Meet Ruby. She was a passionate Pilates lover, having been practicing for years with aspirations of growing her love of Pilates into a business. She dreamed of having a functioning Pilates studio of her own, one where she could both show people the benefits of Pilates and develop a community.
But as Ruby started looking into the realities of owning a Pilates studio, she realized that she would need more than just a love for fitness to make that dream a reality. Questions about the business side of things—how much she could reasonably make, what expenses to expect, and how to scale her business—became top of mind.
Ruby, as with most new Pilates studio owners, had to learn about the business model, the costs, and what she could expect to earn. Success in the Pilates business is a rewarding journey, but with it comes the financial challenge of ensuring a profitable studio.
In this article, we’ll walk you through the most important things to know about being a Pilates studio owner—from the financials to income expectations. By the end, you’ll have the opportunity to get a better idea of what it takes to start and run a successful Pilates studio and what you can anticipate as far as earnings. From the ground up—whether your journey has just begun or you’ve already planted your seeds—this guide will navigate you through from start to finish of owning a studio Pilates franchise, with the insight you need to make the right decisions along the way.
Understand the Pilates Studio Business Model
Basically, the Pilates studio business model revolves around providing adequate fitness facilities for different clientele. Group classes and private sessions account for most of your income; clients usually pay via membership fees, class packages, or sessions. You can even charge less for individual classes to get more clients, or charge more for individual sessions for a more profitable income stream.
Workshops and specialized programs can also be suitable for Pilates studio owners in addition to the classes and sessions. Specialize in niche areas like prenatal Pilates, advanced methods, or rehabilitative work. Members who might want to develop their practice or learn a new skill are drawn to workshops, which bring an additional income stream.
Many Pilates studios also sell Pilates equipment and merchandise to support the services they offer. These include mats, foam rollers, reformers, resistance bands, and branded studio gear like water bottles, clothing, and accessories. Sales of such products can give you passive revenue in addition to more exposure to your studio.
While these streams represent a significant portion of your potential revenue as a studio, you could be setting yourself up for failure if you don’t have a set plan for marketing your studio and keeping clients. A strong brand presence, a consistent online presence, and compelling reasons to visit all contribute to ongoing attendance and revenue streams.
Expenses of Running a Pilates Studio
Pilates studio expenses can add to both major payments and minor outgoings, so keeping on top of your cash flow is vital. Here are the major expenses you might incur:
Studio Space Rent or Lease Payments
Rent is one of the largest expenses associated with any Pilates studio. The studio’s location, size, and condition will greatly affect this cost. A better location in a busy area will probably cost you more in rent, but it will also likely bring in more clients. Remember that when calculating monthly expenditures, utilities and maintenance may or may not be covered in the rental price.
Cost of Pilates Equipment and Maintenance
Pilates studios need equipment like reformers, mats, stability balls, and resistance bands. Purchasing this equipment can initially be a big investment. Regular upkeep and maintenance are also required to keep things running smoothly for a safe environment where your clients aren’t hurt. As equipment has to be replaced or is inevitably subjected to wear and tear, these costs can really mount up over the long term.
Payments to Trainers and Coach Salaries
One of the biggest costs in any Pilates studio is paying qualified instructors. Instructors are paid per hour or class, depending on your business model. In addition, you should consider instructor training and certifications to ensure that your staff provides only the highest teaching and safety standards. Instructors must also engage in continuing education and workshops to stay current with best practices.
Costs Related to Marketing and Advertising
You’ll want to spend a percentage of your budget on marketing and advertising to bring in new clients and create a loyal community. You should budget for both online and offline activities like social media advertisements, Google ads, website updates, email campaigns, and local print advertising.
Insurance and Liability Costs
Like any fitness-related business, securing proper insurance coverage is essential. Most Pilates studio owners require liability insurance to cover themselves from possible lawsuits due to injuries. Extra coverage could also involve property insurance to cover equipment and the space itself, plus workers’ compensation for employees. Insurance is an important safety net, but it is also an ongoing expense that you should consider in your budget.
Revenue Streams for Pilates Studios
It is important to diversify your revenue streams to keep your Pilates studio profitable. Having only one source of income might not be able to offer the financial stability you need.
