Pilates Studio Revenue Math
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A breakdown of how Anne Mahlum analyzed the economics of a Pilates studio business before starting SolidCore, which she later sold for over $300M.
Basic Studio Economics
- 10 machines per studio (reformers)
- $30 per class per person
- 10 people maximum per class (1 person per machine)
- Classes were consistently full/sold out
- 10 classes per day
Daily Revenue Calculation
- 10 machines × $30 per person × 10 classes = $3,000 per day
- Monthly calculation: $3,000 × 30 days = $90,000 potential monthly revenue
Initial Investment Requirements
- Build out costs: ~$150,000
- Licensing fee: $25,000 just to open
- Equipment (Reformer machines): $6,000-7,000 each
- 10 machines = ~$70,000 total
- Machines could be financed monthly
- Rent: $7,000 per month
- Total startup costs: Approximately $100,000-150,000
Early Business Performance
- First month revenue exceeded $100,000
- Expanded to 5 locations in first year
- By year 4 (2017):
- 27 locations
- Each studio doing ~$700,000 annually
- Company valued at ~$60 million
Key Success Factors
- Speed to market advantage
- Became dominant player in space
- Strong brand identity
- Unique workout experience
- Revenue sharing model with coaches
- Some coaches made over $300 per class
- Focus on customer experience and results