The Art of Space Optimisation in Pilates Studios: A Financial Imperative

Introduction:

Welcome to the fifth of ten focussed blog post in our special series on What makes a Pilates studio truly profitable.   Drawing from my 20 years of experience in owning, running, and consulting for Pilates studios, I focus here on Space management and its importance in developing a profitable Pilates studio.   

In the UK, the financial landscape of Pilates studios varies widely.   Boutique Pilates studios, typically sized between 800 to 2000 square feet in leased buildings, see turnovers between £200K and £400K, with net profits ranging from a loss to 20%.   In contrast, smaller home-based studios, spanning 300 to 700 square feet, have turnovers between £30K and £80K, and net profits range from 10% to 30%.   These figures are grounded in the realities of running such businesses, where "turnover is vanity, profit is sanity, but cash is king."

In the Pilates industry, where overheads are predominantly fixed, the strategic use of studio space becomes not just a matter of aesthetics but a vital financial consideration.   It's a game of maximising potential within a given area, and here's why optimising studio space is an essential factor in differentiating the most profitable studios from the less profitable ones. 

The Cost of Wasted Space: A Fixed Expense Conundrum

Profitable Studios: Understand that every square metre of their studio space incurs a cost - in terms of rent, rates, and energy.   In an industry where these overheads are largely fixed, maximising the use of space is paramount.   For example, a room that could accommodate 12 reformers but only houses 8 is a missed opportunity for increased revenue.   These studios meticulously plan their layout to ensure that each area is revenue-generating. 

Less Profitable Studios: Often overlook the significance of space utilisation.   They might leave substantial gaps between apparatuses for aesthetic or convenience reasons, not realising the financial drain.   This underutilisation means they're paying for unproductive space, which directly impacts their bottom line. 

Adapting Programming to Layout: A Profitable Strategy

Profitable Studios: Adapt their class programming to their studio layout rather than reshaping the layout to fit a particular exercise.   For instance, if space constraints limit the ability to perform exercises like leg circles in straps, these studios creatively modify their programming.   They might introduce standing leg stretches or other effective alternatives that don't compromise the workout quality but ensure maximum utilisation of space. 

Less Profitable Studios: Try to accommodate a wide range of exercises without considering the spatial inefficiencies this creates.   They might insist on keeping a certain layout to allow for specific exercises, even if it means under-utilising the available space.   This rigidity can lead to decreased class sizes and reduced income. 

The Financial Impact of Space Optimisation

Profitable Studios: Recognise that efficient space use directly translates to increased client capacity and, consequently, higher revenue.   By fitting in more Reformers or accommodating more clients in a class, they significantly boost their income potential.   This approach also allows for a diverse range of class types within the same space, appealing to a broader client base. 

Less Profitable Studios: Often find themselves limited in client capacity and class variety due to poor space management.   Instructors feel they must accommodate apparatus that they like to use or which they feel a Pilates studio should have to show their philosophy even though it is seldom used by clients.    This limitation not only restricts revenue potential but also makes the studio less competitive in a market where variety and flexibility are highly valued. 

Energy Costs and Sustainability

Profitable Studios: By optimising their space, also manage to keep their energy costs in check.   A well-utilised space is easier to heat, cool, and light efficient, leading to lower utility bills and a smaller carbon footprint. 

Less Profitable Studios: May incur higher energy costs due to underutilised spaces that still require lighting, heating, and cooling.   This not only impacts profitability but also goes against the growing trend of environmental sustainability in business practices. 

Conclusion:

In summary, the strategic optimisation of studio space is a critical financial tactic in the Pilates industry.   Profitable studios leverage every inch of their space for maximum revenue generation, adapting their programming to fit the layout and ensuring efficient energy use.   In contrast, less profitable studios suffer from underutilised spaces, fixed costs for non-revenue-generating areas, and a lack of adaptability in programming.   Thus, for a Pilates studio, the art of space optimisation is not just about creating an inviting atmosphere but about fostering a financially viable and sustainable business model.   Consider a popular studio with a waiting list charging a membership of £100.00 per month for one set class a week the studio is 800 square feet and contains 8 Reformers, there are 40 classes per week and 320 members generating a revenue of £384,000 gross (£320,000 net of VAT).    The studio is making a 5% net profit annually of just £16,000.   A business consultant looks at the business and advises that this 800 square foot studio could accommodate 12 rather than 8 reformers - the extra 4 reformers would cost £12,000 net of VAT with a useful life of 10 years and maintenance costs during those 10 years of half of the initial cost so a P&L cost of £16,000 / 10 = £1,600 per year.    The studio in year one takes on a further 70 members generating a further £80,000 of revenue taking the turnover to £400,000 of which there are few other expenses, and the business now generates a profit of £90,000 a very respectable 22% net profit margin   -  which gives a further marketing and sales budget to seek to gain the additional 80 members that would double the profit yet again and reach the studios total capacity. 

Author:  Chris Onslow - Pilates Consultant

Chris Onslow, has run Pilates focussed businesses since 1998.  He and his team specialise in supporting Pilates entrepreneurs and business owners.  With a rich history of owning and running successful Pilates studios in the UK, and supporting others in Europe and the Middle East, Chris has broad expertise in maximising profitability and optimising operational efficiency.  His agency provides top-tier advice on selecting new, pre-owned, and hireable Pilates equipment from renowned brands such as Align-Pilates, Balanced Body or Stott-Pilates/Merrithew.  As the founder of Mbodies Training Academy, Chris continues to revolutionise Pilates education, offering premier online and hybrid CPD and qualification courses for Pilates apparatus instruction and special population CPD.  Discover more about how Chris can support your Pilates Business or home exercise choices at www.pilates-consultant.co.uk