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    Should your cycling offering be free or paid?

    Les Mills

    While there’s no right or wrong answer, it is possible to make a wrong call for your club. Read on to learn how to select the right solution for your situation.

    In a multi-activity fitness club, many factors need to be considered when choosing your business model.

    Your revenue model is critical but you also need to consider:

    External environment

    Is it a competitive market, is it fragmented and is there potential catchment remaining for you to target?

    Existing value proposition

    What do you offer for your membership and what is part of your core product mix? Consider if your cycle offering is something your staff currently (or should) recommend to meet most member needs? Or, do you have a core of products to meet your members’ needs, and cycle is just an optional alternative?

    Internal environment

    Is your gym at capacity or do you have room for more members? What other competing programs do you offer against cycling? Are they included in membership or add-ons?

    There is no black or white answer. Without an in-depth analysis of these elements the temptation may be to consider a ‘pay-per-class’ model.

    This may be appropriate if your club meets some very specific circumstances, including the following sets of criteria:

    • Your membership pricing is considered to be at the low end of the market and cycling is not part of your core value proposition
    • You have a big membership, a small studio (and therefore a small supply capacity) and a solid take-up of your cycling offer. In this case, charging a booking fee specifically for your peak time classes and rockstar instructors might be the right model
    • You have no more growth potential in terms of membership and attendance, and the only way to generate further income is via secondary revenue.

    In all other circumstances, which is the vast majority of case scenarios, if you’re a multi-activity club you should should strongly consider including the cost of classes in your core membership, which may mean increasing your membership fee by an extra few dollars.

    The financial benefit to the club through increased engagement of your member base, and its subsequent effect on retention, will outweigh the financial benefit of the ancillary revenue from charging per class.

    Cycling can drive your club’s revenue in more ways than one. Register for a cycle seminar to learn more.

    Eager to unlock the power of the pedal? To find out more on how to sweat your cycle studio and calculate how much more your club could earn with a fully-firing cycle solution, discover it here.

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