– English Lyrics

Lyrics & Translation

[English]

This is Barry's Boot Camp, one of the

many luxury fitness studios where people

willingly pay $40 to be yelled at in a

dark room for an hour. And yet, I am

here multiple times a week along with

millions of other people who have made

these boutique fitness classes a

non-negotiable part of their routines.

But these studios are so much more than

overpriced exercise. They are carefully

crafted experiences that have completely

transformed the fitness industry. While

a basic gym membership might cost you as

little as $10 a month to $30 to $50 a

month, fitness studios like SoulCycle,

Berries, and Solid Core might charge you

that much or more for a single class.

The question is why? What is the

business strategy that transformed basic

exercise into a luxurious experience

that so many urban yepies can't seem to

live without? I have spent years both

observing and heavily participating in

this industry. And today we're

investigating how luxury fitness studios

created a business model that is part

highintensity exercise, part status

symbol, and part psychological master

stroke that keeps people coming back.

And just why for many people, it is

absolutely worth

[Music]

it. I'll stop doing the pointing thing.

All right. As always, before we dive

into the business model and the

psychology behind premium fitness, do I

look like I'm here to mess around? Now,

let me give you an idea of what it's

actually like to take one of these

luxury fitness classes. And we'll focus

mainly on berries for this because it's

my favorite. You walk in and check in

with one of the usually chipper and

smiling folks at the front desk. And

then they'll tell you what spot you have

inside the class. From there, you go

back to the locker room where you put

your stuff away, change into workout

clothes, and I'll show you some of the

amenities in those locker rooms after

the workout. And then it's showtime.

Various classes are famous for their

dark rooms and red lighting. They're

actually called the red room. lasting

music and of course high-end equipment.

That's right. Each and every one of the

treadmills inside a Barry's class are

$15,000 a pop. They're the nice woodway

treadmills, which are indeed

top-of-the-line. I checked. Each class

is 50 minutes and four rounds,

alternating between the treadmill and

the floor for strength training. And

what's the workout actually like? It's

freaking hard. It's widely regarded as

the hardest workout of all. It is

highintensity interval training at its

best. But of course, you can go as a

beginner and just run a little bit

slower than what the instructor suggests

or lift slightly lighter weights and

then you just work up to it. That's what

I did. But yeah, I personally come out

of each and every berries class drenched

in sweat. Now, while I focus on berries,

each studio has its own unique

atmosphere. SoulCycle creates this

almost spiritual experience with candle

lit rooms and instructors who double as

motivational speakers. Solid core on the

other hand is all about that slow burn

muscle failure in a cool lit blue

environment. What they all share though

is attention to every sensory detail.

And I personally come out of each and

every one drenched in sweat. Maybe I'm

just a sweater. I don't know. And the

instructors, they're all really, really

great. Extremely fit as you might

imagine. Like one of the instructors

that I go to in LA literally looks like

a human G.I. Joe. and their motivational

coaching approach hits just the right

spot for me at fairies where they're not

mean to you like run faster you piece of

but they're also not shouting like

cringy fluffy affirmations. It's

somewhere right in between where I feel

properly hyped up. Then once it's time

to shower off all that sweat, you go

back into the locker rooms where you

have cotton towels, high-end products

like whey hair and body

products. It used to be Orbe which is

even fancier but that's okay. Dyson

haird dryers which are $500 a pop and

then you know some other basic personal

products and toiletries. The amenities

do differ a bit between studio like

solid core doesn't even have showers.

I'm like girl that's half the reason I

go to berries. Just kidding kind of. And

then finally there is the fuel bar. So

after the sweaty workout you can have

one of these smoothies waiting for you

which is packed with high-end

supplements and protein powders. They

use Promix products for their smoothies

which as with all these other things are

coming in at a high price. Smoothies are

not included in the class price, but

it's a nice option to have right there

after you finish working out. And

there's also some retail in every

studio. So, while that might have

sounded like an ad for berries, it

wasn't. I wish. It's just an inside look

into how you're not just paying for a

hardass workout. You're also paying for

this overall highquality luxury

experience where everything in there is

the highest quality version of that

thing. And you walk out of there feeling

like a million bucks. Tired, yes, but

satisfied and nicely lotioned up. Okay,

so that's what the experience is like.

