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  1. #1
    Registered User SyedZeeshan's Avatar
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    Starting a Gym in India

    So like every athlete or fitness enthusiast even I've certain plans on starting my own gym with the best in class equipment.
    The reason why I want to come up with this project is that I've been to several gyms in my city. Either they are just money making machines who either have no proper equipment or proper trainers. The other small gyms are just not worth it.

    With this I just had an idea to start a gym for those who are dedicated and serious towards their goals. Planning to target people from the age 18 to 40. The location I've in my mind is surrounded my these software engineer's recidence, colleges, business orgs etc. So I do think this could be a prime location. However what I'm more concerned about is the equipment. What do you think should I go for these local equipments that are made in india or should I go for the big brands like hammer strength etc.

    What would you advise?
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    Mr. Humble Ronin4help's Avatar
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    You indicated you are 'planning to target people from the age 18 to 40' and of that only people 'who are dedicated and serious towards their goals'.

    So, tell us what this plan is? How do you plan to target these people?

    Your response will indicate whether or not any counsel given will fall on deaf ears or will be worth providing.
    Last edited by Ronin4help; 12-06-2017 at 01:04 PM.
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    Registered User SyedZeeshan's Avatar
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    So basically what I've noticed and experienced is that most of the coaches in India are either inexperienced or not customer oriented.
    With that said hiring some good trainers could be a plus for me over my competitors. Secondly, in my area, the gyms charge
    USD. 50 a month, but I can try to give away the memberships for less price, maybe 40% cheaper, low price but more sales = profit.

    Further, I don't just want it to be a gym but I want it to make it a community, I want to have some guest meets and all such stuff, inviting bodybuilding celebs from india to throw some motivational speeches and all. There are a couple of strategies I have thought so far.
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    Ronin will not have nice things to say.

    If you want a community, you actually need a higher price than average, not lower. You can have community in a gym with 5,000 members, you will almost certainly have community in a gym with 50 members. Somewhere in the middle will be the balance of community and total numbers.
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    Registered User SyedZeeshan's Avatar
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    Originally Posted by KyleAaron View Post
    Ronin will not have nice things to say.

    If you want a community, you actually need a higher price than average, not lower. You can have community in a gym with 5,000 members, you will almost certainly have community in a gym with 50 members. Somewhere in the middle will be the balance of community and total numbers.
    Thanks for the input Kyle, I shall consider about what you said about the pricing and I think it would be better to decide the price once I have the complete costing involved in setting up a gym.
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    Mr. Humble Ronin4help's Avatar
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    Originally Posted by KyleAaron View Post
    Ronin will not have nice things to say.

    If you want a community, you actually need a higher price than average, not lower. You can have community in a gym with 5,000 members, you will almost certainly have community in a gym with 50 members. Somewhere in the middle will be the balance of community and total numbers.
    Am I really that predictable?

    Unfortunately Kyle is correct. I HATE this idea. But I say this in hopes that you will reconsider and your time, energy and MONEY will be spared. If you care why I hate it, let me know. If you do not and pursue this fantasy anyway, then at least I didn't waste my time explaining why you will be flat broke within 18 months of the Grand Opening.
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    Registered User AutistTrigger's Avatar
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    You will need to do a SWOT analysis along with a demographic analysis before picking out gym equipment. You need to know the make up of your target markets along with who your competitors are. You need to know what services people want and what your potential competitors offer for that money. You then need to put all that information into a business plan along with estimated 1 year operating cost so you can get funding if needed. You can put generic gym equipment into the plan with rough estimation of cost. Also make a time line with reasonable goals.

    Marketing wise, rent names to target. Target everyone with mailers. Place local ads.

    Just my opinion.
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    Mr. Humble Ronin4help's Avatar
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    Originally Posted by AutistTrigger View Post
    You will need to do a SWOT analysis along with a demographic analysis before picking out gym equipment. You need to know the make up of your target markets along with who your competitors are. You need to know what services people want and what your potential competitors offer for that money. You then need to put all that information into a business plan along with estimated 1 year operating cost so you can get funding if needed. You can put generic gym equipment into the plan with rough estimation of cost. Also make a time line with reasonable goals.

