Author Topic: Why do Gyms Fail as a Business? (Read 32895 times)

Coach is Back! · « **Reply #50 on:** April 12, 2012, 06:58:24 PM »

They go out because...

Too high of overhead
Too high rent
leasing or financing equipment
wasting money on expensive cardio equipment and machines (the model of most commercial gyms)
PEOPLE NOT GETTING RESULTS, people go into a gym because they want to get into some kind of shape but when they don't know where to start they lose interest. Thats why as shitty as crossfit is, thats also the reason why they get results.

They days of the typical commercial box-type gyms are coming to an end. It's the ones like Adam posted are the ones that will be taking over.

a_pupil · « **Reply #51 on:** April 12, 2012, 07:02:15 PM »

only successful gym owner i know sells steroids. gym provides steady clientale.

BB · « **Reply #52 on:** April 12, 2012, 07:02:15 PM »

Quote from: The Coach on April 12, 2012, 06:58:24 PM

They go out because...

Too high of overhead
Too high rent
leasing or financing equipment
wasting money on expensive cardio equipment and machines (the model of most commercial gyms)
PEOPLE NOT GETTING RESULTS, people go into a gym because they want to get into some kind of shape but when they don't know where to start they lose interest. Thats why as shitty as crossfit is, thats also the reason why they get results.

They days of the typical commercial box-type gyms are coming to an end. It's the ones like Adam posted are the ones that will be taking over.

Bingo. Simple, small, and somewhat specialized is the way to go right now.

ARMZ · « **Reply #53 on:** April 12, 2012, 07:30:32 PM »

Look out big commercial gyms, PT studios are going to take over!!! LOL

Nails · « **Reply #54 on:** April 12, 2012, 07:41:39 PM »

Quote from: ARMZ on April 12, 2012, 06:34:24 PM

Here's a good way to put it.. If you rent a house and you are never there, do you pay less rent?
It's there and they can use it anytime they want..

Most rentals are 6 months or a year, not 3 years...

And most people don't rent a place and have to share it with shitty gym members and lazy gym owners/workers that can't maintain a clean and maintain dumbell rack.

Not sure what gym you work at /0r own, but you lose alot of members from the initial shaft they get when they sign up experience , instead of offering them a 3 month membership to see if they like it, you stick it to them for 3 years...

Either way ... I'm past the contract phase, there is always other options and gyms to go around

ARMZ · « **Reply #55 on:** April 12, 2012, 07:53:34 PM »

Quote from: Nails on April 12, 2012, 07:41:39 PM

Most rentals are 6 months or a year, not 3 years...

And most people don't rent a place and have to share it with shitty gym members and lazy gym owners/workers that can't maintain a clean and maintain dumbell rack.

Not sure what gym you work at /0r own, but you lose alot of members from the initial shaft they get when they sign up experience , instead of offering them a 3 month membership to see if they like it, you stick it to them for 3 years...

Either way ... I'm past the contract phase, there is always other options and gyms to go around

Never had a 3 year contract at my gym..(I own a Powerhouse Gym) We have 10 month contracts with a free first month or 1 year paid in full.. And we keep the gym like new and clean.. Our monthy dues are as low as 10 bucks per month.. or paid in full as low as 99 per year..
But I see your point if you are talking about 3 year contracts.. I'd never sign that..

Vince G, CSN MFT · « **Reply #56 on:** April 12, 2012, 07:59:19 PM »

Quote from: The Coach on April 12, 2012, 06:58:24 PM

They go out because...

Too high of overhead
Too high rent
leasing or financing equipment
wasting money on expensive cardio equipment and machines (the model of most commercial gyms)
PEOPLE NOT GETTING RESULTS, people go into a gym because they want to get into some kind of shape but when they don't know where to start they lose interest. Thats why as shitty as crossfit is, thats also the reason why they get results.

They days of the typical commercial box-type gyms are coming to an end. It's the ones like Adam posted are the ones that will be taking over.

QFT

Most people buy first and plan later when it comes to gyms and practically take out a loan on everything . By the time its open, you're so far in the hole that you can never climb out.

