Running a gym is tough, but the reward of helping people achieve their fitness goals can often make it worthwhile.
However, as anyone who has done this for any length of time knows, running a gym isn't always about working out with clients and helping them reach their goals. Sometimes you need to do some research or think outside of the box for ideas on increasing your gym revenue streams.
Are you looking for ways to increase your gym's revenue streams? If so, you're in luck! These tactics include offering new services, increasing your membership fees, selling products and supplements, holding events, and marketing your gym business.
By implementing these strategies, you can watch your bottom line grow!
In this blog post, we will discuss five different ways to bring in more money for your gym.
What Are The Revenue Streams For A Gym?
As a gym owner, you may have several revenue streams coming in from your business. Here are some of the common types:
Monthly Membership Payments
A monthly membership is usually where most of your revenue comes from as people continue to pay month after month for their membership agreement.
It's also essential to offer monthly memberships as it allows you to create a regular cash flow to cover other costs. You can also implement a contract for your memberships to make it more enticing.
Day Passes and Trial Offers
Day passes and trial offers are ways for you to generate income from those who are just visiting or want to try out the gym's facilities before committing themselves long-term.
This is where personal training fees are used to generate additional revenue.
It may also be that you have a list of members who can pay their own way with personal training sessions, which becomes another revenue source.
This is done in partnership with your personal trainers to provide group sessions. As opposed to one-on-one personal training, it may be that the gym provides certain equipment and support (the trainer will make sure they are safe), but everyone decides on what they want to do during the group session, and the personal trainer will work with them.
This is where your members and clients can buy supplements like protein powder that you get a commission on every time something is sold in your supplement store.
It's not always part of a revenue stream but an income-generating side project to sell supplements for people training hard.
This is where you have an opportunity to become part of a group or franchise that specializes in a particular sport, activity, or facility.
This arrangement could potentially provide numerous access points for your members and an additional revenue stream for you to tap into.
This is where you can sell other products like clothes, shoes, and sports equipment.
The revenue here may vary as people buy certain products for different reasons (e.g., gym members will buy sporting goods to continue training after hours or on the weekends).
Regardless of why they buy, it's another revenue stream to tap into if you have a retail store.
This is where you sell your web advertising space to companies who want to promote their business. You’ll increase revenue by getting more clients for them.
This could be done in pay per click or pay per thousand impressions. You can also get sponsorship for this or trade your advertising with other businesses in exchange for another form of marketing.
The list is not limited to these options, and you may think of other ways to add more revenue streams. It's important to look at the available types of income streams and use them as a way to increase income from your business.
How Offering New Services Can Increase Your Gym's Revenue Streams
When growing your business, always be on the lookout for new ways to increase revenue without increasing overhead.
If you want to grow your gym's membership and improve member retention, consider offering services that did not exist before.
Whether it's a massage service, yoga, or group fitness classes, find out what would work for your market and give it a try.
Here Are Some Ideas to Increase Your Gym's Revenue Streams
1. Yoga, Pilates, and Group Fitness Classes
Having yoga or group fitness classes is trendy in the industry.
Offering these classes will not only help you improve member retention but attract new members as well.
2. Tanning Sales
Many gyms already offer tanning beds, which are popular with many members. If you're considering adding tanning to your facility's services, make sure you hire properly trained staff and follow the local laws governing the use of these facilities.
3. Massage Therapy
Offering spa services broadens your revenue stream allowing for an increased demand throughout the year. A massage is a great way for your clients to relax, improve circulation, and reduce stress.
4. Weight Loss Programs
Many gym members want to lose weight. These members can benefit from a program designed specifically for them by your staff.
Weight loss programs will attract new members and give the current member base another reason to stay with your club.
5. Nutrition Consultations
Nutrition is essential for overall health, conditioning, and weight loss. Many people do not know where to begin with their nutrition goals, resulting in frustration and lack of results.
Offer members nutrition consultations to help them accomplish their goals for overall wellness.
6. Kids' Gyms
Offering an area for kids is another way to increase revenue without increasing overhead.
Offering kids a convenient area to play will give you another reason for families to join your gym.
7. Spa Services
Offering spa services in your athletic club is another great source of revenue that will attract new members and increase member retention.
A sauna, whirlpool, or steam room are easy additions to your facility that benefit current members.
8. Mobile App
Your members would love to access their workouts and personal training sessions on their mobile devices.
This is yet another way to market your club because your mobile app will allow you to contact your member base directly without paying expensive marketing companies.
By adding new services, you will target other markets and give people the opportunity to see all that your gym has to offer.
9. 3D Body Scanning Services
Offering 3D body scanning services is a great way to increase your gym's revenue. This type of service allows members to see their bodies in three dimensions, which can help them to track their progress and set new fitness goals. In addition, 3D body scanning can be used to create custom workout plans and nutrition programs.
What Type of Gym Is the Most Profitable?
The most profitable type of gym is the one that has a diverse membership base and knows how to generate revenue from all of its members.
You can then factor in new members and retention rates. Studies show that the average member stays at a gym for two years.
A study conducted by IDEA Health & Fitness Association showed the top three gyms in the U.S. generated combined revenue of 4 billion dollars in 2011.
The gym with the highest annual membership fee was The Spa at Montage Deer Valley, which charges $9,900 to join and an additional $6,300 yearly along with a mandatory meal plan that costs another $2,500 per year for a total cost of $18,800 per year.
The 100 Club
The 100 club is another private luxury gym in SoHo that charges $2,000 to join and an additional $1,500 yearly, along with a mandatory meal plan that costs another $750 for a total cost of $3,250 per year.
The third highest membership fee belonged to The Club at Arrowood, which has a $14,500 initiation fee and an additional $3,400 yearly along with a mandatory meal plan that costs another $1,000 for a total cost of $18,900 per year.
According to industry sources, the average membership fee in the entire country is about $55 monthly.
For gyms that are not on the high-end of the spectrum, it is good practice to have a diverse revenue stream from fees and monthly memberships.
A survey conducted by IDEA found that more than half of Americans who exercise at a gym said they did not cancel their membership over the past year because they were unwilling to pay cancellation fees or did not find another gym.
If you offer a free trial to potential members, at the very least, your goal should be for them to purchase a monthly membership.
If they like the facility and decide that it is the type of place they want to spend time regularly, then it's safe to assume that they will pay for their first month.
This practice will usually gain you a new customer for at least one month to two months.
How Can the Fitness Industry Be Improved?
There has been a lot of discussion on how to attract new clients,
The fitness industry can offer a significant amount more to businesses beyond just being a gym or health club.
Gyms can become profitable fitness businesses by offering additional products and services in addition to attracting members.
These revenue streams are in addition to the traditional membership fees collected. However, once you have a membership base, you can leverage them to increase gym revenue as well as open your business to more clients.
The fitness industry is considered tough competition. But the truth is that there are many ways to make money from this industry.
A profitable fitness center should be built on more than just the number of members.
Offering additional products and services can be an integral part of your overall marketing strategy, as well as a good revenue stream.