Have you ever wondered what exactly successful box owners were doing to build financially fit affiliate gyms? We sure have, which is what led us to develop our first-ever Affiliate Gym Benchmark Report last year. We surveyed hundreds of box owners from around the world, asking them financial, demographic and emotional questions to help identify what differentiates leading boxes from those struggling to keep the doors open.
We just released our second annual report, and while we made some new discoveries, one thing still holds true: a financially strong business is the cornerstone to running a successful affiliate gym. It doesn’t matter how amazing your coaches are, the structure of your classes or the correlating workout and meal plans; if the money isn’t there, the gym won’t be either.
So what exactly are leading boxes doing right? Here are the top three things we discovered.
1). Leaders do not discount
Discounting can quickly become out of control, which is why we recommend avoiding it in the first place. By offering discounts to get someone in the door, you’re immediately devaluing the incredible programming, personalized training and community you offer. Bringing someone in at a cheaper price will make it incredibly difficult to charge them full price at some point. Plus, when word gets out the someone is paying a much cheaper price for their membership, it can end up leaving other members questioning why they’re paying so much.
Leaders charge higher prices that match the value of training they provide. As a box owner, you are in the business of relationships, providing one-one-one and group training catered to the needs of your members. Through your training, members are able to achieve amazing things. So make sure you’re charging a price that represents everything that comes with a membership to your gym.
2). Leaders know their numbers
Most gym owners aren’t finance professionals, and that’s okay. However, you must understand the concept of balancing revenue coming into your business with the expenses going out. This requires you to maintain financial records and detailed expenses, which is a crucial job that many busy box owners do not make time for.
Leaders know exactly what they spend on their business on a monthly basis. This requires you to keep an ongoing record of your expenses broken out by category (think classes, cleaning supplies, retail, personal training, etc.). This also requires you to know how much revenue you are bringing in. To calculate this, you need to know how many members you have on each membership type you offer and how much those individuals actually pay you for that membership. While this may not be the most exciting aspect of running your own business, it’s vital and something that must be made a priority if you want to stay in business.
3). Leaders make use of their space
It’s a mistake we see all too often: a new box opens in a big, beautiful space with the goal of getting a ton of members and growing into the space over time. You must determine the specific amount of space you can comfortably own or rent to provide enough room for your members to get the best workout possible.
Space to member ratio is a critical indicator of the health of your gym, with Leaders having right around 26 square feet per member. By optimizing your schedule (class times and class offerings), you can make the most out of a smaller space before taking the leap into a bigger facility.
Our 2017 Affiliate Gym Benchmark Report covers these items in depth and contains detailed information such as:
- Demographic, membership and facility data
- The impact discounts have on your business
- Profit and loss statement
- And much more!
Get your free copy of the report today!