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Author Topic: start up cost for a gym  (Read 48984 times)
Swedish Viking
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« on: November 19, 2007, 03:39:16 AM »

wondering if anyone could give me a ball park figure for the equipment costs of an average sized mainstream type gym-LA Fitness, Crunch, Equinox type place?  Anyone start up their own gym-how big is it and what did it cost you total to start up?
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Vince G, CSN MFT
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« Reply #1 on: November 19, 2007, 07:23:17 AM »

You'll need at least 500,000 in secure funds and enough equity resources to obtain 500,000 more if nessesary.  Onlyme would be the best person to ask in this case (can't believe I'm recommending him)


I'm actually opening up a PT & rehab clinic in a few years.  The overhead will be much less and the profit margin is going to be a better.  People are not discontent with big gyms and now they wish to have private and exclusive places to work out with better care and service to reach their goals.
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A
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« Reply #2 on: November 19, 2007, 03:18:17 PM »

think of a few big name gyms you'd like to be a part of.

go to their webpage.

click on contacts. 

ask about franchising.

perhaps?

also, armz has his own gym.
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« Reply #3 on: November 23, 2007, 08:29:20 PM »

A guy I know opened 2 Anytime Fitness gyms and spent over 600,000 on each one. Only about 6000 sq ft and mostly cardio. This guy is struggling and he used to be the VP of 24 Hour Fitness for the western region. He will have to wait a VERY long time to get that money back. Really nice little gym though!
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« Reply #4 on: November 26, 2007, 10:43:24 AM »

Wow... that is such a huge investment.

Pretty dependent upon longterm returns too, huh? 
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Jeriko
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« Reply #5 on: November 28, 2007, 08:53:42 PM »

$50K

I'm the San Diego NCoastal area developer for Athletic Nation. We are personal trainer based and thus only require 1,000 to 1,500 SF. Our unique approach and business model allows us to flourish when other standard big box gyms can't. We don't get fancy and ensure we have the meat and potatos of workout equipment (free of all the new-age garbage).  I love the fact that we are as hardcore as you can be without scaring the average joe who believes he'll automatically become "muscle bound" by simply stepping inside our doors Grin  And unlike the  bigger chain gyms we'll call you to make sure you come in for your work out all the while they're planning on you not adding wear and tear on their equipment by charging you just enough so you don't mind paying even though you've stopped going.
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gunnz
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« Reply #6 on: December 21, 2007, 04:28:12 PM »

A guy I know opened 2 Anytime Fitness gyms and spent over 600,000 on each one. Only about 6000 sq ft and mostly cardio. This guy is struggling and he used to be the VP of 24 Hour Fitness for the western region. He will have to wait a VERY long time to get that money back. Really nice little gym though!

I have opened 4 Anytime Fitness clubs, and my most expensive one was $300,000.  The cheapest was $175,000. I know many other owners and have been to hundreds of Anytime Fitness clubs.  It would be nearly impossible to spend $600,000 on one club.  Two, maybe.
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« Reply #7 on: December 21, 2007, 04:53:04 PM »

I have opened 4 Anytime Fitness clubs, and my most expensive one was $300,000.  The cheapest was $175,000. I know many other owners and have been to hundreds of Anytime Fitness clubs.  It would be nearly impossible to spend $600,000 on one club.  Two, maybe.


True, but the question was regarding pricing on a "mainstream type gym-LA Fitness"  I wouldn't take my chances investing in a smaller type gym as they get run out by big named gyms 80% of the time.. 
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« Reply #8 on: December 22, 2007, 04:50:47 PM »


True, but the question was regarding pricing on a "mainstream type gym-LA Fitness"  I wouldn't take my chances investing in a smaller type gym as they get run out by big named gyms 80% of the time.. 

I would agree with you 100% on going at it alone with a smaller gym would be tough (less than 10,000 sq ft), but the Anytime Fitness model (key card system), franchise system, reciprocity to over 600 clubs open, ect make it a no brainer, extremely profitable.  We have better/newer equipment than the big box gyms in my area, with all the top manufacturer's (Precor, Life Fitness).  If people are looking for a great place to work out/do cardio close to home, AF is perfect.
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« Reply #9 on: January 02, 2008, 11:30:34 PM »

I'd love to show you my budget for the gym I am opening currently in Vegas.  It is just under 40,000 sq. ft. with a 32' ceiling.  I have earmarked $2.75 million and that is based on getting between $15 and $25 TI money.  Won't get less than that but the more the better.  This is for an existing building.  Construction, development, equipment leases, permits, legal shit, design, FF&E, etc.  Spending close to $150,000 just on the Grand Opening party.  What's weird is once you start putting everything down on a spreadsheet you really don't know how much it will cost you.  It adds up very fast.  Having a team like I have put together is also a huge advantage if you want to penetrate the market with some huge impact.  In cities like Vegas or LA or New York I can't see how you can do any kind of substantial business with a gym under 25,000 sq. ft.  I'm talking where you can bring in a minimum of $130,000 a month in gross revenue.  And having a gym with just a workout area without any type of ancillary profit center is just not worth it.  If you are spending $100,000 a month in total expenditures and your club is making $130,000 then I feel it is worth it.  Of course our numbers are substantially higher, but for a minimum this would be it.

