Spacetwin

Hit revenue goals faster. CMO secret since 2012.

[Spacetwin @Spacetwin]

Awesome @Forbes article by our Founder & CEO @KageSpatz 😎 https://t.co/EdmTho6xVA #entrepreneurship #startuplife #bootstrapping

[Kage Spatz @KageSpatz]

God Bless America, the Greatest (Hockey) Country in the World 🦅🥇🇺🇸

[Spacetwin @Spacetwin]

@KageSpatz "The more grateful we are, the more we have to be grateful for."

[Authority Magazine @AuthorityMgzine]

Patrick Bet-David of Valuetainment: How Entrepreneurs Can Create A Dream-Making Machine by @KageSpatz https://t.co/7hGvGimd4p

[Auto Body Authority USA (Association) @autobodyassoc]

NEWS: After some of you said our FREE services saved your biz in 2020, we are funding it again in 2024!

ALL AMERICAN businesses are eligible 🇺🇸

We'll show you winning sales campaigns in your market AND give you guidance to bring in New Customers 📈

DM us "USA" for the win🦅

[Kage Spatz @KageSpatz]

@WallStreetSilv Owned a mortgage company and can confirm that another reason they are hurting is because there is zero chance anyone wants to refinance their homes right now.

[Jason Jordan @YourFireStory]

Your product or service is not the only reason a new customer buys.

Of course, they want to believe you will solve a problem...

but you know what else they want to believe?

They want to believe in YOU!

[Spacetwin @Spacetwin]

@KageSpatz "Personal excellence is the ultimate rebellion." 🔥

[Authority Magazine @AuthorityMgzine]

Dan McCoy of Beltone: 5 Non-Intuitive Ways To Grow Your Marketing Career by @KageSpatz https://t.co/n7mJLQovoV

[Thubten Comerford @thubten]

Andy Cagnetta of Transworld Business Advisors: How To Grow Your Business In A Challenging Economy
An Interview with Kage Spatz, CEO at Spacetwin https://t.co/S3HcmEWGuz

[Elon Musk @elonmusk]

If you were unfairly treated by your employer due to posting or liking something on this platform, we will fund your legal bill.

No limit.

Please let us know.

[X @X]

Today is the day: Ads Revenue Sharing is now live for eligible creators globally.

Set up payouts from within Monetization to get paid for posting.

We want X to be the best place on the internet to earn a living as a creator and this is our first step in rewarding you for your efforts.

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[Authority Magazine @AuthorityMgzine]

Alison Smith of Cortland: 5 Ways Top Companies Attract & Retain Talent by @KageSpatz https://t.co/pzQmy1IH1L

[Tesla @Tesla]

Q2 Shareholder Update https://t.co/u0UcDOueXC

—

Highlights

In Q2, we produced a record number of vehicles, thanks to ongoing ramps of our new factories & strong performance of Shanghai & Fremont.

Cybertruck equipment installation at Giga Texas is in progress, with deliveries remaining on track to start later this year!

Yield of our in-house 4680 cell production lines continues to increase. We’re also building capacity for cathode production & lithium refining in the US.

S3XY market share is growing globally!

Model Y was the best-selling vehicle of any kind in the first half of the year in Europe—thank you to our European owners!

Autonomy at scale is achieved by:
- Extremely large real-world data set
- Neural net training
- Vehicle hardware
- Vehicle software
—all of which we develop in house.

Recently, we have started production of Dojo, our training computer, which is expected to make neural net training faster & cheaper

[Joe Pompliano @JoePompliano]

Planet Fitness is a fascinating case study.

They offer free pizza and bagels and kick out all the powerlifters by removing heavy weights from the gym.

But their membership price hasn't changed in 25 years, and they now have 2,500 gym locations worldwide.

Here's how it works 👇

The Planet Fitness story starts in 1992.

Michael & Marc Grondahl came from a family of entrepreneurs and wanted to start their own business.

So they bought a struggling Gold's Gym in Dover, New Hampshire.

But instead of catering to bodybuilders (like Gold's Gym), they focused on getting first-timers acclimated to fitness.

