Research help-Opening A Gym/Equipment

[Demonseed]

Hello,
I am humming over opening a gym in a town approx. 15,000 ppl. Nothing huge basic to start. I am trying to learn about the industry and was hoping someone may help or provide links to research.
Such as:

-what is the approx. % of population who usually attend a gym?
-what is the approx. cost of equipment?
-what is approx. leasing info? costs ie) heating etc.....
-what is approx. profit? or potential?
-how large of gym? what equipment should one buy?
-what services are necessary?
-who is contacted to set up contracts etc...
-what about liability, insurance etc?
-can i contact the city to see if a gym is already in the works?

so many questions, I am sure that you will have many other things to consider.. I am researching on my own as well but any help, tips, advice would be appreciated.

Note-I am in Canada and do have a full time job too.

thanks
Jim

[qaz123]

what kind of competition is there in your town?

[Demonseed]

Hey
At the moment there is none as it is a newer town that is building up rapidly. The closest gyms would be approx. 10-15 mins.

Jim

what kind of competition is there in your town?

[qaz123]

10-15 mins away isn't the same town?

[Fiend4Intensity]

Well figuring out what to get is easy. In the gyms that you have been to in the past, what have you liked and what have you disliked? Whatever you like put into your gym. Building a decent gym is going to cost a load though. I have also looked into building a gym just as a kind of fantasy thing and almost any piece of equipment you get is going to be in the 4 digit range. Free weights are going to be your best bet to start with. Different benches and power racks are used the most and cost the least. Your treadmills and elipticals, which are a staple of your average gym are going to kill you cost wise. A good treadmill that will hold up will be 2000 or more. Assuming you get 4 of each which would be a minimum that is coming up on 20 grand just for your cardio equipment.

So I guess what the main question would be would be how much money you think you can scrap up for a gym?

Another thing to consider is big gyms like a golds gym or LA Fitness (not sure if they have those in Canada) cost around half a million to put together all things considered. They charge 50 bucks a month. Are you really sure you can compete with that if one were to spring up?

And I assume that you are a pretty hardcore guy. Most guys on this website are. You gotta think about what the mainstream gym-goer wants as well.

[RPLifter]

I was a membership counselor for a few years at 24 hr fitness and at LA fitness in dallas tx. Message me if you have any questions pertaining to how the gym makes it's money as far as membership sales go as well as contracts vs no contracts, prepaid memberships, selling training at the start of the clients membership. Front of house duties, supplement sales, actually I know about everything about running a gym besides how much the equipment leases are and the building rent. Oh yeah, most big gyms lease their equipment or at least some of it. Thats how they keep the newest latest and greatest in the gym at all times and appeal to the upper class gym goer. This also keeps you from getting stuck with expensive equipment that will most likely become obsolete within a few years. Anyway, I could go on and on. Ask some specifics and I'll answer to the best of my ability.

[karma_jesus45]

Actually hooking up with a highschool could be your best bet. I visited a seller once who told me that he made a good amount of money by letting a highschool rent all his equipment. Eventually another equipment business sponsored the highschool after a few years. So he made a lot of money and the highschool got a sponsor which is what the school's goal was to get. No need of a building at least because the highschool gave him one to use. Pretty cool idea. Guy had some nice machines though that I have never seen on here.

[RPLifter]

Well figuring out what to get is easy. In the gyms that you have been to in the past, what have you liked and what have you disliked? Whatever you like put into your gym. Building a decent gym is going to cost a load though. I have also looked into building a gym just as a kind of fantasy thing and almost any piece of equipment you get is going to be in the 4 digit range. Free weights are going to be your best bet to start with. Different benches and power racks are used the most and cost the least. Your treadmills and elipticals, which are a staple of your average gym are going to kill you cost wise. A good treadmill that will hold up will be 2000 or more. Assuming you get 4 of each which would be a minimum that is coming up on 20 grand just for your cardio equipment.

So I guess what the main question would be would be how much money you think you can scrap up for a gym?

Another thing to consider is big gyms like a golds gym or LA Fitness (not sure if they have those in Canada) cost around half a million to put together all things considered. They charge 50 bucks a month. Are you really sure you can compete with that if one were to spring up?

