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Cover Your Expense Increases

Written by Kevin Gregor

Samantha's Scenario

Simulate pricing adjustments to offset rent, payroll, or other expense hikes.

Samantha’s rent and instructor pay have both gone up, and it’s starting to eat into her profits. She wants to raise prices just enough to cover the increased costs without losing too many members. To figure out the right move, she turns to FitGrid’s Revenue Simulator.

Scenario Implementation

  1. Open the Revenue Simulator
    ​
    Samantha logs into FitGrid and selects the Revenue Simulator from her Business Performance tools.
    ​

  2. Review Current Pricing and Revenue
    ​
    Her studio currently has 80 clients:

    1. 50 on a $99/month membership

    2. 20 on 10-class packs at $180

    3. 10 on drop-ins at $25
      Her current estimated monthly revenue: $11,700
      ​

  3. Select the Pricing Option to Adjust
    ​
    She targets the $99/month membership, since that’s the majority of her client base.
    ​

  4. Adjust the Price and Attrition Estimate
    ​
    Samantha tests raising the membership price to $109/month, assuming a 5% attrition rate (2–3 members may cancel).
    ​

  5. Run the Simulation
    ​
    New membership total: 47 members at $109 = $5,123
    ​
    Other pricing categories remain the same
    New projected total monthly revenue: $12,020
    ​

  6. Final Summary Comparison

    1. Before price change: $11,700/month

    2. After price test: $12,020/month → +$320/month — enough to fully offset her cost increases with minimal client loss.

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