Membership Dues and Class Packs
Pilates studios earn a significant portion of their revenue from membership fees and class packages. The various membership options—monthly, quarterly, or annual—can stabilize cash flow and allow your clients to choose flexibility. In addition to this, class packs (i.e., 10 or 20 classes) are paid in advance, allowing members to maintain commitment and provide upfront revenue. Consider different price points for package options for group classes based on frequency or package duration, allowing for a tiered approach better suited to different customer needs.
Workshops and Private Sessions
Group classes are a major revenue generator, but private sessions can really help grow your income. Because of their individualized nature, these one-on-one sessions usually also command a higher rate. You can also offer specialized workshops—on advanced Pilates moves, post-rehab Pilates, pre-natal Pilates, etc.—which encourage people to deepen their practice while allowing you to provide premium pricing. It can also be a great way to bring in new clients who eventually might switch to a more full-time membership.
Selling Pilates Equipment and Merchandise
A great way to earn extra income is by selling Pilates equipment—including mats, resistance bands, rollers, and reformers—and branded merchandise like water bottles, apparel, and accessories. In fact, most clients prefer to buy equipment through their trusted studio because this means they can continue exercising at home and maintaining their fitness levels. Not only can high-quality branded merchandise create a new source of revenue, but it can also promote brand loyalty.
Collaboration With Other Fitness Businesses or Wellness Centers
Affiliate marketing of other fitness companies or wellness centers will widen your income opportunities. You might partner with gyms, yoga studios, or health food cafes to cross-promote, refer people to one another, or offer bundled discounts. Involving similar fitness and wellness practices can widen your reach to local hospitals, doctors, and wellness centers, as they may send patients to your studio for rehabilitation.
Virtual Training Programs and Online Classes
Providing online courses or virtual training sessions has become a hot commodity in today’s digital world. This means you can set up a subscription service or a one-off paid model for clients who prefer to practice at home or cannot attend sessions in person. Virtual classes, including video classes, live streams, and on-demand options, are all ways for you to expand your audience outside of your immediate area, resulting in increased income and a larger community.
Pricing Strategies for Pilates Classes
If you want your Pilates studio to be profitable, you need to have multiple revenue streams. Having only a single stream of revenue on which to depend can leave you open to the possibility that even if you make enough money to survive, you’ll be caught without cash flow in the bank to support your expenses. So here are the main streams of revenue for Pilates studios:
Membership Fees and Class Packages
Membership fees and class packages are one of the Pilates studio’s main revenue streams. You can create a more robust cash flow without compromising your clients’ flexibility by providing multiple membership types, i.e., monthly, quarterly, or annual. In addition, class packages (e.g., 10 or 20 classes) can be sold to members, guaranteeing a commitment and generating upfront capital. You could also consider offering different tiers of packages for group classes based on frequency or duration to meet more customer needs.
Sessions and Workshops
Group classes are a big revenue driver, but one-on-one sessions can greatly increase your earnings. Those personalized services generally charge higher, such as one-on-one coaching. Workshops in specialized areas (like more advanced Pilates techniques, post-rehabilitation Pilates, or prenatal Pilates) also allow clients to take their practice to the next level (and charge a premium price point). Drop-in classes can attract new clients who might eventually convert to annual memberships.
Pilates Equipment and Merchandise Sales
Another way to increase your income is to sell Pilates equipment (mats, resistance bands, rollers, and reformers) and branded merchandise (water bottles, apparel, or accessories). It all comes down to wanting to stay committed to your fitness while also staying safe and healthy, so many clients are buying equipment from their studio, allowing them to practice at home. Branded, high-quality merchandise creates a new revenue stream and can instill brand loyalty.
Partnering with Fitness Businesses or Wellness Centers
Another alternative is to partner with local gyms, yoga studios, or health food cafes and organize joint promotions, referrals, or discounts. By networking with wellness centers and doctors’ offices, your studio can become a recognized resource within a larger health and wellness options network.
Online Classes and Virtual Training Programs
With the digital world today, adding online classes or virtual training programs is a growing trend. You can offer these models along with one-time payments for clients who like to practice at home or simply cannot visit for in-person sessions. Pre-recorded video classes, live-streamed classes, and on-demand access are other forms of virtual offerings that help you get outside your geographic area—especially for brands that require royalties for a fresh build revenue while building a wider audience.
