By shifting your focus to maximizing every available revenue stream, you can uncover ways to improve your earnings overnight. And even if your fitness studio is doing well, who wouldn’t want to generate a little more income?
In this article, you’ll learn about the 9 most influential and efficient hacks to apply to your fitness studio and increase your revenue by at least 10% or more.
- improve or increase your member retention
- retail items
- reduce payment declines
- raise prices
- re-think free trials
- provide personal training
- massage therapy stations
- child-care
- offer premium memberships
Improve or increase member retention
Although this is one of the most basic hacks to increase revenue, it is the most efficient as well. Retaining your existing customers is much more cost-effective than trying to attract new ones so it pays to keep them engaged. Not to mention, loyalty is a sign that you’re running a successful business that’s truly delivering value to its customers. So, how does a fitness studio owner increase or improve member retention?
Using an app and online community could help you retain members
Using an online community and app is the perfect way to do this. You can help track your clients progress using nutrition and provide fitness assistance, which will keep them motivated and engaged with your gym or studio. It also means that your clients can communicate with you and one another to share feedback and progress.
Staying on top of studio maintenance and having flawless customer service is another way to show your members that you are prioritising them first. Running workshops in your fitness studio every week gives clients additional value and is a sure way to keep them loyal. Retaining more members directly leads to an increase in revenue.
Retail items
Fitness studio members are more likely to reach the gym and then suddenly remember they have forgotten an essential item at home. This happens more often than you think. So, stocking essentials in your retail store helps members get whatever they need and also aids in generating more revenue for your fitness studio.
Some ideas of items to stock include:
- earphones / headphones
- post-workout shakes
- water bottles
- socks
- heart rate trackers
Reduce payment declines
According to publications released by major credit card issuers, 15% of recurring credit card payments decline. For some industries, the decline rate can reach as high as 30%. Imagine this, if you have 100 members paying $50/month, you’d expect to receive $5,000 in monthly recurring revenue. However, credit card declines will cost you $750 to $1,500 per month. That’s $9,000 to $18,000 in lost revenue each year.
To prevent problems and issues like these, automated payment reminders and automatic retries after failed attempts are the way to go. Credit card declines can prevent loyal members from paying what they know you deserve. Choose a software solution that offers payment reminders and automatic retries after failed payments, for example, Virtuagym’s payment software simplifies your entire billing processes, reducing hassle and saving valuable time. Thus, generating more revenue.
Raise prices
Are you sure your fitness studio is generating what it deserves? Most fitness studio owners panic at the idea of increasing prices out of fear of a mass exodus of even their most loyal members. However, that’s not the case: a carefully calculated price increase will improve your gym’s financial health and profitability with little impact on member retention.
Following the price increase, you’ll earn an extra $2,850 per year
For example, your gym has 100 members each paying $50/month. You plan to implement a modest 5% price increase of $2.50/month per member. Given the new price of $52.50/month, you expect to keep at least 95 of your existing members. Following the price increase, you’ll earn an extra $2,850 per year. Your simple price hack has increased your revenue all on its own, avoiding any marketing tricks.
Re-think free trials
In order to generate and increase revenue, you must remove anything that doesn’t bring any value. Such as free trials. Instead, refer to them as ‘one-week memberships worth $60’ as this will reframe how potential customers view them subconsciously and attract more members. This will not only increase the overall revenue but act as an incentive for people to join and will help them form a routine that includes your facility.
Provide personal training
Providing personal trainers to members in the fitness studio is a simple yet effective hack for increasing revenue. Many members of the gym need help to improve their technique and form, especially beginners. Having a hands-on personal trainer will not only allow certain members of your fitness studio to reach their fitness goals but will also generate an extra source of income and revenue for you as well.
Massage therapy stations
Bodywork goes hand-in-hand with fitness and wellness and would be a great service offering as well as an extra source of revenue for your fitness studio. After a good strenuous workout, members find themselves feeling sore and sometimes even cramped. Having a massage therapy station situated inside the fitness studio may attract members to have a relaxing massage session before they head on home.
Child-care at your fitness studio
Although this hack may seem a bit costly and tricky, it will work extremely well in increasing revenue if you observe the type of members you have at your fitness studio such as mothers. You can charge by the week, month or day. If you don’t have space now, keep your eyes open for a way to expand or rent adjoining space in your building.
Introducing a child-care scheme will encourage members to spend more time and money in your gym or studio
This will also prove to be very convenient for members who have children as they can drop their children off in the in-house daycare and have their workout in the same building as well.
Offer premium memberships
If you don’t already offer premium or top-tier memberships, it’s time to start. Rather than forcing your members into a one-size-fits-all model, structure pricing options around their needs and preferences. It’s important to categorise the types of members you have at your gym and to target which members would be more likely to sign up for elite or premium deals etc. For the clients that do sign up for exclusive memberships who are likely to be pro athletes and fitness freaks, this automatically becomes an extra source of revenue for your fitness studio.
Premium memberships can provide an extra source of revenue for your fitness studio
In this ideal scenario, your business captures the maximum amount of revenue from every member.
When it comes to deciding on a membership price, knowing your startup and operational costs is crucial. Discover the secrets to successfully managing your gym in our ultimate guide on how to open a gym.
And if you’re still a bit unsure, find out what other people have been doing to improve their own revenue streams. Learn how Sweat Equity uses these hacks to generate more income.
