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1
2017 YOGA STUDIOBENCHMARK REPORTSECOND EDITION
2
TABLE OF CONTENTS
CREATING A FINANCIALLY FIT YOGA BUSINESS 3
DEMOGRAPHICS 10 COUNTRIES 11 BUSINESS SIZE 12 GENDER 13 TIME IN BUSINESS 14
FINANCIALS 15 PROFIT & LOSS STATEMENT 16 AVERAGE REVENUE AND EXPENSE 17 PERCENT OF TOTAL MEMBERSHIPS GIVEN DISCOUNTS 19 DISCOUNT PERCENT BY DISCOUNT TYPE 20 PERCENT OF DISCOUNT TYPE OFFERED 21 HOW OWNERS PAY THEMSELVES 22 STARTUP CAPITAL 23
FACILITY SIZE 24 MEDIAN FACILITY SIZE 25 MEDIAN SQUARE FEET PER STUDENT 26 AVERAGE RENT PER SQUARE FOOT 27
MEMBERSHIPS 28 STUDENT RETENTION 29 TYPES OF MEMBERSHIPS OFFERED 30 AVERAGE MONTHLY PRICE OF MEMBERSHIP 31 PERCENT OF STUDENTS ON AUTOPAY 33 AUTOPAY CONCERNS 34 METHODS OF PAYMENT COLLECTION 35
CLASSES 36 CLASS SIZE 37 WEEKDAY CLASSES PER DAY 38 TYPES OF YOGA OFFERED 39 OTHER SERVICES OFFERED 40
STAFF 41 NUMBER OF EMPLOYEES 42
MARKETING 43 NEW STUDENTS BY SOURCE 44 MARKETING ON DISCOUNT SITES 46 HEALTH AND WELLNESS PARTNERSHIPS 47
ABOUT THIS SURVEY: The following findings depict 110 individual survey responses.
Centered studios are defined as yoga businesses that generate at least $7,000 in monthly profit.
3
However, these aren’t the only requirements to become a successful studio owner; it’s also
necessary to understand and effectively manage your finances to ensure your studio will serve
your community for years to come.
I feel very fortunate that I get to spend my days working with yoga studios, helping them
become wildly successful because I know their success translates directly into the success
and health of individuals across the world. One thing that I’ve learned is that while many yoga
studios share similar core values, they run their businesses in vastly different ways.
Last year, we released our first annual Yoga Benchmark Report as a way for yoga studios to learn
and grow from the successes and struggles of others in their industry. The purpose of this guide
is to help you identify strengths and weaknesses in your own business by getting a glimpse
into how some of the most successful studios are running their businesses. After reviewing this
year’s business metrics, provided directly from yoga studios across the world, it’s clear that once again building a strong financial foundation for your business is the most important component of running a successful studio. And in establishing this foundation, we found that
it freed the most successful yoga studios to also provide the best services for their students.
The data below was compiled from yoga studios just like yours. We divided the data into two
groups. Group 1, Centered studios, is comprised of the most financially successful studios,
generating more than $7,000 per month in net revenue. Group 2, Off-Balance studios, falls
on the other end of the spectrum and includes studios who are losing money each month.
If you participated in the survey, thank you; I hope this data simplifies the countless business metrics
you could be tracking and puts into perspective how studios like yours operate. For those who
didn’t have the opportunity to provide data this year, I hope you take the initiative to compile your
finances and take steps towards improving the financial health of your studio in the coming year.
Here is what I found...
Yoga is a spiritual, physical and mental discipline that requires passion and commitment from its practitioners. Similarly, passion
and commitment are also required for individuals who want to run
a successful yoga business.
CREATING A FINANCIALLY FIT YOGA BUSINESS
FROM PHIL STERN, GENERAL MANAGER, ZEN PLANNER
4
Centered studios have more students
Generally speaking, the more students you have, the more money you have coming in. The
median student base for Centered studios is 700, while Off-Balance studios only have 100
students. These numbers differ from last year’s data but the results remain the same:
successful studios have more students and more students equals more revenue.
I know some studios have no interest in supporting 700 students. And that’s fine, your studio
can still thrive with a smaller student base! Being successful doesn’t necessarily mean having
the most students, but if you’re a smaller studio, you will likely need to keep a closer eye on
your monthly expenses. It all comes down to net monthly profit. Your studio needs to have
enough students, or revenue from other offerings like teacher trainings and workshops, to
cover your monthly costs of rent, utilities, taxes, payroll, equipment and anything else you
pay for each month.
