Platform
Solutions
Industries
Compare
Resources
Posted by on January 23, 2024 — Updated on January 23, 2024
To determine the number of members needed for a gym to be successful and profitable, calculate your break-even point by dividing total operating costs by average revenue per member, considering that gym type and business model significantly influence this number.
While there’s no one-size-fits-all number of members a gym needs to be profitable, a gym’s success often hinges on hundreds to a few thousand members, depending on its size, location, and business model. The average number of gym members in a gym is 1,500, and varies heavily by type of gym and gym business model. For fitness professionals running gyms or yoga studios, understanding gym member lead generation and gym member retention is key to running a successful gym and increasing gym revenue and profit to be above the average gym profit margins.
Exercise.com can help boost your gym’s profitability with the best software for gyms, and the best software for personal trainers who want to grow their fitness business and learn how to make money from fitness.
Market to gym members and gym leads with email, SMS, and in-app messages that trigger automatically.
Offer online and in-person booking and appointment scheduling…
Maximize revenue per gym member with online and ecommerce offerings…
All from your custom branded gym apps.
Calculating the number of members needed for a gym to be profitable involves understanding your gym’s financials and the market dynamics. Let’s delve into how you can determine this crucial number for different types of gyms, using some example calculations and averages. Here are some example calculations.
This includes rent, utilities, staff salaries, equipment maintenance, and other expenses.
Example:
This is your total revenue divided by the number of members.
Example:
Divide your total monthly operating costs by the average revenue per member.
Example:
So, in this example, you need at least 500 members to break even.
Using the average number of 1,500 gym members as a reference point, it’s clear that gym size and business model significantly impact the number of members required to be profitable. Smaller boutique gyms can be successful with fewer members due to higher fees and lower costs, while larger gyms need more members to cover their higher operational costs.
To effectively manage and analyze your gym’s membership data and financials, utilizing a platform like Exercise.com can be incredibly beneficial. The software offers tools for financial tracking, member management, and business analytics, essential for understanding and growing your gym business. To learn more about optimizing your gym’s profitability and success, book a demo today.
Exercise.com, the leading gym management software, offers robust tools to help manage and grow your member base efficiently. By utilizing the platform, gym owners can track member engagement, optimize retention strategies, and streamline administrative tasks.
The number of members needed for a gym to be successful varies, but the focus should always be on quality member experiences and efficient gym management. Exercise.com offers the tools and resources needed to manage your gym effectively, from membership management to marketing and financial tracking. To explore how Exercise.com can help your gym achieve success, book a demo today.
The number of members a gym needs to be profitable varies depending on factors like operating costs, membership fees, and additional revenue streams. Typically, small to medium-sized gyms require between 300-1,000 members to be profitable, but this number can vary widely.
To survive, a gym needs enough members to cover its operating costs, including rent, utilities, staff salaries, and equipment maintenance. This number can range from a few hundred to several thousand, depending on the gym’s size and cost structure.
The average gym has approximately 1,500 members. However, this can vary significantly based on the gym’s location, size, and type. Larger chain gyms may have several thousand members, while smaller, boutique studios might have a few hundred.
Read More: How many members do most gyms have?
The average LA Fitness, being a large-scale gym chain, likely has several thousand members per location. Exact numbers can vary based on the size and location of each facility.
Planet Fitness, known for its low-cost memberships, often has a high member count, potentially in the range of several thousand members per location due to their widespread appeal and accessibility.
An average gym typically employs between 10 to 50 people, including trainers, front desk staff, maintenance personnel, and management. The exact number depends on the gym’s size and the range of services offered.
Small gyms can be profitable if they effectively manage their operating costs and offer unique services that attract and retain members. Profitability also hinges on successful marketing, community engagement, and customer service.
Read More: Average Gym Profit Margins
The success rate of opening a gym varies, but industry data suggests that with a solid business plan and effective management, a new gym has a favorable chance of succeeding, especially in areas with a growing interest in fitness.
Read More: Is opening a gym risky?
The average profit from owning a gym can range significantly. Some small gym owners might see profits of $1,000 to $5,000 per month, while larger facilities can earn significantly more, depending on the location, membership fees, and additional services.
Read More: Average Gym Profit Margins
It’s estimated that around 50% of gym members rarely or never use their membership. This figure highlights the challenge of converting memberships into regular attendance.
Read More: Gym Membership Statistics
Approximately 50% of new gym-goers quit within the first six months of starting. This dropout rate underscores the importance of engagement and retention strategies for gyms.
Read More: Gym Membership Statistics
It’s estimated that about 80% of people who join a gym in January (new year resolutions) will stop going by the second week of February. Overall, a significant portion of gym memberships, potentially around 20-30%, go largely unused.
Read More: Gym Membership Statistics
Most gyms, especially those in urban and suburban areas, typically have between 1,000 to 2,000 members. This number can vary based on the gym’s size, location, and the type of services offered.
Read More: How many members do most gyms have?
The average gym size ranges from 3,000 to 10,000 square feet. Boutique or specialized fitness studios may be smaller, while large commercial gyms can be significantly larger.
Read More: Commercial Gym Space Needed
A professional gym, especially those catering to high-performance athletes or offering extensive amenities, can span anywhere from 10,000 to 40,000 square feet or more.
Read More: Commercial Gym Space Needed
Gym owners often struggle with challenges such as member retention, high operational costs, competition from other gyms, marketing effectively to potential customers, and adapting to changing fitness trends and technologies.
Read More:
Cheap gyms make money primarily through volume, attracting a large number of members with low-cost memberships. They also profit from selling additional services like personal training, classes, or merchandise, and often benefit from low overhead costs.
Read More: Planet Fitness Business Model
Owning a gym is not typically considered passive income as it requires active involvement and management. However, with a well-established system and reliable staff, some aspects of gym ownership can generate consistent revenue with minimal daily oversight.
Read More: What is passive income in fitness?
A gym’s expenses include rent or mortgage payments, utilities, equipment purchase and maintenance, staff salaries, insurance, marketing, and administrative costs. Additional expenses may arise from renovations, technology upgrades, and professional services.
Gyms make a profit through membership fees, personal training services, group classes, selling merchandise and supplements, and sometimes through ancillary services like childcare, cafes, or spas.
Read More: Average Gym Profit Margins
About 20-30% of gym members go consistently. Regular attendance is higher among members engaged in specific programs or who have established a routine.
Gym membership statistics often show a spike in January due to New Year’s resolutions, with a gradual decline in attendance as the year progresses. Summer months can see a dip in new memberships, while there is often a smaller surge in the fall.
Read More: Gym Membership Statistics
The average gym membership cost varies widely, from as low as $10 per month for basic, no-frills gyms to $100 or more for luxury or specialized fitness centers.
Exercise.com can help manage your gym members and attract more members by offering comprehensive gym management software. This includes tools for membership management, online booking for classes and training sessions, marketing and communication tools, and detailed analytics to track membership trends and engagement. The platform’s versatility and user-friendly interface make it an ideal solution for streamlining operations and enhancing member experience, ultimately contributing to increased membership growth and retention.
Tyler Spraul