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How to Boost Your Average Revenue Per Member as a Home Gym Business Owner

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Starting a home gym business and microgym can be a fulfilling and exciting venture. Not only do you get the opportunity to pursue your passion for fitness, but you can also help others transform their lives. Like any business, it requires thoughtful management and planning to succeed. As a microgym owner, it's crucial to continually boost your profits to stay afloat. One way to achieve this is by increasing your Average Revenue Per Member (ARM). In this post, we'll discuss some practical tips on how to boost your ARM and take your home gym business to the next level.

What is ARM?

Every new client you onboard brings in revenue. But, to ensure your business is sustainable, each client must earn you more than they cost. Average revenue per member (ARM) helps to measure this profitability. ARM is calculated by dividing the total income earned from memberships by the number of members. This metric provides insight into how much each member contributes to your business's overall profitability.

But if the goal is increasing your profitability, isn’t it easier to add more clients?

The old myth of “quantity over quality” doesn't always hold true for microgym owners. Each new client comes at a cost. It involves the intake meeting, the onboarding, ramp-ups, follow-up calls to keep them on track, etc. With a limited number of members, making each count should be your focus. The key is creating an environment where members want to stay. 

Here are five tips to help you boost your ARM and take your home gym business to the next level.

Offer Value-Added Services

Besides providing top-quality equipment and training programs, you can boost your ARM by offering additional services that your members will find valuable. For example, you can provide nutritional guidance, massage therapy, or educational workshops. These services can attract new members and encourage your existing members to increase their spending with you.

Offer Personalized Services

Personalized services are increasingly popular in the fitness industry. Members love getting customized attention that caters to their needs and goals. You can offer personal training programs, fitness assessments, and one-on-one coaching sessions. You can entice your members to spend more with you by providing personalized services.

Use Tiered Memberships

Tiered memberships are an excellent way to increase ARM. By offering different levels of memberships, you can provide additional benefits and charge a higher price for more extensive packages. Some members will be more willing than others to pay extra for advanced benefits, so catering to different budgets and experience levels is crucial.

Use Loyalty Programs

Rewarding your members for their loyalty is an excellent way to boost your ARM. By creating loyalty programs, you can keep your members engaged and ensure they keep returning and spending more. You can offer discounts, free services, and other incentives to members who refer others to your business or renew their memberships.

Focus on Customer Experience

Customer experience is paramount in the fitness industry. Members want to feel comfortable and welcome in their gym environment and see their needs taken care of. So, creating an environment that feels inclusive, personalized, and welcoming is essential. By paying attention to the customer experience, you can create a loyal customer base that values your business.

By offering value-added and personalized services, tiered memberships, using loyalty programs, and focusing on the customer experience, you can boost your ARM and take your business to greater heights. Remember, put your members first because they are your business's lifeblood. By ensuring they are happy, engaged, and satisfied, you can create a thriving business that provides lasting value to your community. 

As a result, new clients will find you.

Start a microgym today with our Microgym Startup Guide