If you’re running a fitness business, think about adding multiple profit centers. Multiple profit centers offer additional amenities or products that customers can purchase along with their primary membership. Examples include a tanning bed, personal training services, group fitness classes, juice bars, massages and spa services, or pro shops and merchandise. 

In this blog, we’ll talk about creating multiple profit centers, choosing the right ones, and making sure they’re supporting – rather than detracting from – your business.

3 Big Benefits of Multiple Profit Centers

Today, people who purchase a gym membership want much more than a sweaty weight room. They want a fitness club that looks and feels welcoming and supports their overall health goals. That’s where multiple profit centers come in. 

When you choose profit centers that align with the priorities and desires of your target customers, you’ll enjoy the following benefits: 

  • Higher membership numbers. Multiple profit centers can increase your membership numbers and encourage existing members to spend more money in your fitness center when orchestrated correctly. When you offer more comprehensive services, more people will want to take advantage of them. 
  • A bigger bottom line. Multiple profit centers diversify your business model and help you protect your bottom line. Instead of putting all your “eggs in one basket,” you branch out and create a stronger business. 
  • Enhanced customer results. Again, clients want a fitness center that supports their fitness goals holistically. Adding multiple profit centers that align with these goals enhances results for your members and keeps them coming back. 

Which Multiple Profit Centers are the Most Profitable?

Retail stats show in a typical club, 1%-3% of total revenues from retail isn’t unusual. Interested in adding some profit centers for your fitness business, but not sure which to choose? These are the most lucrative profit centers out there:

💠 Personal Training

The single most lucrative profit center you can offer is personal training. Today’s fitness-only clubs earn nearly 9% of total revenue from personal training offerings. And for a good reason – the IHRSA Fitness Training Report reports that 32% of members who use a personal trainer belong to a fitness-only facility. 

💠 Spa services

Spa services are the second most lucrative profit centers in fitness-only clubs, accounting for 7.4% of all revenue. Notably, spa services claim 2x more revenue dollars at fitness-only facilities than they do at multipurpose facilities. In-demand services include saunas, manicures and pedicures, massages and bodywork, and other recovery services that cater to your population.

💠 Nutrition and Supplements (Nutraceuticals)

Nutrition, supplements and nutraceuticals are a great complement to personal training. Whether it’s one-on-one training or small group personal training, your clients want to improve their quality of life and their health. Meal replacements, protein drinks, health bars, vitamins, and minerals can all improve their health and fitness routines.

The official definition of nutraceuticals is any substance that is a food or part of a food and provides medical or health benefits, including the prevention and treatment of disease. Examples of nutraceuticals include:

  • Dietary enzymes, such as papain and bromelain.
  • Hydrolyzed proteins.
  • Mineral supplements.
  • Phytonutrients
  • Prebiotic and probiotic supplements.
  • Dietary fiber supplements.
  • Vitamin supplements

💠 Smoothie/Juice Bar – Food and Beverage

People want to grab a quick bite after a mid-day or early morning workout. For this reason, food and beverage operations drive 3% of total revenue at fitness-only clubs. Add one to your facility as a snack stand, smoothie bar, or fresh salad and wrap station. 

💠 Pro Shop

Strong brands are getting good traction in branded apparel. In a typical fitness center, retail involves managing inventory. You need to stay on top of the inventory and be aware of product “shrinkage”—lost inventory.

The Alloy Franchise locations offer many branded options with an online Alloy Gym Store. Eliminating the administrative burden of managing inventory or accounting for lost product.

💠 Aquatics and Pool Facilities

According to The Global Health and Fitness Association, aquatics and pool facilities and related programming make up 1.6% of total revenue at top-tier fitness clubs. Not necessarily practical for a small fitness studio, some members might find this amenity in their community. Offering swim lessons, water aerobics, and other aquatic fitness classes (not covered by standard membership dues) is a great way to get your customers more involved and build your bottom line. 

💠 Children and Youth Programming

Fitness clubs that offer child and youth programming earn about 2.2% of their total revenue from these programs. Adding these programs is also a great way to market yourself as a family-friendly club that offers something for everyone.

How to Ensure the Success of Your Multiple Profit Centers

Choosing a lucrative, promising profit center isn’t the only key to success. Once you’ve selected the model that works for your business, you also must know how to deploy it.

Here are a few of our top tips:

1. Do Your Due Diligence

Before you dive in on your profit center, you’ve got to ensure that there’s enough customer demand to support it. Do some research into your competitors and other fitness centers in the area. How many of them offer a similar profit center? Poll your existing customers. What kind of profit centers do they want to see, and which would they be most willing to pay for?

You should also remember that some profit centers cost more than others to start up, have varying margins, and require different amounts of labor. Adjust your plan accordingly with these things in mind. 

During this phase, you should also determine the goals for any new profit center you want to establish. How much do you hope the center will make in the first six months or year? How much total revenue should it drive after that? Set a roadmap now, so you know where you’re going in the future.

2. Have Your Marketing Team Promote It

A profit center isn’t part of your core business, which means your marketing and sales teams will need to work together to promote it. 

One great way to do this is to build hype around new programs by offering all your existing members a 10% off coupon to use toward the purchase of additional services at your new profit center. This builds awareness and gets profits rolling all at once. 

You should also make sure that your club’s marketing materials include information about the services available at your profit center.

3. Choose The Right People

As you staff your new profit center, make sure you choose the right people to run it. The right candidates should have a strong work ethic, good business experience, strong people skills, and the ability to recognize what isn’t working and adapt accordingly. 

Multiple Profit Centers Could Be Right For Your Business 

If you’re looking for ways to grow your bottom line and expand offerings for your customer, multiple profit centers could be an excellent option. 

When you do your research, choose the right profit center (or centers) for your clientele and implement it carefully and intentionally. You can easily create another source of revenue and income for your business while providing new amenities for your customers. 

Happy scaling! 

Article by: Suzanne Robb

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