The fitness industry is a highly competitive field as gym owners try their best to beat the competition. However, as gyms battle it out with the opposition, they also have to make a profit. And when gyms raise membership dues, members start to think about going elsewhere. Members are more price-sensitive with so many options available. The trick is to boost the Average Client Value (ACV), the total revenue generated per member, without increasing the base dues, which could lead to people leaving your gym. 

There are many gyms out there that are increasing their ACV by 20 to 50 percent per member without increasing fees and instead focusing on strategic add-ons and data analysis.

Why ACV Matters

ACV is one of the most important metrics for gym profitability as it can show how to increase revenue without being totally reliant on new member acquisition. Plus, with members’ ACV increasing, it shows they have higher satisfaction with the gym, and the retention rates will be better as well. Here are ACV secrets to focus on at your gym to improve profitability.

Secret 1: Hybrid Memberships

Gym memberships should not be one-size-fits-all if you are interested in increasing the ACV. COVID forced most gyms to adapt, and part of the adapting was to create hybrid memberships. People needed guidance working out at home, and hybrid memberships, with on-demand video workouts, accomplished that. Gyms could, with a little planning, add on video workouts or live personal training through video conferencing with an additional fee per month tacked on to the base membership. Furthermore, those people who eventually cancel their membership because they just don’t have the time to make it to the gym each week may decide to continue being a member when they can be guided through quality workouts at home.

Secret 2: High-Margin Retail

You do not need much space in your gym to open a little retail area that provides serious revenue. Why let your clients spend their money down the street at the grocery store when buying a protein shake when you could have a refrigerator stocked full at your gym with 100 percent margins? In addition, members interested in hybrid memberships could purchase from you the resistance bands and light dumbbells they can use during these home workouts rather than allowing them to get everything on Amazon. With the right retail products and profit-building prices, you will have another avenue to build revenue.

Secret 3: Value-Added Transformation Challenges

Transformation challenges are generating serious revenue through short courses as people look for a quick way to improve their health. If people who are struggling with their fitness found out they could transform their body by taking a six-week course at your gym, how many people do you think would want to sign up? After all, six weeks is not much of a time commitment. By bringing in nutritionists, athletic trainers, and inspirational members who have accomplished it already, you should have a line of people wanting to give you their money. Just set the price and see what happens!

Secret 4: Prepay Bundles

Rather than billing members $30 to $50 a month for a yearly membership that is to be paid in monthly installments, offer prepay discounts if the person pays for the entire year at once. While billing every month creates a stable cash flow, gyms that need instant capital could offer a month or two free if the person pays for the whole year. Plus, even if you don’t need the instant capital, you could be making interest on the money during the year with a basic bank account or invest it in the stock market. The same could be done for personal training sessions or recovery sessions. Everyone loves a deal, and being able to gain a couple of free months or an extra session just by paying all at once could lead to members putting more money down.

Secret 5: Use Your Data

Some of the biggest ACV gains come directly from analyzing add-ons that relate to a member’s age and identifying the opportunities. With Gym Insight software, you already have the information in your system. Read the list below and try placing each of your members into one of these groups to determine which add-ons might be best for them. 

1. Young Professionals (Ages 25–40)

• Hybrid Digital Access
• Express 30-min Workouts
• Corporate Wellness Bundles

2. Women (Age 40+)

• Bone Health and Strength Training
• Recovery and Mobility Programs
• Women’s-Only Community Groups

3. Parents

• Family/Couple Memberships
• Kids Club or Babysitting Hours
• Quick Express Sessions

4. Older Adults (Age 50+)

• Low-Impact Longevity Training
• Fall Prevention and Balance
• Recovery Tools (Sauna, Massage)

5. Serious Athletes

• Personal/Semi-Private Training
• Sport-Specific Coaching
• Advanced Recovery (Cryo, etc.)

6. Gen Z (18–30)

• Transformation Challenges
• Social Events and Night Classes
• Gamified Rewards & Merch

Finally, Audit Your Add-Ons

The first step should be figuring out what percentage of your current members have signed up for add-ons and how to increase it from there. The higher the ACV, the less you have to worry about membership churn. The members who spend more are more likely to stay longer with your gym. Create the right add-ons for your clientele and revenue will soon be rising.

Gym Insight

Gym Insight software will allow gym owners to manage memberships, access, employees, and revenue—all in one fully integrated platform. Absolutely no contracts and no third-party plug-ins!

Call 855-FOR-GYMS (855-367-4967)

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