When you manage a fitness studio, there are primarily two ways to increase profitability. The first is to reduce expenses and boost revenue. But curtailing costs only, in other words “saving” your path to financial growth, isn’t a supportable strategy for improving your bottom line. You need to look for ways to exploit what you already have and then consider including other services and revenue channels.
According to Kevin Hughes, COO of The Atlantic Club in New Jersey, “Health clubs can govern the most effective growth areas for their club by doing research.” This analysis includes connecting with other clubs in the IHRSA system, as well as asking members as to what they would like to see.
Below are the four suggestions made by Kevin:
- Nurture a culture where the staff becomes attentive to developing new revenue channels
- Explore the club’s auxiliary income streams in order to create new adjuvant income streams within the existing revenue channels
- Find out where there are gaps in the club’s business
- Follow other best practices
Membership Dues and Automated Billing
Membership dues are the basis of a club’s revenue. It’s foreseeable and dependable because studio members are billed automatically through gym billing software. Automatic billing shortens revenue forecasts. Yoga studio owners can feel reassured that the money will be received every month if their customers are reliable.
There was a time when members weren’t easy with automatic billing. But at present, most financial transactions take place through electronic delivery, typically deductions from bank accounts and credit/debit cards.
According to research done by Duke University, it has been discovered that “consumption increases with automated bill payment.” This clearly indicates that this system can be utilised in other ways too. For a fitness studio owner, it is important to understand that how they can use it other services.
Advantages of Expanded Automatic Billing
One can possibly think of other services that could match wellwith an automatic billing system. For example, if you provide spa services, nutrition support, racquet courts, group training—all of it could be part of a typical services charge that’s prepaid every month as part of annual charges, improvements, maintenance fees, or personal training. Certainly, you want to be frank about costs and fees—extrainexplicable fees are a reason many people hate their utility service company—but in several cases, members will like the ease of not engaging in a distinct financial transaction for every service they want.
An automatic billing system for services may help counterbalance costs of adding new club features. Spa services are an excellent example. If spa services are not appropriate for your studio, you can explore other potential revenue streams that may fit well to your membership and cost assembly. Just as you’d do an assessment of cost efficiencies to save money, you should examineareas where you can increase revenue.
Choose A Good Gym Billing Software To Increase Revenue
When it comes to checking your studio’s payment processes and other competencies, you can usea good yoga studio software that can give you a breakdown of costs and revenue. But your software provider should be doing much more than shaping billing and listing costs. The tool should work as your partner in profitability, searching for ways to increase revenue stations that you may have unexploited.
In today’s fast-paced world, nothing is more irritating than following your studio members every month to collect membership dues. Not it is a tedious job, but late payments affect cash flow. A good gym billing software can be a great option as it would allow you to set up automatic recurring payments. Moreover, it would also help you scale up your offerings to discover more revenue streams which is the need of the hour, particularly post-COVID times.
With so many software service providers available in the market, sometimes it becomes confusing to choose the right one. The easiest way to handle this is to spare some time and effort for research work. This would help you get an ultimate revenue partner for your fitness studio. Once done, you won’t need to indulge in those weekly recurring tasks as the tool would help you manage administrative tasks quickly and effortlessly.