Is Your Gym Profitable? 3 Tips to Help You Get There Fast.
Profitability is a tricky topic, especially in the health and fitness industries. After all, your gym probably has members coming through the doors on a daily basis, so business must be good, right? Unfortunately, this doesn’t always mean that profitability is in the black. Because member turnover is notoriously high in the gym and fitness industry, gym owners must be able to track multiple metrics that, when combined, can tell you whether or not your gym is profitable.
Here are three tips to help ensure that your gym is on track to being profitable:
1: Make member retention a top priority
Your members are the lifeblood of your gym. They’re the ones that make up the culture, vibe, and mentality of your gym, and they’re also the ones that are spreading word-of-mouth reviews to new potential members. Keeping your members happy and ensuring they will stay part of your gym community is key.
No matter how busy your gym management team gets with other projects (aka new class offerings, new employee training, expansions, or new member campaigns) never, ever lose sight of your current members. Try collecting member feedback on a regular basis through surveys or comment cards to make sure you’re on par with your member retention goals.
2: Broaden your marketing scope.
While maintaining high retention levels is the first part of running a profitable gym, bringing in new members is the second part. Finding new gym members is a tiered operation. Your first members through the doors are part of the first tier and are probably people in your network, people from the local community, and friends. Widening the scope of your marketing activities means looking for new gym members outside this first tier.
Try tapping in to other communities, or increasing your social media advertising budget to reach new audiences. Ask current members why they joined your gym in the first place and use these answers as testimonials or jumping-off points for finding new members.
3: Increase visibility into your operations.
Having insight into your current and prospective member groups is only helpful if you can successfully visualize and manage this data on the back end. Gym owners can take a proactive stance on profitability by investing in a gym-specific software tracking solution that combines all business aspects of running a business – sales, scheduling, payments, etc. – and combines these elements into a single, cohesive dashboard.
This at-a-glance look at profitability gives gym owners the ability to know exactly where their gym lies on the profitability matrix and can help identify where gaps are occurring. With visibility into all gym operations, gym owners can easily change or modify processes to make them more tailored to members’ needs and wants.
Still have questions about profitability? The Paramount team is here to help. Give us a call at 801-272-8623 to talk through all of your profitability questions today!