Different Types of Gym Pricing Models

health club software system

Gym Membership Management

When it comes to a health club software system, there are a lot of things to consider. What type of health club software features do you need? Do you want a billing system for gyms? Or just check in software for gyms? A lot of these questions can be answered by what type of gym members you have. On average, gym members visit the gym twice a week. However that may be significantly more if you run a niche gym (like rock climbing, yoga, or something similar). Regardless of what you are looking for a health club software system for, one of the most important things is to nail the correct pricing model for your gym.

Pricing Models for Gyms

Pay as You Go: The pay as you go, or pay as you play model is fading in popularity, though it still has some attraction. The primary benefit for an individual using this payment model is the feeling that they are paying for exactly what they get. If a gym membership costs $80 each month, and a member is only attending once per week, there is a feeling of significant waste. These types of models often work great with high end studios that offer niche fitness classes such as yoga, rock climbing, gymnastics, and similar activities. Additionally, the pay as you go model can be integrated with a health club software system that tracks how many times individuals attend and offers you tools to re-market to these individuals. Of course one of the largest drawbacks of this model is that there is no recurring monthly revenue, which can cause stress to health club owners during slow months. Because of the lack of a predictable stream of revenue, studio operators often shy away from strict pay as you go model.

The Monthly Membership Model: There are a number of ways this can be implemented into a fitness studio. Contracts from 3 months to 12 months, paid in full or paid monthly, no contracts, enrollment fees or no enrollment fees. However it is implemented, one of the biggest benefits to gym owners with a membership model is that it delivers consistent monthly revenue in a predictable manner. There will be churn of course, however with a proper marketing arm gym owners can confidently replace old memberships with new ones as people cycle in and out of activity at a gym. Most dedicated clients love monthly membership models because it gives them frequent access to their gym of choice. Whether it is strength training, cross fit, or yoga, being able to attend multiple classes each week at a steady price is an incredible benefit for many people. Additionally, there are a growing number of businesses and insurance groups that will help cover the cost of a monthly gym membership for individuals because it promotes healthy workplace and lifestyle habits. The largest drawback with memberships for clients surrounds contracts. People hate contracts. Consider doing everything you can to keep your membership contract free, which helps people commit to a membership. There is a significant amount of evidence that contract free memberships last longer, on average, then memberships with contracts. To help prevent clients from canceling their memberships, consider having a small enrollment and re-enrollment fee. Additionally, give clients the option to “pause” their membership at a low monthly rate, in the event they are going on an extended break from the gym (vacation, work, maternity, etc) but want to return eventually.

Partial Memberships: This is one membership strategy that does not get enough credit. Most gyms have natural periods of high activity and low activity that are fairly predictable. For example, rock climbing is a growing sport that has hardcore members who love to attend the gym 4-6 times each week. Because it is a niche sport, rock climbing gyms tend to charge a premium for access, usually between $60-$100 per month. While $100 per month may not be much for an avid rock climber, it is a pretty significant amount of money for the casual climber. Consider offering discounted memberships or rates that are limited to certain hours of the day. This can be managed with a health club software system.