Pros & Cons: What Fitness Studio Business Model is Right for You?

Last Updated on 7 April, 2025

Maintaining a loyal pool of subscribers is challenging even for well-equipped gyms and fitness studios offering premium customer service. While 39% of Americans possess gym memberships, the average fitness business loses around 50% of new members within three to six months. Why? Well, encouraging people to maintain an active lifestyle is easier said than done.

Recent data shows that only 23% of American adults attain the recommended physical exercise guidelines of at least 150 minutes of moderate physical activity or 75 minutes of vigorous activity per week. These figures demonstrate how it can be to exercise in our “always-on” society. With more people working long hours to make ends meet, gym-goers crave flexible subscription packages that fit their lifestyles.

If you’re a gym owner looking to enhance revenue through tough economic times, you must carefully consider your fitness studio business model. With over 31,000 fitness clubs competing for clients across the U.S., your pricing strategies could make or break your subscription numbers.

Which pricing strategy is best?

When reviewing and updating your fitness studio business model, try playing into consumer behavior and taking the proven good-better-best approach. Here are three ways to do that.

1. Inspire FOMO (fear of missing out) in your clients with a limited time offer.
2. Encourage choice by leveraging the Goldilocks effect where people are likely to pick the middle option out of three.
3. Address your high-spenders and brand advocates who are likely to spend more at your business.

As a result, you limit price haggling, reveal a client’s real budget, and attract the right people to your business. The varying price points correspond to increases in value as clients focus less on cost and more on what they’re getting.

To help you achieve the consistent revenue you deserve, we’ve collated a list of pricing model examples you may wish to implement in the near future.

Introductory offers

OK, so introductory offers don’t strictly represent a fitness studio business model. However, an attractive deal will help hook new clients and boost those all-important subscriptions. Around 93% of consumers use discounts and coupons throughout the year, demonstrating the popularity of money-saving promotions. Of course, you’ll need to weigh the initial costs of your offer against the potential gains further down the line. Tried-and-tested examples include:

A free seven-day pass

This is a relatively inexpensive promotion thanks to its short duration. However, it may not work especially well for attracting clients with busy lifestyles who may struggle to attend a gym session.

Unlimited 30-day deal

This promotion, generally 40-50% less than your regular membership, gives clients more opportunities to get to know your fitness studio and instructors. Plus, you’ll incentivize clients to make the most of the offer by charging a small price. People love to bag a bargain—something you can’t gain through a completely free trial.

Ditch the enrollment fee

Getting rid of your enrollment fee for at least a month or two will attract new people without breaking the bank. Plus, without a trial period, your subscribers will be less inclined to unsubscribe shortly after joining.

Joint memberships

Encouraging friends and families to subscribe together to save money is a great way to boost revenue while reducing turnover rates. Research shows that people who start exercise programs with friends are more likely to complete the course and enjoy working out.

Calendar promotions

People often feel more motivated to change their lives and start exercising at certain times of the year. You could, for example, offer discounts across January for those with New Year’s resolutions or special couples’ memberships for Valentine’s Day.

Social media promotions

Offering discounts for newbie subscribers who shout about your business on social media represents an effective kind of free marketing. You never know – you could end up going viral!

As soon as you’ve welcomed new subscribers through the door, you must work hard to convince them to stay. This is where your long-term fitness studio business comes in.

The pay-as-you-go model

Pay-as-you-go pricing allows people with unpredictable schedules to drop in at times that suit their lifestyle, without having to pay for services they don’t use. You could, for example, sell ‘packs’ of classes in sets of five, 10, or 20. Alternatively, gym-goers could load an online account with money, some of which is deducted every time they swipe into the building.

Providing clients with such options will demonstrate that your fitness studio business model appreciates the difficulty of maintaining a regular workout regime. However, you may lose money if your pay-as-you-go model is too generous. To encourage people to sign up for alternative subscription packages, you should ensure pay-as-you-go deals are your most expensive options and exclude them from marketing materials.

What are the pros?

Reasons to include a pay-as-you-go model include:

• You can draw revenue from people whose hectic schedules or tight budgets would otherwise prevent them from attending the gym.
• You can charge a premium for your services, adding a substantial income stream to your standard subscription packages.
• Your clients will appreciate being able to attend at times that suit their needs. If their circumstances change and they want to exercise more, they will likely continue using your services and switch to a subscription model.

What are the cons?

