How to Beat Inflation by Increasing Average Revenue Per Member

A graphic showing a grocery bag with a big red arrow overtop of it to represent inflation.

Inflation is driving prices up, and you need to make more money.

The easiest way to do that is to increase the revenue you earn per client.

In the first post in this series, I shared our leaderboard for average revenue per member—ARM—for July 2023.

Here it is again:

A leaderboard for average revenue per member in gyms, from about $430 to $700.

The average Two-Brain gym has an ARM of $205 per client per month—and that’s trending upward every year.

Today, I’m going to give you four battle-tested ways to increase your rates.

1. Annual Rate Increase

Simply add an annual 3 percent rate increase for all new members. Let them know at signup that their rates will increase 3 percent at the beginning of next year. You can also do this with existing members, but most gyms are already priced far too low and need to make a larger jump right away. So 3 percent a year won’t cut it. If your average ARM is below $180, get it there first, then move to annual increases. (I strongly recommend you navigate a rate increase with the help of a mentor.)

2. Switch to Biweekly Payments

For example, instead of charging $200 per month, you can charge $100 biweekly—and your clients won’t really feel a difference. If one of our gyms that charges $500 a month did this, it would collect an extra $500 from the client over the course of the year (12 x $500 is $6,000, while 26 x $250 is $6,500).

3. Move Away From Credit Cards

If you process credit-card transactions, you’re giving a percentage away. Switch to ACH (automated clearing house) transfers. Or pass credit-card fees on to clients. Our buddies at Wodify have a great sample email you can use to do this. If you don’t eat the cost of processing cards, that will boost your revenue by a few thousand dollars every year. Sample math: If you process just $40,000 in credit-card transactions every year and give away 2.5 percent, that’s $1,000.

4. Get Our Free Guide

Go to our free group, Gym Owners United, and find our Aug. 22 guide to increasing ARM (or just click here). I’ve got 20 surefire ways to raise your ARM in one tactical PDF I’ll send you for free.

ARM Before Headcount

Most gym owners have now overcome the myth of “more clients = more money.”

To really improve their gyms, owners need to first build a great foundation of 150 clients and $205 ARM. Then they can build from there (if they want to) or simply enjoy a great-paying, sustainable gym.


One more thing!

Did you know gym owners can earn $100,000 a year with no more than 150 clients? We wrote a guide showing you exactly how.