The verdict in three sentences
For a chain of 7 gyms and 5,800 members across Sydney, custom membership software costs USD 38,000 to 70,000 in 2026, versus USD 160 to 380 per gym per month for off-the-shelf software. Custom becomes profitable when it tackles the chain's real problem: 4 % of revenue lost to failed direct debits and a churn rate above 3 % per month. With automated recovery and a member app people actually use, the investment usually pays back in 12 to 18 months.
Where failed payments and churn come from
In a gym chain, failed direct debits have three main causes: a closed account or insufficient funds at the start of the month, a disputed debit from a member who no longer attends, and late manual follow-up by front desk staff. Each dishonoured debit also costs USD 2 to 8 in bank fees.
Churn follows the same logic: a member who has not checked in for 21 days is highly likely to cancel within 60 days. Off-the-shelf tools record turnstile check-ins, but few automatically trigger a targeted action, such as a text from a coach or a free session, based on that signal.
Off-the-shelf or custom: the 2026 grid
| Criterion | Off-the-shelf software | Custom build |
|---|---|---|
| Upfront cost | USD 0 to 3,300 setup | USD 38,000 to 70,000 |
| Recurring cost for 7 gyms | USD 13,500 to 32,000 per year | USD 6,500 to 11,000 per year maintenance and hosting |
| Access control | Compatible hardware imposed | Integration with your existing turnstiles |
| Class booking | Yes, standard | Yes, with waitlist and no-show penalties |
| Direct debit and recovery | Basic reminders | Smart retries, multichannel reminders, risk scoring |
| Member app | Vendor-branded app | Your own brand, iOS and Android |
| Data ownership | Limited export depending on vendor | Database you own |
Order of magnitude for 2026. For 1 to 3 gyms, off-the-shelf software remains the right call. From 5 gyms and a quantified failed-payment or churn problem, the 3-year comparison often favours custom.
Modules and their budget
| Module | Scope | Indicative budget |
|---|---|---|
| Members and contracts | Plans, commitments, freezes, transfers between gyms | USD 7,500 to 13,000 |
| Direct debit and recovery | Mandates, retries, SMS and email, pay-by-link | USD 6,500 to 12,000 |
| Access control | Turnstiles, QR code in the app, fobs | USD 4,300 to 8,700 |
| Class booking | Timetable, capacity, waitlist, coaches | USD 5,400 to 9,800 |
| Member app | Access pass, bookings, invoices, training plan | USD 8,700 to 16,000 |
| Dashboards | Churn, failed payments, attendance per gym | USD 3,300 to 6,500 |
| Data migration | Moving 5,800 members and payment authorities | USD 2,200 to 4,300 |
Delivery takes 4 to 6 months, with a pilot in one gym before rollout to the other 6. Existing direct debit authorities can be migrated without asking members to sign again, provided the payment provider supports the transfer of mandates.
Mini case study
James, founder of a 7-gym chain in Sydney, has 5,800 members paying an average of USD 42 per month, about USD 2,923,000 of annual revenue. Failed payments reach 4 %, nearly USD 117,000 per year. By targeting 1.5 % through automatic retries and SMS reminders with a payment link, he recovers 2.5 points, roughly USD 73,000 per year.
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On churn, going from 3.6 % to 3 % per month retains about 35 more members each month, around USD 17,600 of extra revenue in year one. Against a custom build at USD 56,000 plus USD 8,700 of annual maintenance, versus USD 22,700 per year for off-the-shelf software at USD 270 per gym, the project pays back in under a year if the gains are confirmed. James can de-risk the assumption with a 3-month pilot in two gyms.
FAQ
Can we keep our current turnstiles?
In most cases yes, if the controllers accept relay or API commands. Integration costs USD 4,300 to 8,700 for the whole chain, versus USD 3,300 to 6,500 per gym for full replacement.
How much does a direct debit cost?
Expect USD 0.20 to 0.55 per debit with a payment provider, and USD 2 to 8 per dishonour. On 5,800 monthly debits, that is USD 1,160 to 3,200 per month.
Is the software privacy compliant?
Yes, with local or regional hosting, a defined retention period and a documented data register. Check-in data should be purged after its useful life, often 12 to 36 months.
What happens to class booking during migration?
The switch happens gym by gym, on a Monday, with 2 weeks of parallel running. Members get access to the app 7 days beforehand.
Can we sell coaching sessions in the app?
Yes, one-click card payment for sessions and products costs about 1.75 % + USD 0.30 per transaction and often generates 5 to 10 % of additional revenue.
Let's scope your project. Tell us your number of gyms, members and failed-payment rate: we will price the scope, give an indicative budget and a 4 to 6-month plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