BUILD A HEALTHY STUDENT BASE
Median Number of Students
700
100 OFF-BALANCE
CENTERED
5
Centered studios better manage their revenue verse expenses
As I stated above, running a successful business comes down to being able to manage your
budget and maintain an average monthly profit that will keep your studio thriving. The average
monthly profit for Centered studios is $13,493 while the Off-Balance studios have an average
monthly loss of $2,058.
It’s easy to get caught up in the day-to-day tasks of managing your studio and supporting your
community of students, that properly tracking money going into and out of your business may
not get your full attention. Let’s face it, you most likely became a studio owner because you’re
passionate about yoga, not finances. However, you still need to find a way to manage the costs
of your business so you’re able to continue sharing your passion with your students for many
years. Maintaining a detailed financial record of all of your revenue and expenses is the path to
developing this discipline and is something that should not be overlooked.
To create this discipline, you should be tracking the exact, not estimated, numbers that you
spend on everything from retail to equipment to the holiday bonus you gave to each of your
employees. On the other side, you also need to track how much money you’re bringing in from
memberships, factoring in any students who may have discounts, drop-ins, retail purchases,
teacher trainings and any other source of revenue you offer. The bottom line is, your revenue
must be higher than your expenses.
UNDERSTAND YOUR FINANCES
Average Monthly Profit
$13,493
$-2,058 OFF-BALANCE
CENTERED
6
Centered studios charge for the value of their services
Successful businesses provide top of the line services, allowing them to charge for the value they
deliver to their students. On average, Centered studios charge $227 for an unlimited membership
while Off-Balance studios only charge $90. With discounting, unlimited membership prices
decrease to $161 for Centered studios and $65 for Off-Balance studios. As a business owner, you
should stand behind your service and be confident in the value you provide to your students.
If you do this, your service should be priced at its value, and never discounted.
Think about it this way, imagine two studios have 100 students each. Taking into account the
average discounts for Centered and Off-Balance studios, the Centered studio is making $16,100
per month on memberships whereas the Off-Balance studio is making $6,500 per month with
the same student count. That’s a $115,200 difference per year.
Now, imagine you were so confident in your service that you didn’t discount. You’d be generating
even more revenue from memberships – a total of $22,700 per month for Centered studios and
$9,000 per month for Off-Balance studios - allowing you to enhance other areas of your studio
from new equipment to better teachers.
CHARGE MORE & AVOID DISCOUNTS
Average Unlimited Membership
Average Unlimited Membership with Discounts
$227
$90OFF-BALANCE
CENTERED
$161
$65OFF-BALANCE
CENTERED
7
Centered studios better manage their space
Behind payroll, the largest expense most studios have is rent. More space does not necessarily
correspond to more success; you need to have an ideal amount of space for your student base.
Centered studios have a median square footage of 2,000, while Off-Balance studios are closer
to 1,200 square feet. Centered studios have larger spaces, but they also have more students to
fill that space. Just as we found last year, Centered studios spend more per square foot on their
space ($28/sf) than Off-Balance studios ($16/sf).
This just goes to show that it’s not about how much space you have but how efficiently your
studio utilizes its space. When you break down median square foot by student, Centered
studios have only three square feet per student while Off-Balance studios have 12 square feet
per student. As we said last year, this doesn’t mean that you pack your students in on top of
each other for each class. Rather you must plan your space accordingly. Look for opportunities
to better utilize your facility by potentially making your class space bigger, while reducing
unused space in the check in and welcome area. It also means that you fill your classes and
when you approach capacity, you add more classes. This point is really important: as you grow,
look to add more classes before making the jump to a larger space.
PROPERLY UTILIZE YOUR SPACE
Median Square Feet per Student
12 sq ft 3 sq ft
OFF-BALANCE CENTERED
8
Studios grow faster by engaging with their communities
Yoga is known for being a communal discipline and engaging with their community contributes
to the growth of both Centered and Off-Balance studios. In fact, both Centered and Off-Balance
studios get more than 35% of their new students from referrals. Referral students tend to pay
more per membership, have a higher lifetime value, are more likely to refer additional students
and stay with your studio longer. All of which have a large impact on the long-term health of your
business. In comparison, only 15% of Centered studios and 11% of Off-Balance studios get new
students from discount sites including ClassPass, Groupon and LivingSocial.
