13 Ways of Minimizing the Monthly Cost of Running a Gym
Many factors influence the success of entering the Fitness Industry. Running a successful gym nowadays is a huge financial challenge. The price of such an investment surprises many business owners, thinking of a monthly cost of running a gym.
Location, gym equipment, and business marketing efforts contribute to success, but the staff and all services are usually the most considerable expense and the biggest challenge for startups.
Of course, as with any business venture, unexpected costs can pop up monthly, so it’s essential to have some cushion in your budget. If you’re passionate about fitness and helping others achieve their goals, starting your gym can be an enriching experience – both financially and personally.
This blog post will explain why cutting some of the monthly costs associated with running a gym is essential. Moreover, we will provide you with some business advice on how to do that.
So, let’s get started.
Why Should you Think about Minimizing the Monthly Cost of Running a Gym?
When operating a gym, many different costs can add up each month. The expenses can quickly become overwhelming – from utilities and rent collection, to equipment and staff. It is possible, however, to keep your gym’s finances on track by finding ways to minimize the initial costs of running any gym.
In the long run, you need to consider such factors as rental costs, mortgage payments, utilities, equipment, and supplies. Furthermore, you must think about staff salaries and benefits, digital marketing. and advertising costs (ongoing costs).
You can certainly use social media to promote your business, but sometimes that alone will not be enough. Plus there is the possible social media management pricing to take into account. It is also important to remember that gyms are businesses for which equipment failures occur often due to daily use. Therefore, you should consider repairs and maintenance costs and invest in solid business insurance.
How to the Minimize Monthly Cost of Running a Gym
The responsibilities of owning and operating a gym can be very costly. Therefore, a gym’s success depends on cutting costs and reinvesting those savings. The following ideas will help you minimize gym costs:
#1 Use recycled materials whenever possible
Eco-friendly living and going green are essential topics in today’s world. Our environment is transforming, with increasingly more people taking conscious steps to reduce their plastic usage and shop locally.However, is your gym also able to lower costs thanks to this?
Being eco-friendly is the best way to reduce the maintenance costs of your business. Using fewer plastics reduces outgoings through increased material efficiency and decreased disposal costs.
Sustainable living brands are also in high demand from potential customers. That is why taking action on issues like plastic waste could help you win and retain more clients.
It is becoming easier to reduce and reuse plastic. Going plastic free may be effective. Below are some tips on how to do that:
- Avoid single-use plastics (e.g. bottles). To reduce plastic cups, encourage gym goers to bring their own bottles. Make sure you provide biodegradable options to ensure your facilities are accessible to all – remember, some people need straws, so make sure you can provide them if necessary.
- Take steps to reduce packaging. When ordering large batches, specify that items don’t require individual wrapping. Additionally, ordering locally reduces packaging and transportation costs.
- Use biodegradable plastics instead of traditional plastics. Whenever possible, choose biodegradable plastics. The environmental impact of these plastics is much shorter than that of traditional ones. Using biodegradable bottles, cups, and straws is a good alternative.
- Consider buying refurbished furniture and equipment to be eco-friendly and reduce business costs. Ultimately, refurbished can be just as good as brand-new equipment. For example, an old desk or chair from a garage sale or second-hand store will often do just as well as a new one.
- Explore ways to pass on equipment if you don’t lease it, including sharing it with community centers or offering it to your customers as a membership benefit. This will reduce the costs of disposing of such equipment.
#2 Offer monthly memberships with no long-term contracts
Gyms often resort to annual contracts because they think they will attract more customers and keep them this way. Nothing could be more wrong.
Clients usually avoid such institutions, only making this choice when they have no other option. However, when customers have a choice, 9 out of 10 times they will choose a competitive gym where they can freely extend their membership on a monthly basis and, in various situations, change or resign their plan.
By giving your customers a choice, you provide them with a sense of security. This results in a greater chance that they will come back to you as clients the next month, and not regret their choice. Moreover, you will not force your clients to subscribe for an entire year, which, in turn, will help you gain subscribers by not discouraging others from joining your gym or making them think about your business as an unattractive option.
#3 Compare the prices of different types of equipment before making a purchase
You must compare prices before purchasing any product, whether it is a wholesale or a retail product. This way, consumers can find discounted similar items or great deals on the same items.
If this task seems tedious, you can always use websites that help you compare offers – there are quite a lot of them available on the market. With this strategy, you can compare thousands of products across various online and local retailers.
