Strategies for gym owners and managers to boost revenue

Running a successful gym requires helping your members achieve their fitness goals while ensuring that your business thrives. There are more players in the fitness industry than ever - around 6,400 - thanks to an annual industry growth of 4.8 percent between 2019 and 2024 (source: IBISWorld).

In an industry that is worth in excess of $2.2 billion, and averaging over $300,000 per business, there is clearly substantial room to make a fitness centre a success, and financial gains for doing so. However, with more people wanting to sign up and use gym facilities than perhaps any other decade in history, gym managers need to take a strategic approach.

Here are a dozen of the best strategies for gym owners and managers to increase revenue and drive long-term financial success. 

1. Diversify your offerings

Expanding your services beyond traditional gym memberships could open up new revenue streams. Consider adding personal training packages, group fitness classes, nutritional counselling, or wellness programs. These offerings cater to a broader range of member needs and preferences, increasing your revenue potential. Offering flexible pricing options, such as monthly, quarterly, or annual packages, might also attract different customer segments. 

2. Optimise membership plans

Review your membership plans and pricing structure regularly. Analyse the preferences and needs of your target audience to create packages that align with their fitness goals. Consider tiered memberships with varying benefits and pricing levels to appeal to a wider range of customers. Additionally, offer incentives for long-term commitments, such as discounted annual memberships, to increase retention and revenue predictability.

3. Leverage upselling and cross-selling

Maximise revenue from existing members with upselling and cross-selling strategies. Train your staff to identify opportunities to promote additional services, such as personal training sessions, nutritional supplements, or specialty classes, during member interactions. Alternatively, when a member signs up for a class online, build in add-on services into your software. Streamline the payment process by allowing members to add these services to their cart and pay in a single transaction.

4. Create a referral program

Word-of-mouth referrals are a powerful way to attract new members and boost revenue. Develop a referral program that rewards existing members for bringing in friends and family. Incentives could include discounted membership fees, free classes, or exclusive access to special events. An effective referral program not only attracts new members but can also strengthen the sense of community within your gym.

5. Implement dynamic pricing

Dynamic pricing involves adjusting your rates based on demand and usage patterns. Use data analytics to help you identify peak and off-peak hours or seasons. Charge premium rates during busy times and offer discounts during less crowded periods to optimise your revenue. Dynamic pricing can encourage members to visit your gym during off-peak hours, balancing usage and revenue.

6. Invest in digital marketing

Enhance your online presence through effective digital marketing strategies, such as search engine optimization (SEO), pay-per-click advertising (PPC), or social media marketing to increase your gym's visibility and attract potential members. Targeted online advertising can be a cost-effective way to reach your local audience and promote special offers or membership discounts.

7. Offer online training and virtual classes

In today's digital age, many people appreciate the convenience of online fitness options. Consider offering virtual classes and online training sessions for members who prefer to work out from home or while travelling. Create subscription-based online fitness programs or provide on-demand access to recorded classes for an additional fee.

8. Enhance member engagement

Engaged members are more likely to stay and contribute to your gym's revenue. Use technology to enhance member engagement, such as mobile apps that offer workout tracking, class schedules, and nutrition guidance. Encourage members to set fitness goals and provide them with regular progress updates. Engage with your community through social media, promoting member achievements and success stories.

9. Partner with local businesses

Forge partnerships with local businesses, such as health food stores, wellness centres, or sports equipment retailers. Collaborate on promotions, discounts, or joint events that benefit both your gym and the partnering businesses. Cross-promotions could attract new members while potentially increasing revenue through shared marketing efforts.

10. Implement e-commerce for merchandise sales

Consider setting up an online store within your gym's website or mobile app to sell merchandise like branded clothing, supplements, fitness equipment, and accessories. E-commerce allows members and non-members to make purchases conveniently, increasing sales even when they're not physically at the gym. 

11. Offer online class booking and membership renewals

Offer members the convenience of booking classes and renewing memberships online. Integrated software can enable members to view class schedules, choose their preferred slots, and pay for classes or memberships with ease. This simplifies the user experience, reduces administrative overhead, and ensures timely payments.

12. Integrate automated recurring billing

Integrate automated recurring billing systems to securely process membership fees. This minimises payment delays and ensures a steady cash flow for your gym. Integrating payments into your gym management software can automate many administrative tasks, such as reconciling payments, managing invoices, and tracking revenue. This reduces the burden on your staff, minimises errors, and frees up their time to focus on member engagement and retention strategies.

Boosting revenue at your gym requires a multifaceted approach that caters to the diverse needs and preferences of your members. Diversifying your offerings, optimising membership plans, leveraging upselling and cross-selling, and implementing referral programs are effective strategies to consider.

Embracing e-commerce and integrating payment solutions with your gym's software is a forward-thinking strategy that enhances member convenience, streamlines operations, and maximises revenue potential. Partnering with Ezidebit can help you create a seamless and efficient payment experience for your members while boosting your gym's profitability. To explore how integrated payment systems can further grow your business, get in touch today.