The Silent Profit Killer In Your Gym
Chatting with a friend last week about joining a gym, he said “I didn’t think I’d put on any weight… until I saw a photo from 5 years ago.”
That’s weight creep — and your business has a version of it too: Expense creep.
Since 2021, here’s what we’ve seen:
- Electricity: Up to 30% in the US, 50%+ in parts of Australia
- Wages: 18.8% increase in the US, 13.6% in Australia
- Super just ticked up from 11.5% to 12% in Australia
And yet… many gym owners haven’t raised their prices.
Here’s the thing:
Your expenses have crept up.
Your margins have shrunk.
And if you don’t make a bold move on prices, you’ll be running harder just to stay in place.
My challenge for you this week:
- Compare your P&Ls from the last 3 years.
- What’s increased (and what’s still going up) and by how much
- Work on the increase needed to maintain your profit levels.
- Then start planning your 2026 price strategy now.
Plan your 2026 prices now to start the price change strategy.
Justin is the Managing Director of Active Management, which he began January 2004. He offers coaching to businesses worldwide in everything from start up and design to marketing and sales systems. Justin also facilitates four Australian and New Zealand ‘fitness industry roundtables’ events, which allows him to see a huge cross section of business models.