But even still, it's not quite as simple

as, "Oh, it's a high-end experience.

That makes sense." There's still the

question of why do people who attend

these boutique fitness classes multiple

times a week, not just pay for a gym

membership, an expensive gym membership,

even like Equinox, which also offers

classes and luxury amenities. To better

answer this question, let's look at the

evolution of the fitness industry and

where boutique fitness group workout

classes fit into all of this. So,

beginning with the traditional gym of

pre-200s, they used to be a lot more

bare bones with a much larger focus on

weightlifting and cardio machines and

pretty much no focus on group fitness

classes. And the business model of

traditional gyms surprised me a bit when

I was doing my research for this video.

You see, traditional gyms that are low

cost and high volume of members actually

count on most paying members not showing

up to turn a profit. Planet Fitness at

$10 a month with all that overhead cost,

are you kidding me? It only works

because most paying members do not

regularly attend. In fact, Planet

Fitness has openly acknowledged their

dependence on low attendance rates. In

the early 2000s, some gyms started to

add group fitness classes to experiment

and try to differentiate themselves.

This marked a major transition point as

members who went to the gym started to

enjoy the social and community aspects

and not just the solo workouts. And gyms

quickly noticed that members who

attended group workout classes were much

more likely to renew their memberships.

But when did $40 classes as we know them

today come into play? Well, noticing

this trend of group fitness, boutique

fitness classes started to pop up here

and there in the 2010s. And Barry's was

actually ahead of the curve. So, the

founder, Barry J, was a front desk

employee at a gym, he created his own

group class format that became so

popular the gym eventually let him start

his own studio. Fast forward and Barry's

boot camp, as it was originally called,

is founded in 1998 in West Hollywood,

Los Angeles, California. I say with

pride as an LA native, the boom didn't

really start until the 2010s, during

which the boutique fitness firms

experienced a

450% increase in industry growth

compared to 5% for traditional gyms in

that same amount of time. Those numbers

kind of speak for themselves. Venture

capital and private equity firms start

pouring in investment. The average class

price climbs from $15, $20 to $30 to

$40, and the industry has not looked

back since. So, that's how boutique

fitness classes came onto the scene.

We're starting to get the picture.

Traditional gyms saw that people liked

the group workout classes and social

aspect, but boutique fitness studios

took it to a whole another level with

this very highquality experience. But

now, let's dig in a little deeper to the

fun part, the psychology behind premium

fitness, how it transformed my personal

fitness journey, and just how these

studios have a chokeold on millions of

people. Okay, so remember the model for

traditional gyms who bet on people not

showing up. The luxury fitness model

flips this completely on its head. At a

typical gym, the psychology works

against you. I only pay $30 a month, so

skipping today is just losing a dollar.

There's minimal accountability, endless

options that create decision fatigue.

Should I do cardio or weights? Which

machines? And you're basically paying

for access to equipment, not an

experience. Boutique studios operate on

the exact opposite psychology. They are

expensive. And it doesn't take a genius

to understand the mindset shift from,

oh, I might go to the gym today to, I

paid $42 for a 5:30 class this Thursday.

I'm going. And you're not just paying

for access. You're paying for a reserved

specific time slot and a whole

experience. It's basically the

difference between having a gym

membership card in your wallet that's

collecting dust versus having a

non-refundable concert ticket. And this

total psychological reversal is

completely intentional. These studios

know exactly what they're doing by

creating this highstakes commitment

device. As far as brand positioning

goes, different studios leverage

different psychological hooks as well.

Berries uses the intensity and boot camp

vibe to make you feel accomplished. Soul

Cycle taps into the emotional catharsis

with their therapy on a bike approach.

And Solid Core emphasizes the science

and precision of their method. They're

all selling a transformation just

through different psychological

doorways. Then there are other factors

at play too. The community aspect

creates some social accountability.

