Getbig.com: American Bodybuilding, Fitness and Figure
Getbig Main Boards => Gossip & Opinions => Topic started by: TheGrinch on January 21, 2015, 09:49:24 AM
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Have a good friend who wants to open a planet fitness franchise.. but I keep telling him it makes no sense..
I know nothing about business but charging $10/mo membership fee???? how can you afford to pay even the electricity bill let alone all the other business expenses??
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Have a good friend who wants to open a planet fitness franchise.. but I keep telling him it makes no sense..
I know nothing about business but charging $10/mo membership fee???? how can you afford to pay even the electricity bill let alone all the other business expenses??
Get 15,000 fatasses to pay $10/month and never show up. The perfect Planet Fitness never has to open its doors in the morning. Every person that uses the equipment is a FAILURE of management to maximize the gym's potential.
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The one by my house is always packed. Always have people signing up at the front desk. They actually are one of the most successful gym franchises.
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150k/monthly wouldn't be bad for business
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Owning a gym is a great business for any rich person looking to grow poor.
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they push as many memberships as they can with hopes many won't show up. They charge low monthlys but lock you into a long term deal so even after a month you still have to shill out to them when you stop going.
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Get 15,000 fatasses to pay $10/month and never show up. The perfect Planet Fitness never has to open its doors in the morning. Every person that uses the equipment is a FAILURE of management to maximize the gym's potential.
^
the gym i go to has 13,000+ active members, about 600-700 people come there at least once a week. Mind you, this isnt one of those 10$/month memberships.(average 30$/month)
The market is now saturated with 10$/month gyms and the whole "crossfit" gyms, so starting now would be a little late, unless you absolutely nail the location.
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Owning a gym is a great business for any rich person looking to grow poor.
I've been told to not go in the business either...
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How much money do you think it takes to upkeep (clean, fix machines, etc) a planet fitness when the members rarely show up? Probably not much.
That equals profit.
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they push as many memberships as they can with hopes many won't show up. They charge low monthlys but lock you into a long term deal so even after a month you still have to shill out to them when you stop going.
they don't "lock you into" anything ... you can quit any time
most fat phucks are too lazy to get to the gym and cancel, of course
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they don't "lock you into" anything ... you can quit any time
most fat phucks are too lazy to get to the gym and cancel, of course
they charge you a yearly fee i believe which is a way to semi lock you in but I do think you can quit any time.
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Planet Fitness is a brilliant business plan.
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The game plan is to close down 24 and LA fitness, they make money off personal training but they are killing the gym business.
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Mike Katz had a World gym but changed it to Plane Fitness. I think that speaks volumes about which is the bigger money maker.
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World gym and Golds does nothing to help sell memberships anymore, not worth the franchise fee, whens the last time you heard a Worlds gym commercial on the radio.
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they found the winning formula, more power to them. I wouldnt ask anything to any of their PTs tho.
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special ed said it best, the ideal planet fitness customer is somebody that pays for a membership but doesn't go to the gym
most probably only show up for free pizza night
E
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special ed said it best, the ideal planet fitness customer is somebody that pays for a membership but doesn't go to the gym
most probably only show up for free pizza night
E
Unethical, but an excellent business model.
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12k square foot gym
$12k/month rent
$3k electric
$30k salaries
$1k insurance
$2k cleaning crew
=4800 members at $10/month just to cover their nut (that's including 30k/month in salaries.. assuming the 'owner' takes a salary)
for a planet fitness, 4800 isn't an un-attainable membership goal. considering that when the local Golds gym's dropped their rates to 10$/month, they went from 6000-something members to over 14k members
... and remember, the membership dues are just what covers the bills. the REAL money is in the personal training sales, which can book anywhere from 2k-45k/month
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12k square foot gym
$12k/month rent
$3k electric
$30k salaries
$1k insurance
$2k cleaning crew
=4800 members at $10/month just to cover their nut (that's including 30k/month in salaries.. assuming the 'owner' takes a salary)
for a planet fitness, 4800 isn't an un-attainable membership goal. considering that when the local Golds gym's dropped their rates to 10$/month, they went from 6000-something members to over 14k members
... and remember, the membership dues are just what covers the bills. the REAL money is in the personal training sales, which can book anywhere from 2k-45k/month
Don't you have to deduct the cost of Pizza Friday or some shit?
