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How to Increase Gym Revenue and Profitability (100 Ways)

How to Increase Gym Revenue and Profitability (100 Ways)

Posted by Tyler Spraul, Certified Strength and Conditioning Specialist® (CSCS®) on February 24, 2023 — Updated on January 29, 2024

Learn how to increase gym revenue and profitability with the 6 must-know gym profit increase keys and a list of 100 ways to increase gym profit.

How to Increase Gym Revenue and Profitability

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).

Fitness Income Ideas

Choosing the right gym business model, finding your fitness niche, and getting better than the average gym profit margins based on the different types of gyms are all things that you can learn to do if you knuckle down and focus on understanding your gym KPIs, work hard on gym member retention strategies, and learn to run a successful gym that will help you, the gym owner, make more money in take home pay that the average gym owner income.

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!

See how the best gym payment processing software and the best marketing software for gyms is part of the best unified platform for managing your entire gym.

Offer profit maximizing gym booking online and in-person (with upsells and more).

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See why Exercise.com is the best gym management software for increasing gym revenue and increasing gym profitability.

APEC
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

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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. 

Increase Gym Profit Margins

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.

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

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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.

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#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. 

Read More: NPE Fitness Reviews

AMPD Golf Performance
“Working with Exercise.com and their team has been an amazing experience and a dream come true in terms of accomplishing a vision! Their workout technology has helped us effectively engage our community, and I highly recommend Exercise.com to grow your business!”
Andrew Banner
Co-Founder, AMPD Golf Performance

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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.

