The Cost of Inaction Has a Higher Toll on Your Gym’s Profitability Than You Think

July 7, 2022

Because technology is constantly evolving in the fitness industry, you may be doing a disservice to your business’s bottom line when you keep the status quo. It is time you evaluate how you can elevate your gym’s profitability by using the latest technology.  

Identifying Lost Revenue 

Since the beginning of the pandemic all clubs have been struggling with higher numbers of account freezes and membership cancellations. Thus, the need for flexibility in managing various requests from members regarding their memberships has become a daily priority. At the same time, the technology needed on the back end to continue collecting monthly payments is even more important because many people do not show up at the club and you do not have the opportunity to collect a valid payment type.  

Because of this, most clubs continuously lose revenue due to not having up-to-date payment information, not having the means to store multiple payment options, and not having the ability to track inactive members due to lack of engagement and insights.  

Every month the number of declined payments adds up when the right actions are not taken. This is a general pain point for all clubs who rely on collecting continuous monthly payments from members to continue running their business.  

ABC: Simplifying the Business of Fitness  

ABC’s proven industry knowledge for over 40 years has led us to being the premier software solution for the fitness industry. ABC’s next generation of club management solution, IGNITE, is designed as an integrated suite for all the jobs that need to be done at the club. Whether you are running single or multiple gym locations, you need a partner by your side to manage memberships, operations, billing, and payment processes in one place so that you can focus on running and growing your business more efficiently. 

We recently completed an analysis of over 20 clubs, who have been managing their billing and payments processes with ABC’s full-service revenue-cycle management, to see the difference in their financial performance. The result shows 95% success in their delinquency remediation. Another analysis we did in a single location shows Credit Card decline rate goes down to 5% on average, increasing the Club’s revenue about $15,000 on a yearly basis.

cost of inaction

*The analysis is done in a single location for a club that has 1000 members.  

The success of ABC starts with the desire to listen to our clients and make the improvements recommended by them. We love to receive feedback from our users!  

The founder and CEO of Physiq Fitness, Landon Burningham, happily shared the benefits of an integrated suite after his decision to consolidate his CRM and branded mobile app to ABC IGNITE: “I think the most beneficial thing for me about ABC IGNITE is that everything is in one place. It simplifies my life so I can focus on my members.”  

The consolidation of various technologies, as well as the addition of new features in ABC IGNITE, equated to $1000 in cost savings across his 4 locations on a monthly basis. But Burningham says the biggest savings is the time found with his team. “Dealing with one partner vendor versus, in our case, four different ones at one point, is something that we can’t put a value on. Additionally, the ease of use for my front-line staff cuts down on their time and stress dealing with multiple companies. This, of course, saves tons of money over time with each staff person now being more efficient.” 

He also expresses how helpful it has been for him to rely on ABC when it comes to managing billing and payment processes. “The beauty of knowing that ABC handles billing process effectively all the time, just takes that burden completely off of my shoulders and has allowed me to focus on other avenues.”  

Technology should be a game changer, not a burden 

gyms profitability

After listening to our clients, we strongly recommend you start looking at the situation from a wider perspective and realize that the cost of managing a gym is more than just purchasing the software management system. When it comes to investing in club management software, instead of just focusing on the purchasing costs, you should also take into consideration the hidden costs and the on the long-term benefits of having a partner by your side to run your business more efficiently.  

17 Templates to Streamline Communication With Your Members in 2024


Make sure to review the subjects below: 

  • How much time is it going to take to operate the new software? 
  • Will you be able to transfer all your data to the new software? 
  • What will be the level of support? 
  • How long is the integration process? 
  • Do they have the reporting tools for you to do the necessary analysis for your business? 
  • Will it be a smooth conversion process for the whole team?
  • How much time will you need to invest in training?  
  • What are the contract terms? 
  • Are there additional maintenance fees?  

With the help of ABC’s trusted onboarding and support team, conversion is simple. Most clubs are able to realize the benefits in less than 90 days, minimizing disruptions to their staff and business, without carrying the burden of heavy contract terms and hidden costs.  

Ask these questions and act now! 

  • What will happen if I don’t make the investment to manage my operations, billing and payments processes?  
  • Will I be able to maintain the financial health of my business without any help? 

The reality is when you don’t take the right action and make the necessary technology investments, your business is at risk of losing revenue. 

With modern technology, teams of experts, and seamless processes, ABC will help you collect more money faster, increase the lifetime value of memberships, and reduce operational workloads. 

Learn more about IGNITE