And I assume that you are a pretty hardcore guy. Most guys on this website are. You gotta think about what the mainstream gym-goer wants as well.

LA fitness are most all the same (lay out, equipment, floor plan, buildings, services, amenities and prices) They cost ALOT more than 1/2 mil. to construct. I'd say without all of the 13 60"lcd tv's, the over 30 pieces of cardio equipment, the pool, sauna, and lockers you'd still be well over 3 million. The building alone is aroundr a million without it's interior. Plus they featur just about every piece of equipment made by 5 manufacturers (life fitness, cybex, hammer strength, etc). Thats 5 machines for chest that are almost identical, just made by different manufacturers. Why? to appeal to EVERYONE and bc they can bc they have the money. And they only charge about $30, not $50 a month. There is always a "special" at LA fitness! lol Believe me, i can sell a snowball to satan. I'd say all in all they cost well into the millions. Just go in a big gym, count the free weights. count the machines. count the cardio equipment. price some lockers. google the equipment and have your mind blown by the initial cost to open a gym. Once open and if paid for there is little operating cost besides electricity and rent, however that initial cost if you are going to be over 3000sf would be alot to handle without some type of investors on board. Not impossible, but would take some planning to compete with the big boys.

[irishmickk]

I have owned a few gyms and deal with gym owners every day (sell equipment now). I think you have to ask your self (or atleast tell us) why you want to open a gym? If you are doing it because you think there is an easy opportunity to make some money while you keep you job forget it now. It is one of the toughest business's along with beauty salons and restaurants. The reason is because pretty much from day one whether you have 1 customer or 1000 your overheads will be the same. Rent, heat, insurance, equipment, staff and marketing will all be fixed even if just have a single customer and it is usually a real struggle to get up to the level where you are breaking even.

In terms of types of gyms there are two different business models. The first is a fitness centre type, this is based on the 10% rule which is the amount of your members who will use the gym after they join. The thinking behind this type of place is to appeal to the general population, 90% of which like the idea of joining a gym but wont actually use it. The best way to make the most money is to sign these people up for 12 month contracts with monthly installments which keep recurring if they don't cancel. Because often 60-70% of memberships can happen at the start of the year (new years resolutions...) by the time the contract is up and they could cancel they decide to stay because it's January again and "this year is going to be different"!

These type's of gym have the potential to make much more money but require a much higher initial investment and risk, they also often tend to try and not accommodate heavy lifters. There are two reasons for this, the first is that a much higher % of heavy lifters actually use the gym after they join. A gym will often get to an equilibrium where its busy and it either makes current members leave or puts off new people joining. In terms of your profit you want that point to be all normal 10% members, a simplified example is if your gym's equilibrium was 50 members you could have 500 10% members on your books or probably about 100-150 dedicated heavy lifters. Obviuosly 500 members all paying is more desirable so what alot of gyms do to deter heavy lifters and not deter the 10% brigade is not have heavy dumbbells and also often not have a power rack. Generally heavy lifters will not put up with this and find a new place to train.

Another interesting thing about this type of business model is that the lower the price the lower the % of people who use it, the 10% rule can become 5% or even 3%. The reason for this is that if the monthly sub is 50 dollars your members are much more likely to cancel if they aren't using it. If it's only 19.99 or even 10 dollars even the people who never use it think well it's only 10 a month and this Jan will be different, I will definitely start using it then... It is also one of the reasons for a joining/administration fee, when someone has paid an initial joining/admin fee they feel much more obliged or tied into a contract. If they cancel it now and then want to start it again (in jan!) they will have to pay that useless charge again.

There is actually one gym I know in Dublin, Ireland which was getting a few too many heavy lifters who were choking up the gym so they took the heavy dumbbells away a year after they opened, they blamed the insurance saying they were too dangerous (as if an insurance policy would change after a year) The best bit was that the All Blacks rugby team were in Ireland for a rugby match wanted to use the gym in question so the managment took the weights back out on the gym floor for the week they were there!

