How to Increase Gym Revenue and Profitability (100 Ways)
Learn how to increase gym revenue and profitability with the 6 must-know gym profit increase keys and a list of 100 ways to increase gym profit.
Many gym owners want to learn how to increase gym revenue, but what they really need to learn is how to increase gym profitability. Learning how to make your gym more profitable will typically give you more cash in the bank, more cash in your pocket, and more breathing room to invest in gym growth or take distributions from your gym business.
Sure, there are many ways to increase gym revenue, but sometimes revenue can be a vanity metric; what you really want is to maximize gym profitability, and ultimately gym cash collections. As the old accounting maxim goes: profit is an opinion; cash is a fact.
In the below gym guide loaded with ways to increase gym revenue and profitability, you will find expert guidance from our friends over at NPE Fitness. And of course, let us help you with the best gym management software to help you grow and manage your gym better (reach out to us for a free demo).
Choosing the right gym business model, finding your fitness niche, and getting better than the average gym profit margins based on the different types of gyms are all things that you can learn to do if you knuckle down and focus on understanding your gym KPIs, work hard on gym member retention strategies, and learn to run a successful gym that will help you, the gym owner, make more money in take home pay that the average gym owner income.
BONUS: Read to the end of the article for 100 ways to increase gym revenue and profitability. If this doesn’t get your creative juices bubbling, we don’t know what will!
See how the best gym payment processing software and the best marketing software for gyms is part of the best unified platform for managing your entire gym.
Offer profit maximizing gym booking online and in-person (with upsells and more).
Handle gym check-ins with ease.
Create and sell gym memberships, fitness products, and digital gym offers.
Manage, message, and market to your gym leads and followers to squeeze every dollar of profit potential from every lead and member.
All from your very own custom branded fitness apps that put your gym’s brand front and center.
See why Exercise.com is the best gym management software for increasing gym revenue and increasing gym profitability.
6 Must-Know Profit Keys to Drive Powerful Growth for Your Studio/Gym over the Next 12 Months
Does this sound familiar? Youāre busy ā¦but youāre struggling to pay the bills month after month ā and youāre not banking the kind of cash you expect.
Worse, youāre really not sure what is wrong.
Weāve worked with thousands of fitness studio/gym owners since 2006.
Increase Gym Profit Margins
One of the first places we look when studio/gym owners are struggling is the āmoney mathā that they use to run their business. If the gym profit margin is below 15%, youāll struggle in āsurvival modeā until you fix the margins.
If your gym profit margin is between 15% and 29%, youāll grow and experience some financial relief, but youāll still be at risk.
If you want a stable, sustainable, growing business, you need to do what high performing gyms do ā reach 30% or higher gym profit margins.
Gym | Profit Margin |
“Survival Mode” | <15% |
“Some Financial Relief” | 15-29% |
“High-Performing” | 30%+ |
Read More:
- Average Gym Profit Margins by Gym Type
- How profitable is owning a CrossFit gym?
- Are boutique fitness studios profitable?
How to Increase Gym Profit Margin
So, how do you do you increase gym profit margin?
You need to assess how well you are executing 6 āprofit keysā that make up the high-performing gymsā āmoney math.ā
Here’s what you need to focus on to grow gym profitability and get into the high-performing gym category.
#1 Revenue: What (and who) drives your gym revenue growth?
Strong revenue is the first step to a high-profit fitness business. What drives your revenue growth?
Youāll start with your best clients/members ā who are they, what do they buy, how much do they pay, and how can you better serve? Are they capable of driving the revenue growth you need, or is there another customer (or better customer) you should evaluate serving?
You should be bringing in 80% of your revenue from core services and another 20% from ancillary revenue.
#2 Cost of Revenue: How much do you spend fulfilling your services?
After revenue this is the second most important number in your business. If you get this wrong, itās impossible to achieve high gross profit and operating profit margins. Look at these two numbers:
- Coaching Labor Costs: You must INVEST in attracting and retaining great people on your teamā¦ā¦ but you canāt afford to overspend here. Review and optimize your compensation plans.
- Sales & Marketing Costs: Be careful about overspending in advertising costs, agency management fees, etc. High-profit fitness businesses have a solid foundation of organic marketing strategies working to generate new leads, prospects, and members/clients every single month.
Once you have those numbers, youāre ready for the next step.
#3 Gross Profit: Know (and watch) your gym gross profit
How much money do you have to spend to sell and fulfill your services? Thatās your gym Gross Profit Margin. The money math: Your revenue minus your cost of revenue equals your gross profit.