When opening a club (I have planned 5 here in Vegas corporate owned and franchising worldwide) you have to make sure you get the best price possible for equipment.  I have preferred vendor s that give me unreal pricing and in a couple cases the equipment is free because they are using my flagship club as a West Coast showroom.  You have to be able to work the equipment companies.  The biggest companies don't always have the best equipment either.

This is my biggest venture to date.  The biggest I was putting together was a 160,000 sq. ft. gym in Hawaii where I lost everything from a crooked developer.  So I learned my lesson.  Stay tuned cause when I am ready I will announce the Grand Opening date so everyone can come from Getbig.
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« Reply #10 on: January 03, 2008, 07:43:43 AM »

Let's join a gym owned by this guy!!


* obeselyme.jpg (148.25 KB, 800x600 - viewed 39063 times.)
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« Reply #11 on: January 03, 2008, 10:29:34 AM »

Let's join a gym owned by this guy!!

Dude/Girl or whatever the hell you are why do you follow me around.  I have seen your pale white ugly body and I am just not interested.  Sorry girl/dude or in between operations.  Too bad your falied attempts are so pathetic.  See thats why my past and my accomplishments help me now when I look so bad.  It pays t have a past now doesn't it.  Too bad you have nothing.  And remember this I can lose weight and get back into shape.  you can't cause you have looked that ugly your whole life.  You were born ugly.  If you join our gym I will get the best PT to help you out.  You would be our biggest success story.
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« Reply #12 on: January 03, 2008, 11:24:22 AM »

Let's join a gym owned by this guy!!

Focus...


Having a team like I have put together is also a huge advantage if you want to penetrate the market with some huge impact. 
When opening a club (I have planned 5 here in Vegas corporate owned and franchising worldwide) you have to make sure you get the best price possible for equipment.  I have preferred vendor s that give me unreal pricing and in a couple cases the equipment is free because they are using my flagship club as a West Coast showroom.  You have to be able to work the equipment companies.  The biggest companies don't always have the best equipment either.

Onlyme,
I have a few questions if you donít mindÖ

1.) Do you know/have experience with the Vegas contractors you are contracting?
2.) Are you, or have you ever done business with an equipment vendor called Gym Source?
3.) Do you believe that, when buying equipment, your bargaining power is dependent more on the company or the individual sales rep?
4.) What brands of equipment are you predominantly planning to stock in your facilities?

If Iím prying, just say so.
Opening a gym is not high on my list, but I love to learn.

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onlyme
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« Reply #13 on: January 04, 2008, 12:02:37 AM »

Focus...


Onlyme,
I have a few questions if you donít mindÖ

1.) Do you know/have experience with the Vegas contractors you are contracting?
2.) Are you, or have you ever done business with an equipment vendor called Gym Source?
3.) Do you believe that, when buying equipment, your bargaining power is dependent more on the company or the individual sales rep?
4.) What brands of equipment are you predominantly planning to stock in your facilities?

If Iím prying, just say so.
Opening a gym is not high on my list, but I love to learn.



1.  The architect and my CFO both have extensive dealings with contractors here in Vegas.  That is something I have no idea about.  The architect I am using is very well versed in the health club industry and my CFO has been a mortgage banker for more than 30 years.  His son is a very high profile attorney here so I am hoping they can find me the best and hard working contractor. 
2. Yes Gym Source if I recall is a company that provides parts and also smaller items like aerobic stuff.  Am I right.  I think I used them when I had Golds in Hawaii.
3. The company I am pretty sure.  I am dealing with people I have dealt with since the early 90's.  Most of them are still around except they work for a different company.  In this case because of how large we are striving to make the company I am talking to a lot of owners of the companies.  Almost everyone of them has flown out to meet me.  A few of the reps are awesome and do everything they can to help and get me the best deal.  Usually after whoever I talk to and tell them about our concept and who I have working with me, they want to jump aboard cause they see the niche I am targeting
4.  I have quite a few different companies.  All of them I require to be part of our Preferred Vendor Program.  For example LifeFitness was playing around with me so I decided to tell them I will not have any of their products in my gym.  i told them they are the largest but they are not the best.  Plus, every gym has LifeFitness.  There are so many other companies out there that have just as good if not better equipment than they do.  Since my gym is going more towards "functional training" I had to get FreeMotion.  I also, have some Matrix, Nebula. Nautilus, BodyMaster, Icarian, Hammer, Paramount, Cybex and others.  I want a large variety of machines and equipment.  I also have a lot of things no other gyms in vegas has.  Plus I am getting quite a bit of equipment for free.  So that saves me a lot.
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« Reply #14 on: January 04, 2008, 12:12:22 AM »

