Depending on who you ask, gym software cost can vary. Some people will give you a simple answer. Others will give you a 3,000 word essay.
But when you boil it down, there are 3 factors into software costs.
- Software subscription
- Transaction costs
- Time savings
Let’s break them down...
This is the most obvious factor. Typically this is a separate charge for being able to use the software.
Think of this like a Netflix subscription cost. Each month, you see a separate line item on your credit card bill for Netflix. You know exactly what it is for and how much it will be every month.
Not much to explain here.
This is where it can get a little complicated. Depending on what credit card merchant you are using, the level of complexity and pricing can be very different.
Basically, transaction costs are the costs you pay to the credit card merchant for running a credit card. These fees are typically automatically deducted off the top of every transaction and the difference is deposited into your account. You might not even notice these fees are deducted.
Transaction costs can vary from 1.5% to 3.9%, on average. Since this is percentage-based, the more revenue you transact, the more you will pay. But that is fine. It should always be proportional to your revenue.
Now here is where it gets tricky. Some merchants have hidden and/or varying fees, sometimes depending on the merchant or the credit card being used. They might be tacking on additional merchant fees or higher fees for certain credit cards. Assessments, interchange fees, surcharges, application fees, service package fees, and probably a few more I can’t think of...
The only way to know for sure is to do a statement audit of your transactions and deposits.
When evaluating transaction fees, you want to look for transparency. You want to know exactly what the fee structure is.
At PushPress, we currently use Stripe as our merchant. We like them because of the transparency and simple fee structure. They have a simple and straight-forward structure. 2.9% + $0.30 per transaction. That’s it. No varying fees based on different credit cards and no hidden transaction costs. (this rate can be lower if you use ACH)
If you’re interested in a PushPress pricing breakdown, head here.
This is the cost that is hardest to quantify, but arguably the most important. This comes down to how good the software is at freeing up your time. This can get complex and philosophical, but hear me out...
You don’t use any gym software.
The good news is it is free.
The bad news is you spend 20 hours a week on manual admin tasks (member billing, check-ins, emails, statement reconciling, appointment booking, lead tracking, workout programming, workout publishing, payroll... you get the picture). And during those 20 hours, you are not engaging with your members. You are not taking on new leads or trying to sell new members.
Let’s say it takes you 10 hours to sell 10 leads per week (simple math). At $150 per lead, that is $1500 of potential revenue. But because you spend 20 hours on manual admin tasks, you don’t have those 10 hours to take on new member consultations. Over the month, this could cost you $6,000! (This is a drastic example, for DRAMATIC EFFECT!)
Let’s move on to scenario #2.
You pay $139 per month for gym software. But this software automatically handles your billing and recovers any failed billing. It allows your members to reserve classes and check themselves into class. Members can make purchases by themselves. Your workouts are automatically published to your member app. Payroll is automatically calculated. Leads are automatically tracked so you know which ones need follow-up. The software automatically sends a happy birthday greeting to each member on their birthday. Etc...
That $139 per month, saved you 10 hours a week, at least. Not including the effort it saves you. With those 10 hours back, you can invest your time and effort into creating a better member experience AND engaging with new leads.
So, spend $0 a month on gym software and lose 20 hours a week, or spend $139 a month and potentially get 10 hours back to invest in growing your business?
Use The Right Tool
We’re all about finding the right tools to help gyms unlock advantages to grow their business. (that’s pretty much what PushPress is built on!). But bottom line, the value of a tool should be at least 5x of what it cost you.