Ever thought about what you can learn about risk management from a brothel? As it turns out, a lot—and that's just one of many risk-management examples author Allison Schrager uses in her book "An Economist Walks Into a Brothel: And Other Unexpected Places to Understand Risk."

In this episode of Two-Brain Radio, Chris speaks with Allison to understand how the risk-management principles that guide other high-end service providers can apply to microgym owners.

You'll also learn how to compete with big chain gyms charging $10 a month, how the commoditization of fitness training with technology could actually help your business and how to best position your offerings in the face of a recession.

Links:

"An Economist Walks Into a Brothel: An Other Unexpected Places to Understand Risk."

Contact:

Allison Schrager

Timeline:

1:59 – Allison’s passion for teaching risk management.

3:02 – Risk management: Lessons from the pro poker world.

6:31 – How to mitigate risk when opening a gym.

8:12 – Don’t just take risks for risks' sake: You need a clear goal.

9:26 – Defining risk.

11:07 – There’s a recession looming. Should gym owners be worried?

13:42 – In the face of an economic downturn, focus on high-touch services.

14:39 – How Equinox got Allison hooked.

17:40 – The industrial revolution and personal training.

19:33 – There’s no escaping Jeremy.

21:21 – On differentiating yourself in a commoditized market. 

26:37 – Virtual personal training: a high-touch service at a more accessible price.

28:52 – The second wave of industrialization: technology.

31:43 – Eliminating the mediocre and how technology can enhance your service without replacing it.

33:34 – Allison’s first trip to the brothel.

36:27 – Learning negotiation and risk-management tactics at Bunny Ranch.

39:34 – Balancing the personal and the technological in fitness service.