The other type of gym is a real gym. This usually consists of mostly free weights and it the type of gym's I used to run. You don't have to have fancy bull**** coffee bars or jacuzzi's ect, the people there are there to train. They have smaller overheads and are much easier to start up. The potential profit is also much smaller. It seems like a much more honest business model to me, give people a quality product and a fair price and they will happily use it. The funny thing is that you can often charge a bit more than a multi million dollar fitness centre because the type of people who use it know what they want and are willing to pay for quality. This type of place can be a brilliant lifestyle business but it usually wont make you rich. The other thing about setting up a gym like this is that you really have to know your stuff when it comes to training, if you are going to keep bodybuilders and powerlifters or even just experienced lifters happy you need to have expert knowledge of training in order to equip it properly.

Sorry for the long post hope it helps you...

[Fiend4Intensity]

LA fitness are most all the same (lay out, equipment, floor plan, buildings, services, amenities and prices) They cost ALOT more than 1/2 mil. to construct. I'd say without all of the 13 60"lcd tv's, the over 30 pieces of cardio equipment, the pool, sauna, and lockers you'd still be well over 3 million. The building alone is aroundr a million without it's interior. Plus they featur just about every piece of equipment made by 5 manufacturers (life fitness, cybex, hammer strength, etc). Thats 5 machines for chest that are almost identical, just made by different manufacturers. Why? to appeal to EVERYONE and bc they can bc they have the money. And they only charge about $30, not $50 a month. There is always a "special" at LA fitness! lol Believe me, i can sell a snowball to satan. I'd say all in all they cost well into the millions. Just go in a big gym, count the free weights. count the machines. count the cardio equipment. price some lockers. google the equipment and have your mind blown by the initial cost to open a gym. Once open and if paid for there is little operating cost besides electricity and rent, however that initial cost if you are going to be over 3000sf would be alot to handle without some type of investors on board. Not impossible, but would take some planning to compete with the big boys.

My bad on the calculations. I was just guestimating

Nice post Irishmikk

[Accutron]

I have owned a few gyms and deal with gym owners every day (sell equipment now). I think you have to ask your self (or atleast tell us) why you want to open a gym? If you are doing it because you think there is an easy opportunity to make some money while you keep you job forget it now. It is one of the toughest business's along with beauty salons and restaurants. The reason is because pretty much from day one whether you have 1 customer or 1000 your overheads will be the same. Rent, heat, insurance, equipment, staff and marketing will all be fixed even if just have a single customer and it is usually a real struggle to get up to the level where you are breaking even.

In terms of types of gyms there are two different business models. The first is a fitness centre type, this is based on the 10% rule which is the amount of your members who will use the gym after they join. The thinking behind this type of place is to appeal to the general population, 90% of which like the idea of joining a gym but wont actually use it. The best way to make the most money is to sign these people up for 12 month contracts with monthly installments which keep recurring if they don't cancel. Because often 60-70% of memberships can happen at the start of the year (new years resolutions...) by the time the contract is up and they could cancel they decide to stay because it's January again and "this year is going to be different"!

These type's of gym have the potential to make much more money but require a much higher initial investment and risk, they also often tend to try and not accommodate heavy lifters. There are two reasons for this, the first is that a much higher % of heavy lifters actually use the gym after they join. A gym will often get to an equilibrium where its busy and it either makes current members leave or puts off new people joining. In terms of your profit you want that point to be all normal 10% members, a simplified example is if your gym's equilibrium was 50 members you could have 500 10% members on your books or probably about 100-150 dedicated heavy lifters. Obviuosly 500 members all paying is more desirable so what alot of gyms do to deter heavy lifters and not deter the 10% brigade is not have heavy dumbbells and also often not have a power rack. Generally heavy lifters will not put up with this and find a new place to train.

Another interesting thing about this type of business model is that the lower the price the lower the % of people who use it, the 10% rule can become 5% or even 3%. The reason for this is that if the monthly sub is 50 dollars your members are much more likely to cancel if they aren't using it. If it's only 19.99 or even 10 dollars even the people who never use it think well it's only 10 a month and this Jan will be different, I will definitely start using it then... It is also one of the reasons for a joining/administration fee, when someone has paid an initial joining/admin fee they feel much more obliged or tied into a contract. If they cancel it now and then want to start it again (in jan!) they will have to pay that useless charge again.

