...

5 Key Factors For Creating A Revenue-Generating Pricing Structure

Pexels Anthony Shkraba 4348404- Fit Degree
Pexels Andrew Neel 2312369- Fit Degree
Blog Details Img- Fit Degree
Thinking- Fit Degree
Pexels Cottonbro 5076531- Fit Degree

5 Key Factors For Creating A Revenue-Generating Pricing Structure

Read Time :

One of the key components to owning a successful gym or studio is having a revenue-generating pricing structure that allows you to reach and exceed the goals you have as a business owner. 

As an International Business Consultant who has worked with hundreds of health and wellness business owners around the world, I’ve seen a variety of approaches to creating pricing structures. One of the first questions I ask my clients when reviewing their services and pricing is, “What factors did you consider when structuring your pricing?” The most common answer is usually something along the lines of, “I looked at what other gyms in my area were offering,” or “I came up with options that felt right.”  

This is a very common approach to pricing; however, there are other key factors you must consider. 

Often, new business owners are unsure how to structure their pricing and are nervous about pricing themselves too high or too low, so they tend to just look at what similar businesses are offering. Believe it or not, creating an effective pricing structure for gyms and studios is actually a bit of an art. 

Here are the five main factors you should consider to create a revenue-generating pricing structure for your fitness business.

#1 Factor In Your Recurring Monthly Expenses 

Let’s get real: You’ll never be able to nail down the perfect pricing until you get clear on what your business expenses amount to. Every fitness business has them: rent, utilities, electricity, subscriptions, etc. Keep in mind, you don’t know what your local competitors expenses are and this is just one reason why you can’t just mirror someone elses pricing. 

So start at the very beginning. Sit down with a pen and paper or your Evernote and start writing down all of the places your money goes as a business each month. (The numbers might surprise you!)

Reviewing your monthly expenses will give you a chance to audit your current expenses and “trim the fat” as necessary. You will also have a more concise picture of how much money is flowing out of the business each month and you will be one step closer to developing a revenue-generating pricing structure.

#2 Factor In Your Payroll

You want to get paid, right? Of course you do! And you’re not the only one.

The next big expense to consider is your payroll. How much do you want to make? How many instructors do you need to run smoothly? What are their rates? Do you have any other team members like a front desk admin or a financial manager? Start writing it all down!

Your business may have different standards for teacher/trainer compensation than your competitors do, and this is a significant factor in creating your pricing structure that cannot be overlooked.  Each business is unique. The key to structuring your pricing properly is clearly understanding how your payroll affects your bottom line and how much revenue you need to cover it, generate a profit, and exceed goals. 

fitDEGREE can support your Studio Fitness

Consult with us now!

#3 Factor In Class Capacity 

The amount of classes you have on your schedule, or plan to have on your schedule directly impacts your pricing structure.  And, knowing how many clients you can accommodate during each class is a must know to estimate your earning potential.   Let me say that again… As a studio owner, you must have a deep understanding of what your capacity is. First of all, this will affect how you’re able to grow any given class. However, it also affects your ability to generate revenue off said classes.

What factors do you need to consider?

  • Fire codes and how many people are allowed in a space at one time
  • The nature of the movements and how many people can fit comfortably and safely
  • The teacher’s ability to give each student proper attention based on their skills and modality being practiced

Once you are clear on these 3 things, you’ll have a much better understanding of how to price your offerings to ensure that expenses are being covered and profits are being generated.

#4 Factor In Your Service Offerings & Modality 

Your service and modality offerings are incredibly important for your pricing and have to be factored into your pricing decisions. Things such as equipment and training certifications may require higher price points.

If you offer a variety of modalities and a robust class schedule, you can also charge more. You can also plan to increase your pricing as your services evolve. 

When we are factoring in services and modality for our pricing structure, it’s helpful to remember the importance of not undervaluing your services.  As the business owner, you can use industry knowledge to understand the going rate for your type of  services, but only you can put a price point on the value of your time and expertise. 

#5 Factor in Your Demographic

Lastly, consider your location and demographics. Classes in New York City will cost more than classes in Austin. Classes in Austin will likely cost more than classes in Des Moines. These are just facts based on property values in any given location.

In addition to location, you must think critically about who your ideal customer is. Does your business attract a specific type of athlete? Do your clients fall into a certain income bracket? Does your location influence the kinds of clients that come into your studio? 