The most successful fitness businesses operate at a 80% Gross Profit Margin. Most fitness businesses struggle here because they are not generating enough revenue to cover their costs plus margin, or because their cost of revenue is too high.
Watch this number like a hawk! Struggling gyms will find themselves below 65% ā and wonder why they feel like they are fighting to survive.
#4 Expenses: Get strategic about your expenses to drive more growth
When you get GROSS PROFIT right, now comes the easy part. Just donāt spend all the money your business has brought in!
Of course youāve got to have the right gym lease terms and rent percentage, but you must also ensure the other investments youāre making are working hard for you to optimize client lifetime value.
What does that mean? Make your business so awesome that people never want to leave.
There is a lot that goes into making strategic business investments in your facility and optimizing cost structure. But growing and retaining revenue is job #1ā¦ or you wonāt have a successful business for the long term.
Read More:
#5 Operating Profit: Optimize gym operating profit
More money math: Your revenue minus the cost of revenue and expenses equals operating profit. Your operating profit should be 20% to 30%. If itās not, you need to re-engineer the money math so it is.
AND you must continuously improve the returns youāre getting on investments to grow (find and sign up new awesome clients/members) and retain (deliver value, ensure people want to stick around and keep buying from you) revenue.
#6 Net Profit: Protect your gym net profit
Next you need to deduct taxes. Hire a good accountant and tax advisor. Because at the end of the day, itās not what you makeā¦ but what you KEEP that will create wealth for you and your family.
Tax advisory (and optimization) is essential for every business owner. Maximize the way your money works for you to support your personal and professional goals.
Increasing Gym Revenue and Profit Year After Year
Once youāve assessed where you are, youāre ready to address your key issues. Get the money math right, execute, and youāre ready to grow throughout the next year.
Want to predictably grow your profitability to 30% while increasing revenues and building a strong team? Register for the Fitness Business Growth Machine to get 5 proven playbooks with short (15-20 min videos) that give you the exact strategies you need to create a highly profitable and predictable studio/gym business.
Read More: NPE Fitness Reviews
BONUS: 100 Ways to Increase Gym Revenue and Profitability
Now that you know the “money math” behind how to increase gym revenue and profitability, let’s talk concrete, tactical ways to move the needle in your gym today. Here is a big list of ideas to grow your gym’s profit margins and increase gym profits quickly. Use one, many, or none, but each of these ideas should give you something to think on, which you can then take and make your own.
- Offer group fitness classes with popular formats such as Zumba, Pilates, and HIIT
- Implement a personal training program to offer individualized workouts and support
- Create customized nutrition plans for members looking to improve their overall health
- Host fitness challenges to incentivize members to reach their goals
- Create a rewards program for members who refer new customers
- Sell branded gym merchandise such as t-shirts and water bottles
- Offer a loyalty program with exclusive benefits for long-term members
- Host fitness events such as charity runs and walks
- Sell gym memberships in bulk to companies for employee wellness programs
- Create an online gym store to sell supplements and other fitness-related products
- Offer a mobile app with exclusive workouts, nutrition plans, and community support
- Host social events such as happy hours and networking events for members
- Partner with local businesses to offer discounts to their employees
- Create an online community for members to connect and share their fitness journeys
- Create personalized workout plans for members based on their fitness goals and preferences
- Offer virtual training sessions for members who are unable to attend in-person
- Create a referral program for gym members to earn discounts on their membership
- Host workshops and seminars with experts in the fitness industry
- Offer a free trial for new members to encourage them to join
- Offer family memberships to attract families with children
- Create a loyalty program for members who attend a certain number of classes per month
- Offer discounts for students, seniors, and military personnel
- Host corporate wellness programs for local businesses
- Sell day passes to attract travelers and tourists
- Offer sports-specific training programs for athletes
- Partner with local sports teams to offer special discounts for their fans
- Host social media challenges to encourage members to share their fitness progress
- Offer a ābring a friendā promotion for members to invite their friends to the gym
- Create a blog with fitness tips, workouts, and nutrition advice
- Offer workshops on mindfulness and stress reduction techniques
- Create a wellness program for members who are recovering from injuries or illnesses
- Host open houses for potential members to try out the gym
- Offer discounts for members who pay for their membership upfront for the year
- Partner with local schools to offer after-school fitness programs for children
- Host fitness boot camps and outdoor workouts to attract members who enjoy outdoor activities
- Create a mobile training service to offer personalized workouts at the location of the memberās choice
- Offer a VIP program with exclusive benefits for high-paying members
- Create an online coaching program for members who are unable to attend in-person training sessions