  1. Offer group fitness classes with popular formats such as Zumba, Pilates, and HIIT
  2. Implement a personal training program to offer individualized workouts and support
  3. Create customized nutrition plans for members looking to improve their overall health
  4. Host fitness challenges to incentivize members to reach their goals
  5. Create a rewards program for members who refer new customers
  6. Sell branded gym merchandise such as t-shirts and water bottles
  7. Offer a loyalty program with exclusive benefits for long-term members
  8. Host fitness events such as charity runs and walks
  9. Sell gym memberships in bulk to companies for employee wellness programs
  10. Create an online gym store to sell supplements and other fitness-related products
  11. Offer a mobile app with exclusive workouts, nutrition plans, and community support
  12. Host social events such as happy hours and networking events for members
  13. Partner with local businesses to offer discounts to their employees
  14. Create an online community for members to connect and share their fitness journeys
  15. Create personalized workout plans for members based on their fitness goals and preferences
  16. Offer virtual training sessions for members who are unable to attend in-person
  17. Create a referral program for gym members to earn discounts on their membership
  18. Host workshops and seminars with experts in the fitness industry
  19. Offer a free trial for new members to encourage them to join
  20. Offer family memberships to attract families with children
  21. Create a loyalty program for members who attend a certain number of classes per month
  22. Offer discounts for students, seniors, and military personnel
  23. Host corporate wellness programs for local businesses
  24. Sell day passes to attract travelers and tourists
  25. Offer sports-specific training programs for athletes
  26. Partner with local sports teams to offer special discounts for their fans
  27. Host social media challenges to encourage members to share their fitness progress
  28. Offer a “bring a friend” promotion for members to invite their friends to the gym
  29. Create a blog with fitness tips, workouts, and nutrition advice
  30. Offer workshops on mindfulness and stress reduction techniques
  31. Create a wellness program for members who are recovering from injuries or illnesses
  32. Host open houses for potential members to try out the gym
  33. Offer discounts for members who pay for their membership upfront for the year
  34. Partner with local schools to offer after-school fitness programs for children
  35. Host fitness boot camps and outdoor workouts to attract members who enjoy outdoor activities
  36. Create a mobile training service to offer personalized workouts at the location of the member’s choice
  37. Offer a VIP program with exclusive benefits for high-paying members
  38. Create an online coaching program for members who are unable to attend in-person training sessions
  39. Offer a free fitness assessment to new members to help them create a personalized workout plan
  40. Host charity events with proceeds going to a local cause or charity
  41. Create a rewards program for members who reach specific fitness milestones
  42. Host a “biggest loser” competition to encourage members to reach their weight loss goals
  43. Offer a discount for members who sign up with a friend or family member
  44. Host holiday-themed workouts and events
  45. Partner with local wellness companies to offer special deals for their products and services
  46. Offer a 24-hour gym access program for members who work non-traditional hours
  47. Create a mobile fitness app with workout tracking and progress monitoring features
  48. Host a fitness retreat to offer members a break from their daily routine
  49. Offer a free meal planning service for members looking to improve their nutrition
  50. Host nutrition workshops to educate members on healthy eating habits
  51. Create a virtual reality training program for members to try new workouts
  52. Create a fitness program for pregnant women and new mothers
  53. Host outdoor yoga and meditation classes
  54. Offer a premium membership with additional benefits such as free nutrition consultations or access to exclusive classes
  55. Create a partnership with a local gym equipment supplier to offer discounts on home gym equipment
  56. Host a fitness retreat or boot camp in a different country to attract adventure-seeking members
  57. Partner with local physical therapy clinics to offer discounted gym memberships for their patients
  58. Offer a “bring your pet” day to attract animal-loving members
  59. Create a YouTube channel with workout videos and fitness tips to reach a wider audience
  60. Host a “healthy cooking” workshop to teach members how to cook healthy meals
  61. Create a social media influencer program to promote the gym on various platforms
  62. Partner with local spas and wellness centers to offer discounts on their services to gym members
  63. Host a weightlifting competition to attract members interested in strength training
  64. Offer a meal prep service for members who are short on time
  65. Host a “couples workout” event to attract couples looking to improve their fitness together
  66. Create a mobile app with workout challenges and rewards for completing them
  67. Offer a “30-day challenge” program to encourage members to commit to a fitness routine
  68. Host a sports tournament with different teams and games
  69. Create a “pay-as-you-go” program for members who prefer to use the gym on a more flexible basis
  70. Offer a “trainer for a day” program where members can shadow a personal trainer for a day
  71. Host a “meet the trainers” event to allow members to get to know the gym’s trainers
  72. Create a virtual reality program for members to try new and exciting workouts
  73. Offer a “wellness retreat” program for members looking to unwind and de-stress
  74. Host a “dance party” workout event to attract members who enjoy dancing
  75. Create a “gym buddy” program for members to connect with other members for workout support
  76. Host a “strength and conditioning” workshop to educate members on proper weightlifting techniques
  77. Offer a “post-workout recovery” program with massage and stretching services
  78. Host a “cycle marathon” event to attract members interested in cycling
  79. Offer a “membership freeze” program for members who need to take a break from their workouts
  80. Create a “home workout” program with video workouts that can be done from home
  81. Host a “nutrition potluck” event for members to share healthy meal ideas
  82. Offer a “guaranteed results” program with a money-back guarantee if the member doesn’t see results
  83. Host a “fitness fashion show” event to showcase the latest gym fashion trends
  84. Create a “gym scavenger hunt” game for members to explore the gym and learn about its facilities
  85. Host a “charity auction” event with items such as gym equipment, fitness apparel, and wellness products
  86. Offer a “family fitness” program with workouts and activities for the whole family
  87. Create a “gym meditation” program to promote mindfulness and relaxation
  88. Host a “fitness open house” event for the local community to try out the gym for free
  89. Offer a “community outreach” program with fitness classes and workshops for underprivileged communities
  90. Create a “gym buddy matching” program to connect members with similar fitness goals and preferences
  91. Host a “fitness book club” event to discuss books related to fitness and wellness
  92. Offer a “fitness tech” program with wearable technology and fitness tracking devices
  93. Create a “senior fitness” program
  94. Host a “sports conditioning” workshop to educate members on proper training techniques for their sport
  95. Offer a “gym-based therapy” program to help members overcome mental health issues through exercise
  96. Create a “gym mentorship” program for new members to receive guidance and support from experienced members
  97. Host a “fitness talent show” event to showcase members’ unique talents related to fitness
  98. Offer a “gym volunteering” program for members to give back to the community through fitness-related events
  99. Create a “gym-based education” program with classes on topics such as nutrition, anatomy, and exercise science
  100. 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.

