So, You’re Looking to Open a New Gym? Let’s Talk About the Most Important Decision You’ll Make… Price.
Opening a new gym is one of the most exciting projects you can take on as a fitness professional. You’ve got the vision, the energy, and hopefully a great location. But before you start ordering dumbbells and designing your logo, let’s get real about something:
If your numbers don’t work, your dream won’t either.
And at the heart of those numbers—above floorplans, equipment lists, or even marketing budgets—is your pricing strategy.
In most gyms, 80–90% of revenue comes directly from memberships. Which means that the price you charge per member doesn’t just impact your income—it determines your entire business model. From your service standards to your staffing levels, brand identity, overheads, and growth potential… it all flows from this one number.
So let’s unpack why price is the single most important decision you’ll make—and why it’s not as simple as “charge more for more.”
Price = Promise
Let’s start with the obvious. Your price sets the expectation.
If you charge £19.99/month, members expect a clean, well-equipped space they can access with minimal friction. That’s the deal. If you deliver on that, you're golden.
But if you're charging £99/month, expectations rise dramatically. Now you're not just providing access—you’re promising a transformation, a community, a lifestyle. You need coaching, support systems, technology, and meaningful interaction. That’s not a self-service model anymore—it’s a high-touch, resource-intensive operation.
The higher the price, the higher the promise. And that promise costs money.
The Volume vs. Value Trade-Off
Here’s where it gets tricky. More services mean more staff. More touchpoints. More costs.
Yes, a £99/month model brings in 5x the revenue of a budget club. But what many underestimate is that it can also bring 5x the cost base to deliver that level of service properly. Boutique doesn’t mean better margins by default. In fact, unless you’re running lean and with ruthless efficiency, it can be much harder to make work.
Conversely, budget clubs thrive on volume. The £19.99 price tag is designed to feel like a low-risk decision—psychologically it triggers commitment without friction. You’ll often hear people say things like “It’s only £20, even if I don’t go, it’s fine.” That kind of inertia actually helps drive retention.
But here’s the catch: budget gyms need scale. To make the same revenue as a 300-member boutique club at £99/month, you’ll need over 1,500 members. And that means you need the systems, marketing, and infrastructure to attract and retain those numbers without blowing your margins on acquisition and admin.
Location Will Dictate Your Ceiling
You may have settled on your model—but your location might disagree with you.
A high-price, low-volume boutique gym sounds great on paper. But if your location is surrounded by council housing, low average income, and high street competition charging £24.99, you're in for a hard time—no matter how beautiful your offer is.
According to ONS data, median earnings vary significantly by region. In London and parts of the South East, you may have access to a population that can sustain £80–£100/month. In many northern towns or coastal areas, even a £40/month membership can be a stretch.
And it's not just income—it’s lifestyle perception. Some communities value health and wellness differently. Your pricing needs to align not only with what people can pay, but what they’re willing to pay for what they perceive as valuable.
The Psychology of Pricing in Fitness
Consumers don’t evaluate prices in a vacuum—they use reference points.
If the town is flooded with £25/month gyms, and you arrive charging £65/month, they’ll ask, “Why are you more expensive?” If you don’t answer that clearly—and repeatedly—you won’t win.
That’s why storytelling, branding, and experience are so crucial. Price is not just a number; it’s a message. It tells people where you position yourself, what kind of service to expect, and whether they’re part of the tribe.
Also consider price anchoring. In behavioural economics, this refers to how people assess value based on initial price exposure. A £60/month gym might feel expensive next to a £25/month option—but cheap compared to a boutique yoga studio at £130. How you structure your offer and position your tiers can significantly shift perception.
Competitive Landscape: Who Else Is Eating Your Pie?
Before you even finalise your pricing, look at your competition. Who else is in the area, what are they charging, and how are they positioning themselves?
If you’re trying to undercut a PureGym or The Gym Group on price in a city centre, good luck. Their economies of scale and brand reach will squeeze you dry. Instead, you may want to find value gaps—what aren’t they doing well? Could you add PT-led inductions, programming support, or a stronger member journey?
If your area is already saturated with high-end clubs, a disruptive budget model might be your edge—especially if positioned smartly.
But if you're in a first-to-market opportunity (and they are rare these days), you get to set the tone. Just be aware: the first club in town often becomes the reference point others are judged against. Get your pricing wrong, and you’ve set the bar too low for everyone—including yourself.
Overheads: The Silent Killer
Finally, don’t forget the boring—but crucial—bit: your overheads.
Your rent, rates, energy bills, software, cleaning, insurance… all need to be covered before you even think about margin. Many projects look great on passion and PowerPoint—but when the spreadsheet gets real, the dream dies quickly.
If your location demands £12k/month in rent alone, and your service model requires four full-time staff, you’re staring down the barrel of £25k+ in monthly costs. That means pricing isn't just about the market—it’s about survival.
Sometimes, the numbers just don’t work. And that’s OK. Walking away from a bad deal is better than limping through one for years.
So What Should You Do?
Here’s a smarter way to approach pricing before you launch:
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Run multiple financial models: What does your business look like at £25/month vs. £75/month? At 300 members vs. 1,000?
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Factor in your break-even: Know exactly how many members you need to cover your costs, and how long it will take to get there.
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Research your market deeply: Income levels, existing options, local lifestyle values, and willingness to pay.
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Start with value, not price: Build a service that solves real problems, and price according to its perceived value—not just your cost base.
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Don’t be afraid to pivot: If the numbers don’t stack up, change the model, reduce the spec, or look elsewhere.
Final Thought: Price Isn’t Just a Decision. It’s a Direction.
It defines who you serve, how you serve them, and whether your gym becomes a profitable business—or an expensive passion project.
So before you fall in love with your branding or start measuring studio space, fall in love with your spreadsheet first.
Because when the pricing’s wrong, nothing else you build can make it right.