Busy, Booked… and Still Broke?

Why Full Schedules Don’t Equal Profitable Studios

If you’re a studio owner saying, “My classes are full, my schedule is packed, but my bank account doesn’t reflect it,” you are not alone.

I hear this exact frustration weekly inside our community and Inner Circle calls. Utilization looks great. The schedule is full. Clients are showing up.
And yet… there’s little to no money left at the end of the month.

This is one of the most common (and most dangerous) traps in boutique fitness, Pilates, and private-pay PT: confusing busy with profitable.

Let’s break down why that happens — and what to do about it.

Utilization Is a Metric — Not a Goal

Utilization simply measures how much of your available schedule is filled.

If you have 10 spots and 8 are filled, that’s 80% utilization. On paper, that looks great.

But here’s the hard truth:

Utilization only matters if it leads to profitability.

A full class that loses money is not a win.
A packed schedule that drains your margins is not success.

Busy is not the same as productive. And it’s definitely not the same as profitable.

Revenue vs. Revenue Quality (This Is Where Most Owners Get Stuck)

Revenue is just money coming in the door.

Revenue quality, however, looks at:

• Consistency – does it repeat?

• Predictability – can you forecast it?

• Repeatability – does it scale?

• Profitability – does it actually leave money behind?

Example:

Two studios both bring in $40,000/month.

• Studio A: drop-ins, discounted intro offers, ClassPass, one-off visits

• Studio B: recurring memberships, prepaid packages, high-margin services

Same revenue.
Very different businesses.

One is fragile and exhausting.
The other is stable, scalable, and sellable.

That difference is revenue quality.

The Most Important Number You Should Know: Profit Per Class

If you run group classes, this is non-negotiable knowledge.

Let’s walk through a simple example.

Step 1: Calculate Class Revenue

• Average price per person: $30

• Reformer spots: 8

$30 × 8 = $240 per class

Step 2: Subtract Instructor Pay (Direct Cost)

• Instructor flat rate: $40

$240 – $40 = $200 gross margin

So far, so good.

Step 3: Allocate Operating Expenses

Let’s say your monthly operating costs (rent, admin, marketing, software, etc.) total $8,500.

If you run ~85 classes/month:

• $8,500 ÷ 85 = $100 per class

Now subtract that:

$200 – $100 = $100 profit per class

At full capacity, that class works.

Now Here’s Where Studios Lose Money

What if only 4 people show up?

• Revenue: $120

• Operating cost: $100

• Instructor pay: $40

You just lost $20 on a “busy” class.

This is how studios bleed money without realizing it.

Why Unlimited Memberships Quietly Destroy Margins

I love memberships.
I do not love unlimited memberships in small-capacity studios.

Here’s why.

Let’s say someone pays $400/month for unlimited classes.

• If they attend 30 classes/month
  → $13 per class

• If they attend 38 classes/month
  → ~$10.50 per class

You cannot deliver a Pilates class profitably at that price unless your overhead is close to zero.

Unlimited memberships attract your heaviest users — the people coming daily (sometimes twice a day). That’s great for utilization… and brutal for margins.

Better options:

• 4 / 8 / 16 / 20 / 24 class memberships

• Hard caps with pay-per-class overages

• Clear guardrails

Unlimited only works in high-capacity, low-cost models — not most boutique Pilates studios.

Profit Leaks Most Owners Miss

Here’s where to look immediately:

• Classes running below minimum attendance

• Discount stacking inside packages

• Intro offers priced too low

• Low-margin services clogging prime schedule hours

• Multiple half-empty classes instead of fewer full ones

Five classes with three people each is far worse than three classes with five people each.

Your schedule must work harder, not longer.

Smarter Intro Offers Convert Better (And Protect Margins)

Cheap intro offers attract bargain shoppers — not long-term members.

We tested this over 18 months.

When we raised the price of our intro offers:

• Conversion rates increased

• Client quality improved

• Revenue quality improved

Your intro price should sit close enough to your next membership tier that upgrading feels logical — not overwhelming.

What to Do in the Next 30 Days

Here’s your action plan:

1. Calculate profit per class or per hour

2. Audit memberships (especially unlimited)

3. Identify one thing to raise, cut, or restructure

4. Make the change quickly — the data doesn’t lie

Being a responsible business owner means making uncomfortable decisions before the bank account forces them on you.

You Can Do This — With the Right Numbers

I ran my studio for nearly 20 years.
We generated over $1M annually, paid me close to $200K/year, and ran at 15–18% profit after my salary.

That didn’t happen by accident.

It happened because I knew my numbers — and acted on them.

If you want support with this:

• Join our community membership

• Bring your numbers to group coaching

• Or book a 1:1 strategy call through christagurka.com → Work With Me

Because data drives decisions — and decisions drive dollars.

And that’s what I want for you.