Another important reason for doing so is that the retail environment has abandoned the concept of standard pricing strategies. Therefore, any product you purchase – be it online from an ecommerce store with SAP frontend or in person from a physical, brick-and-mortar store – will have a slightly or significantly different price, depending on where and when you buy it.
Comparing gym equipment costs across different platforms will help you save money, whether you buy cheap products or big-ticket items.
#4 Rent space to other businesses or organizations to help offset costs (e.g. yoga studio, hair salon, or personal studio)
When renting a building or premises, it often happens that gym owners are left with additional rooms that they do not use for various reasons. That could be the lack of an idea for extra space or a shortage of funds to carry it out because the rent generates considerable costs.
However, this can be avoided when we consider an additional option: renting an unused room to another service provider. For example, perhaps someone in your neighborhood needs extra space for classes (e.g. yoga), or your neighbor wants to start their own business but does not wish to rent the entire building.
Market needs like these will always exist, so you should consider how to make the most of them. This solution will save your budget, and, in addition, people using other services in the same building may want to visit your gym to have everything in one place. That makes renting spaces an extra free advertisement for you.
#5 Hold free events and classes on a regular basis
Fitness classes provide their users with a wide range of benefits, including bringing people together and inspiring them to change their lives.
A gym, studio, or health club can engage its members and the community by hosting events. Whether you want to increase gym memberships, engage current members, or grow the community, events can help you achieve your goals.
Members can gain new experiences or knowledge through events beyond just workouts. That’s why the fitness club you own could miss out on a huge marketing opportunity if it doesn’t expand by hosting educational events that promote yourself as a health and fitness expert or offering free bonus classes, for example.
It is common for event attendees to convert into paying customers. There’s no denying the effectiveness of fitness events in boosting sales and engagement. There are a variety of formats that events can take on, and many types of events that you can organize depending on your budget and objectives.
#6 Cut down on the number of staff members you employ
There is no doubt that this isn’t the best or most amicable solution to reduce costs, but sometimes it is the most effective. Because paying employees is associated with high expenses, it often happens that the best way for a poorly functioning business to save money is by cutting staff numbers.
However, remember that whenever fewer staff members are needed to carry out work of a particular kind, an employer will have to prove that this is the genuine reason for any potential dismissal.
Keep records of your company’s financial challenges and potential staffing cost reductions (such as board minutes). This will be useful evidence to show that redundancy was the true cause of termination in an unfair dismissal case.
#7 Negotiate a lower price for utilities
A little negotiation can save you a lot of money if you know what you’re doing. It pays to do your market research and plan before any negotiations or purchasing. You can boost your chances of negotiation success if you understand the process, what to ask for, and what you’re willing to accept. In order to negotiate successfully, certain steps need to be followed. They include the following:
- Gather information. Include in this list the monthly expenses you pay for, such as utilities, services, and subscriptions. Any regular payments you make can be negotiated.
- Don’t underestimate your value as a customer. Keep track of how long you have been using each service. Providers should be motivated to keep you as a client if you’ve been with them for a long time. During negotiations, you may benefit from the size of your bill too. Also make sure you always pay on time, which negotiations will again undoubtedly benefit from it.
- Research more service providers. For each service, identify the company’s competitors. Negotiations will be more straightforward if many companies are competing for your business and, on the other hand, more challenging if there are few choices.
- Research rates. Find out what your current provider and its competitors offer. Is there any evidence that companies are offering lower introductory rates, rebates, extra services, or any other incentives to woo new clients? Once you have collected this information, set a goal for the discount you would like from each provider and the minimum you’d be willing to accept.
- Don’t be afraid to try. Contact your service provider. Be upbeat, polite, and friendly as you make your request. Being nice will increase your chances of getting help from customer service. Think of the rep as a teammate and approach the call with a confident tone.
- Be prepared to resign. Don’t back down if you threaten to cancel your service. Requesting a cancellation usually lands you in the customer loyalty or retention department. You can count on these representatives to be highly motivated to retain your business and offer you discounts to do so.
#8 Negotiate a lower rent with your landlord or the building’s owner.
Rent is likely to be your most considerable expense, and there is no doubt that you will need a space or real estate. You should consider some things when you are looking for a rental property if you don’t already have one, such as high ceilings and enough space for your members within the building.
Gym location is also an essential factor to consider. Every gym should be easily accessible, with a good road and public transport network, and not have a lot of competition. Physical location plays a vital role in the price of the property.
If you choose a suburban location, do not let the landlord trick you. Negotiate with them a fair price for the area. The price for the building will differ significantly due to location, but many landlords overprice their properties to try and earn more.