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Planet Fitness can eat my ass. Fuck their entire organization from top to bottom. Whoever came up with the "Lunk" think should fucking kill themselves.
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I have a theory.
They buy THREE store fronts in every plaza. The big one in the middle is for their "gym".
On either side, they add a pizza or ice cream joint. They pull all these people to that plaza - okay money, a little upset at their weight, but fatasses lacking control nonetheless... and voila, they sell shit food to make up for any gym operation losses.
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^
the gym i go to has 13,000+ active members, about 600-700 people come there at least once a week. Mind you, this isnt one of those 10$/month memberships.(average 30$/month)
The market is now saturated with 10$/month gyms and the whole "crossfit" gyms, so starting now would be a little late, unless you absolutely nail the location.
Agreed, location is key.
Plus PF is a branded chain that has marketing already built in.
Ive managed an LA fitness, an Xsport and a small training facility and the chains are easier because of the corporate support but location is still key
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Planet Fitness can eat my ass. Fuck their entire organization from top to bottom. Whoever came up with the "Lunk" think should fucking kill themselves.
From a business standpoint, it's brilliant. How else are you going to lure in the fucking fatties that are going to buy a membership and then never show up? The LAST thing that you want is dedicated lifters that consistently show up and put wear and tear on your shit.
In almost any big-box gym, less than 10% of the membership will show up in a 30 day period. 10 years ago, I belonged to a Gold's that had a lot of serious lifters. People I saw day in and day out. Talking to the membership director, he said that they had over 5000 monthly paying members and in any 30 day period, only 600 came. Think about that, just once a month shaved the crowd from 5000->600. If all the members showed up one day, the place would have to close.
If he could have found a way to cancel the membership of those 600, he would. Why not? They represent ALL of the costs and 12% of the revenue. They are a poor ROI.
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I have to tell a funny story, back in 2001 when one of the first LA Fitness MEGA-clubs opened in the area it was jam packed every week night and by the 3rd month it was open it was like a sardine can is was so over packed with people.
The management got many complaints from disgruntled members telling them to STOP SELLING MEMBERSHIPS! lol
One of the sales managers classic response was " You don't tell Ford to stop selling cars just because there's a traffic jam."
;D
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12k square foot gym
$12k/month rent
$3k electric
$30k salaries
$1k insurance
$2k cleaning crew
=4800 members at $10/month just to cover their nut (that's including 30k/month in salaries.. assuming the 'owner' takes a salary)
for a planet fitness, 4800 isn't an un-attainable membership goal. considering that when the local Golds gym's dropped their rates to 10$/month, they went from 6000-something members to over 14k members
... and remember, the membership dues are just what covers the bills. the REAL money is in the personal training sales, which can book anywhere from 2k-45k/month
Aren't there franchise fees and/or payments on equipment, etc in addition to what's above?
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Aren't there franchise fees and/or payments on equipment, etc in addition to what's above?
yes and they usually are a percent of revenue i believe.