And, there are still other ways to bring students in without using discount sites. 17% of Centered
studios and 12% of Off-Balance studios increase their student base through walk-ins. While
15% of Centered studios and 9% of Off-Balance studios use community events to bring new
students in their doors. Instead of offering what you believe to be enticing discounts to bring
students to your studio, the key to growth is engaging with your current students and your
surrounding community.
GROW YOUR COMMUNITY
New Student Recruitment Through Community Engagement(student referrals, local events and walk-ins)
OFF-BALANCE67%59%
CENTERED
9
FINAL THOUGHTS
Running a successful yoga studio is a physical and mental process that requires passion
and commitment on behalf of the owner. It won’t come easy, but I hope this guide can help
push you in the right direction and encourage you to take a deeper look at the strengths and
weaknesses of your individual studio. I, and the rest of the Zen Planner team, would love to
answer any questions you may have to help you with your business needs. We look forward
to hearing from you.
Sincerely, Phil Stern General Manager, Zen Planner
Phil Stern is the General Manager of Zen Planner. He has three main
passions in life: family, mountain sports and building teams of great
people to grow businesses.
Phil cares deeply about small business success and works closely with
Zen Planner’s customers, partners and team members to ensure our
customers hit their business goals and achieve wild success. To this end,
Phil is an advisor and mentor to startups in Denver and Boulder. Phil also
blogs and delivers webinars about how fitness business owners can grow
their businesses without employing hard sales tactics and discounts.
Phil lives in the foothills of Colorado’s front range with his wife, son and
dog. He earned a BA from Bowdoin College.
10
DEMOGRAPHIC
S
11
14%CANADA
68%UNITED STATES
11%AUSTRALIA/ NEW ZEALAND
4%EUROPE
3%OTHER
COUNTRIES (percentage of respondents)
12
BUSINESS SIZE Business size is a designation determined by Zen Planner based on student count and its relation
to facility size and Profit and Loss Statements.
Throughout the remainder of our findings we have referred to facilities with 1-75 students per
location as “Small” (39% of respondents), 76-200 as “Medium” (19% of respondents) and 201+ as
“Large” (42% of respondents).
S
1–75M
76–200L
201+
Respondents
S: 39%
M: 19%
L: 42%
LMS
Total Students per Location
13
GENDER (percent of students)
21%MALE
79%FEMALE
14
S
M
L
TIME IN BUSINESS(in years)
<1 1-2 3-4 6+
9%
4% 20%
29%
15%
14%
14%
17%
14%
48%
44%
29% 43%
<1 YEAR
<1
1-2
1-2
1-2
3-4
3-4
3-4
5-6
5-6
5-6
6+
6+
6+
26% 26% 16% 11% 21%
15
FINANCIA
LS
16
Small Medium Large
Revenue
Memberships $481 $ 973 $4,888 $6,565
Drop-ins $979 $2,293 $7,891 $19,030
Merchandise/retail $24 $86 $556 $884
Events $121 $91 $1,661 $3,942
1-on-1 instruction $107 $721 $799 $1,431
Other $169 $471 $555 $500
Total Avg Revenue $1,881 $4,635 $16,350 $32,352
Expenses
Rent/mortgage $676 $2,449 $3,099 $4,239
Payroll $764 $3,205 $4,456 $6,948
Utilities and building expenses $154 $320 $416 $735
Equipment $40 -- $88 $86
Certification/professional fees $34 $49 $133 $285
Marketing expenses $110 $334 $1,127 $2,816
Insurance $50 $99 $180 $293
All other expenses $44 $322 -- $3,455
Total Expenses $1,872 $6,778 $9,499 $18,857
Profit $9 ($2,143) $6,851 $13,495
PROFIT & LOSS STATEMENT(monthly average in $USD)
Number of students is a significant driver of revenue as demonstrated by the Large business Profit
and Loss statement. However, Centered studios prove you do not have to have a large student base
to be profitable.
