FLYING BLIND WITH GYM NUMBERS?
- Jack Willoughby
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- Apr 24
- 4 min read
The Hard Truth About Running Your Gym Without Metrics
Your gym's biggest problem isn't competition, market saturation, or even economic downturns.
It's flying blind on your numbers.
After working with hundreds of fitness businesses, I've noticed something alarming: most gym owners run their businesses on gut feeling rather than hard data. They can tell you every spec of their equipment and the names of all their regular members, but ask them about their utilisation rate or break-even costs? Blank stares.
This isn't just risky business—it's gambling with your livelihood.
The 4 Numbers That Will Transform Your Gym Business
Let's cut through the fluff and focus on four critical metrics you absolutely must know. These aren't vanity metrics; they're the foundation of profitability and sustainable growth.
1. Maximum Service Capacity: What's Your True Ceiling?
What it is: The maximum number of members your gym can realistically serve while maintaining quality.
Why it matters: Without knowing your capacity, you can't plan growth, staffing, or equipment needs. You're either leaving money on the table (if under capacity) or risking member experience (if stretched too thin).
How to calculate it:
Factor in:
Physical space (general rule: 4-5 square metres per person during peak hours)
Equipment availability (how many people can work out simultaneously)
Staff-to-member ratios for classes and PT sessions
Opening hours and typical usage patterns
Example: A 300m² gym with adequate equipment and 3 staff members during peak hours might have a true capacity of 250-300 members, assuming not all members attend daily or at the same times.
2. Utilisation Rate: How Much Room Do You Have to Grow?
What it is: The percentage of your maximum capacity currently being used.
Why it matters: This tells you whether to focus on acquisition or retention. Low utilisation means you need more members; high utilisation might signal it's time to expand or raise prices.
How to calculate it:
Utilisation Rate = (Current Active Members ÷ Maximum Capacity) × 100%Example: 175 active members with a capacity of 250 = 70% utilisation.
What it tells you:
Below 60%: Aggressive marketing needed; you're leaving money on the table
70-85%: Healthy zone; balanced focus on acquisition and retention
85%+: Consider expanding, raising prices, or improving facilities to support more members
3. Break-Even Cost Per Session: What's Your Profitability Threshold?
What it is: The minimum amount each training session needs to generate to cover your costs.
Why it matters: This metric forms the foundation of profitable pricing. Without it, you might be losing money on certain services or membership tiers.
How to calculate it:
Break-Even Cost = (Fixed Monthly Costs + Variable Costs) ÷ Total Monthly SessionsWhere:
Fixed costs = rent, insurance, software subscriptions, staff salaries
Variable costs = utilities, maintenance, per-session instructor fees
Total sessions = sum of all individual workouts, classes, and PT sessions
Example: Monthly fixed costs of £8,000 + variable costs of £2,000, with 2,000 total sessions = £5 break-even cost per session.
This means each time someone uses your gym, you need to generate at least £5 to stay afloat. If your monthly membership is £50 and members attend 12 times per month on average, you're earning £4.17 per session—below your break-even point.
4. Monthly Churn: How Leaky Is Your Bucket?
What it is: The percentage of members who leave each month.
Why it matters: High churn means you're constantly replacing members rather than growing. It's almost always cheaper to retain existing members than acquire new ones.
How to calculate it:
Monthly Churn = (Members Lost This Month ÷ Total Members at Start of Month) × 100%Example: 15 cancellations from 300 members = 5% monthly churn.
Industry benchmarks:
1-3%: Excellent retention; focus on growth
4-6%: Average; needs attention but not critical
7%+: Problematic; immediate retention strategies needed
A 5% monthly churn means you're losing 60% of your member base annually—essentially replacing your entire gym every 20 months. Imagine the marketing costs and effort that requires.
Turn Numbers Into Action: What To Do Next
Now that you understand these four critical metrics, here's how to put them to work:
Block 20 minutes today to calculate your current numbers. No excuses.
Set targets for each metric:
Maximum capacity: Can you increase it through schedule optimisation, equipment layout, or staffing?
Utilisation: What's your ideal rate? 80% is often the sweet spot.
Break-even cost: Can you reduce fixed costs or increase session efficiency?
Churn: What retention strategies could lower this by even 1%?
Create a simple dashboard (even a basic spreadsheet works) to track these numbers weekly.
Make these metrics visible to your team—what gets measured gets managed.
The Bottom Line: Numbers Don't Lie, They Liberate
When you know your metrics, decisions become clearer. Price increases, staffing changes, expansion plans, marketing budgets—all these decisions should flow from your numbers, not your gut.
The most successful gym owners we work with aren't necessarily the best trainers or the most charismatic salespeople. They're the ones who understand their business as a system of measurable inputs and outputs.
They know exactly how many new members they need, how much headroom they have, and what prices are actually profitable.
They're not flying blind. And neither should you.
Want to dig deeper? Download our FREE Gym Growth Guide for a step-by-step blueprint for gym owners and fitness entrepreneurs who want to stop guessing and start growing. This isn't theory—it's a battle-tested playbook that works for boutique studios, CrossFit boxes, and traditional gyms alike.
PulseFit Marketing helps fitness businesses build brands impossible to ignore. Book a free strategy call to see how we can help translate your metrics into marketing that works.
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