Interviewer view · keep this screen to yourself
Growing a Dubai gym's revenue by 10 percent
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
A gym in Dubai has 2,000 members paying AED 300 a month. It wants to grow revenue by 10 percent this year. Compare two levers: 10 percent more members, or a coaching app at AED 50 a month that the gym expects 20 percent of members to buy. The app costs the gym 40 percent of its price to run. The table below summarizes the two levers.
The prompt refers to Exhibit 1. After reading it, say: "Open Exhibit 1 now."
Format note: Interviewer-led: the interviewer shows the two levers and asks you to size each in revenue and profit, then to recommend.
2. Answers to clarifying questions
Give these answers only if the candidate asks. If they ask something not listed, give a sensible answer or say it does not matter here.
If asked: What is the growth target and timeframe?
Answer: Grow revenue by 10 percent within a year.
If asked: Does the gym have room for more members at peak hours?
Answer: Yes, peak use is about 70 percent of capacity.
If asked: What does it cost to win a new member?
Answer: About AED 600, in marketing and a first-month discount.
3. The hypothesis a strong candidate states
Listen for an early, testable guess like this one. It does not need to match word for word.
Gym costs are mostly fixed (rent, equipment, staff), so extra revenue turns mostly into profit. My hypothesis is that filling spare capacity with new members is the biggest lever, with an add-on product as a second, easier lever.
4. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- Which lever gets us to plus 10 percent, and at what profit?
- Today's revenue and the target
- Key: Core: new members (revenue minus cost to acquire)
- Adjacent: coaching app (revenue minus running cost)
Exhibit 1
The prompt uses this exhibit, so the candidate opens it right after you read the prompt ("Show exhibit 1" on their screen).
| Lever | People affected | Price (AED a month) | Cost to capture or run |
|---|---|---|---|
| New members (10 percent more) | 200 | 300 | AED 600 per new member, one time |
| Coaching app (20 percent of members buy) | 400 | 50 | 40 percent of app revenue |
So-what
Each new member pays six times the app's monthly price, and the 200 new members would bring three times the app's total monthly revenue, but each costs AED 600 to win; the app is small but cheap to add.
5. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Today's revenue
What a strong candidate does: 2,000 members paying AED 300 a month for 12 months.
Current revenue (AED a year): 2,000 × 300 × 12 = 7,200,000
Step 2: The target
What a strong candidate does: 10 percent of today's revenue.
Growth target (AED a year): 7,200,000 × 0.1 = 720,000
Step 3: New members: revenue
What a strong candidate does: 10 percent more members is 200 people at AED 300 a month. This assumes they join early in the year and stay.
New-member revenue (AED a year): 200 × 300 × 12 = 720,000
Step 4: New members: profit after acquisition
What a strong candidate does: Each new member costs about AED 600 to win. Other costs are mostly fixed.
New-member profit (AED a year): 720,000 - 200 × 600 = 600,000
Step 5: Coaching app: revenue
What a strong candidate does: 20 percent of 2,000 members buy the AED 50-a-month app.
App revenue (AED a year): 2,000 × 0.2 × 50 × 12 = 240,000
Step 6: Coaching app: profit
What a strong candidate does: The app costs 40 percent of its price to run.
App profit (AED a year): 240,000 × (1 - 0.4) = 144,000
Step 7: Both levers together
What a strong candidate does: Add both revenues and compare with today.
Total growth (%): (720,000 + 240,000) ÷ 7,200,000 × 100 = 13.33
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
Lead with new members, and add the coaching app as a second lever. First, new members add about AED 720,000 of revenue, which meets the 10 percent target on its own. Second, after the AED 600 it costs to win each one, they still add about AED 600,000 of profit, far more than the app. Third, the app adds AED 240,000 of revenue and AED 144,000 of profit, is quick to launch, and gives a buffer if new members come in slower than planned; together the two levers give about 13 percent growth.
Risks a strong answer names: New members who join late in the year bring less than a full year of revenue; If new members leave early, the acquisition cost is wasted; A 20 percent take-up for the app is an estimate and should be tested.
Next steps: Launch a member referral offer to lower the cost of winning members; Test the app with 200 members for one month.
Strong versus weak
A strong answer
Set the target in money, sized both levers in revenue and profit, and ranked them with a clear lead plus a backup.
A weak answer
Listed eight ideas (classes, a juice bar, social media) with no sizing, no costs, and no ranking.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
Total
0 out of 25
Score all five criteria to see the band and the feedback template.