There is actually one gym I know in Dublin, Ireland which was getting a few too many heavy lifters who were choking up the gym so they took the heavy dumbbells away a year after they opened, they blamed the insurance saying they were too dangerous (as if an insurance policy would change after a year) The best bit was that the All Blacks rugby team were in Ireland for a rugby match wanted to use the gym in question so the managment took the weights back out on the gym floor for the week they were there!

The other type of gym is a real gym. This usually consists of mostly free weights and it the type of gym's I used to run. You don't have to have fancy bull**** coffee bars or jacuzzi's ect, the people there are there to train. They have smaller overheads and are much easier to start up. The potential profit is also much smaller. It seems like a much more honest business model to me, give people a quality product and a fair price and they will happily use it. The funny thing is that you can often charge a bit more than a multi million dollar fitness centre because the type of people who use it know what they want and are willing to pay for quality. This type of place can be a brilliant lifestyle business but it usually wont make you rich. The other thing about setting up a gym like this is that you really have to know your stuff when it comes to training, if you are going to keep bodybuilders and powerlifters or even just experienced lifters happy you need to have expert knowledge of training in order to equip it properly.

Sorry for the long post hope it helps you...

Solid post with good insight!

[Skidmarx]

Words of gold from Irishmiick

I wonder if a hybrid gym is feasable...

A fitness center to attract the general public, with a separate hardcore lifting training area. The fitness would be full of machines & cardio equip for the regular joes/resolutioners, for the higher profit business, and for a card fee a member could get access to the serious freeweight area so you attract the smaller group of heavy lifters who will pay more(maybe have some trendy stuff like crossfit equipment too).

[thedickus]

I used to run a 24 hour gym. It was completely hardcore. One way we kept overhead down was to only man it up to 8pm. We issued security cards to swipe to gain entry. We also allowed local and state police to workout for next to nothing, like $5 or $10 a month. It was nice because it kept a police presence after hours. We gave them access to one of the offices to do reports in and kind of help keep an eye on the place. Tough business to make money from though. It also took something that I loved, bodybuilding, and turned it into a 12 hour a day job. I had to go to other gyms to actually get a workout in.

[Ripnlean]

First questions or task would be to draw up a business plan, We might all be humming about starting a gym to make a profit of some sort.

1. Do you have a business plan?
2. an exit strategy?
3. investment capital?

Research google for Cost per sq. ft of living space or ask your local Energy company for a quote. (assuming you have either a building's square footage or the square footage you want to build)

Marketing is a key cost figure as well.

Liability/insurance/contracts would have to be dealt locally as well with your Attorney/Insurance Agent.

Gym equipment ranges, depends on what you want to get not what you should or should not get, this is your vision of a gym not hours, if you don't have one, go into a local gym and check it out, do you want to be a cardio warehouse or a hardcore lifting house?

All other information if you can't figure it out costs investor money.

Google will help you with some rough numbers but to get quotes you need to deal local.

good luck

[irishmickk]

Words of gold from Irishmiick

I wonder if a hybrid gym is feasable...

A fitness center to attract the general public, with a separate hardcore lifting training area. The fitness would be full of machines & cardio equip for the regular joes/resolutioners, for the higher profit business, and for a card fee a member could get access to the serious freeweight area so you attract the smaller group of heavy lifters who will pay more(maybe have some trendy stuff like crossfit equipment too).

Yea good point they do exist but I didn't want to mention them because they are way out of the OP's price range. The only ones like that in Ireland are usually 20,000 sq ft and the reason they can do it is that they are so big they will never reach that equilibrium where they get so busy with the 10% brigade that it puts people off joining. As you said they either have a separate floor or a separate annex to the building where they keep them isolated and while giving tours to housewives they can just bypass the weights area. I have never seen a gym that charged a seperate amount for the heavy weights vrs general gym but it is a very interesting idea. I doubt it would go down well because members know well that freeweights are much cheaper to buy then rows of treadmills.