17
$47REVENUE
EXPENSE $47
REVENUE $39
EXPENSE $56
REVENUE $31
EXPENSE $18
REVENUE $46
EXPENSE $27
AVERAGE REVENUE AND EXPENSE(per student)
S
M
L
18
Rent/Mortgage as a Percentage of Revenue
Payroll as a Percentage of Revenue
Sum of All Other Expenses as a Percentage of Revenue
S: 36%
M: 53%
L: 19%
: 13%
S: 41%
M: 69%
L: 27%
: 21%
S: 23%
M: 24%
L: 12%
: 24%
LMS
LMS
LMS
19
PERCENT OF TOTAL MEMBERSHIPS GIVEN DISCOUNTS
S: 32%
M: 22%
L: 27%
: 29%
L
M
S
20
32%OFF
Teacher
23%OFF
Military
Fire/Police/EMT
13%OFF
19%OFF
Student
DISCOUNT PERCENT BY DISCOUNT TYPE(average discount on standard membership cost)
Other
25%OFF
21
PERCENT OF DISCOUNT TYPE OFFEREDPercentage of studios that offer the following types of discounts on their memberships.
69%
Student
Teacher52%
Military41%
Other19%
33%
Fire/Police/EMT
22
Fixed Salary
Profits
Both
14%
59%
27%
0%
29%
71%
HOW OWNERS PAY THEMSELVES
AVG
AVG
AVG
23
7%FINANCE COMPANY
12%BANK LOAN
STARTUP CAPITAL(average startup capital is $29,665)
15%FRIENDS & FAMILY
15%OTHER
51%SAVINGS
24
FACILIT
Y SIZ
E
25
MEDIAN FACILITY SIZE
1,033 sq ft
1,550 sq ft
1,200 sq ft
2,000 sq ft
S LM
26
MEDIAN SQUARE FEET PER STUDENT This has been determined by the median facility size divided by the median number of students per business size.
S /LM
26 sq ft
10 sq ft
3 sq ft
27
United StatesS: $8.12
M: $15.59
L: $22.13
CanadaS: $7.32
M: $12.96
L: $22.61
AVERAGE RENT PER SQUARE FOOT(average in $USD)
EuropeS: N/A
M: N/A
L: $22.59
OtherS: N/A
M: $10.42
L: $6.81
Australia/New ZealandS: $47.37
M: $42.64
L: $70.01
28
MEM
BERSHIPS
29
STUDENT RETENTIONChurn is the percentage of total students lost each month, while Net is the percentage of total students added each month minus the percentage of students lost each month.
15%
19%
10%
7%
ADDED
ADDED
ADDED
ADDED
CHURN
CHURN
CHURN
CHURN
10%
11%
6%
4%
NET
NET
NET
NET
5%
8%
4%
3%
S
M
L
30
UnlimitedS: 14%
M: 25%
L: 22%
: 36%
LMS
LMS
2x Per WeekS: 4%
M: 8%
L: 3%
: 4%
1x Per WeekS: 19%
M: 7%
L: 6%
: 12%
TYPES OF MEMBERSHIPS OFFEREDThe average percentage of students that are on each type of membership option.
IntroductoryS: 10%
M: 16%
L: 9%
: 12%
Drop-InS: 21%
M: 11%
L: 14%
: 10%
3x Per WeekS: 2%
M: 6%
L: 2%
: 2%
OtherS: 9%
M: 5%
L: 1%
: 1%
Punch PassS: 21%
M: 22%
L: 43%
: 23%
LMS
LMS
LMS
LMS
LMS
L M S
31
$26
$26
$18
1x Per Week
$46
S
M
L
AVERAGE MONTHLY PRICE OF MEMBERSHIP(in $USD)
$41
$35
$28
Introductory
$43
S
M
L
$25
$66
$22
2x Per Week
$57
S
M
L
$27
$38
$11
3x Per Week
N/A
S
M
L
32
$15
$17
$18
Drop-In
$18
S
M
L
$100
$104
$74
Punch Pass
$125
S
M
L
AVERAGE MONTHLY PRICE OF MEMBERSHIP(continued)
$74
$71
$188
Unlimited
$227
S
M
L
$42
$67
$92
Other
$116
S
M
L
33
PERCENT OF STUDENTS ON AUTOPAY
United StatesS: 17%
M: 37%
L: 35%
CanadaS: 24%
M: 52%
L: 45%
Australia/New ZealandS: 0%
M: 48%
L: 0%
CENTERED: 59% AUTOPAY
EuropeS: 0%
M: N/A
L: 55%
OtherS: 100%
M: 5%
L: 0%
34
AUTOPAY CONCERNSHere are the main reasons many students have elected not to enroll in autopay at their studio.
