From Memberships to Merchandise: Exploring the Profit Streams of Gyms

Going to the gym has become an essential part of many people’s lives in recent years, and the fitness industry has experienced notable growth as a result. In fact, over 64 million people are gym members in the United States alone, and the fitness industry is expected to grow 171.75% to $434.74 billion in the next five years.

The fitness industry is also an incredibly competitive market, and in order to thrive in the industry, gym owners should always be on the lookout for ways to increase and diversify their income streams. This article breaks down the various avenues through which gyms can generate profit to ensure long-term success.

Membership Subscriptions

Membership subscriptions are the most important part of a gym’s revenue, and it’s crucial to note that they should never be viewed as one-size-fits-all. Instead, gyms should offer multiple types of memberships, such as monthly, annual, and class packages, to ensure they’re catering to a wide range of potential customers.

When it comes to membership pricing, gym owners should always aim to strike a balance between competitive yet profitable pricing. This can be done by researching their competition’s membership pricing and really taking the time to understand their target members.

Getting to know target members can also help gym owners build out effective member retention strategies, like personalized customer experiences and loyalty programs. This not only helps gyms maintain financial stability, but it also shows their existing members that they’re invested in their satisfaction.

Personal Training and Specialized Classes

Offering personal training sessions is another tactic that can aid in increasing revenue, as it enables gyms to capitalize on the expertise of certified trainers by offering their services for a fee. Another way to bring fitness experts into the mix is by having them teach classes such as yoga, spinning, or CrossFit. Offering a variety of classes gives gyms more universal appeal, which in turn attracts customers who are willing to pay extra for these experiences. Gym owners can look to local personal trainers and fitness studios to get a better understanding of how they should be pricing these additional services to ensure they're competitive while still being profitable.

Retail Sales: Apparel and Equipment

Gyms have a unique opportunity to generate additional income through selling fitness apparel and equipment. By having a solid understanding of their members’ fitness interests, they can curate a collection of high-quality products, such as workout gear, accessories, equipment, and fitness apparel. 

For example, if a gym has seen an uptick in members signing up for yoga classes, they may want to consider selling yoga mats near their entrance as a way to upsell. When it comes to pricing, it’s important to assess the perceived value of the products within the context of the gym and its members. If a gym offers memberships that are on the more affordable end of the spectrum, they may want to consider pricing their retail products more affordably as well to make sure they’re catering to their members.

A smart marketing tactic for gyms is to leverage their branding for their retail products. Printing their logo on gym bags, apparel, and accessories can increase their visibility and attract new customers.

Nutritional Services and Products

Fitness and nutrition go hand-in-hand, so having nutritionists onsite to offer consultations is an excellent way to create an additional revenue stream. Since members likely need to refuel before or after their workouts, gyms can also consider selling health drinks, nutritious snacks, and supplements. 

In order to maintain customer trust and avoid coming off as too salesy, it’s crucial to curate wellness products that align with the gym’s philosophy and feel like an extension of the brand.

On-site Health and Wellness Services

Another way to work with local wellness practitioners is by offering on-site health and wellness services, such as physiotherapy or massage therapy. Providing healing services not only generates revenue; it also enhances member satisfaction, as they can use their gym as a one-stop shop for all of their wellness needs.

When conducting these partnerships, gym owners should work closely with the wellness experts whom they’re employing to ensure they are pricing their services fairly.

Digital Services

During the pandemic, online training programs and virtual fitness classes became the norm. There is still a large demand for these services, and a survey conducted in 2022 showed that 72% of adults are utilizing digital fitness resources just as much, if not more, than they did in the midst of the pandemic.

Leaning into the digital fitness craze can be incredibly beneficial for gyms. By offering online training programs or virtual classes through a branded app, gyms can implement monetization strategies such as subscription models or pay-per-view access to create an additional stream of income.

Furthermore, having a strong online presence can enable gyms to develop digital fitness communities. Digital communities are incredibly valuable because they give businesses the opportunity to foster loyalty and gain valuable insights about their audience, which can help them grow and become more profitable in the long run. 

Sponsored Events and Competitions

It’s also just as important for gyms to get involved with their local communities. Hosting fitness challenges, competitions, or charity events can help gyms gain local awareness, which can ultimately lead to member acquisition.

Sourcing sponsors and partners for these events can also aid gyms in bringing in additional revenue and building valuable connections. Gym owners can conduct direct outreach to businesses who strongly align with their brand’s values to start establishing these relationships.

Corporate Partnerships

Gyms can take their relationships with local businesses one step further by partnering with them for employee fitness programs. Workplaces occasionally offer fitness programs to their employees to help improve their overall health and wellbeing. 

Gym owners should research their local competition and offer competitive prices and packages to secure these business partnerships. When gyms can offer competitive pricing, it creates a mutually beneficial relationship for both the gym and their new business partner.

Conclusion

In the ever-growing fitness industry, it’s vital for gyms to diversify their revenue streams to ensure their sustainability. By exploring different options for additional profit streams such as membership subscriptions, personal training, retail sales, nutritional services, on-site health and wellness services, digital offerings, sponsored events, and corporate partnerships, gyms can continue to effectively grow and succeed. These tactics have benefits beyond boosting revenue; they can also foster fitness communities and increase member satisfaction. Studies have shown that loyal customers spend 67% more on products and services than new customers, so gyms should always make sure to prioritize their existing members while they work to attract new ones.