- Offer a free fitness assessment to new members to help them create a personalized workout plan
- Host charity events with proceeds going to a local cause or charity
- Create a rewards program for members who reach specific fitness milestones
- Host a ābiggest loserā competition to encourage members to reach their weight loss goals
- Offer a discount for members who sign up with a friend or family member
- Host holiday-themed workouts and events
- Partner with local wellness companies to offer special deals for their products and services
- Offer a 24-hour gym access program for members who work non-traditional hours
- Create a mobile fitness app with workout tracking and progress monitoring features
- Host a fitness retreat to offer members a break from their daily routine
- Offer a free meal planning service for members looking to improve their nutrition
- Host nutrition workshops to educate members on healthy eating habits
- Create a virtual reality training program for members to try new workouts
- Create a fitness program for pregnant women and new mothers
- Host outdoor yoga and meditation classes
- Offer a premium membership with additional benefits such as free nutrition consultations or access to exclusive classes
- Create a partnership with a local gym equipment supplier to offer discounts on home gym equipment
- Host a fitness retreat or boot camp in a different country to attract adventure-seeking members
- Partner with local physical therapy clinics to offer discounted gym memberships for their patients
- Offer a ābring your petā day to attract animal-loving members
- Create a YouTube channel with workout videos and fitness tips to reach a wider audience
- Host a āhealthy cookingā workshop to teach members how to cook healthy meals
- Create a social media influencer program to promote the gym on various platforms
- Partner with local spas and wellness centers to offer discounts on their services to gym members
- Host a weightlifting competition to attract members interested in strength training
- Offer a meal prep service for members who are short on time
- Host a ācouples workoutā event to attract couples looking to improve their fitness together
- Create a mobile app with workout challenges and rewards for completing them
- Offer a ā30-day challengeā program to encourage members to commit to a fitness routine
- Host a sports tournament with different teams and games
- Create a āpay-as-you-goā program for members who prefer to use the gym on a more flexible basis
- Offer a ātrainer for a dayā program where members can shadow a personal trainer for a day
- Host a āmeet the trainersā event to allow members to get to know the gymās trainers
- Create a virtual reality program for members to try new and exciting workouts
- Offer a āwellness retreatā program for members looking to unwind and de-stress
- Host a ādance partyā workout event to attract members who enjoy dancing
- Create a āgym buddyā program for members to connect with other members for workout support
- Host a āstrength and conditioningā workshop to educate members on proper weightlifting techniques
- Offer a āpost-workout recoveryā program with massage and stretching services
- Host a ācycle marathonā event to attract members interested in cycling
- Offer a āmembership freezeā program for members who need to take a break from their workouts
- Create a āhome workoutā program with video workouts that can be done from home
- Host a ānutrition potluckā event for members to share healthy meal ideas
- Offer a āguaranteed resultsā program with a money-back guarantee if the member doesnāt see results
- Host a āfitness fashion showā event to showcase the latest gym fashion trends
- Create a āgym scavenger huntā game for members to explore the gym and learn about its facilities
- Host a ācharity auctionā event with items such as gym equipment, fitness apparel, and wellness products
- Offer a āfamily fitnessā program with workouts and activities for the whole family
- Create a āgym meditationā program to promote mindfulness and relaxation
- Host a āfitness open houseā event for the local community to try out the gym for free
- Offer a ācommunity outreachā program with fitness classes and workshops for underprivileged communities
- Create a āgym buddy matchingā program to connect members with similar fitness goals and preferences
- Host a āfitness book clubā event to discuss books related to fitness and wellness
- Offer a āfitness techā program with wearable technology and fitness tracking devices
- Create a āsenior fitnessā program
- Host a āsports conditioningā workshop to educate members on proper training techniques for their sport
- Offer a āgym-based therapyā program to help members overcome mental health issues through exercise
- Create a āgym mentorshipā program for new members to receive guidance and support from experienced members
- Host a āfitness talent showā event to showcase membersā unique talents related to fitness
- Offer a āgym volunteeringā program for members to give back to the community through fitness-related events
- Create a āgym-based educationā program with classes on topics such as nutrition, anatomy, and exercise science
- Host a āfitness awards ceremonyā event to recognize members who have achieved outstanding fitness milestones.
NPE recently hosted a 3-part workshop to teach you the 6 keys for growing a highly profitable and predictable studio/gym over the next 12 months. We recorded the whole thing and you can get access to those recordings here.
Visit NPE Fitness for more expert gym growth guidance and gym staff management advice and then let us help arm you with world-class gym software to help you grow and manage your gym better.
Get a demo and see how we can help today.
