The 5 Most Common Gym Owner Mistakes

Today’s all about the most common mistakes I see gym owners making…and how to fix them.

1) Your prices are too low. 

If you don’t charge a sufficient amount for your services, you won’t be able to pay your staff well and have appropriate margins. Perversely, it will also mean more challenging clients that are less compliant. So what’s “too low?” This will vary from market to market, as well as the number of spots per session you offer. But here are some (crude) guidelines: 

• For small group training, we like to see at least $300 average monthly revenue per client
• For classes, we like to see at least $175 average monthly revenue per client

NOTE: These numbers reflect direct monthly recurring revenue from members. In practice, the mature gym will have other ancillary revenue streams like merchandise, supplements, and add-ons like nutrition coaching. This will raise these averages to $20–$100 per client per month.

Need to fix your pricing but afraid of making your clients mad? 

Check out our Raise Your Rates Playbook HERE.

2) You expanded too soon.

This overly-optimistic expansion can take many forms:

• Adding sessions before you need them when utilization is low
• Adding services (and the distraction and complexity) without sufficient demand
• Moving to a larger space with no clear plan to monetize the new square footage
• Adding a second location when your first space still has plenty of room to grow in revenue and profitability

A single prospect saying they’d “sign up for a year-long membership if you had X time on the schedule” doesn’t mean you should add it.

One full class time per day doesn’t mean you need a second location.

3) Your staff compensation is wrong.

Some gym owners pay their staff too much. When this mistake is made, no matter how hard you try, you can’t get the numbers to work. You won’t have a reasonable margin or appropriate income for the owner. 

This is a toughie. Cuz when this happens, it’s hard to unwind without collateral damage and pissed-off trainers. 

For some helpful frameworks, check out this video HERE.

On the other hand, some gym owners pay their staff too little, and then wonder why they can’t get or keep solid talent.

When in doubt, you’re best off having fewer employees being paid more. For more, check out this video HERE.

4) You spend money on the wrong things.

It’s amazing how many gym owners will stock their facility with fancy –– and expensive –– equipment that doesn’t meaningfully improve client results and/or their experience.

On the other hand, these same owners may be unwilling to spend money, or even time, on developing their business skills like marketing, sales, customer service, and leadership.

If you want better results with your business, it’s not going to happen because you bought sexy new toys. You’ll have to realistically assess how your business can be improved and take action. 

Not sure what to work on to improve your fitness business? Check out our Gym Owner Report Card HERE.

5) You ignore your most important asset.

It’s all well and good to get more leads and make sure people know you exist. But too many gym owners forget about their existing network of prospects, former clients, and family and friends. If you’re not communicating with them regularly to build the relationship and stay top of mind? You’re missing a HYOOGE opportunity.

PS: Interested in a personalized 3-step plan to grow your gym?

We’d love to offer you a complementary 10-minute brainstorm.

If you’re a gym owner with 30 or more clients, you might be just a few strategies away from growing your monthly revenue by $5k-$10k or more. We can help.

Book your call HERE.