• Stop Undercharging: The Right Way to Set Gym Rates

  • Mar 3 2025
  • Length: 25 mins
  • Podcast

Stop Undercharging: The Right Way to Set Gym Rates

  • Summary

  • Most gym owners don’t make enough money—not because they need more clients but because their rates are too low.

    In this episode of “Run a Profitable Gym,” Chris Cooper explains how to set your prices the right way so your gym becomes profitable and pays you what you deserve.

    Too many gym owners copy their competitors’ pricing or assume their clients can’t afford to pay more. Chris walks you through a better approach, starting with using the Rule of 50 to determine your minimum membership price.

    He explains how to set a target for average revenue per member (ARM) and why constantly chasing more clients won’t increase your gym’s profitability if your rates are too low. Using a profit-and-loss statement (P&L), he shows you exactly how to calculate rates that cover your gym’s expenses with 50 members so you can build a strong, profitable business.

    To download Chris’ sample P&L, join Gym Owners United.

    And find out what other gyms are charging in our “State of the Industry” guide, linked below.

    Links

    "State of the Industry" Guide

    Gym Owners United

    Book a Call

    03:35 - Find your break-even point

    08:17 - Average revenue per member (ARM)

    14:12 - Do you need more clients?

    18:00 - Increase ARM without raising rates

    20:29 - Recap: How to set rates

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