Your gyms profit requires you to understand the key drivers in your business.
To grow a business you need to constantly focus on:
* growth from revenue
* pricing and margin
We are often asked what are the most significant costs to a wellness studio or gym
We have summarised based on our experience in helping our clients and what the industry publishes as the main costs to watch when it comes to your business. These can be summarised as:
- Rent between 12% – 16% of revenue
- Staff wages up to 33% of income
- Capital expenditure and repairs – approximately up to 15% ongoing
- Insurance 5%
- Ongoing marketing – 5%
Staff costs can often eat into your profit . Its often why some gyms have adopted limited staff and 24 hour access. Is this for your business . It comes back to what the image is of your business and the customer revenue model you wish to adopt.
Costs can only be cut so far after that it is upto you to drive revenue to make it a profitable venture.
Read our full article at www.ggassociates.com.au/fitness-accountants