- The Boxonomist
- Posts
- 13th Edition
The Boxonomist
Actionable strategies you can implement right now to effectively grow your gym.
Good Morning Team!
Why does your bank account look smaller than it should compared to the quick math you’re doing in your head? It’s because of hidden fees. They’re everywhere.
Credit card processing fees are a silent drain on your gym’s revenue. With fees ranging from 2.5% to 3.5% per transaction plus a fixed fee on top, these costs can add up to tens of thousands of dollars annually. For instance, on a monthly revenue of $50,000, a 3% fee can cost you around $1,500—over $18,000 a year that could be reinvested into your gym.
If you’re currently eating those fees, stop it asap. A great use of your time in the next month would be to go through every single member of your gym and try to get them all on ACH transactions instead of credit cards.
Why Switch to ACH Payments?
ACH transactions typically cost around 0.5% per transaction or a flat fee, making them a much more affordable option compared to credit card fees. By switching to ACH, you not only reduce your processing costs but also offer your members the chance to lower their own fees. Instead of hiding extra charges in your billing, you can be transparent: “Choose ACH and save on processing fees.”
Passing on Fees—With Transparency
Many of you may have already made the switch to passing on credit card fees. Platforms like Wodify allow you to pass these fees directly to your members. However, the key is to be upfront. Don’t just toggle that “pass on fees” button without telling them. Let your clients know that using a credit card incurs additional fees, and offer ACH as a cost-saving alternative. This honesty builds trust and empowers your members to make informed decisions about their payments.
How to Make the Switch
Research and Integrate: Look for ACH payment processors that work well with your existing membership management software. Many systems support both credit card and ACH options, allowing you to offer a choice. If your software doesn’t allow ACH payments, it’s honestly worth the headache to switch to one that does.
Educate Your Members: Clearly communicate the fee differences. Explain that while credit card transactions come with extra costs, ACH payments can reduce or eliminate these fees for both of you. Send an email or message them all directly.
Moving Forward: Change your policy for all future clients that you require ACH payments or you will be passing on the CC fees to them.
Switching to ACH payments is a smart strategy to cut processing fees and create a win-win scenario for your gym and your members. By being transparent about fee passthrough and offering ACH as a cost-saving alternative, you build trust and keep more money in your business’s pocket.
Keep Lifting, Keep Leading!
The Boxonomist Team
Want to focus on running your gym and leave marketing to the professionals? Check out Hitchhike SEM - if you qualify, they’ll bring in a constant stream of leads.
Best business bank account we’ve found so far: Mercury