Unlock Your Gym’s
Profit Potential with One Key Number

Most gym owners guess when it comes to pricing, marketing spend, or adding new services. The problem? Guessing costs money. The solution? Know your gross margins—and use them to drive every decision.

Why Gross Margins Matter

Your gross margin is the percentage of revenue left after covering the direct costs of delivering your service (like trainers’ wages). For a healthy gym, aim for 80%. This leaves room to cover rent, utilities, insurance, and still make a solid profit.

Most gyms we see—especially group training facilities—fall short of this mark. But the good news is you can fix it by pulling four simple levers.

The Four Levers to Boost Profitability

Increase Active Members
More paying members means more revenue with minimal extra cost.

Track how many people are paying each month—not just total sign-ups.

Increase Average Spend per Member

Don’t rely on membership fees alone.

Offer high-value add-ons like nutrition coaching, meal plans, or a recipe hub.

Even if only 20% of members opt in, you can raise your monthly average spend from $250 to $300+, pushing margins higher.

Optimize Sessions per Week
Too many sessions with too few members drives costs up.

Adjust your timetable to keep classes full and trainer costs efficient.

Trainer Cost per Session

Use the right trainer-to-member ratio.

Sometimes reducing from 2 trainers to 1 for certain sessions can dramatically cut costs without hurting quality.

The Payoff

When you know your gross margins—and improve them—you stop making emotional or random decisions. Instead, you:

See exactly how much you can spend on marketing.

Price your services strategically.

Identify where profitability leaks are happening.

Your Next Step

If you don’t know your gross margins, start tracking them today. A simple spreadsheet and five key numbers will give you instant clarity—and help you make decisions that grow both revenue and profit.