5 Key Factors For Creating A Revenue-Generating Pricing Structure

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5 Key Factors For Creating A Revenue-Generating Pricing Structure

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One of the key components to owning a successful gym or studio is having are venue-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 are awere 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 Ever note 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.

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#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.

#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 under valuing 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.


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.

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About the author:

Cherise Beardsley
Industry Expert

Cherise is a phenomenal business consultant with a lifetime of knowledge and experience in the fitness industry. Cherise not only helps fitness business owners thrive, but also assists the fitDEGREE team in keeping the software headed in the right direction for the needs of business owners using the platform.