Dr. Brian Capra (00:01 .448)

Hey everyone, welcome to Ultimate Achievers Club best practices podcast where we bring a member from UAC and they share some best practices in business and or in life and something you can take and implement into your life or your business, your practice and get some real results from somebody who's done it successfully before. I'm here with my co-host, Dr. Alan Minor, who will take it away and introduce our special guest who I've known for a very long time.

UAC Chiropractic (00:28 .717)

I've always called you J Mac. don't know why Jonathan McAleese is a good friend. We've been in UAC together a long time Jonathan. I've been in accountability groups together and Jonathan you always have a great perspective on things. I met you through your work at Fortis, know doing reoccurring payments is how I always thought of that merchant account stuff. You're now on to your next act with a group called P3 doing Wellness Clinics will touch on but

Jonathan McAlees(00:29 .092)

and

Dr. Brian Capra (00:33 .989)

Cool.

Jonathan McAlees(00:46 .988)

Yeah.

Dr. Allen Miner (00:58 .121)

Also, P3 does work with membership models. I think, you know, of your many levels of genius, you have an intimate insight into, you know, just because you have to see the data of many thousands of clinics for many years, you know, what makes that work? What's the pitfalls of reoccurring revenue? What are the benefits of it? So I want to take the time to go there with you. So welcome in, doctors.

It's not dr. J. I always come to you your brother and your dad. I love it Yeah

Jonathan McAlees(01:27 .819)

No, I'm one of the few non-doctors in the family.

Dr. Brian Capra (01:31 .688)

But he's from a big family of chiropractors. He's more chiropractor than some chiropractor.

Jonathan McAlees(01:36 .057)

Yeah, both sides of the family. I'm the black sheep that did go to college.

Dr. Brian Capra (01:40 .23)

Yeah.

Dr. Allen Miner (01:40 .429)

It's funny you've had so much work though for your dad being a Cairo and your brother and everybody else in your family.

Jonathan McAlees(01:47 .726)

Yeah, my grandfather's brother was a founding member of life and I still didn't make my way there.

UAC Chiropractic (01:53 .324)

Probably saved a lot of money in scar tissue maybe by going here. So talk to us about membership model. Let's start with what are you doing now? Because it's not a chiropractic clinic, but it's in the wellness space, but it's still related to this membership model that chiropractors use.

Dr. Brian Capra (01:58 .472)

We did a lot for the profession, though, I can tell you that.

Jonathan McAlees(02:12 .899)

Yeah, so P3 Recovery was a franchise started out of Australia. There's four magnesium infused pools. it's an ice, a cold, a warm and a hot bath. They can fit about 12 people in it. Traditional and infrared saunas, red light beds, hyperbaric oxygen therapy, IV, light compression, breathwork meditation. So it's kind of like this recovery for the body. So we've got

12 facilities open in Australia. We'll probably have close to 20 by the end of the year. We've sold a total of 30. We're in New Zealand. And now we're opening our first US location in Encinitas, California. And we'll start franchising Q4 of this year in the US. you know, prepare, prevent, prevent and perform. So it's tell the athletes, everyday people kind of.

Dr. Brian Capra (02:56 .636)

What's the three?

Jonathan McAlees(03:05 .892)

work on the body. It's almost like going to a spa, but something you can do every day. And the whole model is really based around recurring membership. So it makes it, you know, affordable. It makes it easy to get to a lot of places today are charging, you know, you'll, you'll pay 70 bucks to go sit in a sauna and you'll pay less than that for a week of unlimited services in our facility. So it's much more affordable. We're a much bigger facility. Our facilities tend to be around 5,000 square feet.

and but it allows for a lot of people to be in the facility and so everyday person can come into a P3 and experience it without paying you know 70 bucks just to go sit in a sauna for 45 minutes or you know a few hundred bucks to go to a nice spa and get a massage.

Dr. Brian Capra (03:54 .088)

I'm so curious. I don't know if we want to go down the rabbit hole, like it's the the baths are those they're not 12 person like hot tubs that you're just jumping in with other people or are they? Okay.