    Marketing wise, rent names to target. Target everyone with mailers. Place local ads.

    Just my opinion.
    This is good stuff. Not exotic in concept, rather traditional overall... yet sound advice. (for ideas that are viable)

    Thumbs up.
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    Registered User SyedZeeshan's Avatar
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    Originally Posted by Ronin4help View Post
    This is good stuff. Not exotic in concept, rather traditional overall... yet sound advice. (for ideas that are viable)

    Thumbs up.
    I agree with everything he said. I'm familiar with the pre-startup procedures such as swot, competitor analysis and market survey etc since i'm an Mba by profession. However at times I really feel that no matter how much you analyse the ground before starting there will always be trails and errors and without it the journey will not be worth it. I'll try my level best to be prepared for the pre-start up efforts. I'm sure there are plenty of amazing people like you to always guide me and help me out.

    Fitness has a huge market and I believe that it will always have room for the new start ups, ofcourse with a great business plan we could be successful.

    Any advises that could tell me what I shouldnt do as a gym owner with your experiences?
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    Mr. Humble Ronin4help's Avatar
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    Originally Posted by SyedZeeshan View Post
    I agree with everything he said. I'm familiar with the pre-startup procedures such as swot, competitor analysis and market survey etc since i'm an Mba by profession. However at times I really feel that no matter how much you analyse the ground before starting there will always be trails and errors and without it the journey will not be worth it. I'll try my level best to be prepared for the pre-start up efforts. I'm sure there are plenty of amazing people like you to always guide me and help me out.

    Fitness has a huge market and I believe that it will always have room for the new start ups, ofcourse with a great business plan we could be successful.

    Any advises that could tell me what I shouldnt do as a gym owner with your experiences?
    Community based businesses (models that require most customers to return over and over again) are predispositioned to fail because of this need for a recurring business from its core customers. This is essentially the root of your model. The reason these businesses eventually fail (many sooner than later) is the same reason people cheat on their spouses, get a new car or job, buy new clothes, download new music, change their hairstyle and so on and so on... and that reason is boredom. Once people (inevitably) grow tired of meeting at your gym, they will move on and since there will never be enough new business to counter that void, money eventually runs out, bills become overdue and you are soon forced to choose between keeping the place open or feeding your family. Guess what everyone chooses at that stage?
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    Registered User SyedZeeshan's Avatar
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    Originally Posted by Ronin4help View Post
    Community based businesses (models that require most customers to return over and over again) are predispositioned to fail because of this need for a recurring business from its core customers. This is essentially the root of your model. The reason these businesses eventually fail (many sooner than later) is the same reason people cheat on their spouses, get a new car or job, buy new clothes, download new music, change their hairstyle and so on and so on... and that reason is boredom. Once people (inevitably) grow tired of meeting at your gym, they will move on and since there will never be enough new business to counter that void, money eventually runs out, bills become overdue and you are soon forced to choose between keeping the place open or feeding your family. Guess what everyone chooses at that stage?
    Obvious one would chose to feed their family in such situations. SO you suggest that we should maintain a standard and not focus on retaining all the customers but instead to make a new customer every day.
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    Mr. Humble Ronin4help's Avatar
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    My first suggestion would be to conceive a business that exhibits some element of addiction in relation to its model. Here is what I mean...

    Services and products that eliminate the 'choice' option from its consumer base have little issues with retention (e.g. tobacco, alcohol, food, porn, Social media, etc.). The idea of choice will always be marketed but that idea is pure illusion. Now, aside from models that generate addicted consumer bases, the next level down is to create a service or product that makes it as difficult as possible for the consumer to choose elsewhere (e.g. Starbucks, Apple products, fast food dollar menus, etc.). If you are unable to do that, then you are stuck with a model that will require a marketing strategy that will..as you rightfully say...'make a new customer everyday'. So, if you do not have such a marketing strategy, you will inevitably fail.