When you have a solid grasp of who your customer is and where you’re serving them, your pricing will be better informed.

Conclusion

Creating an effective pricing structure requires that you calculate several business specific factors, while also identifying how to set yourself apart. Remember, you are not a big box gym. You have a smaller capacity, you spend energy focusing on building relationships within your community, and you actually want your clients coming to class! And so, your pricing has to be on point.

It’s crucial that your pricing structure allows you to thrive as a small business owner, and these five tips will help you identify the perfect pricing model for your unique business.

Looks like you are finding this valuable, would you also like our latest copy of Navigating the New Normal?
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Seven Ways to Provide Exceptional Service in Your Studio to Stand Out and Keep Members

Membership Models Demystified: Finding the Right Fit for Your Fitness Studio

Building a Strong Community: How to Foster Authentic Connections in Your Boutique Fitness Studio

Customer Spotlights: Showcasing Success Stories to Boost Gym Engagement

2024 Fitness Trends: Embracing The New Boutique Fitness Trends to Stay Ahead

Elevate Your Studio: The Power of Customer Spotlights to Boost Gym Engagement

Elevate Your Boutique Fitness Studio: Year-End Reflections for Ongoing Success

Unwrap Your Gym's Irresistible Holiday Campaign in 4 Steps.

Unleashing the Power of Newsletters: A Guide for Fitness Studio Owners to Boost Holiday Engagement

How to Boost Your Boutique Fitness Studio's Social Media Presence

Social Media Marketing For Fitness Studios: Building Genuine Connections Over Vanity Metrics

Mastering Employee Management: Best Practices for Boutique Fitness Studio Owners

Crafting a Comprehensive Handbook for Your Boutique Fitness Studio

Crafting a Successful First Year: Must-Have Events for Your Boutique Fitness Studio

Are Your Boutique Fitness Studio's Monthly Costs Weighing You Down? Here's How to Find Out

Revamp Your Fitness Studio: A Guide for Successfully Deciding When to Pivot

How to Create Effective Business Goals for Your New Boutique Fitness Studio: A Comprehensive Guide

Ready, Set, Launch: Your Fitness Studio's Complete Opening Day Checklist

How to Find, Interview, and Hire Staff for Your Fitness Studio

Boosting Your Fitness Studio's SEO Effortlessly: Simple Tips for Studio Owners

The Power of Video Marketing: How Fitness Studio Owners Can Attract More Clients

Six Strategies To Create And Market Your Boutique Studio’s Value Proposition

7 strategies for your boutique gym to compete against large brands

What Type of Financing is Right For My New Fitness Business? A Complete Guide

Six Steps to Create Your Fitness Studio’s Successful Business Plan

Your Complete Checklist to Market Your Fitness Business

How to Create a Captivating Founder’s Story For Your Fitness Studio

How to Identify Your Boutique Gym’s Ideal Client

Four Steps to Create the Perfect Mission Statement for Your Fitness Studio

3 Steps to Build a Strong Brand Strategy for Your Fitness Business

How to choose the perfect space for your fitness studio

Finding a niche for your new business

How to Leverage Business Partnerships to Improve Your Fitness Business

Improve Your Gym's Sales Success With Three Simple Questions

Black Friday Marketing: Your Complete Checklist for Fitness Studios

Three Steps to Improve Your Gym's Sub Policies

Do your staff feel appreciated? How to Improve retention with Employee Appreciation Week.

Seven Questions to Keep Your Gym Staff Happy and Engaged

The free marketing tool you need in your fitness business

Your Gym Needs a Budget: How to Increase Your Fitness Business’s Profitability in Six Steps.

Stop Doing it All: 4 Partners to Help Your Fitness Business Grow

How to Overcome Common Sales Objections to Sell More Gym Memberships

Six Ways to Improve Staff Effectiveness and Retention in your Gym

Eight Steps to Sell More Fitness Memberships

The Three Essential Objectives to Improve Gym Sales and Profitability

How to increase attendance and retention in your gym this summer

How to Increase Your Boutique Studio Sales by Optimizing Your Intro Process

Are your clients staying? Improve your gym's retention rate with these strategies

8 reasons why your intro offer isn’t converting into long-term memberships

Are large class packages harming your gym's business? How to price for competitive growth.

