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: $10,000Visits: 800

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