See How Gold’s gym Richland Quadrupled Their Profit by Switching from PFC to DrinkFit

Overview

We understand that business owners are constantly seeking new avenues to boost their profitability by increasing sales while simultaneously reducing financial costs. Many may not have realized the ease of achieving this until they partnered with Drinkfit.

  • Sales more than doubled…
  • Cost reduced by almost half…
  • Total profit soars 4x…

Higher Profit Margin

Case Study

Gold Gym’s Richland, a proud member of the extensive network of 220+ branches comprising the renowned American chain of international co-ed fitness centers, sought to enhance its offerings for its members. They previously partnered with a competitor, Performance Food Centers (PFC), providing smoothies to gym-goers as an additional revenue stream. However, the financial results from this arrangement fell short of expectations.

Switching to DrinkFit Smoothies

Recognizing the need for an improvement, Gold Gym’s Richland made the decision to partner with DrinkFit. The shift resulted in a transformative impact on the gym’s profit margin.

*actual financial data shared by Gold’s Gym Richland for the study

Quantifying the Profit Leap

Before partnering with DrinkFit, Gold Gym’s Richland was generating a mere $814 in profit from smoothie sales with their previous partner, PFC. In stark comparison, after transitioning to DrinkFit, their profit soared to an impressive $3,141. This substantial increase signifies a remarkable 3.86 times growth in profit, a testament to the undeniable superiority of DrinkFit business model.

The “Why” Behind Higher Profit

This remarkable profitability experienced by Gold Gym’s Richland can be attributed to several key factors:

Member Preference

DrinkFit Smoothies’ unique combinations and high-quality, healthy ingredients resonated with Gold Gym’s Richland members’ preferences, driving higher demand and repeat purchases.

Effective Pricing Strategy

DrinkFit collaborated closely with Gold’s Gym Richland to frame a pricing strategy that struck the perfect balance, allowing them to maximize revenue while maintaining product affordability, resulting in a higher profit margin.

Almost Quadrupled Sales

The force behind their increased sales isn’t a single magic formula but rather the same elements that were outlined above.

Improved Sales From $2,139 to $5,646

Gold Gym’s Richland sales leaped from $2,139 to an impressive $4,961 in their first month. This growth represents a 232% boost in sales, leaving their manager amazed by the success of DrinkFit products.

Notably, August marked a significant milestone with the highest financial sales recorded at $5,646, despite traditionally being considered their slowest month. The boosted sales are just the starting point. Partnering with DrinkFit offers even more opportunities. From collaborating on marketing strategies to tapping into a health-conscious market, the possibilities are endless.

Gold’s Gym Richland’s Sales

The data presented here shows how Gold’s Gym Richland has consistently shown an upward sales trend over the last three months.

The $3 Thursdays Promotion

The story doesn’t stop there. A significant wave in sales also came from an innovative marketing tactic by Abby, Gold’s Gym Richland’s Retail Manager—the $3 Thursdays promotion, which drew more members. In just the first two months after implementing this strategy, 30 cups were sold each Thursday, resulting in a tally of 243 cups of DrinkFit smoothies sold, translating to $1,215 in revenue.

A striking case of how this $2 discount promotion brings remarkable value comes from one of their members, a mother. While she typically enjoys a smoothie on ordinary days, her Thursdays differ. She purchases three smoothies every Thursday, treating her children to a special weekly indulgence.

This promotion has served as an effective campaign through marketing flexibility, successfully generating new sales and increasing smoothie demand.

Lower Cost

In contrast to their previous collaboration with PFC, where their financial expenses reached a significant 62% of their total costs, Gold’s Gym Richland’s partnership with DrinkFit has proven highly cost-effective. With us, their cost expenditure stands at just 37%, a substantial reduction driven primarily by lower shipping costs on orders. This underscores the clear value for your money when choosing DrinkFit.

63% Average Profit Margin

Partnering with Drinkfit presents an opportunity for businesses seeking an additional profit center.

A standout differentiator is our partners’ freedom to set their own smoothie prices, allowing them to tailor their profit margins according to their goals, using our DrinkFit Profit Per Drink spreadsheet as a guide.

Our partners’ success is at the heart of what we do. It’s with great pride that we share that our partners enjoy this impressive 63% profit margin, a significant leap from the industry standard, thanks to promotional strategies. This achievement is a testament to our commitment to providing unparalleled support and elevating businesses into remarkable profitability.

What Made Them Switch

In contrast to their previous collaboration with PFC, where their expenses reached a significant 62% of their total costs, Gold’s Gym Richland’s partnership with DrinkFit has proven highly cost-effective. With us, their cost expenditure stands at just 37%, a substantial reduction driven primarily by lower shipping costs on orders. This underscores the clear value for your money when choosing DrinkFit.

Low Cost, Easy Use, Low Sugar

DrinkFit’s foundation is built upon our distinct business edge – Low Cost, Easy Use, and Low Sugar.

We understand that making a switch from a competitor might initially raise concerns, but the evidence is clear: the advantages of transitioning to DrinkFit far surpass any temporary inconvenience.

Our emphasis on low cost shows our dedication to providing cost-effective options without compromising on quality. With our competitively priced offerings, the financial aspect becomes an encouraging factor for businesses considering the switch.

With our promise of easy use, we’ve designed our products to seamlessly integrate into existing operations, minimizing disruption and ensuring a smooth transition.

Another standout feature of DrinkFit is our dedication to low sugar. In a world where health-conscious choices are important, our products uphold nutritional responsibility, containing a mere 19g of sugar in a 16oz smoothie, compared to 70-80g in competitor smoothies.

By switching to DrinkFit, businesses not only align themselves with a brand that cares about consumer well-being but also position themselves to cater to the growing demand for healthier alternatives.

Blind Taste Testing

Another compelling factor that motivated partners to make the transition was as our introduction of blind taste testing.

Outlined below is our guide on effectively conducting a successful blind taste test, inspired by the approach taken by Abby at Gold’s Gym Richland:

Prepare the Smoothies

Abby prepared two similar smoothies in 3 different flavors for taste testing.

Anonymous Distribution

Abby distributed the smoothie samples in a tray to the gym’s regular and non-regular members without revealing which brand they were tasting.

For facilities that do not have existing juice bars, we recommend refraining from disclosing the brand, as participants may hold preconceived notions that could potentially bias their evaluation of the smoothies.

Recording Feedback

Abby recorded all feedback on a tally sheet.

Out of more than 100 participants, 100% expressed their satisfaction and delight with the exceptional flavors of DrinkFit’s recipes. This showcased the superior quality and taste of our smoothies.

The Partnership You Need

The benefits of transitioning to DrinkFit are not empty claims; they’re backed by real-world results. Our track record of success stories, improved customer satisfaction, and increased profitability speaks volumes about the advantages our partners enjoy.

So, while the idea of switching providers may initially seem daunting, the rewards of embracing DrinkFit’s values and offerings make the decision overwhelmingly beneficial.

We are committed to ensuring our partners achieve increased sales and reduced financial costs. We believe that achieving this balance is the cornerstone of our journey towards success.

Get in touch with us!

If you’re interested in setting up a smoothie bar with DrinkFit, don’t hesitate to contact us today!

Get qualified for free sample packs and experience the quality for yourself!