They added aerobics classes, child day care, state-of-the-art equipment, and introduced year-long payment plans.

The model initially worked — but as they added two more locations, problems started to compound.

Example: A kid would push another kid in daycare and start crying, or the aerobics instructor wouldn't show up for work and people would get pissed.

So the Grondahl brothers returned to the drawing board for their fourth gym in Portsmouth, New Hampshire.

They removed the heavy weights and introduced the "Judgement Free Zone," effectively kicking out bodybuilders and softening the gym's image.

They ditched group classes, juice bars, and childcare facilities, filling the gym with nothing but equipment.

And they changed the gym's hours to 24/7/365.

But the real game-changer was the price.

That's because getting rid of all the fluff typically associated with gym memberships (group classes, smoothie bars, steam rooms, etc.) allowed Planet Fitness to drop its price to just $10 per month.

That's 80% cheaper than the average gym in the United States ($50/month) and 94% less than an entry-level membership at a luxury gym like Equinox.

And here's the craziest part...

The $10/monthly price hasn't changed in 25 years.

Planet Fitness can do this because:

1) They sign cheap lease agreements with large retail locations that are struggling (Toys “R” Us, Circuit City, etc.).

2) They intentionally target the 80% of Americans that don’t have a gym membership.

The $10/month price point is perfect for these people — affordable enough to get new members but cheap enough so no one cancels.

And it allows Planet Fitness to significantly oversell its available inventory (aka gym space).

For example, the average Planet Fitness is 20,000 square feet and has 7,500 members.

But Planet Fitness knows that 60% of its members don't go to the gym for a 30-day period. So they oversell the space and collect more membership fees each month.

The company then upsells a large portion (60%) of the members that do use the gym, convincing them to pay $25/month for a better package (all locations, etc.).

And they scale this model through franchises.

Planet Fitness only owns ~200 of the 2,500 locations.

The rest are owned by franchisees (individuals, private equity funds, etc.) that pay between $1.5 million to $5 million in setup costs.

These franchises then provide Planet Fitness a steady revenue stream of gym membership royalties (7%), national marketing fees, and even PF-branded equipment sales.

Example: Planet Fitness sold $227 million in equipment to franchises last year alone.

Planet Fitness 2022 Revenue Breakdown
• Franchise revenue: $271.6 million
• Corporate-owned store revenue: $379.4 million
• National advertising fund revenue: $58.1 million
• Equipment: $227.7 million
–––––———
Total 2022 Revenue: $936.8 million (+60% YOY)

And Planet Fitness doesn���t seem to be slowing down anytime soon.

Their franchise model enabled them to open 158 new gyms last year alone — and by keeping their monthly membership rate steady at $10, same-store sales increased more than 11% from 2021.

Planet Fitness Market Cap
2015: $1.5 billion
2023: $6 billion

So the lesson here is simple: Sometimes it pays to think outside the box.

** This breakdown is an excerpt from my 3x weekly podcast (Top 50 in US Sports). Subscribe below so you don't miss any episodes going forward!

Apple: https://t.co/oxtjqN8JOE
Spotify: https://t.co/PHsIGLEjJB

[David Sacks @DavidSacks]

True experts display intellectual curiosity. Fake experts try to shut down debate.

[Spacetwin @Spacetwin]

@AuthorityMgzine @KageSpatz Cheers, @SpecialOlympics!

[Authority Magazine @AuthorityMgzine]

Jason Teitler: ‘5 Ways Your Local Organization or Business Can Leverage Free Publicity To Grow’ by @KageSpatz https://t.co/chr6OckjJz

[Auto Body Authority USA (Association) @autobodyassoc]

A costly mistake made by many Local Shops in a challenging economy:

Marketing Budget Cuts 📉

Attacking your own growth is rarely the most optimal strategy...

First, consider other areas of fat with less of a direct impact on keeping your doors open.

[Kage Spatz @KageSpatz]

Rent is almost $8,000/month for my friend's pizza shop in San Diego

- not a high foot traffic area
- not close to any tourist spots
- not an attractive space

Despite being a small business with these obstacles, you won't believe how high their sales numbers are...

1/5