The Annual Yoga Studio Benchmark Report is the most comprehensive analysis of business data in the industry. Each year, we refine our reporting and analysis based on feedback from the community. With that, the third annual report that was recently released is the most thorough collection of key takeaways so far. To better understand how the industry is changing year over year, we zoomed out and compared the past two yoga studio reports.
While the number of survey respondents is different with each year’s report, the Zen Planner team meticulously analyzes the raw data we receive and investigates any obvious reporting errors. If a data point is clearly inaccurate and causing our averages to appear unrealistic, we remove it.
Centered = Most Profitable Yoga Studios
Revenue from Drop-ins and Memberships
As the industry evolves and other software companies push drop-in culture, the most important success factor for owner-operated yoga studios is community. With that, it is interesting to note the change we reported in drop-in revenue from last year to this year.
In the third Annual Yoga Studio Benchmark Report, average monthly drop-in revenue for Centered studios was $1,104.62. In the second Annual Yoga Studio Benchmark Report, average monthly drop-in revenue for Centered studios was $9,932.
With such a massive drop in revenue, you’re likely expecting total monthly revenue averages to drop as well, right? Thanks to an increase in reported membership revenues, that’s not the case at all. In the third Annual Yoga Studio Benchmark Report, average monthly membership revenue for Centered studios was $20,194.75. In the second Annual Yoga Studio Benchmark Report, average monthly membership revenue for Centered studios was $11,603.
Despite the noticeable change in drop-in revenue, Centered studios actually reported higher average monthly revenues in the third annual report:
Third Annual Yoga Studio Benchmark Report = $39,012.38
Second Annual Yoga Studio Benchmark Report = $33,026
Building Community with Memberships
Recurring revenue is your studio’s financial foundation. With healthy levels of recurring revenue, you are able to project monthly financials, pay your fixed overhead and reinvest the remaining revenue to fuel growth. Memberships enable predictable revenue, and drop-ins do not.
Centered yoga studios know drop-ins are not a true revenue stream. It’s one thing to use trending subscription platforms as marketing channels, but it should not be the foundation of your business. Sure, studios make money from drop-ins, but drop-ins work best when they lead to membership agreements. Drop-ins are an effective way to introduce visitors and prospects to a studio, but they are transactional and do not align with long-term financial success.
Memberships are better for both businesses and customers. For businesses, memberships strengthen the community and make sustainable success more likely. For customers, a membership agreement provides more continuity and accountability.
Dive into the data on your own, download the third Annual Yoga Studio Benchmark Report.