Sean Greeley, NPE Founder & CEO

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.

Tony Gentilcore
Exercise.com makes my life easier by providing an all-in-one solution and the opportunity to help those who otherwise would never have access to my programming!
Tony Gentilcore
Founder, Core Online

Read More: 100+ Gym Marketing Ideas

About the Author

Sean Greeley, NPE Founder and CEO, has an unrelenting passion for empowering fitness entrepreneurs to create the income and lifestyle they want. 

NPE delivers the #1 suite of business growth systems, tools, and coaching for fitness entrepreneurs to grow to 6-, 7-, and 8-figures. Since 2006, NPE has helped over 53,000+ fitness businesses in 96+ countries grow to the next level. NPE has been featured 8x on the Inc 500/5000 list of fastest growing companies, and has a global team based in the USA, Canada, UK, and Australia.

Website: NPE Fitness

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 ways to add multiple gym revenue streams that can increase gym profitability?

Additional gym revenue streams 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.

Read More: How to Add Multiple Gym Revenue Streams

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.

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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.

Read More: How to Increase Gym Member Retention

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.

Read More: Best Gym Mobile Apps Software

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.

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What are some easy gym profitability improvement ideas that don’t cost a lot of money to implement?

Implementing referral programs, optimizing class schedules to peak times, and offering short-term boot camps or challenges can boost gym profitability without significant costs. Utilizing social media for marketing and community building can also enhance member engagement and retention.

How can I learn how to make a gym profitable when it has a history of being unprofitable?

Analyzing past performance to identify areas of inefficiency, seeking feedback from members, and researching successful gym models can provide insights. Consider consulting with a fitness business expert like NPE or utilizing resources from comprehensive management platforms like Exercise.com.

What are some ways to improve gym sales and profitability this year that I can use to train my gym staff?

Training staff in customer service excellence, sales techniques, and member retention strategies can significantly improve gym sales and profitability. Emphasizing the personal touch and building relationships with members can lead to higher satisfaction and referrals.

What is the average profit margin for a gym?

The average profit margin for gyms typically ranges from 10% to 30%, depending on factors like location, gym type, and management efficiency. Boutique and specialized gyms often enjoy higher margins due to premium pricing.

Read More: Average Gym Profit Margins

How can I increase my gym revenue?

Increasing gym revenue can be achieved by diversifying services such as personal training, group classes, online coaching, and retail sales. Upselling memberships and implementing dynamic pricing for peak times can also contribute to higher revenue.

How can I increase sales in my gym?

Increasing sales in your gym involves enhancing the member experience, offering referral incentives, optimizing your marketing strategy, and regularly introducing new and exciting fitness programs or challenges to keep members engaged and attract new ones.

How can I make more money at the gym?

Making more money at the gym can involve offering additional services like nutrition counseling, massage therapy, or specialized classes, renting out space for events, and expanding retail offerings to include fitness apparel and equipment.

How do gyms make profit?

Gyms make a profit through membership fees, personal training, group fitness classes, ancillary services such as spa or café facilities, and merchandise sales. Effective cost management and high member retention rates are crucial for profitability.

Read More: How do gyms make money?

What type of gym is more profitable?

Boutique gyms and specialized fitness studios tend to be more profitable due to their ability to charge premium prices for specialized services, fostering a strong community and offering a personalized fitness experience.

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Do gyms make a lot of profit?

