STUDIO NOIR · Unit Economics
Phase 1 numbers. Boutique studio scale. Every assumption traced.
Unit economics means: for every one member (or one class, or one private lesson), how much do we make, how much does it cost us, what’s left over.
1. Membership pricing (Phase 1)
Two tiers Phase 1. A third premium tier (Black Card) arrives at Phase 2 flagship when the amenities exist to justify it.
| Tier | Monthly price | What’s included |
|---|---|---|
| Access | $199 | Unlimited group classes |
| Studio | $349 | Unlimited group classes + locker + 1 guest pass per month + priority booking window |
Target mix Phase 1: 60% Access, 40% Studio.
Blended average price per member: $199 × 0.6 + $349 × 0.4 = $259 per month.
Annual value per member (blended): $259 × 12 = $3,108.
2. How long do members stay (retention)
We assume a 4% monthly churn rate at base case. Meaning of 100 members, we lose 4 per month.
That gives an average member lifespan of 25 months (a little over 2 years). Boutique fitness industry average is 18 to 24 months; luxury and community-driven boutiques often exceed that.
Lifetime value (LTV) per member: - LTV = monthly price ÷ churn rate - Access: $199 ÷ 4% = $4,975 per member over their lifetime - Studio: $349 ÷ 4% = $8,725 per member over their lifetime - Blended: $259 ÷ 4% = $6,475 per member over their lifetime
Ranges:
| Case | Monthly churn | Avg lifespan | Blended LTV |
|---|---|---|---|
| Worst case | 6% | 17 months | $4,317 |
| Base case | 4% | 25 months | $6,475 |
| Best case | 2.5% | 40 months | $10,360 |
3. What it costs to get a member (CAC)
CAC (Customer Acquisition Cost) is the average marketing spend per new member signed.
Phase 1 CAC is very low because most of our sign-ups come from Taj’s audience (organic, effectively free) and referrals (only cost is the referral bonus).
| Channel | Cost per member | Share of sign-ups |
|---|---|---|
| Waitlist from Taj’s audience (organic) | $0 | 50% |
| Referral from existing members (1 free month per 2 referrals) | $199 discount = ~$100 per member | 25% |
| Paid Meta and Instagram ads | $180 | 15% |
| Content and PR (Tia) | ~$50 | 10% |
Blended CAC: $0 × 0.50 + $100 × 0.25 + $180 × 0.15 + $50 × 0.10 = $57 per member.
LTV to CAC ratio: $6,475 ÷ $57 = 113x.
CAC payback: first monthly payment covers CAC immediately. Zero months to payback.
Both numbers are excellent. What they mean in plain English: every dollar we spend acquiring a member returns roughly $100 over their membership life, and we get our marketing money back on their very first payment.
4. Class economics (Phase 1)
Phase 1 members pay a flat monthly rate; classes are included. So the “class economics” question is really: what does each class cost us to run.
| Line | Cost |
|---|---|
| Contract instructor pay per class | $60 |
| Music licensing (Soundtrack Your Brand, per class attribution) | $2 |
| Allocated utilities per class hour | $6 |
| Cleaning supplies | $2 |
| Total cost per class | $70 |
Class capacity: 10 to 14 members per class depending on pole vs floor work.
At an average class fill of 8 members, the “revenue” allocated per class (from member subscriptions) is:
- 8 members × $259 blended / 30 days / 4 classes per average member per week = roughly $17 per member per class × 8 = $136 revenue allocated per class
- Cost: $70
- Contribution per class: $66 (48% margin)
Class fill rate is a KPI (Key Performance Indicator, meaning something we watch closely) because it drives everything. If class fill drops below 5 members, that class loses money. We cancel or consolidate under-attended classes.
5. Drop-in economics (Phase 1, starting month 3)
We open members-only for the first 60 days to build exclusivity and let charter members feel it. From month 3 forward, we allow drop-ins at premium pricing.
| Line | Cost / Revenue |
|---|---|
| Drop-in price | $35 |
| Instructor cost per drop-in (proportional) | $6 |
| Allocated utilities and supplies | $2 |
| Payment processing (2.9%) | $1 |
| Contribution per drop-in | $26 (74% margin) |
Target: 5 to 10 drop-ins per week. Monthly revenue: $700 to $1,400. Not huge but pure margin.