Seeing the same faces at your Thursday

5:00 p.m. class, following your

instructors on Instagram who have

effectively become micro influencers

within the fitness space with thousands

of followers. But you know what I think

is the number one thing that makes these

classes so attractive, at least for me,

it's the structure. And this is where my

personal journey I think really

illustrates why these studios are so

effective. For those who don't know,

athletics was pretty much the biggest

part of my life besides academics, I

guess. But for the first 18 years of my

life, I was mainly a track athlete, a

sprinter, and a high jumper. And then I

introduced volleyball later on in high

school. But at some point in my life, I

pretty much tried every single sport.

And anyone who's ever taken sports

somewhat seriously, like you were on a

team in high school or you played a club

sport, knows how structured it is. I

would go to school and then I would go

to track practice after school, track

meets on the weekends, and then

additional workouts with my coach who

was telling me exactly what to do. It

was completely structured and I loved

it. Then came college where suddenly I

wasn't on a team anymore. For the first

time in my life, I lacked that organized

structure of high school sports. Yeah, I

still cared about being healthy, so I

went to Penn's gym occasionally, but it

was college. I was having fun. I didn't

have my coach to tell me exactly what to

do in my workouts and so I completely

fell out of a consistent routine. This

pattern lasted for about five years

pretty much all throughout college and

into the early pandemic. I'd start a

workout kick for a week and then stop

and then start again. But the problem

wasn't just the lack of structure and

accountability. It was that I didn't

truly enjoy what I was doing. Random

weight circuits and occasional runs

didn't capture what I loved about

athletics. And this isn't just my story.

I actually think this mirrors what

millions of former athletes and young

professionals experience. We go from

structured environments to being told to

just go to the gym. It's basically the

same thing as if someone always had a

personal chef and then you told them to

just cook something. It sounds spoiled

and maybe it is, but it's true. Guess

what solves those things to a tea?

Workout classes. After my 5-year hiatus

from consistent exercise, it was berries

that got me back into a routine. It

recreates what worked for me as an

athlete. A structured, coached

environment where each 50-minute session

was planned down to the second by a

professional who knows what they're

doing. And most of all, I enjoy it. The

music is blasting, the energy is high,

and I genuinely look forward to it. And

that's the real psychology of premium

fitness. Yes, the investment factor of I

paid for it, so I'm going to show up

matters. And yes, the community aspect

and the instructor relationships help,

but what I'm really paying for is the

structure. having something very well

defined for me, having a specific time

that I show up to and lock in for 50

minutes, no more, no less, and then

yeah, I have a fancy shower afterwards.

And this explains why these studios

thrive in urban areas crawling with

highly paid young professionals. They're

paying for efficiency, a perfectly

designed 50minute workout that fits into

their busy lives without requiring them

to plan, design, and actually follow

through with a solo workout. When you

look at it this way, $40 starts to make

a little bit more sense, though it's

still a lot to pay for exercise. So, who

exactly is paying for these classes and

why are they priced at $40? Before we

explore the target market and the

pricing strategy, I'm curious how much

revenue these studios are actually

generating. As we always do on the

Taylor Bell channel, let's take a quick

look at the unit economics of luxury

fitness studios. Okay, luckily, this is

pretty easy to calculate. Here's a map

of the last Barry's class that I was at.

You can see I was on treadmill number

two there. There are 59 possible spots

in the class, 11 classes per day. I'd

say on average each class is about 80%

full based off of personal observations.

And I would guess that the average

person pays about $38 per class because

yes, you can get some slight discounts

which I'll tell you more about in a

minute. That is

$19,730 per day per studio. Sounds like

a lot because it is. To put this into

perspective, Barry's revenue per square

foot is more than 400 times that of

traditional gyms and is on par with

higher-end fitness retailers like

Lululemon. I mean, what other business

can pack 59 people into a tight space

and charge them $38 to $42 for 50

minutes of their time? Not that many.

So, the Dyson hairdryers and the $15,000

treadmills are starting to make a little

bit more sense. Now, that's just

revenue. Barry's doesn't publicly

disclose their profit or EBIT doll

figures because they're privately held.

