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Gym Launch Secrets by Alex Hormozi, framework 12 of 33

Service margin calculation

Four numbers that give a session gross margin.

Alex Hormozi's framework, from Gym Launch Secrets, pp. 183 to 192.

  1. Number of sessions

    Sessions per week times 4.3.

  2. Revenue per session

    Monthly revenue divided by total sessions.

  3. Cost to fulfil each session

    Hourly pay times the payroll multiplier of 1.22.

  4. Margin

    Revenue minus cost, divided by revenue.

From chapter: Chapter 10, The Overhead Lever, pp. 183–192

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