TacoBell · « **Reply #57 on:** April 12, 2012, 07:59:55 PM »

My planet fitness is only $10 down and $10 a month. No contract.

jude2 · « **Reply #58 on:** April 12, 2012, 08:21:00 PM »

Quote from: The Coach on April 12, 2012, 06:58:24 PM

They go out because...

Too high of overhead
Too high rent
leasing or financing equipment
wasting money on expensive cardio equipment and machines (the model of most commercial gyms)
PEOPLE NOT GETTING RESULTS, people go into a gym because they want to get into some kind of shape but when they don't know where to start they lose interest. Thats why as shitty as crossfit is, thats also the reason why they get results.

They days of the typical commercial box-type gyms are coming to an end. It's the ones like Adam posted are the ones that will be taking over.

This, plus people will rob u blind. Members and guys that work for u that called themselves your firends. You have to be there all the time to over see it yourself to make it work.

ChristopherA · « **Reply #59 on:** April 12, 2012, 08:28:35 PM »

Quote from: The True Adonis on April 12, 2012, 05:03:04 PM

I have a friend I went to college with who opened up his own gym similar to what Coach has and he is doing EXTREMELY WELL. Its funny, he never lifted before either and then got into it and now he and his brother are running a top notch facility that trains a lot of athletes.

Ya I don't see it being rocket science. Once you get the equipment payed off, what is there for overhead? Myself personally, I would live in the freakin place and work as many of the hrs as poss to save from hiring people. The gym I have been going to for about 15yrs closed out of nowhere last year and I just didn't get it. I figured they must have owned everything but it turns out, all the equipment was leased.

Coach is Back! · « **Reply #60 on:** April 12, 2012, 09:59:07 PM »

Quote from: ARMZ on April 12, 2012, 07:30:32 PM

Look out big commercial gyms, PT studios are going to take over!!! LOL

They my not take over but they will cripple them a little. Some people are willing to pay more for results. A good personal training studio or smaller.strength facility has a MUCH higher profit margin then that of a commercial gym. 24hr fitness has filed bk 3 times in the last 6 years just as an example.

MikMaq · « **Reply #61 on:** April 12, 2012, 10:09:29 PM »

Quote from: The True Adonis on April 12, 2012, 04:45:40 PM

Every gym I have ever been to, I might pay for the first year up front in cash (I would NEVER EVER sign a contract) then I find that they forget and I just continue to to go for years and nobody ever says anything as I become real friendly with the workers and owners. I think the last time I paid for a Full membership (in cash) was in 2000.

My guess is a surplus of freeloading jews such as yourself might be part of it.

Natural Man · « **Reply #62 on:** April 12, 2012, 10:16:25 PM »

and what about more and more people train at home with decent enough equipment and get all the usefull infos from the internet...

Primemuscle · « **Reply #63 on:** April 12, 2012, 10:23:59 PM »

Quote from: The True Adonis on April 12, 2012, 04:45:40 PM

Every gym I have ever been to, I might pay for the first year up front in cash (I would NEVER EVER sign a contract) then I find that they forget and I just continue to to go for years and nobody ever says anything as I become real friendly with the workers and owners. I think the last time I paid for a Full membership (in cash) was in 2000.

Nice admitting that you are basically a crook.

Coach is Back! · « **Reply #64 on:** April 12, 2012, 10:29:58 PM »

Quote from: uberman on April 12, 2012, 10:16:25 PM

and what about more and more people train at home with decent enough equipment and get all the usefull infos from the internet...

The problem with that is, even though they have the equipment they still need to learn a program to use it unless they call in a pt to show them.

Primemuscle · « **Reply #65 on:** April 12, 2012, 10:30:48 PM »

I have belonged to the same gym for the past 30 years. I am still paying the same annual membership dues I paid when I started because I renew it every year before it expires. They aren't making much money off longtime members like me. Even for new members, the least expensive rate is the annual rate that you pay once a year. Those who pay monthly, pay much more. Members are required to scan their membership card at the front desk upon entering.