But costwise, I would assume extremely

pricey real estate rents given the ultra

premium locations like we're in the

middle of Manhattan, New York City right

now. Same with the Solid Core and Soul

Cycle. Obviously, instructor costs,

fancy amenities, and equipment costs.

Even still, industry experts estimate

that Barry's operates with a 25 to 30%

evid margin. That's earnings before

certain expenses are taken out compared

to traditional gyms which operate at

about a 15 to 20% even margin. So very

profitable indeed. Speaking of

profitable business models based on

organization, I've recently been using

something that is changing the game on

how I manage my crazy inbox. Notion, the

tool that I already use for all my

scripting, organizing, pretty much

everything, has launched Notion Mail.

So, besides Notion Mail automatically

categorizing and labeling all of my

emails for me using AI, let me show you

my two favorite features. First, the

built-in scheduling tool. Here I am

asking myself for a call to discuss

channel strategy. Nice. And instead of

switching between a bunch of apps like

my calendar and my email, I can just hit

the schedule command and boom, I can

send over my calendar availability as is

or I can go through and actually select

certain ranges of my availability. Then

on the other end, they just click one of

those times that work for them and boom,

the meeting is scheduled. Second feature

I love, the snippets. For emails that I

get all the time, Notion Mail learns my

typical responses or I can manually save

them just like this and send them in one

click. And since it's built by Notion,

it has that clean, familiar interface

with all the keyboard shortcuts that I

already know and love. So, you can try

Notion Mail for free by clicking the

link in my description. Connect your

Gmail account. It's currently only

available for Gmail, but they are

expanding soon. And thanks so much to

Notion Mail for partnering with me on

this video. Now, back to our boutique

fitness analysis. We've seen how

profitable these studios can be, but who

exactly is filling these $40 classes

besides me. Let's take a closer look at

the target market that is fueling this

luxury fitness boom. All right, we've

already kind of built out an archetype

of the type of person attending these

luxury fitness classes. 25 to 45year-old

urban professional, above average

income, healthconscious, but time

limited. Then, as with Arowan, there are

the celebrities. Some of the celebs

spotted at Berries include Jake

Gyllenhaal, Kim Kardashian, Julia

Roberts, Jennifer Lopez, David and

Victoria Beckham, Harry Styles to name a

few. But I actually personally don't

associate these luxury fitness classes

with celebrities the same way that I do

with Arowan. You're in a dark room. It's

not really a high visibility see and be

seen type of thing. That's just my

experience. So, how do these boutique

fitness studios target this specific

demographic? Largely through its

location strategy. They're all located

in densely populated young urban wealthy

areas. Even within New York City,

they're still pretty strategically

placed. We have berries in Tribeca,

Chelsea, Nho, Madison Square Park, and

then a couple in Upper East and Upper

West Side, downtown Brooklyn, and

Williamsburg. And for those who know New

York, those areas are certainly serving

the target demographic. On the marketing

front, most of them actually don't do a

ton of paid advertising. Barry's is

known to take a community first approach

by driving good relationships with his

existing clients to drive positive brand

identity and a lot of word of mouth.

Their social media strategy though is

solid. Again, the instructors at these

classes, most of them or a lot of them

are micro influencers within the fitness

space, creating fitness content, and

helping to foster that community feel.

So, after a decent amount of the

classes, the instructor will yell out,

"Follow me on Instagram, soando, and tag

me in your red room selfie." Then

there's the iconic red light

post-workout selfie. So, the social

media strategy is there, but it's all

pretty much organic. Smart. As for the

brand positioning, it definitely varies

by studio. I have to say, they've done

an incredible job carving out distinct

identities while still essentially

targeting the same demographic.

SoulCycle kind of positions itself as a

lifestyle brand with the find your soul

messaging. Solid Core appeals to the

data and results driven crowd with their

focus on efficiency and muscle

stimulation. Barry's kind of split the

difference with their best workout in

the world confidence. And the diverse

positioning is really smart business.

