How can I make my cross-training box profitable?

Apr 25, 2022 | Gym management

profitability crosstraining box
These boxes have established themselves as a profitable option for physical training centres. Maximising financial returns may therefore be your next big goal. But, how can you increase profitability in a cross-training box? In this article we explain and show you several KPIs that will help you to achieve it.

Key factors for success with your cross-training centre

Improving the profitability of your centre means changing the way you think about it. In other words, the traditional system needs to be revamped to offer a totally different experience. What factors must be taken care of in order to succeed with a studio that is positioned among the best?
    • Modernity. The classic gym concept is no longer convincing for all age groups. It is time to renew the image and implement new technologies.
    • Self-management. The health situation has made one very useful tool for studios more widespread: apps. Thanks to these, every customer has the possibility to book their time slot, sign up or temporarily unsubscribe.
    • Personality. Who is your sports establishment for? What is it like inside? Why is it different from others? If you don’t know the answer to these questions, it’s time to work on personality.

How to measure the profitability of your box?

If you want to increase the profitability of your box, you need to carry out a comprehensive renovation plan. But how do you know if the transformations are paying off? To find out, you have your centre’s KPIs (key performance indicators). Thanks to these, you will be able to redirect your strategy or refine it when needed.

1. Number of customers

This sounds too obvious, so it is worth qualifying it. If the number of customers increases, it means you are doing things right. However, this figure should be taken with a pinch of salt, as it may simply be reflecting the trends of the year. Remember that January and September are the months when subscriptions grow the most.

2. Fluctuation rate

This value will help you to correct the previous one, although it also works independently. The fluctuation rate is the equivalent of customer turnover, i.e. the average between lows and highs. If this figure remains stable, it is a sign that you are gaining the loyalty of a larger number of athletes.

Fluctuation rate = (Nº new users in a month + Nº users that left your box in the same month) / 2

3. Avarage demand for activities

If you have revamped your available activities, it is essential that you find out whether they are proving successful with your visitors. To do this, you should look at the demand for each activity in terms of the number of hours accumulated among athletes and the number of places occupied. If an activity is not very popular, don’t be afraid to cut it out.

Avarage demand for activitiesd = Hours per week of that activity / Nº of places occupied of that activity per week

4. Conversion of leads

Leads are the people who know about your centre through marketing campaigns or word of mouth. The key to successful online advertising is to convert as many of them as possible into customers. A well positioned website and a good subscription application are definitive in this respect.

Tips to improve profitability

The profitability of your cross-training box is hidden behind four fundamental tips. The new post-pandemic circumstances are calling for a change of scenery in sports centres. Let’s see what steps you can start taking.

1. Create identity and belonging

One of the main keys to successfully running a gym is to avoid relying on occasional users. Therefore, it is best to create a group of trusted customers who feel part of the studio. This will give you a much stronger cash flow, allowing you to make more ambitious plans.

In all of the above, sports sponsorship also plays a really important role. If one of your clients is going to participate in a competition, you have a great opportunity. For what reason? Remember that displaying your advertising to an audience made up almost exclusively of your target audience can be very profitable.

2. Specialty versus range

When it comes to managing your box, you have two options: focus on one athlete profile or cover a wide range. Whichever you choose, remember to design your entire centre accordingly. In other words, if you prefer to target the most professional athletes, you need to have the facilities designed to the millimetre for them.

All of the above may sound obvious, but you’d be surprised how many boxes fail to differentiate themselves. This often leads to them losing a lot of visibility and being overtaken by their competition. Remember that less can sometimes be more, so it is essential that you know how to offer added value to your users and differentiate yourself from the competition.

3. Additional services

If you want to diversify your studio’s income and thus make your sports centre more profitable, think about including additional services such us nutrition or physiotherapy. Consider adding more value to our users experience by using a management software.

Another popular source of income for studios is the sale of food and drink, supplementation and materials. Most studios offer a beverage service, but others go much further, offering a daily food service, training materials, or sports supplementation. Likewise, the sale of merchandising of your studio will not only be useful to have more sources of income, but also to work on the feeling of belonging among your customers. You know that creating a community in your studio is very important.

As you have seen, increasing the profitability of your crosstraining box involves a radical change. Thanks to 21st century sports centre management, you will be able to achieve success more easily. Do you already have a strategy in place to consolidate your box as an attractive option? It’s time to adapt to the new times!

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