Read More: 100+ Gym Marketing Ideas
About the Author
Sean Greeley, NPE Founder and CEO, has an unrelenting passion for empowering fitness entrepreneurs to create the income and lifestyle they want.
NPE delivers the #1 suite of business growth systems, tools, and coaching for fitness entrepreneurs to grow to 6-, 7-, and 8-figures. Since 2006, NPE has helped over 53,000+ fitness businesses in 96+ countries grow to the next level. NPE has been featured 8x on the Inc 500/5000 list of fastest growing companies, and has a global team based in the USA, Canada, UK, and Australia.
Website: NPE Fitness
How can I make my gym more profitable?
Making your gym more profitable involves a combination of increasing revenue and reducing costs. You can increase revenue by attracting new members, retaining existing ones, and offering additional services or products for purchase. Reducing costs can involve streamlining operations, maintaining equipment to prevent costly repairs or replacements, and managing utilities and other expenses effectively. Utilizing the best gym management software, Exercise.com, can also greatly aid in improving profitability by increasing efficiency and enhancing the member experience.
What are some ways to add multiple gym revenue streams that can increase gym profitability?
Additional gym revenue streams that could increase gym profitability include personal training sessions, specialized classes, nutrition counseling, massage services, or selling fitness-related products. Offering childcare services can also be a significant draw for parents. Remember, the key is to offer services that align with your members’ needs and interests.
Read More: How to Add Multiple Gym Revenue Streams
How can gym management software improve gym profitability?
Gym management software, like Exercise.com, can enhance gym profitability in several ways. It can streamline operations, reducing administrative time and costs, and provide valuable insights through reporting features that can inform decision-making. Features like online booking and a branded mobile app can also enhance the member experience, contributing to member retention and attracting new members.
Read More:
How can I increase member retention in my gym?
Increasing member retention involves consistently meeting or exceeding your members’ expectations. This could include maintaining a clean and well-equipped facility, offering a variety of classes, providing excellent customer service, and fostering a positive community atmosphere. Regularly gathering and acting on member feedback can also help you understand and address any issues or areas for improvement.
Read More: How to Increase Gym Member Retention
How can I attract more members to my gym?
Attracting more members to your gym can be achieved through effective marketing and by offering a high-quality, value-for-money service. This might include targeted advertising, community outreach, offering trial memberships or discounts, and maintaining a strong online presence. Ensuring your gym meets the needs and preferences of your target market is also crucial.
How can offering a branded mobile app increase gym profitability?
A custom-branded gym mobile app can increase gym profitability by enhancing the member experience and boosting your brand visibility. Features like workout tracking, online booking, and social interaction can increase member engagement and satisfaction. It can also serve as a marketing tool, showcasing your gym’s offerings and promoting special deals or events.
Read More: Best Gym Mobile Apps Software
Can improving energy efficiency in my gym improve profitability?
Absolutely. Reducing energy usage in your gym can lead to significant cost savings, improving your bottom line. This might involve investing in energy-efficient equipment and lighting, implementing energy-saving practices, or even considering renewable energy options. In addition to the cost benefits, taking steps towards being a more environmentally friendly business can also be attractive to many customers.
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What are some easy gym profitability improvement ideas that don’t cost a lot of money to implement?
Implementing referral programs, optimizing class schedules to peak times, and offering short-term boot camps or challenges can boost gym profitability without significant costs. Utilizing social media for marketing and community building can also enhance member engagement and retention.
How can I learn how to make a gym profitable when it has a history of being unprofitable?
Analyzing past performance to identify areas of inefficiency, seeking feedback from members, and researching successful gym models can provide insights. Consider consulting with a fitness business expert like NPE or utilizing resources from comprehensive management platforms like Exercise.com.
What are some ways to improve gym sales and profitability this year that I can use to train my gym staff?
Training staff in customer service excellence, sales techniques, and member retention strategies can significantly improve gym sales and profitability. Emphasizing the personal touch and building relationships with members can lead to higher satisfaction and referrals.
What is the average profit margin for a gym?
The average profit margin for gyms typically ranges from 10% to 30%, depending on factors like location, gym type, and management efficiency. Boutique and specialized gyms often enjoy higher margins due to premium pricing.
Read More: Average Gym Profit Margins
How can I increase my gym revenue?
Increasing gym revenue can be achieved by diversifying services such as personal training, group classes, online coaching, and retail sales. Upselling memberships and implementing dynamic pricing for peak times can also contribute to higher revenue.
How can I increase sales in my gym?