MB_722 · « **Reply #66 on:** April 12, 2012, 10:44:18 PM »

this thread needs Onlyme ... RIP

andreisdaman · « **Reply #67 on:** April 12, 2012, 10:51:51 PM »

Quote from: deadpan on April 12, 2012, 05:11:42 PM

oh man look at all those balls

OUTED

Mawse · « **Reply #68 on:** April 13, 2012, 12:35:03 AM »

The 24's and LA fitnesses that fill the middle niche of gyms all seem to be closing here - and being replaced with Lifestyle Centres like Equinox, where you pay $250 a month to pretend to exercise in the same space as D list celebs and other absolute cu nts like yourself.

andreisdaman · « **Reply #69 on:** April 13, 2012, 08:01:10 AM »

Quote from: Mawse on April 13, 2012, 12:35:03 AM

The 24's and LA fitnesses that fill the middle niche of gyms all seem to be closing here - and being replaced with Lifestyle Centres like Equinox, where you pay $250 a month to pretend to exercise in the same space as D list celebs and other absolute cu nts like yourself.

NICE

El Diablo Blanco · « **Reply #70 on:** April 13, 2012, 08:02:30 AM »

Quote from: a_pupil on April 12, 2012, 07:02:15 PM

only successful gym owner i know sells steroids. gym provides steady clientale.

Bingo. The one's that make money also sell steroids.

Samourai Pizzacat · « **Reply #71 on:** April 13, 2012, 08:07:20 AM »

Jezus TA, just straight up plug your friend's gym, no need to beat around the bush.

The True Adonis · « **Reply #72 on:** April 13, 2012, 10:31:10 AM »

Quote from: Johnny Falcon on April 12, 2012, 05:35:40 PM

yeah im getting more knowledgeable, starting to get some plumbing knowledge, if i dont know what part i need i just take it to the plumber part store and they tell me what i need and what tool, of course this requires me to research on the net first some

carpentry laying floors i can do it all. actually got a couple guys that put in a new kitchen vinly floor with a thin sheet of sub floor (if thats all it needs) for only 2-300 in labor wich aint bad

some floors i can just pop up the shoe molding and put a new lenolium sheet over it and be done in one day. I like those floors

I`m installing a Temperature/Pressure Relief Valve on one of my water heaters today. We have three 50 gallon Water Heaters and I noticed a slow drip around the edges of one the the Temperature/Pressure Relief Valves. Its almost criminal what a plumber would charge for an eight dollar part and some teflon tape that takes 3 minutes to change out. I bet they convince people to replace whole system because of the TPR Valve which can go bad in less than a year at times on new Water Heaters even.

Irongrip400 · « **Reply #73 on:** April 13, 2012, 11:05:45 AM »

Quote from: The True Adonis on April 12, 2012, 04:42:02 PM

Elaborate. I have been a member of 2 different gyms that have failed and have seen a ton go the way of the dinosaur. Is the equipment too expensive and the rent too high usually?

I would say this. Money in has to be more than money out. Kind of like a diet, except the opposite.

galain · « **Reply #74 on:** April 13, 2012, 11:19:20 AM »

TA - what do you mean by 'gym'?

Where I am, the "Lifestyle centre" type places are going from strength to strength. I have nothing against these places - I see lots of people going to them and improving themselves - their fitness, their flexibility, nutritional knowledge through the courses offered etc etc.

The type of gym I want to train at - which is more than likely the place where most of us train - is not so healthy. I've had 2 really 'good' (for my wants) gyms close on me - mainly because the guys running them were keen trainers/competitors, but not in any way business men.

The big chains and fitness centre places - you can see how they're set up to make money. My gym - with it's cracked mirror and 6pm meat head crush is run by the nicest guy you'd imagine - but he thinks he's making a killing offering Powerade for 30% more than the supermarket.

I think this is big part of the problem. This and the fact that these places appeal only to the minority of trainers.

Author Topic: Why do Gyms Fail as a Business? (Read 32895 times)

MikMaq