Average Revenue Per Visit is a value needed to drive calculations in the Profitability section of the Instructor Performance Report.

# Definition

An ARPV value is the

**blended rate a business earns when a client comes in for a session**, regardless of which package they are using

# Description

A single numeric value that may fluctuate over time - derived from a formula that looks at total revenue divided by total visits.

Example: $10,000 in revenue / 800 visits = $12.50 ARPV

# Details

Notably, the formula factors in zero-value pricing options (comps), direct revenue earned from drop-in visits, class cards and unlimited memberships, along side third party revenue such as Classpass, Groupon or other resellers. We break down these 4 categories:

Unlimited Memberships

Zero-Value Pricing Options (comps)

Class Cards and Packages

Third Party Revenue

## Unlimited Memberships

For clients with unlimited memberships, their total visit count must be divided by the revenue earned for the time period in order to determine their specific ARPV value.

For example, if the studio was seeing 100 clients with an average visit count of 8 times per month, who are paying $100 each, total revenue for the period would equal $10,000 and total visit count would equal 800, which would produce a blended ARPV of $12.50.

Total Revenue = $10,000

Total Visits = 800

ARPV = $12.50

## Zero-Value Pricing Options (Comps)

Zero-value pricing options, or comps, are important to factor into a studio-wide ARV value. Since the business has an expenditure associated with the visit, comps will drive the ARPV lower.

For example if a studio has 200 comp visits during a time period, the revenue total would be $0 and the ARPV would be $0. However, it's important to factor in the visit count:

Total Revenue = $0

Total Visits = 200

ARPV = $0

## Single Classes, Class Cards/Packages

Drop-in classes, class cards, punch cards and other quantity based pricing options are the easiest to calculate and factor in to a studio-wide ARPV. For example:

Single class priced at $20 would have an ARPV of $20

10 Class Card priced at $150 would have an ARVP of $15

50 Class Card priced at $500 would have an ARPV of $10

When compiled, total revenue earned for the period can be divided by the number of classes taken for a blended class card ARPV value. For example:

10 Single Classes Used at $20 = $200

20 Classes (from 10 class cards) Used: 20 x $15 = $300

40 Classes (from a 50 class cards) Used: 40 x $10 = $400

Total Revenue = $900

Total Visits = 70

ARPV = $12.85

## Third Party Revenue

Income and classes from third parties such as Classpass, Groupon, FitReserve, Dibs and other aggregators is typically recognized as a Comp in reservation management systems.

In order to accurately correlate the quantity of visits during a time period with the actual value of the third party package, we need to know it's value, and ask you to enter it. For example:

**Classpass**payout value: $9/visit x 100 visits = $900**Groupon**payout value: $11/visit x 150 visits = $1,650**FitReserve**payout value: $15/visit x 20 visits = $300

Total Revenue = $2,850

Total Visits = 270

ARPV = $10.55

# Final ARPV Calculation

**Unlimited Memberships**Revenue: $10,000

Visits: 800

ARPV: $12.50**Zero-Value Pricing Options (comps)**Revenue: $0

Visits: 200

ARPV: $0**Class Cards & Packages**

Revenue: $900

Visits: 70

ARPV: $12.85**Third Party Revenue**

Revenue: $2,850

Visits: 270

ARPV: $10.55

Total Revenue: $13,750

Total Visits: 1,340

**Blended ARPV: $10.26**