decide that a clinical Pilates studio was my passion, is what I wanted to do, is how I could create a business? You know, what needs are you filling? Both for your customers and stemming from your own, like, Gee, I think I could do this better. I think I could do this differently.

I think I could deliver value to people that they're not getting now from the other alternatives out there. So, value proposition is very much at the root of marketing. In fact, it entirely drives your marketing. It's your message. And as importantly, and this is something that came up a little bit in some of the materials you'd sent me, but I think it's an important thing for people to understand is, a lot of ways you phrase about this battle, it's like you're all competing for the same people.

But you're not, okay? A big mistake a lot of businesses make, particularly small businesses, is like, Oh, I need to get customers. And so you want to be anything you can be to anybody. Like a warm body comes in the door and I'll convince you I'm for you, right? You know, but the fact is our customers are not just anybody.

Our customers are not anybody with a credit card. Our customers are not just anybody with a credit card looking for wellness movement services. Our customers are not just anybody with a credit card looking for movement based wellness services who may think Pilates is for them, okay? Our customers are the people who tell themselves the same story about why this is value, what difference this makes in their lives that you tell through your business, right?

So, knowing what your value proposition actually determines who your customers actually are. And honestly, the people who go to the big fitness Pilates franchise who are really happy with that, they're not your customers. Okay, they're looking for something else. They have a different value proposition.

Knowing what yours is tells you who your customers is and where they are. And this is all what targeted marketing, segmented marketing is, social media marketing. Like, some people say, well, you can't run a business without being on Instagram. It depends who your customers are. Once you know who your customers are based on what you do are on Instagram, man, you need to be on Instagram.

But if your customers are on TikTok or something else, or not do social media at all, social media may be a complete waste of time for you, given who your customers are and where you are. So, everything you do in that respect is driven by, first of all, understanding this organic value proposition that as much as possible should be unique to you and your business. Even among other clinical Pilates businesses

DAVID: That is a terrific revelation, and even more so when the individual who is out there, who owns the business actually experiences and realizes that revelation, right? Because that's the whole point of this podcast. To think about these things in ways that are going to help us and to realize that just not anyone who walks through your studio doors are going to be the right people and to some people you should be actively discouraging them from joining your clientele because it's actually not going to help your business. Correct?

CRAIG: Right. Well, in fact, I think you'd agree it's common in almost any business. I'm sure you may have experienced this yourself. I'm sure you know other people who do this, but for a lot of people, I start a small business because I'm passionate about the thing and I want to bring this great clinical Pilates practice to the world.

I can help people with it. And they love that piece of it and they get into running the business and one of the biggest things that sucks their soul is selling and marketing, right? mean business would be a lot of fun if it weren't for the customers. But the problem is, it's sucking their soul because they're not in touch with what really is their why.

What really is the value? Because if you do it right, you're not selling stuff to people who don't really want it. You're not doing a hard sell. What you are doing is authentically and organically connecting with people who have the same world view you do about this thing, whatever it is.

And so when they see your message, when they see you on social media, when they see your website, when they hear you talk about it, there's something in it that at an emotional level actually organically attracts them to your business. And when you have a real direct hit, wow, finally I found this thing.

I mean, yeah, you know, they're playing, I've been to that Pilates world, whatever, and I don't know what that was about. It just did, yeah, it was okay, but it didn't rock my world. But now that I found you. Wow, I'm in love. This is what I was looking for. And if you can hit those people, and this gets back to how your value proposition is your price ceiling, is, in the perfect world as a small business, you want people who don't even care what you charge.

I just love this. This is changing my life. What are you going to charge me to make me live longer, to make me a happier person, to make my marriage better, to make me show up better for my children? Because I feel good again. Because I can still hike, I can still ski, I can do stuff that I thought I was going to have to give up.

That's invaluable. Yeah, okay, I charge, you know, a hundred and whatever dollars an hour. Who cares? We're talking about changing my life for the better. Anyway, I mean, that's really the sweet spot. Now in that, you know, there's a spectrum and you're going to have people who are checking it out and people who aren't quite there, but maybe they'll get there if you're really good at it. 

DAVID: That's a wonderful way of describing that selling process in a clinical Pilates studio. Certainly, experiences that I have had replicate exactly what you've said. When people come to us and they walk through the doors and they see what's happening in the studio, they get the vibe straight away, and they know that that's the place they need to be.

Now maybe they've done similar sorts of Pilates elsewhere. These days we get a lot of those people coming new into town, and they've done some clinical Pilates elsewhere, so they're looking for someone like us. But then there's other people who've had an issue that has been very difficult to deal with over the years, and for some people it can be decades.

And they come to us and they realize that there's an opportunity for them to solve that problem. As you put it so well, to really change their lives and what price is on that. So let's talk about that. What price is on that, Craig? How do you set your pricing, to compete in the marketplace or are you saying we don't even have to worry about price?

 We are going to leave that episode for next week and be back with Craig to discuss. The pricing issues exactly what can be done. Until then, stay awesome.

OUTRO: You have been listening to You have been listening to the Pilates business podcast with David Gunther. If you are enjoying the show, let us know by subscribing and leaving a review. For more information or if you have any Pilates business questions, visit www.pilatesbusiness.com.au.