Why I'll Charge ₹2 Lakhs for My Gym (Not ₹20K)
Pricing Model
₹2,00,000
per year
Target Customers
50
High Net Worth Individuals
Revenue Target
₹1 Crore
First year
I recently read "$100M Offers" by Alex Hormozi, and it inspired me to design a gym business idea tailored specifically for my hometown, a tier-2 city in Tamil Nadu.
Why I'll charge 2 lakhs INR for my gym and not 20k INR per year: You might get sticker shocked now, but let's see how you feel by the end of this blog.
Two Personal Observations That Shaped My Thinking
Hometown Gym (₹10,000/year)
- • Seats are torn
- • Washrooms stink horribly
- • Floors rarely cleaned
- • Sweat covers every surface
- • Lights malfunction
- • Trainers are absent
- • Single receptionist watching cricket videos
- • Chaotic shoe racks and dressing rooms
Result: Struggling business on the verge of shutdown
Bangalore Gym (₹20,000/year)
- • Generates ~30 lakhs INR monthly
- • Immaculately maintained equipment
- • Cleaned every 15 minutes
- • Multiple trainers
- • Superior equipment
- • Fantastic ambiance
- • Vibrant crowd
- • Comprehensive BCA reports
Result: Thriving venture with excellent margins
My Premium Gym Business Model
Based on these insights and Hormozi's principles, here's my gym business model:
Core Insight:
Weight or fat loss journeys are inherently high-friction activities. People must start doing things they dislike and stop activities they enjoy. Instead of eliminating friction, we must reduce it systematically and psychologically.
The Premium Experience Journey
Comprehensive BCA Analysis
Detailed Body Composition Analysis including weight, body fat percentage, muscle percentage, visceral fat level, BMI, hip ratio, and overall InBody score.
Lifestyle Understanding
Subtle inquiry into daily routines, food preferences, and activities they dislike. We get authentic insights without direct questions.
Personalized Plan Creation
Craft a personalized diet and weight training plan based on BCA results, preferences, and aversions - delivering immense value upfront.
Premium Pricing Presentation
Present our offer: ₹20,000/month or ₹2,00,000/year with clear rationale for premium pricing.
Addressing The Two Primary Objections
Building Trust
- • Past client transformation stories
- • Team certifications
- • Science-backed methodologies
- • Before-and-after results
- • Trainer qualifications
- • Evidence-based approaches
Reducing Risk
Our Guarantee:
10kg fat loss in 3 months with 90% attendance and 80% diet adherence. If not achieved: 100% money-back + free facility access for an additional year.
Why Not Commodity-Based Pricing?
The Race to the Bottom
- • Constant price matching with competitors
- • Customers perpetually comparing prices
- • Thin margins and fluctuating income
- • Lower salaries = dissatisfied employees
- • Aggressive sales tactics
- • Higher churn rates
- • Average service quality at best
- • Scaling becomes extremely challenging
Why Value-Based Pricing Is Superior
Zero Competition
When you deliver promised quality and experience, there's literally no competition to compare against—you operate in your own category.
Referral Engine
Great service leads to great satisfaction, which generates powerful word-of-mouth marketing from high-value clients.
Demand Creation
Once you reach capacity (50 clients) and start saying no, demand increases. You can raise prices from ₹2 lakhs to ₹3 lakhs annually.
Client Loyalty
Existing users won't ask for discounts; they'll happily pay knowing the value they receive.
Business Ecosystem
Your gym becomes a hub for high-end product marketing, where you can charge lakhs for advertising.
Network Effect
Other professionals wanting to meet these HNIs will compete for entry, further increasing demand.
Talent Attraction
High margins allow you to hire world-class trainers who wouldn't work for commodity gyms.
Location Independence
You can relocate your gym and customers will follow due to loyalty and zero competition.
Horizontal Scaling
This model can be replicated in other HNI areas, creating a premium fitness empire.
Strategic Marketing Approach
The marketing effort is straightforward since we're targeting high-value customers:
- • Advertise in luxury salons
- • High-end restaurants
- • Premium networking events
Target: One surgeon, one senior lawyer, one senior public sector officer, and one senior director. Once you provide great service, these initial clients become your referral engine.
Example: For a surgeon making ₹1-2 crores annually, investing a few lakhs for a great gym, premium sauna, cold ice baths, dedicated accountability partners, and access to an exclusive community hub represents tremendous value.
Solving the Crowding Problem
Maximum capacity: 50 members
Maximum users at any time: 8 people
This ensures everyone gets personal space, immediate equipment access, and uninterrupted workouts.
Financial Breakdown
Initial Investment: ₹3 crore (including sauna, premium interior, first year's operational costs)
First Year Revenue Target: ₹1 crore
Commodity Pricing
₹20,000/year
Need 500 customers
High stress, thin margins
Value-based Pricing
₹2,00,000/year
Need just 50 customers
Premium service, high margins
ROI Calculator
See how many customers you need for your target revenue
Price-Driven Model
₹20K/year• High operational stress
• Thin profit margins
• Aggressive sales required
• Equipment wear & tear
Warning: Managing 500 customers requires significant infrastructure and staff
Value-Driven Model
₹2.0 L/year• Premium experience
• High profit margins
• No crowding issues
• Personal attention
Benefit: 10x fewer customers for same revenue
Key Insight: To generate ₹1.0 Cr, you need 500 customers at commodity pricing vs just 50 at premium pricing
What You Get for ₹2 Lakhs/Year
Conclusion
After outlining all these benefits, I honestly feel even ₹2 lakhs a year is underpriced for the service this gym aspires to provide.
I think ₹3 lakhs a year would be a great starting point. What's your number?