Suppose a gym charges $15/Month and the club has 3000 paying members. That is $45,000/month and $540,000/year income. That is not going to return a profit if you have a large club with high overheads. It might sound easy to get that many members paying each month but that is a lot of people to sign up. Rents are high, you need staff, gyms are open for long periods each day and so on. Gyms are a high cost, low return business.
Now suppose that a gym has 2000 members and they are paying $59/month each. That brings in $1.4 million and that will return a good profit. I can tell you that is a lot of members to get.
Not many gyms charge $15 or $20. But a case in point would be the Las Vegas Athletic Club. There membership is $19 a month. There clubs have everything. Tennis Courts, Racquetball, swimming, full gym, locker rooms etc. But then they have 15,000+ members. 24 Hour Fitness in Honolulu has over 13,000 member paying around $39 or so a month. Not many gyms survive with just 2000 members. The two gym here are an exception to the rule (which there are many) the major club here is 26,000 sq. ft. they have 1800 members. Monthly dues are $69. PIF is now $1,200 a year. The other gym has about 2000 members paying $39 a month average. The monthly net at that gym when I had it was $15,000 to $20,000 a month.
Gyms are very big money makers if you know how to make money. There are allot of ancillary centers in the gym including Personal Training, Rehab (which is huge at my gym making clsoe to $25,000 a month), Pro shop, cafe, drinks, pro shop, childcare, spinning, etc.
Really depends on the market. Here in Hawaii it is totally dfferent. Every equipment salesman that comes here and meets me says after the first day "this place is so different". It is. SO really you need to look at your market. Gym can be money makers if done right. First thing is to make sure your rent is as low as possible. And if opeing a new gym make sure you get at least 6 months free rent. This will help you build a clientle. And make sure you have an escalated rent schedule for the for year or two. Once you make it past the first couple years you should be okay.