2023 Revenue $264K Peak — launch year |
2025 Revenue $161K –39% from peak |
2026 Ann. Pace $193K +20% vs. 2025 pace |
Near-Term Upside $56K Conservative annual estimate |
In 2023, Bungee Fit's total labor cost of $37,751 represented just 14.3% of revenue — well within the boutique fitness benchmark of 25–35%. By 2025, with wages largely unchanged at $36,160, the labor percentage had climbed to 25.9% purely because revenue declined. The Jan–Apr 2026 annualized rate of 32.6% is near the top of the industry benchmark range. The root cause is not overstaffing — it is under-filled classes. A bungee class with 4 participants costs the same in instructor labor as a full class of 10. Every empty seat is pure margin loss at zero change in cost.
Track fill rate per class slot weekly. Consolidate or cancel chronically under-filled time slots. Moving from 60% to 70% average fill rate across all classes at current pricing adds roughly $8,400/year with no additional labor.
The early morning slot — 6am to 7:30am weekdays — is not just an additional revenue window. It is the slot where the highest-retention members are built. Customers who work out at 6am build a habit loop that is extremely sticky; they schedule their day around it and cancel at roughly half the rate of evening-only members. OrangeTheory built its national footprint on this insight. Pure Barre, 9Round, and Title Boxing all operate early morning classes in Wichita. If Bungee Fit doesn't have a 6am slot, it is invisible to the segment that drives membership stability — and those members are building their routines at a competitor instead.
| Studio | Early AM (before 8am) | Lunch Slot | Evening | Saturday |
|---|---|---|---|---|
| OrangeTheory | ✓ 5–6am starts | ✓ | ✓ | ✓ |
| Pure Barre | ✓ 6am | ✓ | ✓ | ✓ |
| 9Round | ✓ 6am | ✓ | ✓ | ✓ |
| Title Boxing | ✓ 5:30am | ✓ | ✓ | ✓ |
| Bungee Fit | Unknown — likely absent | Unknown | Unknown | Unknown |
At 6 average participants × $22 × 8 classes/month, the incremental monthly revenue is $1,056. Annualized at conservative fill: $12,672/year. At full capacity: $21,120/year.
This is the highest-confidence finding in the report because it is a direct P&L line item — no behavioral assumptions required. In 2023, Bungee Fit paid $13,210 in merchant fees on $264,446 in revenue — a rate of 4.99%. By 2025, fees had declined only modestly to $11,090 while revenue had fallen to $161,300, pushing the effective rate to 6.88%. The rate is increasing as revenue decreases, which indicates a high fixed-fee component. The boutique fitness industry standard is 2.5–3.5%. Alternatives — Square for Fitness (~2.6% flat), Vagaro (lower monthly + 2.75%), Stripe + booking layer (~2.9% flat with no monthly fee) — all land materially below current rates.
| Year | Revenue | Merchant Fees | Effective Rate | Gap vs. 3.25% Target |
|---|---|---|---|---|
| 2023 | $264,446 | $13,210 | 4.99% | $4,490/yr |
| 2024 | $196,600 | $12,352 | 6.28% | $5,969/yr |
| 2025 | $161,300 | $11,090 | 6.88% | $5,840/yr |
| 2026 (4mo ann.) | ~$193,000 | ~$11,729 | 6.07% | $5,445/yr |
This is a one-afternoon fix with no operational impact on members, scheduling, or classes. At $193K projected 2026 revenue, moving from 6.07% to 3.25% saves $5,445/year. There is no faster or more certain lever in this report.
In 2023, Bungee Fit spent $8,238 in advertising and generated $264,446 in revenue. In 2024, advertising spend was increased to $31,496 — nearly 4× — and revenue fell to $196,600, a decline of $67,846. The 2026 recovery of approximately 20% over 2025's pace is happening at the same $6,571 spend level. The implication: organic content, word of mouth, and direct referral are already generating the recovery. Bungee fitness has extremely high visual appeal — a 15-second Instagram Reel of a bungee workout is inherently shareable.
Referral programs generate the highest-LTV customers in boutique fitness at the lowest cost. A $20 credit per referral converts existing members into an acquisition channel. Corporate wellness accounts at Koch, Spirit AeroSystems, or Cessna represent 5–15 members at $80–$110/month each — a single corporate account outperforms months of paid social.