Gyms can make a significant profit, especially those that successfully manage operational costs, offer in-demand services, and maintain high member retention rates. Profitability varies widely based on gym size, location, and business model.

What are some unique gym services that are profitable?

Unique and profitable gym services include niche fitness classes (e.g., aerial yoga, aquatic fitness), advanced personal training programs, wellness services like nutrition coaching and physiotherapy, and tech-driven offerings like virtual reality workouts.

Read More: Best Gym Features and Amenities

What are the most profitable gym add-on services?

Profitable gym add-on services include personal training, specialized classes (e.g., spin, Pilates reformer), on-site child care, health and wellness seminars, nutrition coaching, and spa services such as massage or sauna.

How do I grow my gym business?

Growing your gym business involves expanding your service offerings, improving member retention through enhanced engagement, leveraging digital marketing strategies, and potentially opening additional locations or franchising.

What are some easy gym improvement ideas that can be a gym revenue enhancement?

Simple improvements like updating equipment, refreshing the interior design, offering free Wi-Fi, and providing complimentary workout plans can enhance the member experience and contribute to revenue growth.

Read More: Gym Improvement Ideas

What makes a successful gym business?

A successful gym business is characterized by a strong member community, a diverse range of high-quality fitness services, effective marketing and retention strategies, and efficient operational management, often supported by comprehensive software solutions like Exercise.com.

Read More: How to Have a Successful Gym Business

What is the highest gym revenue?

The highest gym revenues are often achieved by large, well-established gym chains or highly successful boutique studios in prime locations, with annual revenues reaching millions of dollars.

Read More: Most Successful Gyms in America

How do I learn how to increase gym revenue and profit online even if I’m not an online marketing expert?

Leveraging online platforms like Exercise.com that offer marketing tools, e-commerce solutions, and business resources can help increase gym revenue and profit. Online courses, webinars, and fitness business coaching services can also provide valuable insights and strategies.

How profitable can a gym be?

A gym’s profitability can vary greatly, but successful gyms can achieve profit margins of 20% to 30% or more, especially boutique studios offering specialized services at premium prices.

What are the most common themes in diagnosing how to improve gym businesses?

Common themes include analyzing membership retention rates, assessing the competitiveness of services and pricing, optimizing operational efficiency, and enhancing the overall member experience.

How much profit can a gym make in a single location vs multiple locations?

Profit potential increases with multiple locations due to economies of scale, but it also depends on efficient management and the ability to maintain high service standards across all sites. A single, well-managed location can also be highly profitable.

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How many members does a gym need to be successful?

The number of members needed for a gym to be successful varies based on the gym’s size, business model, and overhead costs, but a healthy member base typically ranges from a few hundred to several thousand members.

Read More: How many members does a gym need to be successful?

What is the toughest thing about being a gym owner?

The toughest aspects include managing operational costs, differentiating the gym in a competitive market, maintaining high member retention rates, and adapting to industry trends and member expectations.

Read More: Gym Ownership Pros and Cons

How do you attract customers to the gym?

Attracting customers involves effective marketing strategies, offering unique and in-demand fitness services, fostering a welcoming and supportive community, and leveraging member testimonials and referral programs.

How much money can you make owning a gym?

Owning a gym can be lucrative, with owners of successful gyms potentially earning from $70,000 to several hundred thousand dollars annually, depending on the gym’s size, location, and profitability.

Read More: How much money can you make owning a gym?

How can Exercise.com help me run a profitable gym?

Exercise.com can help run a profitable gym by providing an all-in-one software solution that includes member management, workout programming, scheduling, e-commerce, and custom-branded apps, streamlining operations and enhancing the member experience to support business growth and profitability.

Jimmy Myers Relentless Sports Performance
If you want to offer an elite service for the end user you need to get with the times and use elite level software that is intuitive, visually appealing, and effective. That is exactly what Exercise.com delivers to its clients.
Jimmy Myers
Owner/Trainer, Relentless Sports Performance

Get a demo now!

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.
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