Gym Management Software and Fitness Business Basic Economics

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  • Gym Management Software and Fitness Business Basic Economics

Fitness is one of the more efficient industries, in the economic sense. The same is true about gym management software. It’s a good thing in that competition leads to better products and services. On the other hand, it goes in the opposite direction as well.

Economics drives free markets toward commoditization, which means cheap, bland products. Here at Insight, we recognize that, and we work to deliver a stand-out club management platform that defies the odds. As a gym business owner, so should you. The best strategy for small gym business success is unique offerings that command premium fitness club pricing.

Economics for Gym Business Owners

Efficient markets have lots of players, both on the selling and buying sides. So, in fitness, consumers have many different club offerings from which to choose. You may have noticed the big box clubs that compete on price. They rely on economies of scale to keep costs as low as a floor mat.

Companies like Crunch Fitness, 24Hour Fitness, and LA Fitness compete on scale and brand name recognition. Small gym businesses can’t really touch them on price. The good news is that it leaves everything else wide open.

The gyms that do things differently get different results, sometimes better sometimes worse. But, like the software business, better can mean spectacular. Brands like Equinox, OrangeTheory, and certified CrossFit affiliates, all attempt to stand out from the crowd.

The way into the fitness business is catching the attention of a consumer niche that you can serve better. If you find a unique selling proposition and communicate it to the right audience, you can still get in, and get ahead.

Fitness Through Competition

Be different but find your people within the wide-open consumer market. The free market in fitness drives innovation and competition. Some industries don’t work that way, they’re restricted by friction of various kinds.

For example, in real estate, there’s no liquidity. Land is everywhere but each plot is unique, so it can’t be treated like a commodity. It’s difficult to break land into affordable chunks that are still usable.

In fitness, you have to work to stand apart from the cheap memberships of budget brands. So, the balance is different. Consumers can choose low-cost clubs if that’s their thing. If they are less price sensitive and looking for better benefits, they can have that too.

Fitting into the Premium Fitness Niche

If you can set yourself apart from the ordinary, you may have an excellent opportunity. That is what Equinox has achieved by positioning as a luxury fitness brand. It’s not because of the price but everything enabled by a high monthly subscription and premium branding.

Equinox positions its offerings to complement other luxury brands. The company also works hard to deliver excellent service. Additionally, it targets the trends in lifestyle branding that appeal to the Millennial generation. The company provides an experience that is fitness and imagery through digital media. It’s an example of matching products and services to a well-defined niche.

Professional Trainers as Well as New and Existing Club Owners

Whether you have an untested innovation for fitness or a premium gym concept, you take a chance to start a gym business. However, if you have the drive of a fitness entrepreneur, you owe it to yourself to find the right market segment.

If you’re a new club owner or a personal trainer, your experiences and certifications will point to some consumer segments and eliminate others. Alternatively, if you operate an established club or service, you’ve probably found your niche.

Still, you may be reading this because you’re searching for something more. Matching your value proposition to a unique niche is the single most powerful way to build the profitability of your fitness club. When you zero in on that niche, you may be surprised how spectacular the results can be.

The Gym Management Software Long Haul

We designed the Insight suite of gym management software tools help new club owners and fitness pros get organized and positioned to use the insights hidden in your data to find niches and manage clients.

Insight works equally well for established club owners. We help you transition into new opportunities. The Insight platform gives you the reports and performance indicators to find the market that’s right for you.

We don’t do that just because we’re passionate about fitness, although there is that. We built our brand around helping small gym business owners like you stand out from the crowd with outstanding information technology. That’s our niche at Insight, gym management software.


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Fagan, Lawrence. Differentiating Price and Value In Premium Gym Memberships. January 15, 2015. (accessed March 10, 2019).

-. Gym Business Sales And Some Negotiation Lessons from TV. Feb 20, 2019. (accessed March 10, 2019).

Perell, David. Equinox is More Than a Gym It’s a Church. Nov 16, 2016. (accessed March 10, 2019).