The average gym has 1,000-10,000 members. However, only 20% of members are active daily due to capacity limits of 300-500 people. For example, Planet Fitness has 6,500 members per gym but can only accommodate 300 members at once.
Gym owners often sell more memberships than gym capacity to account for inactive members. The average boutique gym under 4,000 square feet has 100-500 active members.
According to the American Council on Exercise, the space requirements are:
- Free weights need 20-50 square feet
- Treadmills need 30 square feet
- Multi-gym stations need 50-200 square feet.
The reasons for gym failure include undercapitalization and lack of business expertise in sales, marketing, and implementation strategies. Many new owners wrongly assume the gym will sell itself.
A good size for a home gym is a 10×10 foot room. Studies show members who attend the gym frequently tend to retain memberships long-term. Strategies to increase attendance include:
- Group classes
- Fitness challenges
- Loyalty programs rewarding regular attendance.
The average gym churn rate where members cancel is 28.6% per year. Of those who actively attend, 49% go consistently. 18% of total members attend regularly compared to non-members averaging 24 visits per year.
People aged 18-24 years retain memberships for an average of 2.7 years. In 2020, 7 major fitness companies filed for bankruptcy in the US. About 50 million Americans currently belong to gyms, a 10% increase in 3 years.
On average, Americans spend $155 per month on fitness. Although building a home gym has high start-up costs, it saves money long-term compared to paying $175-$250 in monthly gym fees. Opening a gym costs $112,000 yearly.