7 Ways to Boost Your Event Marketing and Capture Your Perfect Customer

Are You Using Pop Up Classes to Capture Your Perfect Customer? Here's How.

7 Steps to Create a 12-Month Marketing Calendar to Boost Engagement All Year

How to Maximize Guerilla Marketing to Drive New Clients to Your Gym

Is your gym set up for success? How to create and set achievable new goals in 2022

Is your staff growing your business? How to give constructive feedback to improve buy-in

How to increase your gym's profits without actually making any more money

Client Communication Excellence: Stand Out With These 4 Tools

Member Retention For Long Term Growth

Why Getting More Reviews For Your Gym Should Be A Top Priority

Referrals Should Be A Top Priority For Your Business

Navigating The New Normal

Testing And Tracking Intro Offers

How To Build Your Intro Offer: The 3 Variables to Consider

Membership Contracts and Why You Need Them

Creating A Successful Sales Process

Importance of an Initial Consultation

10 Rules For A Standard Group Class Model Pricing Structure

5 Key Factors For Creating A Revenue-Generating Pricing Structure

7 Things Your Website Needs To Turn Clicks Into Clients

5 Tips to a Successful Studio Management Software Transfer

The 5 Social Media Tools You Need Right Now

Why your Fitness Business Can't Survive Without Community and How to Build a Powerful One

7 Things Your Website Needs To Turn Clicks Into Clients

Why your Fitness Business Can't Survive Without Community (and How to Build a Powerful One)

Membership Contracts and Why You Need Them

Switching Studio Management Software: Reality vs. Expectation

How To Build Your Intro Offer: The 3 Variables to Consider

10 Rules For A Standard Group Class Model Pricing Structure

5 Tips to a Successful Studio Management Software Transfer

The 5 Social Media Tools You Need Right Now in Your Fitness Studio

5 Key Factors For Creating A Revenue-Generating Pricing Structure

How To Build Your Intro Offer: The 3 Variables to Consider

What Does It Cost to Run a Barre Studio?

How the Best Fitness Studios Niche Down to Build Their Business

How to Practice Self-Care When Your Job is to Care for Others

12 Facebook Live Tips for Fitness Studio Owners

Friends Don’t Let Friends Yoga Alone: 11 Tips for Successful Referral Marketing

How Your Yoga Practice Can Spark Gratitude

The 3 Main Ways Your Studio Website Is Failing You and How You Can Fix Them

Should You Crowdfund Your New Yoga Studio Business?

4 Reasons Your Members are Bouncing After Their Class Pass is Finished

Why Yoga Studios Are a Booming Business Right Now

Using Your Yoga Studio Business Software for Marketing 

The Importance of Having Yoga Studio Scheduling Software

Are Your Instructors Making or Breaking Your Studio Brand?

Comparing the Features of Different Types of Yoga Studio Business Software 

Best Software for Keeping Studio Management Simple

Pricing Breakdowns of the 5 Best Yoga Studio Management Software Options

3 Essential Tips for Keeping Yoga Students Happy

Posts You Might Like

Seven Ways to Provide Exceptional Service in Your Studio to Stand Out and Keep Members

The fitness industry is competitive. More likely than not, you have tons of direct and indirect competitors in your area, plus YouTube, Peloton, and every fitness streaming app.

Membership Models Demystified: Finding the Right Fit for Your Fitness Studio

Running a successful boutique fitness studio requires more than you probably imagined when you first decided to open your studio.

Customer Spotlights: Showcasing Success Stories to Boost Gym Engagement

As a boutique fitness studio owner, you understand the importance of creating a community-oriented and client-centric environment. If new clients wanted to exercise alone, they'd stay home and stream into their living room.

Software Updates

Software Update Img- Fit Degree
Want to know about the latest improvements to fitDEGREE?
SEE LATEST SOFTWARE UPDATES
Black Friday
Calender Icon Img- Fit Degree
sale
Ready to switch to a more affordable, customer-friendly management tool? We've got you covered.
SCHEDULE A FREE FITDEGREE DEMO

Get all the resources
in your inbox

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

About the author:

fitDEGREE Team

fitDEGREE is a socially-driven studio management software designed specifically for fitness, health and wellness businesses.

fitDEGREE is powerful, yet economical and most of all, user friendly. By using the newest technology platforms, we seek to provide the best user experience for both the studio owners and their clients at a modest price.