6. Private lesson economics (Phase 1, small scale)
Taj or a lead instructor offers private and semi-private pole lessons at premium price. Booked through Mariana Tek.
| Line | Cost / Revenue |
|---|---|
| Private lesson price (1-on-1) | $120 per hour |
| Semi-private (up to 3) | $80 per person per hour |
| Instructor cost per lesson (assume contract instructor at 60% take) | $72 (private) or $48/person (semi) |
| Allocated overhead | $10 |
| Contribution per private lesson | $38 |
| Contribution per semi-private (3 people) | $56 (across the class) |
Target Phase 1: 8 to 12 private lesson bookings per month. Monthly revenue: $960 to $1,440. Additional margin: $300 to $480/mo.
7. Small merch economics (Phase 1)
A small STUDIO NOIR merch drop through print-on-demand. No inventory risk.
| Item | Retail | Cost | Margin |
|---|---|---|---|
| Signature branded tee | $65 | $22 | $43 |
| Signature grip aid (private label) | $35 | $12 | $23 |
| Members-only tote | $45 | $16 | $29 |
Target Phase 1: 8 to 15 units per month. Monthly revenue: $500 to $900. Contribution: $250 to $500. Small but real.
8. What we do NOT sell Phase 1
- Personal training (adds a whole other operations layer, requires dedicated PT rooms; Phase 2)
- Corporate wellness contracts (starts in Phase 2 when amenities are worth it; soft outreach in Phase 1)
- Retail beyond the small merch drop
- Café or F&B (Phase 2)
- Digital streaming membership (Phase 2)
- THE NOIR INVITATIONAL entry fees (Phase 2)
9. Blended monthly revenue at 60 active members (Phase 1 target)
| Revenue line | Monthly amount |
|---|---|
| Membership subscriptions (60 members × $259 blended) | $15,540 |
| Drop-ins (5 to 10/week at $35) | $1,050 |
| Private lessons (10/mo blended) | $960 |
| Small merch | $600 |
| Total monthly revenue at 60 members | $18,150 |
10. Blended monthly costs at 60 active members (Phase 1)
| Cost line | Monthly amount |
|---|---|
| Rent (base + CAM + taxes) | $4,000 |
| Utilities | $450 |
| Insurance | $550 |
| Booking software (Mariana Tek unlimited members plan) | $500 |
| Contract instructors (12 classes/week × $60) | $2,880 |
| Cleaning service | $400 |
| Supplies (prosecco, scent, paper, cleaning) | $350 |
| Marketing (Meta ads baseline) | $300 |
| Accounting/bookkeeping | $200 |
| Payment processing (2.9% of $15,540 memberships) | $450 |
| Small merch cost of goods | $250 |
| Miscellaneous | $150 |
| Total monthly costs at 60 members | $10,480 |
11. What’s left for Taj at 60 members
$18,150 revenue − $10,480 costs = $7,670 per month clean to Taj (before her personal taxes).
At 80 members it goes to roughly $12,000/mo clean.
At 100 members (Phase 1 stretch): $18,000/mo clean.
Not the $500K+ per year the Phase 2 flagship targets, but a real Phase 1 outcome that gives Taj $90K to $215K a year while we prove the model and raise Phase 2 capital against real numbers.
Key assumptions to check every quarter
- RDU membership pricing: if the market accepts $259 blended, we’re right. If it doesn’t, we drop Access to $179 and test again.
- Class fill rate: target 8 members average. Below 5, we cancel or consolidate.
- Monthly churn: target 4%. Above 5% for two consecutive months triggers a member NPS survey and retention review.
- Waitlist conversion: target 15 to 25% of waitlist converts to paying members. Below that means the offer or the price is off, not the audience.
- Reserve balance: must not dip below $10K without Trill + Taj sign-off.