10 Ways To Increase Gym Revenue Without Selling More Memberships

Most gym owners drive business growth in two ways: by finding new members and by keeping the members they already have. While marketing and retention are great for growing your community, they represent only a fraction of the ways to increase gym revenue. By shifting your focus to maximizing every available revenue stream, you can uncover ways to improve your earnings overnight.

Consider how your pricing, service offerings, and operations impact your bottom line. Imagine being able to capture every payment reliably; selling memberships at a fair price that reflects the value of your services; and members who are engaged and enthusiastic about your brand.

In this ideal scenario, your business captures the maximum amount of revenue from every member. You can relax while your gym rakes in profits from multiple revenue streams. No more struggling to attract more and more new members each month with expensive and complicated marketing campaigns.

Realize the full potential of your business by using these 10 methods to increase gym revenue:

 

1. 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%.

To put this in perspective, 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.

Credit card declines can prevent loyal members from paying what they know you deserve. These payments weren’t lost to poor customer service, low-quality classes, or high prices. These losses are completely out of your control—that is, until you put a process in place to avoid payment declines.

Use a combination of technology and customer service processes to recover declined payments and add back revenue to your bottom line. Choose a software solution that offers payment reminders and automatic retries after failed payments. While you can hire staff to collect declined payments from your members, third-party companies offer the most cost-effective service solutions. Well-trained managed billing professionals can increase recurring revenue by up to 25% for a minimal fee.

 

2. Raise your prices

Are you charging what your services are worth? Many gym owners panic at the thought of raising prices because they immediately envision a mass exodus of even their most loyal members. In reality, a carefully calculated price increase will improve your gym’s financial health and profitability with little impact on member retention.

Consider the following scenario: 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 95 of your existing members. Following the price increase, you’ll earn an extra $2,850 per year.

No clever marketing tricks or slick sales pitch required. Your simple price change has increased your revenue all on its own.

To keep member attrition to a minimum, communicate your new pricing appropriately. Give members plenty of notice. Explain why the change is necessary to continue the high-quality services that they value from you.

 

3. Use paid trials

Most gyms offers free trial memberships or guest passes to prospective members. These freebies pay off when they result in new members, but sometimes you end up spending money to support non-paying guests who never return.

Paid trials help to secure a return on your investment. Payees are more serious about keeping initial appointments. They’re more invested in learning about your gym, understanding your value, and building relationships with your staff.

Consider using a combination of free and paid trials in a way that makes sense for your business. For instance, you might offer a free trial of your basic gym access, but a paid trial for your premium classes or training sessions.

 

4. Offer premium memberships

Do you offer tiered membership options and pricing? If not, 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.

If you’ve tracked purchases and attendance in your membership management software, you can use reports to investigate spending patterns and identify popular services. For example, your members may fall into three categories:

Once you’ve categorized your members and set your pricing model, you can send targeted promotions to each group to entice them to upgrade their membership package.

 

5. Sell retail items

Do you know how often members get to the gym only to realize they’ve forgotten something that will prevent them from working out? Stock essentials like earbuds, water bottles, and socks in your retail store to make sure members can get what they need.

If you’ve built a loyal following, invest in branded merchandise. Use an online service to print your logo on t-shirts, hats, yoga mats, bags, and more. A beautiful, eye-catching design goes a long way, so if you’re not confident in your logo or layout, try an online graphic design service.

 

6. Book private training sessions and lessons

Almost all fitness businesses offer one-on-one sessions, and most of them wish they could book more of these money-making services. The trick to maximizing this revenue stream is a combination of staff training and communication with existing members.

Market your private sessions to members using low-cost, easy-to-use communication channels. Put signs throughout your facility, post on social media, and send emails with special offers. Your goal is for every member to know that you offer private sessions.

From there, leverage your staff’s relationships with members to close the deal. Teach instructors to observe members’ behaviors and to discuss goals with them. An instructor may notice a member who puts forth great effort and attends regularly, but her technique holds her back. With a bit of coaching the member could excel. In seizing this opportunity, you’ll help a member meet her fitness goals more quickly and open a new revenue stream for your business.

 

7. Childcare

If lots of parents visit your gym, you may want to consider adding childcare services at your facility. A busy mom or dad who doesn’t want to give up gym time will gladly pay extra to know their child is happy, safe, and nearby during a workout.

Before introducing childcare services, be sure to review the legal requirements for your staff, facility, and business. While these services can bring in a significant amount of additional revenue, you’ll need to plan carefully to make sure you’re able to provide high-quality care.

 

8. Host events and workshops

Members love workshops, boot camps, and fitness challenges because they help them stay motivated and reach goals more quickly. These paid events provide a lump sum that has an immediate positive impact on cash flow.

