Anytime a gym owner is looking to increase gym revenue, the first inclination might be, ‘I need more members.’ But there are a multitude of additional revenue stream options out there. And apparel sales is a great place to start.
The benefits include more than just profit for your gym. Apparel sales can be effective for things like brand awareness and even membership retention.
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However, despite significant revenue potential, gym owners sometimes look at apparel sales as too labor-intensive or not worth the profit margin. Today, we’re talking with Matt Albrizio, owner of Forever Fierce, about the simple steps you can take to increase gym revenue with apparel sales.
Six Ways Apparel Can Help You Increase Gym Revenue.
1. Start Planning Orders Early.
One of the biggest mistakes Albrizio says gym owners make when it comes to apparel orders is waiting too long.
“The most important thing - right off the bat - is you need to have your apparel early in fall season,” he said. “To have your designs done and orders in by early August. So you’re ready to go when that first chilly morning of the fall hits.”
Ultimately, convenience is king. When the temperatures drop for the first time, your members will be primed and ready to purchase a branded hoodie. But if you don’t have them ready to go, they’ll get one elsewhere.
2. Know When and What to Order.
Albrizio recommends offering two apparel orders between September through December. One in the fall and one in the winter should be an effective way to increase gym revenue to close out the year.
For the fall order, he suggests long-sleeve baseball tees and lightweight hoodies, plus a custom t-shirt. Then as the holidays approach, he recommends heavier pullovers and hoodies. He noted that the holidays are also a time when people are more willing to drop a bit more money.
Albrizio says it can be tempting to order unique branded apparel like shorts or sports bras. But the more unique the item, the pickier members will get. Even with hats, people prefer a specific size and fit, so it’s harder to accommodate.
As you’re looking at the full calendar year, Albrizio recommends three other apparel order time frames to increase gym revenue. First, for gyms in the United States, a Memorial Day order. Second, a summer order. And finally, a CrossFit Open order, if your gym participates and does events like Friday Night Lights. These three, in addition to the fall and winter orders, make five for the year.
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“Every gym should be able to hit those five big orders really with no hassle, and they’re not a hard sell,” he said.
3. Learn the Power of Pre-Orders.
Another mistake Albrizio has witnessed gym owners make is offering too much apparel inventory.
If you happen to get a large number of drop-ins, your gym might be an exception. For everyone else, that’s where pre-orders come in. Available in PushPress Core, pre-orders allow members to choose their apparel items and pay up front. That way, you’re not fronting the cost or ordering too much inventory.
As a rule of thumb, Albrizio recommends adding only six additional apparel pieces to your pre-order. Specifically, he suggests ordering three extras in the most popular size, two of the second-most popular, and one of the third-most popular.
That way, you can increase gym revenue without “investing hundreds of extra dollars in inventory.”
Pro Tip: Want to learn about other ways PushPress gym management software can save you time and help your gym run more efficiently? Book a demo with our team today!
4. Understand Profit Margins to Increase Gym Revenue.
Forever Fierce works with gym owners around the world, so Albrizio knows a thing or two about helping them understand profit margins.
First, he explained that margins will depend on the size of the order and the specific items. But even with a minimum order of 24 pieces, gym owners should expect at least 30-40 percent profit. On a bigger order (e.g. 75-100 pieces), you should be able to increase that profit margin to 50-100 percent.
Another way to increase gym revenue through profitability on margins is to keep your designs simpler. Albrizio cited two examples. First, printing with only black ink, versus a variety of colors. Second, only printing on one side of the shirt, versus a front-and-back design.
With that in mind, he said some apparel pieces will simply make you more money than others, and that’s okay. He recommended shooting for two “margin bangers.”
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5. Know What to Expect.
As you look to increase gym revenue through apparel sales, it’s helpful to know what to expect.
Albrizio said the average gym with 100 to 150 members can expect to make a minimum of $600 per order. Therefore, five orders per year generally yields somewhere between $2,500 to $5,000 of additional revenue.
“It’s a nice bonus,” he said. “And I always suggest people throw it into a separate savings account, and then use it for something at the end of the year. Go on a vacation, pay off a debt or throw it into a member appreciation party. When you give it a purpose, then it becomes a priority.”
6. Work with an Experienced Company.
When exploring ways to increase gym revenue, one of the most important things is to choose options that don’t deplete your time and energy. You’re busy enough already, so apparel sales won’t be beneficial if they weigh you down.
Therefore, working with a partner like Forever Fierce takes the work off your plate. From sending samples to creating designs, they do the work for you. Plus, they’ll help you lay out an entire year’s plan, sending reminders along the way to keep you on track with orders. This makes for a simple “set it and forget it” process, creating a new revenue stream without significant lift.
In Summary: Count On Apparel Sales to Increase Gym Revenue.
Apparel sales can be an effective way to increase gym revenue without an overwhelming amount of work.
Start your planning early, and know which pieces to order at each time of the year. Look to pre-orders to help you manage inventory without fronting costs. Understand profit margins and know what to expect to get the most revenue from your orders. And finally, work with an experienced company like Forever Fierce.
As Forever Fierce owner Matt Albrizio says, it should make selling apparel a no-brainer with the “least amount of work possible” for gym owners.