22%DON’T SEE THE BENEFIT
8%SECURITY CONCERNS
13%OVER-DRAFT CONCERNS
57%OTHER(preference, forget to update cards or card changes, autopay not offered in region)
35
METHODS OF PAYMENT COLLECTION
United StatesCredit card: 63%ACH/EFT: 13%Cash: 24%Checks: 19%Other: 20%
EuropeCredit card: 50%ACH/EFT: 60%Cash: 43%
OtherCredit card: 73%ACH/EFT: 29%Cash: 17%
CanadaCredit card: 56%ACH/EFT: 19%Cash: 29%Checks: 3%Other: 5%
Australia/New ZealandCredit card: 56%ACH/EFT: 52%Cash: 51%Checks: 3%
36
CLASSES
37
CLASS SIZE(average students per class)
S
M
L
7
9
11
17
38
WEEKDAY CLASSES PER DAY(average number)
S
M
L
3
4
5
6
39
Vinyasa S: 72%
M: 71%
L: 80%
: 100%
Hatha S: 67%
M: 62%
L: 65%
: 57%
TYPES OF YOGA OFFERED
Hot YogaS: 30%
M: 24%
L: 33%
: 57%
RestorativeS: 56%
M: 38%
L: 74%
: 86%
YinS: 49%
M: 48%
L: 63%
: 83%
AshtangaS: 12%
M: 5%
L: 26%
: 14%
IyengarS: 5%
M: 14%
L: 20%
: 0%
AnusaraS: 5%
M: 10%
L: 9%
: 0%
LMS
LMS
LMS
LMS
LMS
LMS
LMS
LMS
40
AcupunctureS: 0%
M: 0%
L: 9%
: 0%
Massage S: 21%
M: 0%
L: 20%
: 14%
OTHER SERVICES OFFERED
Breathing/ Meditation S: 33%
M: 24%
L: 41%
: 43%
NutritionS: 12%
M: 10%
L: 13%
: 14%
No Other ServicesS: 37%
M: 29%
L: 28%
: 29%
LMS
LMS
LMS
LMS
LMS
41
STAFF
42
NUMBER OF EMPLOYEES(number of staff members for each position)
49%
60%
50%
18%
29%
18%
46%
9%
7%
8%
2%2%
6%
5%
5%
14%
10%
9%
53%
0
0
0
0
1
1
1
1
2
2
2
2
3
3
3
4+
4+
4+
4+
Full-Time Teacher
Admin/Front Desk
Part-Time Teacher
Studio Manager
43
MARKETIN
G
44
ReferralsS: 42%
M: 39%
L: 36%
: 35%
FacebookS: 26%
M: 18%
L: 20%
: 22%
NEW STUDENTS BY SOURCE(percentage of new students acquired by specific marketing sources)
Walk-insS: 9%
M: 13%
L: 11%
: 17%
GoogleS: 17%
M: 31%
L: 21%
: 15%
LMS
LMS
LMS
LMS
Promotional Discount Sites S: 4%
M: 13%
L: 10%
: 15%
LM S
Community EventsS: 10%
M: 8%
L: 9%
: 15%
LMS
45
Other S: 22%
M: 3%
L: 7%
: 0%
NEW STUDENTS BY SOURCE(continued)
L MS
EmailS: 6%
M: 5%
L: 7%
: 3%
LMS
Other Social Networks (Twitter, Instagram, etc.)
S: 7%
M: 14%
L: 10%
: 4%
LMS
46
MARKETING ON DISCOUNT SITES(percentage of studios who run deals on specific discount sites)
NoneS: 51%
M: 24%
L: 35%
: 43%
ClassPass S: 2%
M: 14%
L: 7%
: 29%
GrouponS: 5%
M: 10%
L: 4%
: 0%
LMS
LMS
LMS
47
70%NO
30%YES
HEALTH AND WELLNESS PARTNERSHIPS(percentage of studios who have partnerships with other fitness, health and wellness businesses as a benefit for their students)
48
Bring balance to your studio with Zen Planner.
Zen Planner makes yoga studios wildly successful. Our comprehensive, customizable
studio management solution provides you with the necessary tools to take your business to
the next level, enabling you to spend less time behind the desk and more time with your
valued students.
To learn more about what Zen Planner can do for your business, schedule your demo today.
SCHEDULE YOUR DEMO
zenplanner.com