Rent is the most important number in the P&L. In 2023, rent of $46,341 represented 17.5% of revenue — within the boutique fitness benchmark of 15–20%. By 2025, rent had risen to $58,679 while revenue had fallen to $161,300, pushing the rent load to 36.4% — nearly twice the benchmark. Personal trainers, yoga instructors, and small-group fitness coaches in Wichita pay $25–$50/hour to use floor space. This is common practice among independent boutique studios — it signals smart asset utilization, not weakness.
| Year | Rent | Revenue | Rent % | Benchmark Status |
|---|---|---|---|---|
| 2023 | $46,341 | $264,446 | 17.5% | ✓ Within benchmark |
| 2024 | $57,410 | $196,600 | 29.2% | ⚠ Above benchmark |
| 2025 | $58,679 | $161,300 | 36.4% | ⚠ Critical — 2× benchmark |
| 2026 Ann. | ~$60,800 | ~$193,000 | ~31.5% | ⚠ Still above benchmark |
At 10 hours/week × 48 weeks × $30/hour, sublease revenue generates $14,400/year in rent offset — effectively reducing net rent from $59K to $44K. The setup cost is 2–4 hours to post listings and draft a simple sublease agreement.
Revenue peaked at $264K in 2023 — the launch year when format novelty drove trial. Every successful boutique fitness brand — OrangeTheory (heart-rate tracking), Pure Barre (level progression), 9Round (circuit rotation) — has a documented retention mechanism that gives members a reason to stay after the novelty of the format wears off. Bungee Fit's retention mechanism is currently unclear. Drop-in customers cancel at approximately 40% higher rates than monthly members. Converting 20% of regular drop-in buyers to auto-renew monthly memberships would add roughly $7,920/year in predictable revenue.
| Studio | Retention Mechanism | Est. Avg. Member Tenure |
|---|---|---|
| OrangeTheory | Heart-rate performance tracking (habit loop) | 12–18 months |
| Pure Barre | Progressive skill levels (members "advance") | 18+ months |
| 9Round | Circuit rotation (never the same workout) | 12 months |
| Bungee Fit | Format novelty — no documented progression system | Unknown — likely <6 months |
Email the current drop-in list with a conversion offer — unlimited monthly at $110 versus $22/class drop-in. If 20% of 30 regular drop-in customers convert, that is 6 new monthly members generating $7,920/year. Define a Level 1 → Level 2 → Level 3 progression system with specific movement criteria per level. Pure Barre's level system is its primary retention mechanism — members don't leave because they haven't "finished."
| # | Action | Why It Works | Time | Expected Impact |
|---|---|---|---|---|
| 1 | Switch payment processor or renegotiate Mindbody rates | Currently paying 6–7% vs. 2.5–3.5% market; $6K/yr in pure waste | 1–2 hrs | $5,500–$6,300/yr savings |
| 2 | Launch studio sublease program for off-hours | Idle hours are sunk-cost space; $30/hr × 10 hrs/wk = $14,400/yr rent offset against $59K rent | 2–4 hrs | $10,000–$14,400/yr |
| 3 | Convert drop-in buyers to monthly auto-renew memberships | Drop-in = high churn. Monthly = 40% lower cancellation rate. Target 20% of regular drop-ins | 1 hr | $7,920/yr |
| 4 | Add 2 early morning classes (6am) Tue/Thu | Captures high-retention pre-work demographic; all competitors offer this slot | 30 min + instructor | $10,000–$21,000/yr |
| 5 | Launch "Bungee Challenge" (6-week format, 2×/year) | Paid commitment programs drive acquisition and retention; January + September timing | 2–3 hrs | $4,000–$6,000/yr |
| 6 | Implement class milestone recognition (10, 25, 50, 100) | OrangeTheory's milestone program drove 30%+ improvement in attendance | 1 hr | ~$3,000–$5,000/yr churn reduction |
| 7 | Create a 3-level bungee progression system | Gives members a reason to stay after novelty wears off; Pure Barre's primary retention mechanism | 2–4 hrs | Long-term retention anchor |
| 8 | Pitch 2–3 Wichita corporate wellness accounts | Koch, Spirit, Cessna — all have employee wellness budgets; bungee is a unique, memorable pitch | 3–4 hrs | 5–15 corporate members @ $80–$110/mo |
| 9 | Film 3 Instagram Reels of bungee classes in action | Bungee fitness is visually compelling — these videos go organic in a way no paid ad matches | 1–2 hrs | Free trial pipeline; replaces paid ad dependency |
| 10 | Stop paying for broad social ad campaigns | 2024 proved: $31K in ads — revenue still dropped $68K. Organic + referral is working in 2026 without it | 30 min | Redirect $2,000–$3,000 to higher-ROI channels |
Data sources: Bungee Fit LLC P&L (Jan 2022 – Apr 2026, provided); boutique fitness industry benchmarks (IHRSA, Mindbody Industry Report 2025); competitor data from Google Places, public listings. Revenue projections are modeled estimates — treat as directional. Report prepared by Bricks & Mortar · Local Market Intelligence · Call or Text 612-263-2324.
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