That said I was actually trying to do a deal with a gym in Dublin who were thrown out of their building for falling behind on the rent. Commercial rents are down 60-70% over here and they were in a 10,000 sq ft building, they found a 20,000 sq ft building just around the corner for 40% less than the original building. They couldn't afford to equip another 10,000 sq ft so I thought about trying to open a Sports Specific gym (sprint track, rows of half racks, mma cage ect.) and try and charge more for access to that area. The way I was going to try and sell it was because the original gym was quite well known and had 2,000 members who were paying for what they had when they were 10,000 sq ft and this was obviously an addition to the original gym it would cost extra...

Do you reckon people would be happy to pay extra for a heavy weights area in a new gym?

[thedickus]

Yea good point they do exist but I didn't want to mention them because they are way out of the OP's price range. The only ones like that in Ireland are usually 20,000 sq ft and the reason they can do it is that they are so big they will never reach that equilibrium where they get so busy with the 10% brigade that it puts people off joining. As you said they either have a separate floor or a separate annex to the building where they keep them isolated and while giving tours to housewives they can just bypass the weights area. I have never seen a gym that charged a seperate amount for the heavy weights vrs general gym but it is a very interesting idea. I doubt it would go down well because members know well that freeweights are much cheaper to buy then rows of treadmills.

That said I was actually trying to do a deal with a gym in Dublin who were thrown out of their building for falling behind on the rent. Commercial rents are down 60-70% over here and they were in a 10,000 sq ft building, they found a 20,000 sq ft building just around the corner for 40% less than the original building. They couldn't afford to equip another 10,000 sq ft so I thought about trying to open a Sports Specific gym (sprint track, rows of half racks, mma cage ect.) and try and charge more for access to that area. The way I was going to try and sell it was because the original gym was quite well known and had 2,000 members who were paying for what they had when they were 10,000 sq ft and this was obviously an addition to the original gym it would cost extra...

Do you reckon people would be happy to pay extra for a heavy weights area in a new gym?

I just don't see being able to charge extra for using a heavy weight area. I had problems getting people to fork out extra $$s for spinning classes. I don't know about you're area but in the St Louis, MO area, as I'm sure in others, personal training studios are gaining in popularity. You don't really workout by yourself but it's 1 on 1 personal training without the crowds. Maybe 3 or 4 trainers at a time taking their clients through workouts. I with the Gold's gym that I used to workout at would have done a separate personal training area or studio instead of parading their 4 or 5 person group through circuits taking up all the machines at once. I guess though it's how you market it and if there's equipment in there that no other place has you might get away with charging extra. Also keep in mind I'd have a hard time selling an ice cold beer to someone burning in Hell. Some people have sales skills and then there's people like me.

[irishmickk]

I just don't see being able to charge extra for using a heavy weight area. I had problems getting people to fork out extra $$s for spinning classes. I don't know about you're area but in the St Louis, MO area, as I'm sure in others, personal training studios are gaining in popularity. You don't really workout by yourself but it's 1 on 1 personal training without the crowds. Maybe 3 or 4 trainers at a time taking their clients through workouts. I with the Gold's gym that I used to workout at would have done a separate personal training area or studio instead of parading their 4 or 5 person group through circuits taking up all the machines at once. I guess though it's how you market it and if there's equipment in there that no other place has you might get away with charging extra. Also keep in mind I'd have a hard time selling an ice cold beer to someone burning in Hell. Some people have sales skills and then there's people like me.

Yea that's my gut aswell, it would be a fairly bitter pill to swallow for a lifter to pay extra to use the cheapest equipment in the gym while all the others pay less for the million dollar pool and hundreds of 10k treadmills ect... I would love to see how any gym that did try this got on.