Target Market and Customer Segments
To create effective marketing strategies and ensure the success of your Pilates studio, it is important to understand your target market and customer segments. You can do this by breaking down your audience into demographic and psychographic categories, even pinpointing specific fitness goals and needs that help to ensure what you have on offer is aligned with the unique tastes and demands of your clients. This is how you define your target market:
Age, Income, Occupation, and Education Level
Knowing the demographic data that is relevant to your target market allows you to gain a fuller understanding of who your ideal customers would be. Pilates is most appealing to a wider age range, but there are probably going to be some ages that respond better to the services you provide than others. For example, people between the ages of 25 and 45 tend to be more active and health-conscious.
You can also segment clients based on income and consumption: Higher-income clients might take private sessions or premium memberships; others might prefer budget classes. Knowing your customers’ occupations and education levels also provides insight into their fitness interests, preferences, and time pressures. Busy professionals might opt for more flexible options, such as taking classes online or in the morning.
Psychographics: Interests, Set of Values, Lifestyle
Beyond demographics, you also need to explore psychographics, including your customers’ interests, values, and lifestyles. Pilates tends to draw people who care about wellness, mind-body connection, and sustainable ways of fitness. Clients might also seek to enhance their general mental health, flexibility, and core strength instead of aesthetic purposes alone.
By understanding what matters to your target market — whether that’s being environmentally conscious, giving back to the community, having a life outside of work, etc. — you can tailor what your studio offers, create a welcoming environment, and ensure your marketing reflects the values your customers want to see.
Target Market Action Based on Their Health Goals and Preferences: Beginners, Intermediate, Advanced
Clients’ fitness ambitions will vary greatly, so catering to different experience levels is key.
- Beginners: These clients are in the initial stages of their fitness journey and would benefit from beginner classes, one-on-one training sessions, or workshops to gain confidence and learn appropriate techniques. When you provide space with basic Pilates equipment for beginners, it gives these clients somewhere to start their practice.
- Intermediate and Advanced: For those who are more experienced, you might offer classes specialized in developing technique, flexibility, strength, and endurance. You can go a step further by providing workshops with advanced topics or private sessions where you can work on their individual aspirations and, in turn, connect with clients who are truly invested in improving their practice.
Health-Related Issues or Special Needs: Prenatal, Postnatal, Injury Recovery
Pilates is also frequently suggested for those with specific health concerns or special needs, like pregnancy, postnatal healing, or injury recovery.
- Prenatal and Postnatal Clients: Providing prenatal Pilates classes and postnatal recovery classes can attract mothers who want to stay active during pregnancy or seek to recover after childbirth.
- Rehabilitation from Injuries: Pilates has been widely recognized for its rehabilitating properties regarding injuries. Market classes focused on rehabilitation and/or work with physiotherapists to help clients with various chronic pain and specific injuries, such as back, neck, and joint problems.
Urban, Suburban, Rural, Online: Location and Accessibility
Location is the defining factor in your customer segments for your Pilates studio.
- Urban Locations: In urban areas and even in larger city centers, there is the potential to reach a large audience of working professionals and young learners who seek adjustable habits for their exercise routines. Busy city dwellers will certainly appreciate convenient class times (early morning, lunchtime, or evening) and online options.
- Suburban Areas: Typically, families and retirees represent most of the clientele in the suburbs. Providing classes accommodating family schedules and offering group classes can also be particularly attractive.
- If the business is located in a rural area, as many studios are, the local communities may desire a more close-knit, personalized experience. You can leverage these areas by providing small-scale classes or on-the-road pop-up classes in neighboring towns.
- Online: In-person/online class options or virtual training programs expand your studio beyond the clients in your geographical area. You can connect with people around the world or those who cannot attend physically due to location and timings, etc.
Breakeven Point and Profitability
The breakeven point is when your studio revenue equals its total fixed costs (those expenses that don’t change no matter how many clients you have or classes you schedule). Examples of fixed costs are rent, utilities, insurance, salaries, and equipment leasing. Once your studio’s revenue exceeds these fixed costs, you begin to make a profit.
When calculating your breakeven point, you’ll want to add all of your fixed costs together and figure out how many classes (or sessions) you’d need to sell to cover those costs. For instance, if your monthly fixed costs total $15,000, and your average revenue per class is $200, your studio needs to sell 75 classes per month to cover those expenses.
The first milestone you want to target for your Pilates studio is breakeven. In the meantime, you need to ensure you continue to keep those costs down and ensure that you can find and attract enough customers to make your rent, as well as your other costs.