    Thus, the reason I asked what your plan was.
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    Personally, I think we should lower the price when we start to create it,According to personal consumption,you should be based on your personal consumption, which will attract a lot of customers,
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    Mr. Humble Ronin4help's Avatar
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    Originally Posted by Eamller View Post
    Personally, I think we should lower the price when we start to create it,According to personal consumption,you should be based on your personal consumption, which will attract a lot of customers,
    Where did you learn this? The Sesame Street Business School?

    There is too much wrong with this response for me to even know where to start.
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    Lowering the price should only be an illusion for the people but it should never be lowered. I came across this strategy a few years ago while pursuing MBA. So back in India, there came up few online retailers who grew in size just in no time. The reason was huge discounts. Later, when I started to understand whats happening I came to know that huge discounts offered was just an illusion to the eye and the mind. When in reality there was never a discount.

    For example, these websites launch e-mail marketing saying that from 12th December to 31st December is a Big Billion day. Which mean products will be sold at very cheap prices. So what these smart MBAs working for these websites do is increase the price couple of months before the discounts are announced. Then they drop the price saying that its a discount. Looking at those red tags people jump over it to purchase. Trust I've seen items expensive even after the discounts.
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    husband, father, trainer KyleAaron's Avatar
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    In Australia, raising prices and then "discounting" to the real price would be a crime under the Competition and Consumer Act. But if your country allows fraudulent behaviour in business, go for it!

    This is what you got from your MBA?
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    Originally Posted by KyleAaron View Post
    In Australia, raising prices and then "discounting" to the real price would be a crime under the Competition and Consumer Act. But if your country allows fraudulent behaviour in business, go for it!

    This is what you got from your MBA?
    No, It wasn't a part of my education. However, I was doing this research on pricing strategies and supply chain stuff where I came across this article which gave me a slight hint how these online retailers are smartly selling products to their customers. Of course, it is a fraud but nobody cares these days.
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    Originally Posted by SyedZeeshan View Post
    No, It wasn't a part of my education. However, I was doing this research on pricing strategies and supply chain stuff where I came across this article which gave me a slight hint how these online retailers are smartly selling products to their customers. Of course, it is a fraud but nobody cares these days.
    As a consumer, I care.
    Short cuts to success are often paved with lies.
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    Originally Posted by gbullock32 View Post
    As a consumer, I care.
    Hardly a few people care. Not everyone unless they are aware of such scams exists.
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    Originally Posted by gbullock32 View Post
    As a consumer, I care.
    And in Australia, the law cares. Perhaps not in India.

    I would hope too that the person themselves care. Integrity and honesty are worthwhile things in a human being. But...
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    Originally Posted by KyleAaron View Post
    And in Australia, the law cares. Perhaps not in India.

    I would hope too that the person themselves care. Integrity and honesty are worthwhile things in a human being. But...
    Yes, the consumer forum and the law has to take some action but let's just stick to the topic.
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    Originally Posted by SyedZeeshan View Post
    Lowering the price should only be an illusion for the people but it should never be lowered. I came across this strategy a few years ago while pursuing MBA. So back in India, there came up few online retailers who grew in size just in no time. The reason was huge discounts. Later, when I started to understand whats happening I came to know that huge discounts offered was just an illusion to the eye and the mind. When in reality there was never a discount.

    For example, these websites launch e-mail marketing saying that from 12th December to 31st December is a Big Billion day. Which mean products will be sold at very cheap prices. So what these smart MBAs working for these websites do is increase the price couple of months before the discounts are announced. Then they drop the price saying that its a discount. Looking at those red tags people jump over it to purchase. Trust I've seen items expensive even after the discounts.
    This concept has been around since the beginning of commerce. It is not an idea conceived by someone with a high IQ. It is not the work of a 'smart MBA'. It's the ol 'start high then bargain down to the price you want' scheme. Elementary school kids do this with their parents when negotiating gifts or allowances.

    This idea is stupid and only works with stupid people. Because only stupid people don't understand that the market dictates the value of goods, not any one particular company. In other words, a smart person would go online and see just how much these items are being discounted by comparing the prices with those offered by competitors. Whereas a stupid person just clicks and buys without knowing the true value of the product being offered at discount.