#9 Cut down on unnecessary costs
Keeping track of your spending can help you reduce your monthly expenditures.
Prepare an annual and monthly budget. It’s essential to understand what you’re paying for and how much you’re paying. Maybe you signed up for subscriptions you didn’t need but stuck with them for years because you were used to or forgot about them?
If you can see the financial picture clearly, you can identify savings opportunities. It would be best to compare several things across vendors regarding broadband, energy bills, and insurance, etc.
Make sure you’re earning a return on your investment. For instance, think about the equipment. Does your choice contribute to member retention? Of course, savings won’t be possible on every business expense, but they’re worthwhile if the cost results in profits.
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#10 Restrict or grant access to the gym during off-peak hours (e.g. before 7am and after 9pm).
Some gym members are looking for cheaper membership fees. Off Peak membership is a great way for clients with a lower budget to access all club facilities at a reduced cost.
That is why it is good to introduce the option of an off-Peak plan. This means your clients can access your gym at limited times of the day. Thanks to that, you will gain more clients and your gym will thrive all day long.
#11 Institute a membership fee for use of gym facilities
A membership fee should be introduced for several reasons, but most importantly because this will help offset your average costs monthly while also encouraging people to use the gym more often.
It is also more beneficial for users to do this —for example, by introducing a student fee. These are people who usually like to use the gym after long hours spent at the university and work.
Their price for such memberships should be lower, but if you offer them, say, a 3-month offer that is a little cheaper in the long run than pay-as-you-go or a monthly subscription, they will likely be very inclined to go with the former. This is a gimmick of a marketing plan, but one that can help to grow your business.
Charging for membership is introduced in almost every gym, but you need to research what rate will be the most appropriate and profitable for you. However, in order not to put off your potential customers, do not introduce too many additional costs. You need to find a balance in your business plan if you’re looking for minimizing the monthly cost of running a gym.
#12 Invest in energy-efficient equipment that uses less power overall
Energy efficiency simply means using less energy for the same amount of work, thus reducing energy bills and pollution in the process. Inefficiencies and energy waste contribute to items, enterprises, and buildings using more energy than they need.
Investing in energy-saving devices is one of the easiest ways to reduce energy costs and eliminate energy waste. It is also a long-term investment that will pay off in the long run, not only helping enterprises meet their budgets but also improving business profitability and combating climate change.
For example, energy-efficient light bulbs produce the same amount of light with less energy consumed. Many other products do not use energy directly, but they enhance the overall efficiency and comfort of a home or building (like thermal insulation or windows).
Therefore, when running your own business and wanting to save as much money as possible, it is worth paying attention to such aspects as proper lighting, windows that reduce heat exchange, installation, smart thermostats, computer power management, and equipment for a green fitness center.
#13 Use WodGuru to minimize the monthly cost of running a gym
WodGuru is a gym management system. Thanks to its many advanced features, you and your gym staff can streamline work and increase efficiency, saving you money.
A mobile app helps gym members stay on top of their fitness goals
The app enables gym members to sign up for classes and track their workout history, making customers more independent and reducing staff workload.
Moreover, people are more likely to spend more if they can pay online. WodGuru allows them to do so, leading to increased revenue for you.
Website integration and attendance list keep your clients updated
Your schedule will always be up-to-date on your website, mobile, and social media thanks to website integration and an attendance list. This saves time by allowing gym members to register for classes and purchase memberships via the website so that staff can focus on other tasks, saving you money as well.
Reception feature makes managing your gym a breeze
All reception work can be handled through the platform, making it super quick. Time is money, right? That’s why, with WodGuru, receptionists can:
- issue invoices
- manage storage
- integrate gym card readers
just to name a few options to streamlining your monthly cost of running a gym.
CRM system takes care of your customers
With a CRM solution, you can easily manage gym memberships and registration, as well as automate communication with your customers. Birthday wishes for gym members are a must, and a CRM system can handle them automatically.
In this way, customer loyalty will increase and result in long-term retention.
Did you know that attracting a new customer costs five times more than retaining an existing one?
Why wait? Sign up for free and save money with WodGuru.
So, how about monthly cost of running a gym?
The value of experience has increased dramatically in recent years. That is why people are looking for cost-effective, yet still appealing solutions.
There are many ways to minimize the monthly costs of running a gym as a fitness professional, from making initial investments in disposable materials to organizing fitness events as an excellent marketing tool.
With careful planning and organization, you can run a business that your members and community will value. Additionally, you will be able to increase brand awareness, membership engagement, and revenue.