Stop Setting Fire To Money
Updated: Feb 21, 2020
I hate it when I talk to studio owners, and we get onto the topic of the studio.
And we talk build-out
And then the cost
I've had people spend upwards of 150k to build out their studio gym.
And similar numbers for refurbishment.
And it's honestly, money down the toilet.
Especially if you aren't a massive gym that's catering to the top 1% and your prices match that.
If you are, run with that, because it's part of the appeal.
But honestly, for most studio owners this isn't required.
Let's put this in perspective.
I spent 8k on a credit card and got a 5k loan for my cable machine to open my studio.
I spent under 15k to open my studio.
Including bond and first months rent.
First-year was a bust, no clue what I was doing or how to run a business.
With no changes to the studio, itself and just fixing my model, I comfortably turned well over 100k in my second year.
Charging $3500 for a 12-week program with up to 8 people per session.
Fancy equipment doesn't mean more money; it doesn't change how much you can charge.
Or affect how many lives you can change.
Stop wasting money.
Need to update?
Here is a simple answer
1. Purchase one thing at a time and set a goal for a new large sale to purchase the equipment, so it doesn't come from the current earnings.
2. A new coat of paint will make the place feel fresh, and honestly, you'd be shocked at the response you get from current clients.
3. Cheap little things go a long way, e.g. plants, a small water fountain, supplies for the bathroom, doormat, etc. The little things go a stupidly long way.
4. Buy second-hand equipment. Fitness equipment is one of the most commonly sold things on places like gum tree, and gyms and PT studios are one of the top 5 sold business. Never pay full price for the majority of your equipment, it's devaluation is crazy, and it's ROI is negligible.
5. Ask you, clients, for the things they want; often it isn't the fancy bit of equipment you thought it was. (*NB last time I asked the answer I got was a different weighted med ball, cost me $60 from ALDI and they where happy)
The nicest equipment isn't the answer to making more money.
There are much smarter ways to increase the value you provide, including things that 99% of people never think of.
Including things like experience, environment, community, client retention, up
sells, and more.
But I'll get to them soon enough.
Until next time
Lachlan "Saving You Money" Farley