I often see studio owners commit the mistake of focusing their attention on attracting new members to increase revenue and annual profit. The secret and the easiest way to bring in more profit is to increase the average spend per member each week.
This strategy works because your existing members already know, like, and trust you. Thus, they will be willing to pay extra money for convenience or additional services that you make available to them. Alternatively, you can spend your hard-earned money advertising for new members on expensive marketing platforms like Facebook and Google, all of which are hyper-competitive.
Here are my top 10 ways to increase revenue at your gym with your existing members.
Many group fitness studios offer standard two-sessions-a-week access and a premium unlimited group session at a higher price point. This provides their clients with more value PLUS a better opportunity to achieve their goals. This easily increases the amount they spend each week. 24-hour gyms also apply the same strategy, they offer members basic access and premium access which would include premium classes or services like infrared saunas, massages, and online workouts.
Based on my data from Mindbody Online, fitness studios with members on recurring billing will collect 12 to 15 per cent more money, on average, over a 52-week period than studios allowing some members to purchase prepaid memberships or session packs.
An easy way to increase your gym profit each year without needing more gym members, is by showing both a shorter and longer duration membership option during the price presentation, and then put consideration into the way you present your prices during a gym tour and train staff on developing rapport, effective listening, and providing genuine value for the longer membership option. The two options converting the best right now are:
If you’re unsure where to start, check out accounts of other fitness businesses. Search using hashtags or start by looking into videos made by big names in the fitness industry. Once you know what you’d like to post, just tap on the “+” button to create your first video.
Pareto’s 80/20 rule states that for many outcomes, 80 per cent of the results come from 20 per cent of the effort. In fitness sales and marketing this means that 80 per cent of your leads will come from 20 per cent of your marketing efforts; and more importantly, that 20 per cent of members purchasing premium services, paying 4 to 16 times more money each week will account for a disproportionate volume of your total income… but only if we put a ‘high-ticket’ service or product on the menu.
As nutrition accounts for a whopping 80 per cent of our gym members’ fat loss and hypertrophy goals, dietary analysis, food plans and takeaway meals can easily be added to any exercise program. You can sell this as a one-on-one appointment, access to an online library of recipes or with a fridge of healthy meals at reception.
It’s been over 20 years since Bill Phillips introduced the 12-week challenge format in his book ‘Body For Life’ and 4, 6 and 8-week challenges continue to be successful today. The general public knows the value in returning to healthy eating and exercise habits a couple of times per year for motivation and to kickstart results. A fitness studio can easily sell a 6-week challenge for $50 to $199 per challenge to increase their revenue.
Sporting teams in the NBA and NFL have made loads of money selling apparel that displays the famous team that they support. The entire fitness industry jumped on the bandwagon in the last 10 years by selling billions of dollars of hats, yoga tights, singlets, reusable water bottles, yoga mats, and cycle shoes. What used to be available only from a local sporting store or online, are products that are now conveniently available in gym reception areas; and they can increase sales with little or no additional market spend.
The wellness industry is now estimated to be worth over $4 trillion globally each year. People are now more educated on the benefits of protein powder and magnesium for recovery as well as the use of fish oil for joint health and collagen for anti-ageing. So, you will be missing out if you don’t capitalise on this.
Most fitness studios will receive a hefty amount of member suspensions over the holiday period each year. One easy way to increase annual revenue is to make it attractive for members to continue their membership by being proactive. Provide your members with kid friendly programs such as themed Christmas workouts, social events, and varied timetables so they will continue to pay during this period.