Building Strong Foundations: A Guide on Gym Business Costs
At FitKit UK, we work with many of the fitness industry’s leading gym equipment suppliers and some of the biggest health club chains in the UK. With that, we have developed a wealth of knowledge over the years about what works and what doesn’t when running a gym.
That is why we have created a comprehensive guide on everything you need to consider from a financial point of view when starting a gym. This guide will be your checklist of things you need to consider from a financial point of view when establishing your fitness space.
Contents
Running a gym can be hard work, and ensuring your finances are considered should be a key consideration. At FitKit, our list of things to consider is extensive but doesn’t cover absolutely everything. It is worth noting that if you need financial advice, contacting a professional is the best course of action – this guide acts as things to be aware of from a commercial perspective.
Gym Membership pricing models
Getting paying customers through the doors and onto those strength machines can be a difficult task in itself. Before that point, you should have considered your pricing model and all the options available for customer payment. Here, we will discuss all the different types of membership pricing models and their advantages and disadvantages.
Monthly gym membership pricing model
Considered the most common pricing model for gyms, gym users will pay a fixed monthly fee to access your fitness space. As the fitness industry is impacted heavily by seasonality, you can include annual membership options with a lower price point or shorter periods with higher prices.
| Advantages | Disadvantages |
| Easy to understand for members and owners. | Can be a blocker for some gym-goers to be tied into a contract. |
| Consistent revenue | Customer resistance and held to high standards. |
| Encourages longer contracts | |
| Increased retention |
Pay-as-you-go pricing model
The pay-as-you pricing model is a great way to attract new customers to your gym because of the low commitment stakes. The model works as you would expect, with users paying each time they enter the fitness space as a one time fee.
| Advantages | Disadvantages |
| Attractive to new customers | Higher churn rate |
| Flexibility for customers | Users may not respect the equipment |
| Great way to get one-time customers to become monthly paying members. | Clients can become unmotivated and not want to return. |
Bundling pricing model
A bundling pricing model allows members to upgrade from a basic membership to a high-end service package. For this to work, you must offer additional features and privileges. This could include access to a swimming pool, gym classes, towels or discounted parking.
| Advantages | Disadvantages |
| Allows you to put a premium on features that other models would permit for free | Can create a disparity between the mindset of customers (some wanting luxury, some wanting value) |
| You can review what aspects of your gym are essential to specific demographic traits. | Need multiple service offerings and amenities |
| Ability to upsell various packages and benefits to users |
Staffing
Once you have figured out the model that customers need to pay, working out the cost of the staff delivering your service should be your next pricing consideration. When it comes to gym staffing costs, you should consider the following:
- The roles within your gym: Do you need to hire personal trainers, receptionists, or sales consultants? Map out everyone you need to help you complete your vision.
- The salaries: Think about the salaries of these people and any benefits you may need to pay.
- Training and certifications: Will you need to put some personal trainers through certification training, or first aid courses?
Uniforms and staff areas: How much will staff uniforms cost? Also, consider the cost of staff areas such as break rooms.
Facilities & Amenities
Next up on your consideration list for cost should be the facilities and amenities you offer to your members. This can span a wide or small range of costs depending on how large or small you want your fitness facility to be. Here are some that you should consider during the planning process:
- The building: Are you looking to purchase or lease a building for your fitness space? This is one of the most significant costs for a start-up business, as larger facilities and prime locations will have higher costs. Are you looking to renovate a space? If so, consider the cost of installing gym flooring, mirrors, lockers, showers, ventilation systems, etc.
- Utilities: Another consideration is the monthly electricity, heating, water and air conditioning expenses. These can be high if you have a lot of lighting, showers and a pool to heat.
- Insurance costs: You will need comprehensive insurance coverage to run a gym. This will help cover you in an emergency, accident or any other issue where you could be at fault. It is worth speaking with a professional to understand the type of insurance you need for your gym.
- Amenities: Consider the cost of any amenities you would like to offer your members. These could include towels, saunas, and juice bars, and you should create a list of the amenities you plan to include and their associated costs.
- Security costs: Cameras, locks and access control systems to monitor your fitness space if you decide to operate on a 24/7 basis.
- Cleaning supplies: Gyms can become dirty places if they are not cleaned regularly; make sure you price up cleaning supplies and have a good stock depth.
- Retail products: If you plan to sell merchandise such as protein bars, water bottles, or swimming costumes, creating inventory can be an upfront investment.
Music: Playing music in workout classes or workout areas is important to many gym-goers for motivation. Ensure you have a music licence that allows you to play copyrighted music to the general public; otherwise, you could be fined.
Equipment
Investing in gym equipment is crucial for new fitness spaces, but finding commercial-grade equipment suitable for your space can feel overwhelming. At FitKit, we have created a guide that includes essential equipment lists and nice-to-have lists for specific gym types. Check out the full guide in our blog, ‘What equipment do I need to start a gym?’
Consider the cost of installing your gym equipment within your cost strategy. FitKit offers an installation service. If you require more information, please call 01455245720 or email us at sales@fitkituk.com. Someone from our team will be happy to help.
It is also worth factoring in maintenance and repairs for gym equipment and any equipment servicing to ensure that it remains functional and safe.
To keep your fitness space competitive, you should also continually review your equipment offering to keep up with the market.
For a hassle-free solution, explore the range of strength training sets and gym packages, which includes groups of equipment from premium brands such as Life Fitness, Technogym and Spirit Fitness.
Marketing and Promotion
Having a state of the art fitness space is all well and good, but if nobody is coming through the doors, you will run at a loss. This is where marketing and promotion come into play. Having a marketing strategy to entice and retain customers is important. Here are some of the costs and consideration points associated with promoting your fitness space:
How to market a gym
- Branding: To stand out in the market, it’s important to have a clear brand. Consider the cost of developing logos, signage, and other branding materials.
- Digital marketing: To attract new customers, consider paid advertising on social media, Google Ads, or email campaigns.
- Local promotions: To attract initial members, consider flyers, local partnerships and even events with local businesses and influencers to create hype.
Referral programs: Will it be beneficial to create incentives for current members to refer new customers?
Start your fitness empire with FitKit today
Now that you know all the potential costs associated with starting your own gym, stop dreaming big and start acting on it. Explore everything from gym flooring, to gym packages and a whole range of cardio and strength equipment at FitKit today. We also can help you make your dreams a reality with our installation services, so get in touch today!
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