[lynch3500]

you seem ta have a gud idea of wat u need ta open a gym irishmickk wat u tink a rough cost wud b ta open a gym er in ireland hav bein researchin propertys nd stuff found a few nice 1s the market is a bit thight rund here in kerry ders a few gyms but der al d same and to xpensive im lukin inta free weights wit fitness aswel but im gona go for sum new ex lik battle rope nd stuf giv ppl sumtin diff but affordable any advice wud b appreciated on start up funds in stuf hav sum gud ideas dat can work jus tryna figure out wat way ta go bout it

[rthawker]

you seem ta have a gud idea of wat u need ta open a gym irishmickk wat u tink a rough cost wud b ta open a gym er in ireland hav bein researchin propertys nd stuff found a few nice 1s the market is a bit thight rund here in kerry ders a few gyms but der al d same and to xpensive im lukin inta free weights wit fitness aswel but im gona go for sum new ex lik battle rope nd stuf giv ppl sumtin diff but affordable any advice wud b appreciated on start up funds in stuf hav sum gud ideas dat can work jus tryna figure out wat way ta go bout it

Why is it that whenever someone new signs up their first post is dredging up old threads. Lynch, you do realize this thread is over 2 years old right? I'm not sure if you're trying to be funny by trying to write this with an irish accent but if you aren't then you need to go back to school and learn proper grammar and how to spell.

[boxertim]

Words of gold from Irishmiick

I wonder if a hybrid gym is feasable...

A fitness center to attract the general public, with a separate hardcore lifting training area. The fitness would be full of machines & cardio equip for the regular joes/resolutioners, for the higher profit business, and for a card fee a member could get access to the serious freeweight area so you attract the smaller group of heavy lifters who will pay more(maybe have some trendy stuff like crossfit equipment too).

There used to be a huge hybrid gym in my town....fitness in one area, cardio studio, boxing, and powerlifting. It closed and is now a huge post office depot. It was a great place to have a membership. Not sure why they closed.


edit: i never look a the dates of the threads when i reply

[zs4]

There used to be a huge hybrid gym in my town....fitness in one area, cardio studio, boxing, and powerlifting. It closed and is now a huge post office depot. It was a great place to have a membership. Not sure why they closed.


edit: i never look a the dates of the threads when i reply

Sorry for adding to an old thread, but I see the need for a "ladies only" gym in my area as there are none. When I was in the northeast, we had Lucille Roberts, but that seems a bit expensive to start up. Since I'm a guy and mostly a weightlifter these days, i am wondering what do ladies want in a gym? Is it the cardio classes, 1-1 training, juice bars? What?

Thanks all.

[KBKB]

Sorry for adding to an old thread, but I see the need for a "ladies only" gym in my area as there are none. When I was in the northeast, we had Lucille Roberts, but that seems a bit expensive to start up. Since I'm a guy and mostly a weightlifter these days, i am wondering what do ladies want in a gym? Is it the cardio classes, 1-1 training, juice bars? What?

There's a Jazzercize place about a mile from where I live. The parking lot there is always full and I'm pretty sure it's mainly women who attend the classes.

So, if you were starting up a business, that seems like a pretty cost effective way to do it. Get a space bigger than you need for cardio alone, but dedicate a good chunk of it for cardio classes. Over time, add equipment to the rest of the space, and offer 1:1 instruction at least for the first five or so visits. I think some folks (not just women) are intimidated by the machines and need the instruction to get it right. Heck, the instruction is good anyway even for folks who aren't intimidated just to get the form down.

[LucilleRoberts]

Sorry for adding to an old thread, but I see the need for a "ladies only" gym in my area as there are none. When I was in the northeast, we had Lucille Roberts, but that seems a bit expensive to start up. Since I'm a guy and mostly a weightlifter these days, i am wondering what do ladies want in a gym? Is it the cardio classes, 1-1 training, juice bars? What?

Thanks all.

Lucille Roberts Women's Fitness is looking for potential franchisees who want to open gyms in areas where we don't already have locations. One franchise has already opened in PA and is doing well, and there are plans for more in CT, GA, and FL. If you're interested in opening a Lucille Roberts, email collin@lucilleroberts.com.

[courtneyrae96]

I have owned a few gyms and deal with gym owners every day (sell equipment now). I think you have to ask your self (or atleast tell us) why you want to open a gym? If you are doing it because you think there is an easy opportunity to make some money while you keep you job forget it now. It is one of the toughest business's along with beauty salons and restaurants. The reason is because pretty much from day one whether you have 1 customer or 1000 your overheads will be the same. Rent, heat, insurance, equipment, staff and marketing will all be fixed even if just have a single customer and it is usually a real struggle to get up to the level where you are breaking even.