Same price point, different

psychological appeal. So now to look at

the pricing strategy in perceived value.

$40 for 50 minutes of your time sounds

absurd on paper, but if we closely look

at what you're paying for, the

calculation kind of starts to shift.

When you break it down, what premium

fitness classes like Solid Core,

Berries, and Soul Cycle are selling is

not just access to gym time. It's a

complete experience engineered to

actually drive results. The high-quality

instructors who know your name, the

premium equipment, the built-in

community, and of course, the structure.

These aren't just random perks. They are

carefully crafted elements of that

pricing strategy designed to justify

that $40 price tag. You're essentially

paying 80 cents per minute for a

professionally designed workout that is

pretty guaranteed to make you sweat.

Now, I should mention that there are

ways to get slight discounts for these

classes. I am not paying $40 for a

Barry's class. I personally use Class

Pass, not sponsored, I wish, which lets

you book classes at some of these

studios by using credits instead of

paying full price. So, through Class

Pass, I actually pay $30 for each of my

Barry's classes, which not cheap, but

better than $40. And if you want to try

it out, I do have a link in my

description. Again, not sponsored, but

you get some bonus credits and we both

get a little kickback. But the $40 price

point is also a marketing tool in itself

where they're automatically filtering

for their target demographic who is more

likely to view this $40 price point as a

health investment. While not everyone is

in the position to make this investment,

obviously classes like berries cater

exceptionally well to those who do. Now,

I hope it's clear that you absolutely do

not need to go to $40 workout classes to

be fit. You don't even need to spend $10

for Planet Fitness. All you need is

yourself, maybe a pair of running shoes,

the ground, and the drive to

consistently move. Even I am confident

that if I hadn't started Berries, I

would have eventually found my way back

to a consistent workout routine. Cuz

around the time I turned 25, I was like,

how am I still not consistently working

out? But for those who are down to pay

the $40, whether they go multiple times

a week and it's their only form of

workout, or they go once or twice a

month as a little treat to themsel or

they occasionally go with their friends

as a social thing, it is worth it. For

me, berries didn't just get me back into

a consistent workout routine, it pretty

fundamentally changed my adulthood

relationship with exercise. And the

irony is that after spending thousands

of dollars on these workout classes, I

have now gained the discipline to work

out anywhere. I no longer need berries

for the structure. I supplement it with

outdoor runs and self-fledged strength

training all the time. But I still

choose to go to workout classes weekly

because the experience is worth every

dollar to me. Okay. Something that I

always find interesting when analyzing

businesses like this is what's their

future outlook. And as with any

business, boutique fitness classes of

course face their challenges as well.

Similar to Arowan, which is a luxury

ger, classes like this would also be

considered to have elastic demand.

