Profitability in Focus: How B/SPOKE Studios Improved Margins by 10%

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Profitability doesn’t come from one big change—it’s the result of small, smart decisions made consistently over time. From tweaking pricing structures to tightening up expenses, the way you manage your numbers can make all the difference in keeping your studio financially strong.

In this BFS Live Case Study, Mark Partin, Co-Founder and CEO of B/SPOKE Studios, shared how his team increased profit margins by 10% in 2024 by making intentional shifts in revenue strategies, memberships, and studio operations. If you’re looking to strengthen your bottom line, these insights offer a practical roadmap to more financial stability.

Small Adjustments That Lead to Big Profitability Gains

Financial sustainability has never been more critical for studios. What began as a single indoor cycling studio evolved into a multi-modality fitness brand offering strength, yoga, and hybrid classes. But like many businesses, the company faced financial challenges post-pandemic and had to reassess its core business metrics. By the end of 2023, B/SPOKE achieved a 13.5% profit margin—a significant jump from previous years. The key to this improvement? A series of small but intentional financial and operational changes that, together, created a more profitable and efficient business model.

Leveraging Data to Drive Revenue Growth

Understanding market trends and making data-driven decisions played a critical role in their success. Instead of across-the-board price increases, B/SPOKE maintained membership prices but raised rates on credit packages, ensuring more predictable revenue.

They also identified high-demand programs and adjusted studio offerings accordingly. Strength and yoga classes saw rising popularity, reinforcing the need to expand these programs, even within existing space constraints. Staying ahead of industry trends, such as the continued demand for Pilates and low-impact workouts, allowed them to adapt before competitors did.

Memberships: The Smarter Revenue Model

A major takeaway? Memberships outperform credit packages when it comes to retention and profitability. At B/SPOKE, members were 50% more likely to stay long-term compared to credit users. That’s a game-changer for stability. To add more value to memberships, they experimented with guest instructors, targeted promotions, and strategic membership structures—steering away from unlimited access, which can drain profitability. They also optimized ClassPass usage by limiting it to filling low-demand slots instead of letting it take revenue away from core members.

Controlling Costs Without Sacrificing Quality

A major contributor to profitability gains was a disciplined approach to cost management. Several cost-cutting strategies helped improve margins without compromising client experience:

• Auditing software subscriptions to eliminate unnecessary expenses
• Negotiating vendor agreements to secure better pricing
• Reevaluating refund policies—shifting refunds to client account credits instead of direct refunds to credit cards
• Renegotiating studio leases as a long-term cost-saving measure

Studio labor costs were also a focus. A competitive pay analysis for instructors led to lower base rates for less-experienced staff and a shift toward performance-based raises to ensure compensation aligned with business growth.

Building a Cost-Conscious Studio Culture

In addition to operational adjustments, cultivating a culture of financial discipline and accountability was crucial to success. Strategies like utilizing part-time managers, implementing budgeting systems, and publicly acknowledging team contributions reinforced a sustainable business mindset. By meticulously tracking expenses and ensuring that senior leadership remains connected to studio-level policies, they established a system where every financial decision is deliberate.

B/SPOKE’s success proves that profitability isn’t just about bringing in more revenue—it’s about managing your business smarter. Whether it’s adjusting pricing, optimizing memberships, or fine-tuning expenses, the small things add up.

If you’re looking to improve your margins, start by reviewing your numbers, rethinking where your revenue comes from, and making adjustments that align with both client needs and long-term financial stability. The goal isn’t just short-term profitability—it’s building a business that thrives for years to come.

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