Jonathan McAlees(04:05 .922)

Yeah, yeah, they are. They're self-cleaning. It's really cool. They self-regulate like all the equipment keeps it nice and clean. But it's very community driven. So people actually like it. We get a lot of sports teams that come in and use the facility because it's really contrast therapy. You really feel a difference. Like if you jump in a cold plunge and then go sit in a sauna, which I both of those in my home, it'll take you about 40 minutes to warm up from the cold plunge at like 40 degrees. You go from a 40 degree, you know, cold plunge

Dr. Brian Capra (04:12 .22)

Okay.

Jonathan McAlees(04:35 .265)

to 102 degree basically hot bath, like you will warm up in less than a minute. And so it's really interesting the difference in the contrast therapy there and there's a lot of science behind it and things like that that I am not the best person to speak to.

UAC Chiropractic (04:50 .727)

Let's talk about the on the membership there. You know, in a chiro clinic, a lot of times it's a two day process, a one day process, a three day process. You're taking an exam, preparing findings, presenting those, presenting some kind of a care plan. How's that? I'd like you to speak into the model you're in now with this, because I'm guessing it's a lot more simple. It's probably a menu of services people pick.

But then talk about, you know, what are some of the best practices on the membership side of things and reoccurring revenue?

Jonathan McAlees(05:24 .148)

Yeah, so we focus on memberships. The majority, 75 % plus of the revenue comes in through the membership model. About 25 % comes through one-time visitors and we get a ton of those, but it's not really our focus. The focus is the membership because it allows us to have a set number of people that we take care of and they come in on a regular basis, use the facility. It also allows us to keep the cost down, right? Because it's an efficiency.

standpoint like we can have a lot more people coming in and out of the facility. We're not having to explain to them how to use the modalities, where to go, what to utilize, how to use it. And so really everyone wins because we get to keep our costs down so we don't charge as much and they get much more, you know, affordable version of P3. And so I would say when you look at a chiropractic office, you know, the most successful offices that we saw were doing care plans and membership.

And even one of the things we constantly talked about was don't even do one year care plans, right? Do lifetime care plans. Like why would you, why would you set a patient up and then have to talk to them about money again a year later? Yeah, like why do a renewal? Like, so think about our business. Like someone signed up for a membership. We never talk about money with them ever again, right? Unless they're wanting to cancel, unless they don't show up and you know, we do no show calls.

Dr. Brian Capra (06:31 .248)

Renew it, yeah.

Jonathan McAlees(06:46 .284)

We have some AI that we're testing to make those calls that's really good as well. So we're kind of mixing humans and AI to work on some of that for us. like we check on someone if they're not coming to our facility.

Dr. Brian Capra (06:55 .82)

Yeah. I remember when you started with Fortis and of course your brother and your brother was a customer really young. We all were much younger at the time. But I remember your brother's practice and just freaking crushing it once he transitioned from that one model year care plans into. Yeah, this is just forever. So just do that. And I remember

UAC Chiropractic (07:22 .346)

you

Dr. Brian Capra (07:24 .892)

just astronomical numbers in his practice. I'm curious, and especially with your experience and our experience together, technology, we know recurring revenue has a valuation of multiple, And now you're going into it, you're transitioning into a healthcare space more or less, right? How does that change and more similar to an actual chiropractic practice with a recurring revenue than

Jonathan McAlees(07:28 .117)

Yeah.

Jonathan McAlees(07:39 .926)

Yep.

Jonathan McAlees(07:46 .763)

Yep.

Dr. Brian Capra (07:53 .478)

your other business was. how does that multiple change? How much more valuable is it even in just that type of business, the specific one you're in, had you been charging, you know, per visit or packages or something like that, as opposed to just a recurring model when it comes to a valuation for a business like that, what's the difference? How big of a difference is it?

Jonathan McAlees(08:17 .269)

know that anyone would be interested in us if we weren't doing procurring. Right. S