Reasons to think twice about a pay-as-you-go model include:

• You’re less likely to encourage retention with this pricing model. If a client wants to try another fitness studio, they can do so at no extra cost.
• Your revenue may be less predictable and impact your ability to plan for the future. If your pay-as-you-go users stop using the gym for a month or two, you may find yourself in a tough financial position.

The monthly recurring membership model

Monthly recurring memberships represent the most common form of gym membership pricing. Clients will pay a fixed membership per month and, in exchange, can attend a set number of sessions or classes within this timeframe. You may wish to offer several monthly membership packages, ranging from budget options allowing clients to visit once or twice a week to premium packages offering unlimited access to equipment and classes. Just remember to keep your pricing options fair and consistent!

What are the pros?

According to recent stats, recurring memberships represent the most common boutique fitness studio business model and have grown by around 28% over the past decade. So, why are they so popular among consumers and businesses?

• They pose little risk to business owners, maintaining a consistent revenue stream and building a community of fitness fans.
• You can track revenue easily and make appropriate contingency plans. If you experience a spate of cancellations, for example, you address the problem using client surveys and improvement strategies.
• This model is best for regular gym-goers. The more often they visit, the less they pay per workout.
• Subscription models promote loyalty and retention, particularly if clients achieve tangible results after using your services.

What are the cons?

While monthly memberships can help drive retention, there are a few factors to consider before setting your pricing structure in stone, including:

• Customers may be reluctant to sign year-long contracts, as they feel financially risky. As such, you may wish to consider shorter contracts at a higher price point.
• Clients may cancel their subscriptions if their commitment levels drop.
• Staff may struggle to sell long-term memberships, costing your business time and money.

The package or bundle membership model

The package model allows fitness studios to personalize the client experience by allowing them to mix and match the services they would like to use, such as in-person or virtual classes, nutritional plans, workout templates, personal training sessions, personalized workout plans, and other features.

What are the pros?

A bundle model may generate the following benefits:

• Your clients will enjoy greater flexibility and more value for their money.
• You may attract a more dedicated set of gym-goers who want bespoke services, helping you attract a loyal pool of subscribers.

What are the cons?

Before jumping into a mix-and-match model, it’s worth noting that:

• Flexible packages are more expensive than other subscription models.
• Providing clients with on-demand services is logistically tricky, particularly if you have a high demand for some staff members at peak times.

The dynamic model

A dynamic model allows clients to pay less for classes during off-peak hours—great news for those looking to fight inflation while keeping fit. For example, you could charge less during traditional work hours or late at night.

What are the pros?

A dynamic model could help drive growth in the following ways:

• You can attract more clients during off-peak hours, ensuring your studio makes as much money throughout the day. In addition, you’ll provide a better client experience by spreading out demand.
• You’ll retain more members who may want to reduce their fitness budget.
• You’ll boost class occupancy rates and make the most of your instructors’ time.

What are the cons?

• If you host online services, it doesn’t matter how many clients use services during off-peak hours.
• Depending on your client base, you may encourage too many people to switch to off-peak hours. As such, you’ll need to carefully consider your pricing.

The third-party subscription model

Partnering with corporate third parties could be a lucrative way of showcasing your services to gym bunnies who may not have heard about your brand. Of course, you cannot rely on this model alone. However, it could represent a great supplement to your in-house pricing model.

What are the pros?

Benefits of the third-party model include:

• You’ll reach a whole new set of potential clients.
• You won’t need to spend time and money on marketing.
• Clients can leave reviews on third-party platforms, helping you make a positive name for your brand.

What are the cons?

The limitations of this model include:

• Although you’ll have access to an additional income stream, you can’t rely on third parties for steady revenue.
• Clients may only try your classes or services once.
• You may experience sporadic bookings, meaning your studio could become very full at certain times.

Keen to drive growth? It’s time to perfect your pricing packages!

As you can see, there are plenty pricing models available for fitness studio owners looking to expand their client base and improve retention levels. Fitness fanatics love to pay for high-quality services they’ll actually use—and it’s your job to provide packages that work around clients’ lifestyles. So, take a close look at your budget, staff constraints, marketing strategy, and more, to help you come up with a realistic pricing model that will keep revenue flowing.

If this task sounds a little daunting, WellnessLiving is here to help. Our platform allows gym owners to set up flexible pricing packages and memberships that suit their aims and budgetary constraints. Plus, you can easily create introductory offers, discounts, and gift cards to attract new clients and boost your subscriber base. If that weren’t enough, we also offer built-in rewards systems and on-demand virtual options to help you take the client experience to the next level.

To find out more about WellnessLiving, book a free, no-commitment demo today!