How the numbers work.
WHAT REVENUE COMES FROM
Memberships Session and class fees Personal training Facility hire
Retail: supplements, drinks, equipment
Registration and joining fees
WHAT COSTS DOMINATE
Rent Staff Power Equipment maintenance and replacement Water
WHY POWER MATTERS PARTICULARLY
Air conditioning, lighting and equipment run for long hours.
WHAT TO CALCULATE
Break-even membership at your fee level.
HOW
Fixed costs divided by net revenue per member.
WHAT TO ESTABLISH
Capacity: how many members the space genuinely supports.
WHY IT MATTERS
Overselling produces crowding and departure.
WHAT THE USUAL PATTERN IS
Members joining in bursts and attending far less than they expect.
WHY THAT MATTERS COMMERCIALLY
Membership exceeds simultaneous capacity, which is how gyms work.
WHAT TO MONITOR
Actual attendance patterns by hour and day.
WHY
It determines staffing and whether capacity is genuinely reached.
WHAT TO CALCULATE PER MEMBER
Acquisition cost Average length of membership Total revenue over that period
WHY THAT COMPARISON
If acquisition cost exceeds lifetime revenue, growth loses money.
WHAT TO TRACK
Joiners, leavers and net change, monthly.
WHAT NET CHANGE REVEALS
Whether the business is growing or replacing.
WHAT TO REVIEW
Revenue per member, which rises with additional services.