sounds like you got to be a millionaire to open a kick ass gym.  Can you front all the cash for me so I can open one up in St. Louis?
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« Reply #15 on: January 04, 2008, 12:31:30 AM »

sounds like you got to be a millionaire to open a kick ass gym.  Can you front all the cash for me so I can open one up in St. Louis?

No not sometimes.  what you need is a great Business Plan and team.  The rest will fall into place.  The way I look now is not how the people I have done business with over the past 25 years remember me as.  Luckily because if I saw me putting together a gym and didn't know my background I would think twice too.  But, I am lucky cause the people in this industry I do business with know my past and what I have done so that is why I can do what I do now.  It is also a huge reason why I am getting back into shape.  I know if I am going to be my own spokesperson I better look the part.  Luckily too though i have some great backup.
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« Reply #16 on: January 04, 2008, 03:11:32 AM »

No not sometimes.  what you need is a great Business Plan and team.  The rest will fall into place.  The way I look now is not how the people I have done business with over the past 25 years remember me as.  Luckily because if I saw me putting together a gym and didn't know my background I would think twice too.  But, I am lucky cause the people in this industry I do business with know my past and what I have done so that is why I can do what I do now.  It is also a huge reason why I am getting back into shape.  I know if I am going to be my own spokesperson I better look the part.  Luckily too though i have some great backup.
Sounds awesome, if i ever go to vegas i'll come past.
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Montague
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« Reply #17 on: January 04, 2008, 11:12:15 AM »

Keith,
Thanks for your time + all the info.
They ought to make you a mod on this board, too, as you have, and can certainly continue to make valuable contributions.
Cool

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onlyme
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« Reply #18 on: January 04, 2008, 12:10:35 PM »

Keith,
Thanks for your time + all the info.
They ought to make you a mod on this board, too, as you have, and can certainly continue to make valuable contributions.
Cool



Thanks but I have a hard enough time keeping out the idiots from the History Board.  Guys like you I like dealing with and have no problem being real.  Those few who ave messed up the other boards brings out the teenager in me so I get to screw around more.
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« Reply #19 on: January 04, 2008, 01:53:35 PM »

 Smiley
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« Reply #20 on: January 04, 2008, 05:46:27 PM »

obeselyme, I go to two gyms.  all set with yours

and as far as gender goes, you don't have to lift up five rolls of fat to see mine.

GO TO THE GYM AND WORKOUT!!!  you might find out why gyms are good then
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« Reply #21 on: January 04, 2008, 11:35:40 PM »

obeselyme, I go to two gyms.  all set with yours

and as far as gender goes, you don't have to lift up five rolls of fat to see mine.

GO TO THE GYM AND WORKOUT!!!  you might find out why gyms are good then

See that is your problem Medfat.  All you do is go to the gym.  You obviously DO NOT lift any weight.  You have absolutely nothing to show for it.  And still why is it so hard to just say you are a girl or a guy.  I swear to god I do not know.  You look like both seriously.  Just tell me which one, why is that so hard for you.  Are you a pre-op.  Is that why.  You haven't decided yet.  If so I understand your dilemma.
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onlyme
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« Reply #22 on: January 05, 2008, 04:23:28 AM »

sounds like you got to be a millionaire to open a kick ass gym.  Can you front all the cash for me so I can open one up in St. Louis?

Just like you can barely get a gym membership.  Maybe you should wait till after you graduate from high school to think about owning a gym.  It doesn't look like you could handle the business
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windsor88
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« Reply #23 on: January 05, 2008, 04:35:44 AM »

Just like you can barely get a gym membership.  Maybe you should wait till after you graduate from high school to think about owning a gym.  It doesn't look like you could handle the business

 Roll Eyes
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Medford
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« Reply #24 on: January 05, 2008, 05:20:13 PM »

consider the source...donutme who's already failed in the gym business, and looks kinda...obese.  Morbidly obese.  You go for what you want.
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