To make the most of this revenue stream, think strategically about the needs of your business and members. Review the calendar for times when an event could provide extra cash during a seasonal downturn. Add events to help members meet a common goal, like staying fit through the holiday season.

Need some fresh ideas? Browse this event list to get started.

 

9. Nutrition and health coaching

According to IHRSA’s senior research manager Melissa Rodrigues, 25% of fitness club revenue comes from ancillary services. Your members aren’t just looking for a place to work out. They’re looking for all kinds of services to help them stay healthy, fit, and confident.

Most members would be happy to pay extra for services to help them eat better, make healthy choices, and track their fitness progress. These services will make your bottom line happy as well. By adding health coaching or consulting, you can increase the amount of revenue generated by each member.

 

10. Sell advertising

Looking for an out-of-the-box way to increase gym revenue? Try selling advertising space in your facility or email newsletters to local businesses. If you’ve done a good job building your membership base, you’ll have a fitness-conscious audience that’s attractive to an array of advertisers. Create a list of local grocery stores, specialty shops, salons, spas, venues, and restaurants who might be interested in your new advertising opportunity.

 

Go beyond marketing and retention to increase gym revenue through alternative revenue streams, new services, and operational efficiencies. In doing so, you’ll allow members to strengthen their relationships with you, giving your gym its greatest potential for growth.

8 Fun & Easy Holiday Event Ideas

Here in Philadelphia, the fall weather is finally settling in with cooler temperatures, changing leaves, and Eagles football. What may not come to mind immediately is that it also is the perfect season to plan your holiday events in advance.

Depending on the complexity of your event, it may take weeks to several months to coordinate with sponsors, create marketing collateral, and to secure permission from venues outside of your martial arts school or fitness facility.

Holiday and winter events are great for bringing your local community together and as an easy go-to for padding your bottom line. We’ve created a list of both classic and novel ideas to help you start thinking about what you can plan in the coming months. Have fun with it!

1) Make Your Own Ugly Sweater Fundraiser, Party, & Contest

ugly sweater
Have contestants enter a make-your-own ugly sweater contest for a charitable cause in your community. Set ticket prices to raise money for your non-profit or charity. Make sure that you put aside funds for a fun prize. Have snacks and drinks available and space for people to socialize.

2) Winter Chili Cook-off & Festival

chili bowl

Cold temperatures bring out cravings for comfort food. While National Chili Day is on February 23, give chili another day of recognition for being one of the most popular winter dishes.

Decide how many cookoff entries you’ll allow for the day. Have attendees pay an entrance fee and encourage them to vote on their favorite chilis. Include hot beverages like cocoa, cider, coffee, and tea for purchase. Tally your votes and declare your winner with a prize. A chili cook-off is an event your community will enjoy year after year.

3) Dress Your Dog Up Like a Reindeer Contest & Party

dog in reindeer costume

The marketability of dogs is undeniable. If you need a reminder, check the internet. Pet lovers and owners get the chance to unite in this pet-friendly event. Create a fundraiser to support your local animal welfare organizations and shelters with a holiday celebration that includes pets. Attendees can either dress up their dogs for fun or enter the contest with volunteer judges to select the winner.

4) Gingerbread House Contest & Craft Fair

gingerbread house

A holiday crafts festival is great for a whole family activity—plus, gingerbread houses are a classic tradition. Depending on your available space, it’s an event that you can plan to have in-house or at a local community center.

Ask local artists to participate as judges and vendors. Charge an entry fee per person or per family to cover the cost of supplies. Better yet, partner with a community sponsor—like an art store or local grocer—for the items that you need.

5) New Year’s Eve or Day Party

new year party

Celebrate the New Year with a themed party for families or adults only. Using a theme with decorations—or a featured activity—will help your event stand out among other community events happening at the same time. If you’re aiming to cater to the 21+ crowd, collaborate with a bar that has event space and sell tickets for a New Year’s Eve party.

Make sure you have projection screens that will show the New Year’s countdown live from NYC or show one of your own. If you want something more family-friendly, plan your event for the morning or afternoon of January 1st with games, snacks, drinks, and music.

6) Valentine’s Day Prom for Adults

prom night

If you have an adult martial arts class or have group fitness classes, a Valentine’s Day-themed prom night for adults is the perfect cheesy throwback. It can also result in a great turnout for any charitable cause. Pick a dress code (themed or standard formal dress), a DJ, and a venue space with drinks.

7) Breakfast with Santa

santa pankcakes

Get kids excited for Christmas with a Santa breakfast, and use Member Solution’s online registration to have parents reserve seats for their families. Serve holiday-inspired pancakes, fruit, veggies, bacon, eggs, and other breakfast favorites.

8) Holiday Fun Runs

A staple classic! Have runners dress like Santa, reindeer, Christmas trees, and other silly costumes. It’s a great family-friendly event for all ages.