Watch out for these four costly profit killers!

There is quite a bit of information available on how to start unique fitness programs, introduce gym clothing lines, and offer your own supplement products in an effort to gain more revenue for your gym. However, instead of thinking about what you can add, think of what the gym can eliminate so the profit margins grow larger without any other additional costs.

According to the 2025 Fitness Industry Benchmarking Report published by the Health & Fitness Association (HFA), two-thirds of the gym owners that responded to the survey stated they were profitable.

Of course, many factors contribute to a gym making money, much of it to do with location and competition. Regardless, the point of opening a fitness facility is to make profits. If you are opening up a gym just to make the community healthier, while very admirable, it will quickly become an expensive hobby instead of a business if you don’t have more money coming in than you do going out. 

Energy-Eating Cardio Machines Also Eat Profits

You know your gym better than anyone else. It’s great that you have 20 treadmills, 10 exercise bikes, 10 ellipticals, and various other cardio machines in your fitness facility. People love to do cardio! But how many are actually being used? Gym equipment powered by electricity is continually eating away at your profits. 

If you have ten commercial treadmills being used on average eight hours a day, the cost for the electricity alone is about $11,000 to $13,000 a year. Maintenance repair and upkeep, according to the experts at Skelcore, a fitness equipment supplier company that does business around the globe, on average, is about $500 per treadmill every year. Even with solid warranties still in place, it can get expensive. This means that maintenance for ten treadmills is about $5,000 per year, with it being much more without a warranty involved. 

Electronic equipment can be a huge drain on profits. Keep the cardio machines you need and list the rest for sale. It’s great that you are offering plenty of cardio machines to choose from, but don’t do it at the risk of your bottom line. 

Do You Really Need to Be Part of a Franchise at the Cost of Your Profits?

Many times, new gym owners lean towards being part of an established franchise. And for good reason. It provides guidance, a business model to follow, and lets the future members understand what to expect through brand recognition.

But that handholding can quickly get expensive. The initial franchise fee can range from $20,000 to $60,000. That’s just a one-time payment! This does not even take into account the five to eight percent of royalties you will have to pay out each year. Plus, your hands will be tied for many important matters that you want to decide for yourself. After all, won’t it be heartbreaking if you are not allowed to include your favorite old school equipment in your own gym?

Becoming part of a franchise means having to use the same brand of equipment that all franchises use. Just the sign above the doors can set you back several thousand. Furthermore, mandatory remodeling for your franchise can occur as often as every five to seven years and cost tens of thousands of dollars in the process. 

Before agreeing to a several-year contract and tying yourself into part of a franchise, think of going solo to save serious money.

Eliminate the Old HVAC

The cost of keeping your gym cool or warm enough can set you back thousands a month. HVAC (Heating, Ventilation, and Air Conditioning) is one of the most expensive parts of your gym. 

A commercial gym is not like other commercial spaces. With constant physical activity taking place and cardio equipment constantly running, you can’t always just set a thermostat on the wall and forget about it. 

If you have a mid-sized gym, the average cost is usually $1,500 to $5,000 a month to keep the temperature just right for your members. Smaller gyms may be able to keep their cost down to about $1,000 a month. Preventive maintenance can add an additional $1,000 to $10,000 a year in costs. 

There are plenty of energy-efficient HVAC systems available. Zoning systems that allow temperature differential for cardio zones, weight lifting areas, and fitness class spaces could be perfect for your gym rather than a one-size-fits-all HVAC model. It could be time to put out to pasture your current HVAC that has been draining your wallet for the last 20 years. 

Eliminate Low ROI Equipment

When running a gym, you are going to have to make some tough decisions. Rather than going off your gut for these choices, base it off of Return on Investment (ROI). To make your gym more profitable, eliminate low ROI equipment from your gym so you can free up space that will provide a higher return. 

There is a very good chance you have equipment that you have to dust off because of lack of use. This equipment is costing you money because you could sell these pieces off and, in their place, acquire higher ROI assets. Dumbbells and free weights are great ROI assets as they require no maintenance other than a good cleaning, and they are almost always in demand for use. 

Eliminating pieces like the seated calf raise, glute kickbacks, torso twist, and abductor machines could upset a couple of members. However, you can use this space that will excite more members for a larger ROI, which will mean more money in your pocket. Whether you are for people videoing themselves in the gym or not, it is currently very popular. If you created a space to allow for this, then you just might get more of these “influencers” in the door, which could lead to free advertising and marketing. 

It’s About Profit

Once again, you know your gym better than anyone else. If your profits are not where they need to be, try these changes that won’t cost you a dime, and it might just put you back in the black. 

About Gym Insight

We are a gym management software firm established in 2008. We custom-write our software, committing to no third-party plug-ins or unnecessary secondary vendors.

Additionally, our software fully integrates everything from our member management to our tablet-based sales tool. For example:

• Digital contracts are uploaded to accounts upon signing
• Digital keytag 24/7 door access allows clients to sign up for a membership online and let themselves into your gym immediately
• Extensive reporting capabilities give you strong strategy tools
• Employee management tools give you complete control

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Ready to Open Your Gym with Confidence?

Gym Insight helps new gym owners manage memberships, access, employees, and revenue—all in one fully integrated platform, with no contracts and no third-party plug-ins.

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