Plan B Business
Wellness

Stop signing up members who quit in 90 days.
Build a studio that retains.

We work with boutique fitness studio owners doing $165K-$3.3M in annual revenue (CrossFit, Pilates, yoga, F45, Orangetheory-style, spin) who are tired of the membership churn rollercoaster. Our monthly engagement, no minimum term works toward 75%+ 12-month retention, 85%+ class capacity, and 20%+ net margins. How fast it moves depends on how seriously you work the plan - what you will see from the first meeting is exactly what is holding the business back.

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Industry Reality

8 patterns we see in most fitness studios

85%
how often we see it

12-month member retention under 50%

Root cause: No onboarding system for new members. New members hit weeks 6-10 plateau and quit. Studio replaces them with new members - treadmill never stops.

What we do: Structured 90-day new-member onboarding: weeks 1-2 intro intensive, week 4 progress check, week 8 community integration, week 12 retention conversation. Target: retention lifts from 45% to 75%+ within 12 months.

75%
how often we see it

Class capacity averaging 50-65%

Root cause: Schedule built around instructor preferences, not member demand patterns. Off-peak classes drag average down.

What we do: Schedule audit: capacity-by-class-by-time analysis. Cut bottom 20% of class slots. Concentrate on peak demand windows. Target 80%+ capacity on retained classes.

70%
how often we see it

The studio platform is a booking screen and nothing else

Root cause: Studio uses for booking only. Not running retention campaigns. Not tracking attendance patterns. Not running win-back flows for at-risk members.

What we do: Full POS deployment: at-risk member alerts (4+ days no visit), automated win-back campaigns, attendance-pattern dashboards, lifetime value tracking by member cohort.

70%
how often we see it

Pricing not differentiated for usage (all-you-can-eat or class packs)

Root cause: Pricing model doesn't match member behavior. Heavy users get bargains, light users feel they overpay.

What we do: Tiered membership: Basic (4 classes/month - $89), Standard (8 classes - $149), Unlimited ($199), Premium-unlimited + perks ($249). Migrate existing members carefully. Average revenue per member up 15-25%.

80%
how often we see it

Instructor compensation purely per-class (no incentive for retention)

Root cause: Instructors paid $25-50 per class regardless of member retention impact. Best instructors leave for higher per-class rates elsewhere.

What we do: Hybrid comp: base per-class + monthly bonus tied to class capacity + member retention. Best instructors become studio owners' biggest retention asset.

85%
how often we see it

No new-member referral system

Root cause: Studio relies on Google Ads and Instagram for new members at $60-120 CAC. Members refer friends informally, no incentive structure.

What we do: Structured referral program: free week + 20% off next month for member, free week trial for friend. Referral becomes the lowest-CAC channel (target: $15-25 CAC).

70%
how often we see it

Owner-instructor teaching 18+ classes per week

Root cause: Owner is the lead instructor. Member loyalty tied to owner personally. Studio can't scale because owner can't step away.

What we do: Owner-instructor reduces teaching load to 8-10 classes/week over 9 months. Develop 2-3 'signature' instructors who carry their own following. Member loyalty shifts from owner to studio brand.

60%
how often we see it

Retail revenue (apparel, supplements) under 3% of revenue

Root cause: Studio doesn't carry retail or has dusty unsold inventory.

What we do: Curated retail (8-12 SKUs, not 80): branded apparel + 2-3 supplement partners on commission. Target 8-12% retail mix within 12 months.

Benchmarks

The numbers we aim at

These are the targets we work toward in an engagement - a bar to measure against, not an average anyone measured for you.

KPITypical starting pointPlan B target12-month goal
12-month member retention40-55%75%+65-78%
Class capacity utilization50-65%85%+75-88%
Average revenue per member (monthly)$110-$165$200+$170-$220
Member CAC (cost to acquire)$80-$150<$50$40-$80
% revenue from MRR (vs. drop-ins/packs)55-70%85%+78-88%
Owner-instructor weekly classes taught15-22<108-12
Net profit margin5-12%20%+15-22%
Engagement Model

What working with us looks like

  1. 01

    Month 1: Retention + capacity deep-dive

    We pull 13 months of POS data. Every member's attendance pattern, every class's capacity-by-time, every instructor's retention impact. We identify exactly when and why members quit.

  2. 02

    Months 2-3: Onboarding system + schedule rebuild

    90-day new-member onboarding journey goes live. Schedule audit complete - bottom 20% of slots cut. At-risk member alert system deployed in whichever studio platform you run.

  3. 03

    Months 4-6: Pricing + instructor comp restructure

    Tiered membership pricing rolls out with careful migration of existing members. Instructor compensation restructured to include retention bonuses. Referral program launches.

  4. 04

    Months 7-12: Owner freedom + compounding

    12-month retention crosses 70%. Capacity above 80%. Owner-instructor teaching 10 or fewer classes per week. We shift to quarterly cadence.

Common questions from fitness studios owners

What size studio is this for?−
Sweet spot: $165K-$3.3M in annual revenue, single location, 200-800 active members - the same band our Hebrew site states in shekels. Below it there are three ways in, not none: the academy at $33/month, the $365 paid diagnostic and B-Start at $365/month - plus business-plan work for an owner who has not opened yet. Above it you usually need a full-time GM in-house rather than an outside partner. It is a guide, not a gate - ask and we will tell you straight. The formats owners ask us about most are CrossFit, Pilates (mat and reformer), yoga, spin, HIIT-style circuit, barre and rowing - the economics differ in the details, not in the structure.
Our concept depends on the owner-instructor's energy. Can we really reduce their teaching?+
Yes - but it's a 9-12 month process and requires intentional brand-building beyond the owner. The studios that scale develop 2-3 'signature' instructors who can carry classes. Studios that don't make this transition stay small forever - which is fine if that's the goal, but it caps revenue at $400K-$700K.
What about franchise models (F45, Orangetheory, Pure Barre)?+
Franchise studios have constraints (marketing budgets, pricing structures, branding). We work within them. The retention, schedule optimization, and instructor compensation work all applies. Franchise restrictions on pricing tiers and marketing are tighter - we adapt.
We're a one-on-one personal training studio, not group classes. Does this apply?+
Partially. Personal training studios have different economics (higher per-session revenue, much lower volume, trainer-client relationship is the entire business). We work with PT studios but it's a different engagement focused on trainer compensation and retention rather than class capacity.
What POS systems do you work with?+
Whichever one you already run. We are system-agnostic and we do not sell software. The specification is what we care about: the platform has to flag a member who has not attended in four days, fire a win-back sequence without you remembering to, show attendance patterns by class slot, and track lifetime value by joining cohort. Most studios pay for a platform that does all four and use it as a booking screen. If yours genuinely cannot, we help you scope the migration.
Will you help with Instagram and content?+
We help build the content strategy, cadence, and process. We don't run your social media for you. Every studio needs an Instagram presence in 2026 - we make sure it's intentional, not random.
Who does the work?+
Ligal Frish and Eitan Eshtemaker - the co-founders. Direct access, no associates.
Fee structure?+
Situation Room: $365 one-time. B-Grow: $1,430/month (most studios). B-Beyond: $2,750/month (multi-location or fast-scale). No minimum term and no notice period - you can end it at any time.

Stop selling memberships that quit.

30-minute strategy call. We'll diagnose your top 2 levers and tell you if we're a fit. No pitch. No pressure.

Book My Free Strategy Call