Insulate Your Fitness Business Against Inflation
With prices rising and purses tightening, both business owners and customers are looking for ways to cut costs. The good news? A recent Mindbody survey found that half of consumers say wellness is too important to cut back on spending. Hooray!
That being said, it’s always a good idea to regularly take a step back and see where you can cut back on expenses.
Here’s a quick checklist of strategies to keep costs low and profits high:
- Review recurring expenses. Take a close look at your profit and loss statement. If an expense isn’t essential, cancel or put it on hold for now. Are you paying for more internet bandwidth than you need? Can you renegotiate your equipment leases? Keep the must-haves and suspend the nice-to-haves.
- Reduce advertising expenses. Consider reducing or pausing your paid marketing efforts, like social media ads. Instead, reduce and reallocate those funds to support retention efforts with the customers you currently have.
- Utilise Messenger[ai]. Save on labor costs by using our 24/7 AI front desk assistant to book classes, answer questions, and drive sales.
- Cut energy costs. You’d be surprised how much you can save by making small changes to your space, like switching to energy efficient lighting, caulking leaky windows and doors, and using a programmable thermostat.
- Be diligent about tax deductions. Small business owners can write off a variety of expenses come tax time. Be sure you're receiving every deduction you’re entitled to. Check out this information on what you can deduct.
- Expand virtual offerings. Many consumers fell in love with at-home fitness—don’t stop now! Online services are usually costless to deliver, making it a great way to supplement what you’re already doing in the studio.
- Maximise your revenue. Attracting new clients and filling empty spots is more important than ever. ClassPass’ SmartTools use real-time data to predict how full each class will be and helps you fill your empty spots at a revenue-maximising price.
- Build partnerships. Join forces with other local businesses for mutual support. You can host a workshop together, rent out your equipment, or even pool resources to buy in bulk.
- Optimise pricing. Strategically pricing your memberships can make all the difference in this economy. Offer memberships with a minimum commitment, like month-to-month, to acquire new customers without charging too much upfront. Another option: Offer long-term commitments—like an annual membership at a lower monthly rate—to retain customers who love your business but are looking to save. The longer they commit, the steadier your income. Day-to-day, Mindbody’s Dynamic Pricing feature helps your business harness the power of supply and demand, so you make more money from every class. Have a particularly popular in-studio class? Dynamic Pricing adjusts the drop-in rate to increase as spots fill up.
As a business owner, it can be tricky navigating today’s economic landscape. Remember the value you provide to your clients! Continue offering high quality services and top-notch customer care, and your clients won’t be able to live without you.