Merritt Clubs and Loggerhead Fitness show how pricing, staffing and marketing turn SGT into a lasting revenue and retention driver for clubs.
Small group training (SGT) has become a useful middle ground for clubs trying to expand their training business without asking every member to commit to one-on-one personal training. Done well, it can give members more coaching and accountability while giving operators another revenue stream and trainers another way to increase their earning potential.
But the financial opportunity depends on more than putting people in a room with a trainer. The clubs seeing value from SGT are treating it as a business within the business — one that requires the right programming, pricing, staffing, marketing and member experience.
Build Programming Around Your Own Members
At Merritt Clubs, COO Mark Miller said the club has experimented with purchased programs, outside models and internally developed concepts before settling on an approach that reflects its own members and brand.
“When we survey our members, we consistently find that more than 60% prefer signature programming they can only get at Merritt Clubs versus something that’s pre-built by an outside organization,” said Miller.
That feedback points to an important starting place for operators. Build the program around the business you already have.
Right-Size Classes for Coaching and Energy
The right group size, price and format will look different depending on the club’s demographics, available space and existing training operation. Rick Opton, the owner of Loggerhead Fitness, said his club landed on eight participants for a 50-minute session. That size allows a certified personal trainer to watch members closely to make sure the workout is going well and the energy is high.
That coaching component is what separates the offering from a traditional group fitness class.
“When you’re working out with a trainer one-on-one, that’s going to cost you more,” said Opton. “If you come to an SGT class, they get a trainer who’s watching over them and keeping them going, and it’s a fraction of the cost.”
For the member, the lower price creates an accessible entry point to coaching. For the club, multiple members are being served during the same hour.
That doesn’t mean operators should automatically maximize the number of people in each class. Miller said Merritt Clubs evaluates coach-to-member ratios based on the complexity and skill level of each program, with the goal of maintaining individualized feedback while creating a strong group atmosphere.
Weigh the Economics of the Program
The economics have to be considered alongside the rest of the club’s business. At Loggerhead Fitness, the SGT studio also serves as a space for personal training. That creates a capacity constraint. More SGT classes could generate additional revenue, but using the room too frequently would interfere with the club’s personal training business.
Therefore, the club runs a limited number of classes, fills them and generates revenue from them. With more space, Opton believes the club could significantly increase the number of classes offered each week.
Merritt Clubs uses a program sheet that brings pricing, costs and other data together to evaluate profitability. Miller said the club also considers whether a program can function as a value-add or retention tool, broadening the financial analysis beyond direct class revenue.
Market SGT Like a Core Program
One of the biggest mistakes an operator can make is assuming members will discover SGT on their own.
“Nobody automatically runs towards anything in fitness,” said Opton. “You have to market it.”
His club starts marketing SGT during the membership onboarding process. New members are shown the training space, introduced to SGT and given a complimentary class. The club then follows up through text, email and phone calls. Trainers are also expected to recommend SGT when they see an opportunity with their personal training clients.
Merritt Clubs uses a broader mix of launches, trial classes, simulations, events, outreach, social content and other experiences. The club also gets employees from different departments into new programs before launch. That gives staff firsthand knowledge and creates visible examples for members who may be hesitant to try something unfamiliar.
This shows the importance of marketing the outcome and experience rather than just the class name. A member who understands why a program fits their goals has a much stronger reason to sign up.
Measure Retention, Not Just Revenue
Although revenue is an important metric, it can’t be the only one.
Merritt Clubs tracks average participants, cost, capacity and attendance frequency, and pairs those with measurements tied to individual member goals. That creates two useful feedback loops. Operators can determine whether a program is financially healthy, while members can see whether the program is helping them move toward their goals.
For Opton, consistency is especially important. Loggerhead has an older membership base, so the value of SGT is closely connected to helping members maintain an exercise routine and continue using the facility.
That connection between results and retention is where SGT can become particularly valuable. A member who attends two or three times a week, develops a relationship with a trainer and sees measurable progress is creating value for the club well beyond the individual class purchase.
Developing Trainers Through the Program
SGT can also strengthen the training department itself.
Miller said Merritt Clubs has seen SGT increase trainer revenue opportunities while allowing coaches to impact more people. It can also help newer trainers develop confidence and credibility and give experienced trainers an avenue to showcase specialized skills.
At Loggerhead, trainers who want to teach SGT first participate in classes and learn the format before landing their own. The club wants consistency in everything from exercise selection and coaching to time, music and the overall member experience.
That preparation matters because the coach is ultimately the product. Technology can help with scheduling, attendance, payroll and performance tracking, but Miller said it can’t replace the instructor interaction and community created during the workout.
Building SGT Into the Larger Training Strategy
For operators, the opportunity is to build SGT into the club’s larger training strategy rather than treating it as a standalone class. It can serve as an entry point for members who are not ready for one-on-one training, a complementary service for existing personal training clients and a way for trainers to develop additional skills and revenue.
The strongest programs also give members a reason to return. That means programming that fits the demographic, coaches who can deliver individualized attention and an experience members want to share with others.
“Think through the entire member experience from start to finish,” said Miller. “Consider what members see when they walk up, how the coach interacts with them, how progress is tracked and what happens after their class. The best SGT programs are great experiences from end to end.”
That mindset can turn SGT from a class on the schedule into a meaningful part of the club’s revenue, retention and member-results strategy.