Profitability Factors
After your Pilates studio has hit its breakeven, it will focus on generating profits. Profitability is based on some factors such as:
Pricing: An important consideration is to price the offerings of your classes, packages, and services appropriately. If you charge too much, you lose out on potential clients; if you charge too little, you are not making enough revenue to cover your costs. It’s all a matter of balance between pricing competitively and providing value.
Stream of revenue: A variety of revenue channels will boost profitability. In addition to that, you can offer private sessions, workshops, retail sales of Pilates equipment and merchandise, or even online classes to reach a larger audience.
Expense Management: Ensuring that expenses, especially fixed costs, are well managed is vital to make sure that the entity remains profitable. Securing attractive rental agreements, optimizing equipment utilization, and controlling variable costs like marketing and promotions will drive up profit margins.
Achieving Profit Margins
Typical profit margins for a successful Pilates studio hover around 10-20%. This means that, after expenses, the studio nets 10-20% of its revenue as profit. There are several things that can affect this margin:
Client retention: A loyal customer base enables repeat business and mitigates the cost associated with acquiring new clients. Good retention rates maintain profitability.
Operational Efficiency: Improved operational efficiency – including automation of scheduling and payments and strong management of overhead costs – all lead to a better bottom line.
Upselling and Add-ons: Introduce additional value-added services, like personal training, nutrition coaching, or level upgrades that can help maximize revenue per client, enhancing profitability.
Financial Performance of a Pilates Studio
The financial performance of a Pilates studio can vary greatly depending on its size, location, and client base, but here are some general figures to consider:
- Average Monthly Revenue: $5,000 to $50,000. Smaller studios with fewer clients may fall toward the lower end of this range, while larger, more established studios could earn more.
- Average Annual Revenue: $60,000 to $600,000. The annual revenue range reflects studios of varying sizes and operational strategies. Studios with a solid clientele, a variety of offerings, and strong marketing efforts will likely fall on the higher end of this scale.
- Net Profit: $10,000 to $100,000 per year. Profit margins can vary depending on expenses such as rent, staff salaries, marketing costs, and equipment maintenance. More efficient studios with streamlined operations tend to generate higher net profits.
- Growth Rate: 5-10% per year. With the right marketing strategy, consistent quality of service, and customer retention efforts, Pilates studios can expect steady growth. However, growth rates may fluctuate based on external factors such as market saturation and economic conditions.
Create a Successful Pilates Studio Business
A successful Pilates studio is built on careful planning, up-front and ongoing investment, and dedicated practice. Key strategies to help your Pilates business thrive:
Establish a Solid Business Plan and Marketing Strategy: Begin with a clear business plan that outlines your vision, target market, and financial projections. You start with a plan that includes a detailed marketing strategy to attract and retain your clients. Use digital marketing, social media, and local partnerships to increase visibility and establish a strong online presence.
Invest in Quality Pilates Equipment and Instructor Training: Having the proper equipment is critical to providing effective Pilates sessions. Choose good quality reformers, mats, and accessories to suit various clients’ needs. Also, instructors should be trained regularly with updated techniques so that they provide high-quality instruction.
Develop a Robust Community and Client Retention Ability: By cultivating a positive, supportive community, clients will want to return and refer others to your studio. Provide individualized service, hold community gatherings, and make connections with customers that inspire a feeling of community and dedication. Your clients can become advocates for your business if you’re backed by a strong community.
Monitor and Make Changes to the Operations and Services You Offer: Evaluate constantly. Now, think about the ways that you can improve your business processes. Ask clients what they need so you can provide those services.
Keep Yourself Updated with Industry Trends and Best Practices: The fitness industry keeps on changing, and Pilates is no different. To be able to compete, train, and give information about new trends, new equipment, and new Pilates exercise techniques. You’d expect to attend industry conferences, connect with different professionals, and incorporate tried-and-true exercises to stay at the cutting edge of the market.
Conclusion
Owning a Pilates studio can be a great way of earning money while at the same time making a healthy impact on the lives of others and earning a sustainable income. But you need to understand the business model, the expenses, the revenue, and who your target market is.
With effective pricing strategies in place that suit the offerings of your studio and the market’s willingness to pay, you can ensure profitability and scale. Moreover, an effective marketing strategy and client retention practices—notably personalized services, loyalty programs, and community involvement—play a vital role in securing and retaining customers.
These core components are the foundation of a prosperous Pilates studio that goes beyond financial success, cultivating a dedicated clientele, and enriching the collective well-being of your local community.