Increasing sales in your gym involves enhancing the member experience, offering referral incentives, optimizing your marketing strategy, and regularly introducing new and exciting fitness programs or challenges to keep members engaged and attract new ones.
How can I make more money at the gym?
Making more money at the gym can involve offering additional services like nutrition counseling, massage therapy, or specialized classes, renting out space for events, and expanding retail offerings to include fitness apparel and equipment.
How do gyms make profit?
Gyms make a profit through membership fees, personal training, group fitness classes, ancillary services such as spa or cafƩ facilities, and merchandise sales. Effective cost management and high member retention rates are crucial for profitability.
Read More: How do gyms make money?
What type of gym is more profitable?
Boutique gyms and specialized fitness studios tend to be more profitable due to their ability to charge premium prices for specialized services, fostering a strong community and offering a personalized fitness experience.
Read More:
- Average Gym Profit Margins by Type of Gyms
- Are boutique fitness studios profitable?
- Are CrossFit boxes profitable?
Do gyms make a lot of profit?
Gyms can make a significant profit, especially those that successfully manage operational costs, offer in-demand services, and maintain high member retention rates. Profitability varies widely based on gym size, location, and business model.
What are some unique gym services that are profitable?
Unique and profitable gym services include niche fitness classes (e.g., aerial yoga, aquatic fitness), advanced personal training programs, wellness services like nutrition coaching and physiotherapy, and tech-driven offerings like virtual reality workouts.
Read More: Best Gym Features and Amenities
What are the most profitable gym add-on services?
Profitable gym add-on services include personal training, specialized classes (e.g., spin, Pilates reformer), on-site child care, health and wellness seminars, nutrition coaching, and spa services such as massage or sauna.
How do I grow my gym business?
Growing your gym business involves expanding your service offerings, improving member retention through enhanced engagement, leveraging digital marketing strategies, and potentially opening additional locations or franchising.
What are some easy gym improvement ideas that can be a gym revenue enhancement?
Simple improvements like updating equipment, refreshing the interior design, offering free Wi-Fi, and providing complimentary workout plans can enhance the member experience and contribute to revenue growth.
Read More: Gym Improvement Ideas
What makes a successful gym business?
A successful gym business is characterized by a strong member community, a diverse range of high-quality fitness services, effective marketing and retention strategies, and efficient operational management, often supported by comprehensive software solutions like Exercise.com.
Read More: How to Have a Successful Gym Business
What is the highest gym revenue?
The highest gym revenues are often achieved by large, well-established gym chains or highly successful boutique studios in prime locations, with annual revenues reaching millions of dollars.
Read More: Most Successful Gyms in America
How do I learn how to increase gym revenue and profit online even if I’m not an online marketing expert?
Leveraging online platforms like Exercise.com that offer marketing tools, e-commerce solutions, and business resources can help increase gym revenue and profit. Online courses, webinars, and fitness business coaching services can also provide valuable insights and strategies.
How profitable can a gym be?
A gym’s profitability can vary greatly, but successful gyms can achieve profit margins of 20% to 30% or more, especially boutique studios offering specialized services at premium prices.
What are the most common themes in diagnosing how to improve gym businesses?
Common themes include analyzing membership retention rates, assessing the competitiveness of services and pricing, optimizing operational efficiency, and enhancing the overall member experience.
How much profit can a gym make in a single location vs multiple locations?
Profit potential increases with multiple locations due to economies of scale, but it also depends on efficient management and the ability to maintain high service standards across all sites. A single, well-managed location can also be highly profitable.
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How many members does a gym need to be successful?
The number of members needed for a gym to be successful varies based on the gym’s size, business model, and overhead costs, but a healthy member base typically ranges from a few hundred to several thousand members.
Read More: How many members does a gym need to be successful?
What is the toughest thing about being a gym owner?
The toughest aspects include managing operational costs, differentiating the gym in a competitive market, maintaining high member retention rates, and adapting to industry trends and member expectations.
Read More: Gym Ownership Pros and Cons
How do you attract customers to the gym?
Attracting customers involves effective marketing strategies, offering unique and in-demand fitness services, fostering a welcoming and supportive community, and leveraging member testimonials and referral programs.
How much money can you make owning a gym?
Owning a gym can be lucrative, with owners of successful gyms potentially earning from $70,000 to several hundred thousand dollars annually, depending on the gym’s size, location, and profitability.
Read More: How much money can you make owning a gym?
How can Exercise.com help me run a profitable gym?
Exercise.com can help run a profitable gym by providing an all-in-one software solution that includes member management, workout programming, scheduling, e-commerce, and custom-branded apps, streamlining operations and enhancing the member experience to support business growth and profitability.