Pricing Hypotheses
Pricing a premium fitness facility in the Chicago Loop requires balancing aspiration with accessibility. Too low and you commoditize the brand. Too high and you exclude the volume needed to cover a large-format space. These hypotheses map the pricing landscape and propose a strategy.
Competitive Pricing Analysis
Chicago Loop Fitness Pricing (Monthly, 2025)
| Facility | Monthly Rate | Model | Notes |
|---|---|---|---|
| Orangetheory | $169-$199 | Unlimited classes | 4-8 classes/mo tiers available |
| Barry's Bootcamp | $180-$250 | Class packs + unlimited | Per-class: $36-40 |
| F45 Training | $149-$199 | Unlimited | Two-week free trial standard |
| CrossFit boxes | $200-$275 | Unlimited | Wide variance by location |
| Equinox | $260-$350 | Full access | All-access pass higher |
| Lifetime Fitness | $159-$249 | Full access | Diamond tier for premium amenities |
| Title Boxing | $99-$149 | Unlimited classes | Lower price point, narrower offering |
| HYROX training gyms | $179-$229 | Emerging category | Race-focused training |
Positioning
The Sweat Box should price above Orangetheory but below Equinox — in the $199-$249/month range for unlimited access. This signals premium without alienating the core demo.
Proposed Pricing Tiers
Founding Member (Pre-Sale Only)
- $149/month — locked for life (or duration of continuous membership)
- Target: 200 founding members before grand opening
- Includes: Unlimited classes, priority booking, branded gear pack
- Purpose: Seed the community, generate pre-revenue cash flow, validate demand
Unlimited Membership
- $229/month — unlimited classes, open gym access
- 12-month commitment: $199/month
- Month-to-month: $249/month
Class Pack (Flex)
- 8 classes/month: $179
- 12 classes/month: $209
- Drop-in single class: $35
Corporate Tier
- $189/month per employee (minimum 5 employees)
- Quarterly team challenges included
- Dedicated account manager for companies with 20+ members
Personal Training Add-On
- $85/session (1-on-1 with Sammy or senior trainer)
- $55/session (semi-private, 2-4 people)
- 10-pack discount: 15% off
Pricing Strategy
Premium penetration — launch at a price point that's clearly premium but use founding member pricing to drive early adoption. The founding member rate ($149) is deliberately below the competitive set to create urgency and word-of-mouth. Once the gym hits 200 founding members or opens (whichever comes first), the window closes permanently.
The $229 standard rate is justified by:
- Equipment depth no competitor matches (30 heavy bags + 60 cardio machines + prowlers)
- Coached sessions (not just open gym with music)
- Heart rate performance tracking
- Premium Loop location
Price Sensitivity Analysis
The target demographic (Loop professionals, HHI $150K+) is moderately price-insensitive for fitness:
- They already spend $150-300/month on fitness
- They value time savings over dollar savings
- They'll pay more for convenience (proximity to office) and quality (coached sessions)
- Price sensitivity increases below $100K HHI — class packs provide an accessible entry point
The bigger sensitivity is value perception, not absolute price. A $229/month gym that delivers transformative workouts and a strong community is a better value than a $99/month gym that collects dust on your credit card statement.
Revenue Model Projections
Assuming 8,000 sq ft facility in the Loop:
| Metric | Conservative | Moderate | Optimistic |
|---|---|---|---|
| Total members | 300 | 450 | 600 |
| Avg revenue/member/mo | $200 | $210 | $220 |
| Monthly membership revenue | $60,000 | $94,500 | $132,000 |
| PT/add-on revenue | $8,000 | $15,000 | $25,000 |
| Corporate partnerships | $5,000 | $12,000 | $20,000 |
| Monthly gross revenue | $73,000 | $121,500 | $177,000 |
| Annual gross revenue | $876,000 | $1,458,000 | $2,124,000 |
These projections assume 80% member retention after month 3. Industry average for boutique fitness is 70-75%. The Sweat Box's community-driven model should outperform average, but this needs validation.
Key Questions
- What's the minimum member count to break even? (Requires rent + operating cost estimates)
- Would Sammy consider a lower founding member price ($99-$129) to drive faster adoption?
- Is the corporate market real? Who are the first 5 companies to target?
- Should there be an "off-peak only" membership tier to fill midday classes?