One of the biggest problems that gyms face is getting caught in a rut. Through our experience, we found that this rut is due to a mixture of problems with, one, staffing, two, how much you’re charging per class, and three, enrollment numbers.
The Problem
Having worked with numerous clients, we’ve discovered that by tackling these three elements, you can transition from struggling financially to thriving, building a successful gym, and even creating career opportunities for your staff.
The first hurdle involves staffing. Many gym owners lament, “We can’t find any quality coaches to hire.” Without the coaches, these gyms can’t expand their class schedules, grow their membership base, and consequently increase their revenue. A vicious cycle indeed!
Many gyms are even sitting on potential income, with waiting lists of clients who can’t be accommodated due to a lack of coaches. The blame is inevitably shifted to the scarcity of good staff.
But is that the real problem?
The Solution
We decided to dig a little deeper, running some polls and crunching the numbers. A staggering 78% of gyms in the United States admitted they paid their coaches the bare minimum, about $15 or less per hour.
Let’s do some maths. With the average gym charging $80 per class per month and capping the class student limit at eight kids, you get a gross revenue of $640 per class. With the coach being paid $15 per hour, the cost to run a class comes to $60, leaving a profit of $580, minus utilities and rent.
But how do you get out of this rut and unlock that extra income you desperately need? Here’s a three-step process:
- Pay Your Staff More: Your staff is your most valuable asset; treat them as such. Pay them competitively to attract better-qualified applicants, retain them, and instill loyalty and dedication.
- Raise Your Prices: The average gym charge in the United States is way below what the market can bear. Do not underestimate what parents will pay for a high-quality coach and a beneficial program.
- Market Your Gym: In this digital age, a well-executed marketing campaign can work wonders for your gym. Get your gym’s name out there, share your success stories, and let the world know what you have to offer.
The Outcome
Apply this process and watch your profits skyrocket. Consider a gym that raises its coaches’ pay from $15 an hour to $20 an hour and raises class rates from $80 to $90 a month. The new average class profit would be $640—higher than before, despite the increased wages.
We’ve seen this method work countless times, leading to growth, success, and a flourishing gym. You can do it too!
In a case study, one gym in Texas stuck in this rut managed to raise its prices to $180 per class, attract more qualified coaches, and build an unbeatable reputation in its area. Today, it is the go-to activity center, known for its quality and value.
Remember, in business, you’re not only competing with your industry peers but with every other opportunity that is vying for your clients’ time and resources.
Invest in a great team, price appropriately, and market smartly. We’re here to help you in your journey with both free resources and paid options. Book a call with one of our team today, and let’s talk about taking your gym to the next level!