11 New Strategies for Fitness Studio Owners to Reach Their Business Goals

Short answer? It's possible, but it's not likely.

I've built my business as a positive, always-optimistic coach. But I'll also be the first to tell you when I start noticing trends that could impact your business and livelihood. So here's what I'm seeing:

Studios that are relying on memberships and class packages alone are struggling to grow. Some are losing traction year over year and are feeling more frustrated than ever.

If you're feeling like you're working harder than ever but not seeing the financial results you want, it's not just you. The industry is shifting, and the old membership-based model isn't working the way it used to. Expenses like rent and salaries keep rising, competition is growing faster than ever, and clients aren't as willing (or able) to keep spending more on memberships when life feels more expensive.

That doesn't mean boutique fitness is dying, but if you want to continue growing, it's time to rethink your revenue model. Let's break down why memberships alone might not be enough anymore—and what you can do about it.

The Three Revenue Ceilings That Limit Membership Growth

Even if your studio is thriving today, there's a limit to how far you can grow on memberships alone. If you're locked into a reasonable rent expense and live somewhere with a low hourly wage, your studio might never hit this particular ceiling. Still, commercial rent has increased 61% since 2019 and averages $5,000+ a month for 2000 sq. feet. Add continuously increasing utilities and other operating costs that are on an upward climb, and it's no wonder studio owners are reporting costs to be more of an issue than they were previously.

1. The Space Ceiling

Your studio can only accommodate a set number of clients per class. Even if every single class is full—which, let's be honest, rarely happens (boutique studios typically run at 70 percent, and you know better than any stat that seasonal slowdowns, no-shows, and cancellations only make that smaller).

Your revenue is still limited by:

• The number of classes you can offer each day

• The number of clients you can fit per class

• The class times that people actually want to attend

• The number of instructors you have available to teach

If you wanted to increase revenue using memberships alone, you'd have to add more classes, which also means expanding payroll, utilities, and staff management. That's not always sustainable.

2. The Market Ceiling

The boutique fitness industry has changed from when a client would sign up for a gym membership and keep it forever. Even if you have an incredible studio and a loyal member base, the reality is that consumers now have more options than ever before.

Almost half of surveyed boutique fitness clients visit multiple studios per month. They're no longer tied to one studio.

This is happening for a few reasons:

• More boutique studios are opening every year, giving clients more choices. Approximately 40,000 boutique fitness studios are operating across the United States today.  This number reflects significant growth over the past decade, with the boutique fitness sector experiencing a 400% increase in the number of studios between 2010 and 2014 alone.

• Big-box gyms are now offering boutique-style classes for a fraction of the price (we're not talking about quality in this assessment, just the fact that they're offered).

• At-home fitness is more accessible than ever, with high-quality streaming workouts and connected fitness equipment.

• ClassPass and other pay-per-class models allow clients to bounce between studios without committing to long-term memberships.

All of this makes it harder to attract and retain members in the way studios could ten years ago. If your studio's entire business model is based on selling memberships, you're competing in an oversaturated, price-sensitive market.

3. The Pricing Ceiling

First, a disclaimer. I want you to raise your rates. If your pricing calculator isn't giving you your profitability point (how many clients you need to make money), and helping you meet your financial goals with strategy, you need a new one (like this one). Raising prices seems like an easy solution, but at some point, you'll cross the threshold, and clients will push back.

Price increases also come with expectations. If clients are paying more, they'll want more—whether that's better amenities, more personalized experiences, or extra perks. If you push too hard, your members will look for a cheaper option next door. If you don't raise your rates to compete on price, but your expenses keep going up, it's a race to the bottom, and no one wins. It's a negative feedback loop.

Relying on membership revenue alone means you're stuck in a cycle of trying to bring in more clients or constantly raising rates to keep up with rising expenses. Neither is a sustainable long-term solution.

What's Working Now?

The studios that are growing are getting creative

For my studios in expensive markets, the most successful studio owners aren't just selling memberships. They're finding ways to monetize their space, expertise, and community beyond the classic model.

Here are some of the most effective strategies studio owners are using right now:

1. Monetize Your Space

Your studio is valuable real estate, and there are ways to generate income from it outside of classes.

• Sublease open time slots to personal trainers, massage therapists, or other wellness professionals.

• Turn underutilized areas (like a retail corner or office) into rental spaces for nutritionists, estheticians, or health coaches.

• Offer your studio as a rental space for corporate conferences, content creators, fitness influencers, or outside workshops (I like Peerspace- not sponsored, just a fan).

I know studio owners bringing in $5000+ every month renting their off-time hours that used to sit empty. If you can't control expenses, you can bring the ceiling down with rental income and bring in additional revenue without adding more work to your plate.

2. Add High-Ticket Offers

Your expertise is worth more than just a class swipe. Expanding your offerings beyond memberships and drop-ins can increase your revenue per client without requiring you to find new members constantly.

• Host local or destination retreats and charge a premium for an all-inclusive experience.

• Offer specialty workshops on topics like injury prevention, stress management, or advanced technique training.

• Host specialty teacher trainings that instructors can't get online (I don't mean a 200 YTT that you can find online for $300). Advanced or unusual programs are super popular, and they're relatively easy to certify with ACE. At $1500+ a session, it doesn't take many signups to be financially successful.

• Partner with businesses to offer corporate wellness programs—companies pay big for team fitness and stress reduction programs.

These high-ticket offers don't require you to add more classes or members. They allow you to serve your existing audience at a deeper level while increasing revenue.

3. Increase Average Client Value (ACV)

Instead of focusing only on bringing in new members, consider ways to increase the value of each client. I have studios doing each of the following successfully:

• Add recovery and wellness services like infrared sauna, red light therapy, or stretch sessions.

• Offer accountability programs that combine fitness with mindset coaching or habit-building.

• Build a VIP personal training or small group program that offers clients more one-on-one time for more money per session.

• Create holistic memberships that offer classes, wellness services, nutrition, and coaching all in one and charge a premium for them.

When you significantly increase your ACV for your most active clients, your monthly revenue goes up faster than it could with $159/month clients and you don't need to increase class capacity or hustle for new cheap leads.

It's Time to Adapt

It's cliche, but it isn't about working harder. It's about working smarter.

The boutique fitness model isn't just changing; it's already changed. Unless your expenses are locked in at old, low rates, relying on memberships alone is just a ticket to frustration. The studios that diversify their revenue streams and create new ways to serve their clients will grow—without burning out or constantly fighting for new leads.

If your studio is feeling stuck, you're not alone. The good news? There are plenty of ways to increase revenue without adding more classes, raising prices, or working more hours; I see it every single day.

It's time to rethink how revenue works in boutique fitness. The future isn't just about selling memberships—it's about creating a business model that sustainably supports your goals. Here's to your successful studio.