Gym economics: The profit formula built on no-shows and renewals

Produced by: Mohsin Shaikh

Fee Foundation

Membership dues deliver steady income whether members show up or not.

Overbook Strategy

Gyms sell more memberships than their space can handle at once.

Profit in Absence

Low attendance keeps wear, tear, and staffing costs minimal.

Auto-Renew Trap

Contracts quietly roll over, capturing fees from inactive members.

Resolution Rush

New Year and festival sign-ups spike revenue despite quick dropouts.

Upsell Engine

Personal training, diet plans, and classes pad profits beyond memberships.

Budget Bulk

Low-cost chains thrive on thousands paying for minimal facility use.

Premium Niche

Boutique gyms charge high fees for specialized, loyal-client services.

Lifestyle Hub

Cafés, spas, and workshops turn gyms into full wellness destinations.