The Vital Role of Marketing and Location Research in Pilates Studio Success

Introduction:

Welcome to the sixth of ten focussed articles 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 the interaction between Location and Marketing 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. “

Before opening a Pilates studio, two critical factors can significantly influence its future success: marketing and location research.   A surprising truth when you look at successful Pilates studios is that they often thrive in clusters in high population areas, and less often in isolation.   This phenomenon is rooted not in coincidence but in a strategic understanding of market demographics and competition dynamics.   Let’s delve into why meticulous marketing and location research are pivotal for a Pilates studio's profitability. 

Marketing: Crafting a Message That Resonates

Why It Matters for Profitable Studios:

Profitable Studios: Invest heavily in understanding their target audience and crafting marketing strategies that resonate with them.   They realise the importance of a strong online presence, engaging social media content, and targeted advertising.   These studios also leverage customer feedback and market data to continually refine their marketing approach, ensuring relevance and effectiveness. 

Why Less Profitable Studios Struggle:

Less Profitable Studios: Often have a generic or outdated marketing approach.   They might neglect digital marketing trends, have a weak social media presence, or fail to engage effectively with their potential clients.   This lack of tailored marketing strategy can result in poor brand visibility and low client acquisition rates. 

Location Research: Choosing the Right Battlefield

Why It’s Crucial for Profitable Studios:

Profitable Studios: Conduct thorough location research via census statistics and local research before setting up their studio.   They understand that being in a cluster of Pilates studios isn’t necessarily a disadvantage; it’s a strategic move.   By cluster we are probably not talking next door but certainly within easy travel distance for a customer to choose between different studios.    These locations are often chosen because they have the best market demographics - affluent, health-conscious individuals who value wellness and fitness.   These studios leverage existing market awareness created by competitors, thus reducing the need for extensive groundwork to introduce Pilates to the community. 

Why Less Profitable Studios Miss the Mark:

Less Profitable Studios: May choose locations based on rent prices or personal convenience, overlooking critical demographic factors.   They might set up in areas with low demand for Pilates services or where the market is not sufficiently affluent to sustain their business model.   This leads to a constant struggle in client acquisition and retention. 

Competition: A Catalyst for Growth, Not a Threat

Why Embracing Competition Benefits Profitable Studios:

Profitable Studios: View competition as an opportunity rather than a threat.   They understand that nearby Pilates studios validate the market demand and create a community of potential clients already educated about Pilates.   This scenario allows for cross-promotions, community events, and a shared client base, fostering a healthy competitive environment that benefits all involved. 

Why Less Profitable Studios Fear Competition:

Less Profitable Studios: Often fear competition, seeing it as a direct threat to their client base.   They may invest energy and resources in trying to outdo nearby studios, which can lead to a negative atmosphere and distract from focusing on their own studio’s growth and client experience. 

Conclusion:

In conclusion, the success of a Pilates studio hinges significantly on well-executed marketing and astute location research.   Profitable studios recognise the importance of understanding their audience, crafting resonant marketing strategies, and strategically choosing their location within a cluster of similar businesses.   They embrace competition as a healthy aspect of a thriving market.   Conversely, less profitable studios often miss these nuances, leading to ineffective marketing, poor location choices, and a fear-based approach to competition.   For aspiring Pilates studio owners, embracing these concepts is not just a strategy but a necessity for carving out a successful niche in the competitive wellness industry.     In my work with Planning and helping make Pilates studios profitable I recommend a marketing budget of 10% of proposed 3rd year turnover for year one of the studio, 9% for year two and 8% for year three - a separate pre-opening budget will be required on top of this.     Assuming that the studio reaches break even somewhere between year 2 and year three the ongoing strategic marketing budget will depend on latent capacity remaining for growth and any key marketing campaigns based around repositioning or business growth - I never recommend a marketing spend below 5% of turnover for maintenance of current business or below 7.5% of turnover where some ongoing growth is feasible. 

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