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12k square foot gym
$12k/month rent
$3k electric
$30k salaries
$1k insurance
$2k cleaning crew
=4800 members at $10/month just to cover their nut (that's including 30k/month in salaries.. assuming the 'owner' takes a salary)
for a planet fitness, 4800 isn't an un-attainable membership goal. considering that when the local Golds gym's dropped their rates to 10$/month, they went from 6000-something members to over 14k members
... and remember, the membership dues are just what covers the bills. the REAL money is in the personal training sales, which can book anywhere from 2k-45k/month
except PF offers FREE personal training, free tanning, free pizza/bagels/tootsie rolls..
there is NO upsell other than from $10 to $19 for the black card membership
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12k square foot gym
$12k/month rent
$3k electric
$30k salaries
$1k insurance
$2k cleaning crew
=4800 members at $10/month just to cover their nut (that's including 30k/month in salaries.. assuming the 'owner' takes a salary)
for a planet fitness, 4800 isn't an un-attainable membership goal. considering that when the local Golds gym's dropped their rates to 10$/month, they went from 6000-something members to over 14k members
... and remember, the membership dues are just what covers the bills. the REAL money is in the personal training sales, which can book anywhere from 2k-45k/month
You left out the thousands in franchise fee and marketing. Those PF commercials on TV aren't free.
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except PF offers FREE personal training, free tanning, free pizza/bagels/tootsie rolls..
that's what bothers me the most, the purpose of a gym is to improve your appearance or health
offering free junk food at a gym is like offering shots of jack at an alcoholics anonymous meeting
E
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that's what bothers me the most, the purpose of a gym is to improve your appearance or health
offering free junk food at a gym is like offering shots of jack at an alcoholics anonymous meeting
E
Excellent analogy.
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Truth be told the planet fitness in my area isnt that bad I went into one with skepticism from years of reading this site but I worked out like normal and nobody blinked an eye my biggest complaint is the dumbbells dont go over 65 lbs but if anything its good for cardio if thats your thing
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They make most of their profits off of the dreamers.
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They make most of their profits off of the dreamers.
Just like every supplement company in the world.
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12k square foot gym
$12k/month rent
$3k electric
$30k salaries
$1k insurance
$2k cleaning crew
=4800 members at $10/month just to cover their nut (that's including 30k/month in salaries.. assuming the 'owner' takes a salary)
for a planet fitness, 4800 isn't an un-attainable membership goal. considering that when the local Golds gym's dropped their rates to 10$/month, they went from 6000-something members to over 14k members
... and remember, the membership dues are just what covers the bills. the REAL money is in the personal training sales, which can book anywhere from 2k-45k/month
Also make money off;
Supplement sales
Advertising on their Television sales
Other advertising in the gym sales
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Have a good friend who wants to open a planet fitness franchise.. but I keep telling him it makes no sense..
I know nothing about business but charging $10/mo membership fee???? how can you afford to pay even the electricity bill let alone all the other business expenses??
i'm guessing planet fitness is a franchise.
try to get an idea of how many close down per year. that is going to be a very hard thing to find out because if it's a high number that's bad for business.
like many franchises, the parent company makes money off the investor. they sell franchises knowing you will eventually go under, until that time they bleed you dry and then start over.
one of the best rules of thumb to get an idea if the business model is viable is to find out how many of the franchises are owned by the parent company themselves.
if planet fitness has 1000 franchises but only owns a few, like 5, then it's bullshit, they themselves don't make money from the model but from selling the model.
if they own a high percent of their own franchises then it says they are invested in the same business as the franchise owners and have confidence in the model, so their fates are tied together.
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i'm guessing planet fitness is a franchise.
try to get an idea of how many close down per year. that is going to be a very hard thing to find out because if it's a high number that's bad for business.
like many franchises, the parent company makes money off the investor. they sell franchises knowing you will eventually go under, until that time they bleed you dry and then start over.
one of the best rules of thumb to get an idea if the business model is viable is to find out how many of the franchises are owned by the parent company themselves.
if planet fitness has 1000 franchises but only owns a few, like 5, then it's bullshit, they themselves don't make money from the model but from selling the model.
if they own a high percent of their own franchises then it says they are invested in the same business as the franchise owners and have confidence in the model, so their fates are tied together.
VERY much appreciate the great info!!
looks like they keep adding to their own portfolio
(http://s24.postimg.org/cro2f9lb9/Capture.png)