How to Increase Gym Revenue and Profitability (100 Ways)

Posted by Tyler Spraul, Certified Strength and Conditioning Specialist® (CSCS®), B.S. in Pre-Medicine on February 24, 2023 — Updated on November 21, 2023

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).

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!

Exercise.com has become an essential piece to our brand and business model. The ease of use and consumer reports have allowed us to maintain great client relationships and rebuild others.

Logan Zagrodnik

General Manager, Athlete Performance

6 Must-Know Profit Keys to Drive Powerful Growth for Your Studio/Gym over the Next 12 Months

Does this sound familiar? You’re busy …but you’re struggling to pay the bills month after month – and you’re not banking the kind of cash you expect.

Worse, you’re really not sure what is wrong.

We’ve worked with thousands of fitness studio/gym owners since 2006.

What is a good gym profit margin?

One of the first places we look when studio/gym owners are struggling is the “money math” that they use to run their business. If the gym profit margin is below 15%, you’ll struggle in “survival mode” until you fix the margins.

If your gym profit margin is between 15% and 29%, you’ll grow and experience some financial relief, but you’ll still be at risk.

If you want a stable, sustainable, growing business, you need to do what high performing gyms do – reach 30% or higher gym profit margins.

Gym	Profit Margin
“Survival Mode”	<15%
“Some Financial Relief”	15-29%
“High-Performing”	30%+

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 “profit keys” that make up the high-performing gyms’ “money math.”

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?

You’ll start with your best clients/members – 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, it’s 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 team…… but you can’t 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, you’re 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? That’s 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% – 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 don’t spend all the money your business has brought in!

Of course you’ve got to have the right gym lease terms and rent percentage, but you must also ensure the other investments you’re 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 #1… or you won’t have a successful business for the long term.

#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 it’s not, you need to re-engineer the money math so it is.

AND you must continuously improve the returns you’re 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, it’s not what you make… 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 you’ve assessed where you are, you’re ready to address your key issues. Get the money math right, execute, and you’re 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.

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 “bring a friend” 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 member’s 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 “biggest loser” 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 “bring your pet” day to attract animal-loving members
Create a YouTube channel with workout videos and fitness tips to reach a wider audience
Host a “healthy cooking” 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 “couples workout” event to attract couples looking to improve their fitness together
Create a mobile app with workout challenges and rewards for completing them
Offer a “30-day challenge” program to encourage members to commit to a fitness routine
Host a sports tournament with different teams and games
Create a “pay-as-you-go” program for members who prefer to use the gym on a more flexible basis
Offer a “trainer for a day” program where members can shadow a personal trainer for a day
Host a “meet the trainers” event to allow members to get to know the gym’s trainers
Create a virtual reality program for members to try new and exciting workouts
Offer a “wellness retreat” program for members looking to unwind and de-stress
Host a “dance party” workout event to attract members who enjoy dancing
Create a “gym buddy” program for members to connect with other members for workout support
Host a “strength and conditioning” workshop to educate members on proper weightlifting techniques
Offer a “post-workout recovery” program with massage and stretching services
Host a “cycle marathon” event to attract members interested in cycling
Offer a “membership freeze” program for members who need to take a break from their workouts
Create a “home workout” program with video workouts that can be done from home
Host a “nutrition potluck” event for members to share healthy meal ideas
Offer a “guaranteed results” program with a money-back guarantee if the member doesn’t see results
Host a “fitness fashion show” event to showcase the latest gym fashion trends
Create a “gym scavenger hunt” game for members to explore the gym and learn about its facilities
Host a “charity auction” event with items such as gym equipment, fitness apparel, and wellness products
Offer a “family fitness” program with workouts and activities for the whole family
Create a “gym meditation” program to promote mindfulness and relaxation
Host a “fitness open house” event for the local community to try out the gym for free
Offer a “community outreach” program with fitness classes and workshops for underprivileged communities
Create a “gym buddy matching” program to connect members with similar fitness goals and preferences
Host a “fitness book club” event to discuss books related to fitness and wellness
Offer a “fitness tech” program with wearable technology and fitness tracking devices
Create a “senior fitness” program
Host a “sports conditioning” workshop to educate members on proper training techniques for their sport
Offer a “gym-based therapy” program to help members overcome mental health issues through exercise
Create a “gym mentorship” program for new members to receive guidance and support from experienced members
Host a “fitness talent show” event to showcase members’ unique talents related to fitness
Offer a “gym volunteering” program for members to give back to the community through fitness-related events
Create a “gym-based education” program with classes on topics such as nutrition, anatomy, and exercise science
Host a “fitness awards ceremony” 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.

Exercise.com is simply the best. We were using three or four different apps or softwares to do what we can now do all in one with the Exercise.com platform.

Brandon Stroupe

Founder and President, APEC Sports Performance

Bonus FAQ

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 additional services that can increase gym profitability?

Additional services 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.

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.

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.

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.

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.

Tyler Spraul is the director of UX and the head trainer for Exercise.com. He has his Bachelor of Science degree in pre-medicine and is an NSCA-Certified Strength and Conditioning Specialist® (CSCS®). He is a former All-American soccer player and still coaches soccer today. In his free time, he enjoys reading, learning, and living the dad life.

How to Hire Gym Staff and Build an A+ Team

150+ Gym Marketing Ideas That Work in 2023