There are many new business models in the fitness industry that traditional gyms can exploit to increase their revenue. Read the article to know.
The fitness industry does not stop growing or evolving. Today there are hundreds of successful business models that both fitness professionals and entrepreneurs offer their users. What are the differences between them? Which one suits you best? Let's have a look:
Business Model 1: Memberships
Member-based gyms have existed long before the rise in popularity of personal training services or boutique studios. This model has changed to adapt and to be able to offer more attractive options to acquire new users and to retain those that it already has. Regardless of that, the concept is always the same: users who pay a monthly payment or annuity to be able to access the facilities.
This model is more successful when the money paid by users exceeds the cost of operating the place.
Advantages: At the right place and focused on the right market, they are a great opportunity to grow.
Disadvantages: They generally require a high initial investment and it is a very competitive market. The monthly abandonment rates by users are very high.
Business model 2: Group training
Before boutique studios; and from CrossFit, group classes in martial arts, aerobics and many other types related to this model were very popular.
In the world of fitness, group classes were presented as an added value to the membership model and had their boom in the 80s with aerobics classes.
Finally, this evolved and gave life to boot camp classes, different types of yoga, training with kettlebells, CrossFit and many more.
Regardless of class, clients pay either a monthly or single class to enjoy a class directed and supervised by an instructor.
Advantages: Many of these fitness studios do not need too much money as an initial investment and the social component helps retain customers.
Disadvantages: As they are cheaper, there is a lot of competition.
Model 3: Semiprivate Training
This model is a hybrid between group workouts and private classes. Generally in this type of training, there is a coach for three to four clients. In most cases, users receive personalized programs and individual evaluation, although everything is done within the group to add a social component that keeps the group integrated. The sessions last between 45 and 60 minutes.
Advantages: It is a very profitable model in which the session time is maximized. It generally has a high retention rate thanks to its cost-benefit ratio and also offers great results.
Disadvantages: The responsibility of maximizing the number of clients in each class rests with the business owner and the instructor. If only one or two clients train at that time, the profitability of that class is greatly reduced.
Model 4: Private Sessions
The popularity of private training has grown tremendously. There are hundreds of institutions nationally and internationally that are responsible for certifying personal trainers to offer this service.
The sessions are 100% individualized and can last between 30 and 60 minutes (even up to 90) depending on the client's objectives.
In general terms, this modality consists of setting objectives, evaluating the client, designing a program, supporting training and then reassessing and adjusting programming as necessary. Also, the plan can include many different forms of fitness, sports, nutritional counselling and other types of counselling. But the model is always the same. An instructor shares his time with a client.
Advantages: There will always be a market for this type of training. Being an independent professional, the instructor can segment your market to work with the type of client that you like and with the protocols that you think are the best. The duration of the sessions may vary depending on what suits them. The initial investment cost is minimal and depending on the location, not too many clients are needed to operate.
Disadvantages: The model requires a lot of work before reaching the point of raising the price, and this will be limited by the area in which the business is located. In addition, small fluctuations in the customer base can have drastic effects on monthly income, for example, when they stop attending or are on vacation.
Model 5: Online training
With the rise of the digital era, service providers have been able to scale their customer base beyond their market. The service can be sent via mail, web, WhatsApp, Skype, etc. For this model, it is possible to create a virtual community between clients with similar objectives.
Advantages: This model offers great flexibility and freedom, as well as an unlimited market.
Disadvantages: The sales and marketing knowledge required to grow an online customer base is much more complex.