    If you are going to open a shop that sells products only stupid people buy (e.g. junk food, trinkets, cheap clothing, knock off merchandise, etc,) then yes, you will make a profit with this strategy. I highly doubt, however, that this will work in the fitness industry where the value of services is pretty common knowledge. It would be like raising the price of a car by 20 percent and then discounting it during a 3-day Holiday by 20 percent. Most people are going to check to see what kind of deal they are truly getting before committing.
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    Originally Posted by Ronin4help View Post
    This concept has been around since the beginning of commerce. It is not an idea conceived by someone with a high IQ. It is not the work of a 'smart MBA'. It's the ol 'start high then bargain down to the price you want' scheme. Elementary school kids do this with their parents when negotiating gifts or allowances.

    This idea is stupid and only works with stupid people. Because only stupid people don't understand that the market dictates the value of goods, not any one particular company. In other words, a smart person would go online and see just how much these items are being discounted by comparing the prices with those offered by competitors. Whereas a stupid person just clicks and buys without knowing the true value of the product being offered at discount.

    If you are going to open a shop that sells products only stupid people buy (e.g. junk food, trinkets, cheap clothing, knock off merchandise, etc,) then yes, you will make a profit with this strategy. I highly doubt, however, that this will work in the fitness industry where the value of services is pretty common knowledge. It would be like raising the price of a car by 20 percent and then discounting it during a 3-day Holiday by 20 percent. Most people are going to check to see what kind of deal they are truly getting before committing.
    Yes what you said is true. But here we're talking about those people who blindly go and shop just because of the brand image. In these cases they end paying a little more money. When it comes to the fitness industry there are many issues. Mostly people come up with recommendations and ask for discounts, or dont pay their fees on time.
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    Don't pay their fees on time? That ceased being an issue when auto debit was invented back in the eighties. People no longer write checks to the gym. Geez, how far behind are you guys over there?
    Last edited by Ronin4help; 12-13-2017 at 02:29 PM.
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    Originally Posted by Ronin4help View Post
    Don't pay their fees on time? That ceased being an issue when auto debit was invented back in the eighties. People no longer write checks to the gym. Geez, how far behind are you guys over there?
    We're not really far from the united states. It's just that we have given full freedom to our citizens here. If we have a person who likes to pay monthly we let them pay the same way. We don't charge people without their will. In other words, most of the gym owners are lenient and don't force their customers to pay by auto debit, unless the customer is willing to pay that way other wise there are options like half yearly and annual packages, I believe even in the states there are several such gyms I'm sure.
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    You guys will soon learn that giving people the 'freedom' to do what they feel is best is the surest way to going out of business. Fuk freedom. Do only what's in the best interest of the business and the people will abide every time (providing you are offering something they really want).
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    Originally Posted by Ronin4help View Post
    You guys will soon learn that giving people the 'freedom' to do what they feel is best is the surest way to going out of business. Fuk freedom. Do only what's in the best interest of the business and the people will abide every time (providing you are offering something they really want).
    Well, we have a huge culture difference and the way we do our businesses are also different. Here people do what benefits their business the best breaking all the rules rather than following certain guidelines. Here in India the crowd and culture are totally different and consumers are not really predictable sometimes they accept things and sometimes they reject no matter how much technology you put into your business. Sometimes simplicity works out well.

    It's completely up to the crowd to subscribe and cancel their subscriptions. With that said subscriptions and cancellations are part of the service industry. Not everyone can pay in advance. Therefore, it is subject to trainee's convenience.
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    Originally Posted by KyleAaron View Post
    In a country of the half-arsed, the fully-arsed man is king.
    I hope you are not abusing my country my friend nor it's citizens.
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    Originally Posted by KyleAaron View Post
    In Australia, raising prices and then "discounting" to the real price would be a crime under the Competition and Consumer Act. But if your country allows fraudulent behaviour in business, go for it!

    This is what you got from your MBA?
    Im not gonna pretend to know anything you guys are talking about but mate i swear to god every bloody closing down sale is exactly that and as an added bonus they dont end up closing down for another 3 years :')
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