In terms of types of gyms there are two different business models. The first is a fitness centre type, this is based on the 10% rule which is the amount of your members who will use the gym after they join. The thinking behind this type of place is to appeal to the general population, 90% of which like the idea of joining a gym but wont actually use it. The best way to make the most money is to sign these people up for 12 month contracts with monthly installments which keep recurring if they don't cancel. Because often 60-70% of memberships can happen at the start of the year (new years resolutions...) by the time the contract is up and they could cancel they decide to stay because it's January again and "this year is going to be different"!

These type's of gym have the potential to make much more money but require a much higher initial investment and risk, they also often tend to try and not accommodate heavy lifters. There are two reasons for this, the first is that a much higher % of heavy lifters actually use the gym after they join. A gym will often get to an equilibrium where its busy and it either makes current members leave or puts off new people joining. In terms of your profit you want that point to be all normal 10% members, a simplified example is if your gym's equilibrium was 50 members you could have 500 10% members on your books or probably about 100-150 dedicated heavy lifters. Obviuosly 500 members all paying is more desirable so what alot of gyms do to deter heavy lifters and not deter the 10% brigade is not have heavy dumbbells and also often not have a power rack. Generally heavy lifters will not put up with this and find a new place to train.

Another interesting thing about this type of business model is that the lower the price the lower the % of people who use it, the 10% rule can become 5% or even 3%. The reason for this is that if the monthly sub is 50 dollars your members are much more likely to cancel if they aren't using it. If it's only 19.99 or even 10 dollars even the people who never use it think well it's only 10 a month and this Jan will be different, I will definitely start using it then... It is also one of the reasons for a joining/administration fee, when someone has paid an initial joining/admin fee they feel much more obliged or tied into a contract. If they cancel it now and then want to start it again (in jan!) they will have to pay that useless charge again.

There is actually one gym I know in Dublin, Ireland which was getting a few too many heavy lifters who were choking up the gym so they took the heavy dumbbells away a year after they opened, they blamed the insurance saying they were too dangerous (as if an insurance policy would change after a year) The best bit was that the All Blacks rugby team were in Ireland for a rugby match wanted to use the gym in question so the managment took the weights back out on the gym floor for the week they were there!

The other type of gym is a real gym. This usually consists of mostly free weights and it the type of gym's I used to run. You don't have to have fancy bull**** coffee bars or jacuzzi's ect, the people there are there to train. They have smaller overheads and are much easier to start up. The potential profit is also much smaller. It seems like a much more honest business model to me, give people a quality product and a fair price and they will happily use it. The funny thing is that you can often charge a bit more than a multi million dollar fitness centre because the type of people who use it know what they want and are willing to pay for quality. This type of place can be a brilliant lifestyle business but it usually wont make you rich. The other thing about setting up a gym like this is that you really have to know your stuff when it comes to training, if you are going to keep bodybuilders and powerlifters or even just experienced lifters happy you need to have expert knowledge of training in order to equip it properly.

Sorry for the long post hope it helps you...

Ok so this was super helpful I am curretly looking to get out of the town I live in because I can't seem to get ahead I go to school 3 nights a week just so my fiance and I dont have to pay the ridiculous over priced apartments or homes ... A 400G house in edmonton AB costs anywhere From 800-900 G Where I live .. I am 26 and I am currently taking Business managment and a personal trainer Course I have been using the gym for about the last 5 years and I either want to buy a gym that's already been around for a while or start one up which do you think is better? I also want to have a real gym for the people who are deadicated not just hardcore, but for the people who dont go 3 weeks out of the year b/c it's their new years resolution!!!! let me know and anymore hints would be great !!!

thanks

[KBKB]

I either want to buy a gym that's already been around for a while or start one up which do you think is better? I also want to have a real gym for the people who are deadicated not just hardcore, but for the people who dont go 3 weeks out of the year b/c it's their new years resolution!!!! let me know and anymore hints would be great !!!

The following video might be of interest...