meaning that during an economic

downturn, people will become more price

sensitive to services like this. This is

the case for luxury things most of the

time because even high-income folks, if

they're looking to save a little bit of

cash, they can also turn to cheaper

alternatives. Then there's this other

offering that in theory could really

disrupt boutique fitness classes, but I

actually don't think it's that much of a

threat. It's digital offerings like

Pelaton or Mirror, which you can do from

home. These offerings of course took off

during the pandemic when people were at

home and they haven't fully disappeared

but their growth has normalized and most

successful boutique fitness classes

offer both in-person and digital

components. So digital offerings will

not replace in-person classes in my

opinion but just complement them. The

thing that I think will actually pose

the biggest threat to boutique fitness

classes is market saturation in urban

areas. Parts of Manhattan now have five

to seven boutique fitness studios within

a fiveb block radius like the berries

that we've been filming at is right over

there. So with more alternatives

entering the market, there is an

increased pressure for these studios to

differentiate themselves. This could

lead to higher marketing costs and more

aggressive customer loyalty programs to

reduce churn in these competitive

markets. But to respond to the market

saturation in major metro areas like LA

and New York, I've noticed studios like

Berries expand to secondary markets like

Nashville, Austin, Denver, which I think

is a really smart move because these

cities still have that target

demographic of young professionals with

some disposable income and the real

estate costs are lower. Customer

acquisition is a bit more reasonable

because these markets aren't quite as

saturated and they can still charge

their premium price. So, while urban

saturation presents its challenges, it's

also pushing these studios to expand

strategically. My prediction, I think

that these studios will only continue to

grow. A macro trend that I think we've

all probably noticed in the last few

years is a huge increased focus on

health and wellness. Whether it's health

podcasts like Andrew Huberman's becoming

mainstream, more discussion in the

cultural zeitgeist around longevity, the

benefits of weightlifting becoming more

talked about for both men and women,

which makes me so happy. I do think that

these boutique fitness studios really

complement this cultural shift that's

happening, especially for people who

don't really know where to start and

they have the disposable income, these

classes give you that structure. So,

while it of course is not necessary to

pay for $40 workout classes, I think

that we have thoroughly investigated

today why it is worth it for so many

people. For me, boutique fitness classes

didn't just get me back into shape. They

reconnected me with what I most loved

about athletics in the first place.

Structure, community, and the pure joy

of intense movement. And that experience

is something that I don't really put a

price tag on, even if these studios

certainly do. Have you tried luxury

fitness? If so, what do you think? Total

ripoff or amazing experience? Let me

know in the comments and like and

subscribe for more business case study

videos. Until next time, turtle

out. Is it raining too much now? Do we

go under that tree? Done.

Yay. You know how many people were

staring at me that whole time? Oh, over

there. Yeah. In the in the La Colom,

which is a Philly based coffee roaster.

And guess what? I don't really like it.

I don't like how it tastes. That's how I

feel. Oh my

god. Were there any calves that walked

by while we were filing

[Laughter]

now?

Cut. It's raining. It's a raining,

man. Oh, I hate the gusts. I hate them.

I hate

them. Great day to

film. Look.

He has little

booties. Oh, howdy. If you liked this

video, I'd bet my bottom dollar you'll

also like this one. Check it

out. Okay, bye.

Key Vocabulary

Vocabulary	Meanings
luxury /ˈlʌkʃəri/ C1	noun - the state of great comfort and extravagance adjective - providing great comfort or elegance; expensive
boutique /buːˈtiːk/ B2	noun - a small shop specializing in fashionable items adjective - relating to a small, specialized business
fitness /ˈfɪtnəs/ B1	noun - the condition of being physically healthy and strong
studio /ˈstuːdi.oʊ/ B1	noun - a place where an artist, photographer, or fitness class is held
class /klæs/ A2	noun - a scheduled session of exercise or instruction
intensity /ɪnˈtɛn.sɪ.ti/ C1	noun - the degree of strength, speed, or concentration
transformation /ˌtræns.fɔːrˈmeɪ.ʃən/ C1	noun - a thorough or dramatic change in form or appearance
community /kəˈmjuː.nɪ.ti/ B2	noun - a group of people living in the same area or having a common interest
motivation /ˌmoʊ.tɪˈveɪ.ʃən/ B2	noun - the reason or desire that drives someone to act
membership /ˈmem.bəʃɪp/ B2	noun - the state of being a member of a group or organization
revenue /ˈrev.ə.njuː/ C1	noun - income generated from normal business activities
profit /ˈprɒfɪt/ B2	noun - financial gain after expenses are deducted
accountability /əˌkaʊn.təˈbɪl.ə.ti/ C1	noun - the obligation to accept responsibility for one's actions
structure /ˈstrʌk.tʃər/ B2	noun - the arrangement of parts that make up a whole verb - to organize or arrange systematically
discipline /ˈdɪs.ə.plɪn/ B2	noun - self‑control and orderliness in conduct
saturation /ˌsætʃ.əˈreɪ.ʃən/ C1	noun - the state of being fully filled or covered; market saturation
marketing /ˈmɑː.kɪ.t̬ɪŋ/ B2	noun - the activity of promoting and selling products or services
experience /ɪkˈspɪə.ri.əns/ B1	noun - the knowledge or skill acquired through involvement in an activity
premium /ˈpriː.mi.əm/ B2	adjective - of higher quality or value, especially at a higher price