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STAY/GET BACK IN SHAPE VOL 3.0 -- A New Niketalk = A New Thread
- Thread in 'General' Thread starter Started by cincoseisdos,
- Start date
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I always wondered the financials of a gym. Like do they buy the space and everything then recoup via memberships, etc plus their operating expenses or take out a loan and memberships have to exceed the loan + operating expenses to be profitable? There are so many 24/7 huge ones popping up here, some evening staffed full time. Crunch Fitness has one opening later this month and 2 more in construction, they'll have 5 in the OKC metro all within about 20 minutes tops from the next nearest one. Their ad says the Yukon one was an 8M facility. I be in there just looking and imagining how high their electric and water bills gotta be, on top of paying employees obviously and all this customized equipment. Lyft24 even has their name etched in the tiles in the bathroom. Seems like something that when they start going under, the finance guys will be like yea maybe we shouldn't have spent that extra 250k on customizing the already brand new tiling
Figured that's why Gold's Gym went out of business, at least locally. There was so many of them, Edmond literally had 2 on the same street. Some got bought out by other gyms like Peak Fitness which makes sense, one I used to go to is a Used Office Furniture Store now
Figured that's why Gold's Gym went out of business, at least locally. There was so many of them, Edmond literally had 2 on the same street. Some got bought out by other gyms like Peak Fitness which makes sense, one I used to go to is a Used Office Furniture Store now
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from my understanding of it, gyms in general make business for use of the facility and equipment thru membership. as the customer base and demands grow, the added number of employees becomes necessary as the profit seems to be higher than the cost of paying employees, rent and maintenance of the gym. family owned gyms and businesses are a bit more stable if they own the facility itself rather than renting it. as far as some gyms closing down, it could be a combination of several factors like competition, dwindling customer base, owner just wants to retire.I always wondered the financials of a gym. Like do they buy the space and everything then recoup via memberships, etc plus their operating expenses or take out a loan and memberships have to exceed the loan + operating expenses to be profitable? There are so many 24/7 huge ones popping up here, some evening staffed full time. Crunch Fitness has one opening later this month and 2 more in construction, they'll have 5 in the OKC metro all within about 20 minutes tops from the next nearest one. Their ad says the Yukon one was an 8M facility. I be in there just looking and imagining how high their electric and water bills gotta be, on top of paying employees obviously and all this customized equipment. Lyft24 even has their name etched in the tiles in the bathroom. Seems like something that when they start going under, the finance guys will be like yea maybe we shouldn't have spent that extra 250k on customizing the already brand new tiling
Figured that's why Gold's Gym went out of business, at least locally. There was so many of them, Edmond literally had 2 on the same street. Some got bought out by other gyms like Peak Fitness which makes sense, one I used to go to is a Used Office Furniture Store now
- 3,429
- 3,154
- Joined
- Apr 27, 2002
I always wondered the financials of a gym. Like do they buy the space and everything then recoup via memberships, etc plus their operating expenses or take out a loan and memberships have to exceed the loan + operating expenses to be profitable? There are so many 24/7 huge ones popping up here, some evening staffed full time. Crunch Fitness has one opening later this month and 2 more in construction, they'll have 5 in the OKC metro all within about 20 minutes tops from the next nearest one. Their ad says the Yukon one was an 8M facility. I be in there just looking and imagining how high their electric and water bills gotta be, on top of paying employees obviously and all this customized equipment. Lyft24 even has their name etched in the tiles in the bathroom. Seems like something that when they start going under, the finance guys will be like yea maybe we shouldn't have spent that extra 250k on customizing the already brand new tiling
Figured that's why Gold's Gym went out of business, at least locally. There was so many of them, Edmond literally had 2 on the same street. Some got bought out by other gyms like Peak Fitness which makes sense, one I used to go to is a Used Office Furniture Store now
the financials of the gym business model are notoriously difficult to turn a profit…splits on fitness related merch (supplements, equipment, etc.) membership fees & franchising is probably how the larger chains make it work
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Pretty sure gyms lease premises for the most part.
Looks like Crunch just running a gym business consultancy though.
Looks like Crunch just running a gym business consultancy though.
