How to figure out your Dollar Average Per Workout (DAPW)

Running a gym is one of the most gratifying experiences. Not only are you running a business that plays a vital role in an individual’s health and well-being but you’re also month by month collecting membership dues throughout their journey and your journey to being profitable. 

As a gym owner or manager, your goal is to maximize profitability. Some of the areas consist of upselling. 

Upselling can range from: 

• Upgrading a client’s membership perks.
• Adding a family member onto their account. 
• Selling the member personal training. 
• Selling Retail & Concession. 
• Towel Service
• Renting a locker
• Tanning

While every gym is different what we can all agree on is the membership dues help take care of your bottom line (payroll, services, rent & other expenses). 

Most gym owners would say that selling additional services is equally as essential as the membership dues every month. 

Over time we will dive into how to capitalize on said services but for now, let’s talk about the Dollar Average Per Workout (also known as, DAPW).

For me, I find that the DAPW is a very helpful indicator for gaining an understanding of what each workout brings into your club. 

For example, if your gym has spent 1000.00 a month on concessions (wholesale) with the intention of selling it all that same month (25% increase retail = 250 profit) and there are 30 days in the month then we know we need to sell at least 42.66 per day. 

We now know the daily need but what’s the ideal breakdown?

Hopefully, you have access to your member check-in history because you will need to run that report. If you saw that your previous month had 5k workouts over the span of 30 days then you’ll now divide 5000/30 and your average will be slightly above 166. 

So now we know on average we see 166 workouts per day. 

Lastly, you’ll divide 42/166 and finally, you’ve come up with a 0.25 dollar average per workout.

Now, this is based on you selling out of product each month and having to fully replenish. If you are selling out every month then please share your secrets in the comment section. For those who are not selling out, you have at the very least figured out what your average would need to be to sell out and now you can run that same formula to identify where you currently are and this will help you come up with a break down of your variance. 

I hope this post gave you another resource for you to help better dissect your business. Follow our blog & subscribe to get updates on new gym blog posts.