The January Gym Crowd

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Replies

  • dbmata
    dbmata Posts: 12,950 Member
    DavPul wrote: »
    dbmata wrote: »
    jofjltncb6 wrote: »
    gshifrin wrote: »
    I think the problem is that the gym's business model depends on people continuing to pay long after they've given up on regular workouts. If everyone showed up regularly the gym would be unusable.

    Personally, I don't see this as a "problem" at all. If the system was pay per use, my costs would skyrocket. I don't mind those paying for a "membership" subsidizing those who actually use the gym at all.

    Related tangent: this is one of the reasons Crossfit gyms are generally more expensive...because the users/members ratio is generally much higher.
    lol, no.

    They're generally much higher because they have solid marketing and trend status for now. People pay more for cult trends. Apple is an obvious example.

    so you believe that if Crossfit wasn't the new Hot Thing that membership would be $40 a month, just like 24 Hour Fitness and LA Fitness? did you math that out and everything?
    You really don't think marketing impacts price?

    Interesting.
  • bingfit221
    bingfit221 Posts: 105 Member
    January is Christmas time for me!!

    My wife & I own a personal training studio. The trend is January - March SLAMMED. March - June STEADY. June - October - RELATIVELY STEADY. October - December DEAD. Ugh.

    In January - March we work as much as we can to support the decrease at the end of the year.
  • DavPul
    DavPul Posts: 61,406 Member
    dbmata wrote: »
    DavPul wrote: »
    dbmata wrote: »
    jofjltncb6 wrote: »
    gshifrin wrote: »
    I think the problem is that the gym's business model depends on people continuing to pay long after they've given up on regular workouts. If everyone showed up regularly the gym would be unusable.

    Personally, I don't see this as a "problem" at all. If the system was pay per use, my costs would skyrocket. I don't mind those paying for a "membership" subsidizing those who actually use the gym at all.

    Related tangent: this is one of the reasons Crossfit gyms are generally more expensive...because the users/members ratio is generally much higher.
    lol, no.

    They're generally much higher because they have solid marketing and trend status for now. People pay more for cult trends. Apple is an obvious example.

    so you believe that if Crossfit wasn't the new Hot Thing that membership would be $40 a month, just like 24 Hour Fitness and LA Fitness? did you math that out and everything?
    You really don't think marketing impacts price?

    Interesting.

    of course it does. but you believe that it's the only factor in pricing? or the largest factor in pricing?

    very interesting
  • auntchellebelle
    auntchellebelle Posts: 127 Member
    Yep, but it has died down already.
  • bingfit221
    bingfit221 Posts: 105 Member
    At the health club I personally attend for my workouts, I haven't seen a surplus of people at all.
  • jofjltncb6
    jofjltncb6 Posts: 34,415 Member
    dbmata wrote: »
    jofjltncb6 wrote: »
    gshifrin wrote: »
    I think the problem is that the gym's business model depends on people continuing to pay long after they've given up on regular workouts. If everyone showed up regularly the gym would be unusable.

    Personally, I don't see this as a "problem" at all. If the system was pay per use, my costs would skyrocket. I don't mind those paying for a "membership" subsidizing those who actually use the gym at all.

    Related tangent: this is one of the reasons Crossfit gyms are generally more expensive...because the users/members ratio is generally much higher.
    lol, no.

    They're generally much higher because they have solid marketing and trend status for now. People pay more for cult trends. Apple is an obvious example.

    Huh? I'm basing my conclusion on actual statistics of user/member ratios of Crossfit gyms vs. globo gyms. This isn't affected by your opinion of other factors. Now is the profitability of these gyms affected by your points? Sure. But that doesn't make my point any less valid.

    TL;DR - "one of the reasons". And lol, yes.
  • dbmata
    dbmata Posts: 12,950 Member
    DavPul wrote: »
    dbmata wrote: »
    DavPul wrote: »
    dbmata wrote: »
    jofjltncb6 wrote: »
    gshifrin wrote: »
    I think the problem is that the gym's business model depends on people continuing to pay long after they've given up on regular workouts. If everyone showed up regularly the gym would be unusable.

    Personally, I don't see this as a "problem" at all. If the system was pay per use, my costs would skyrocket. I don't mind those paying for a "membership" subsidizing those who actually use the gym at all.

    Related tangent: this is one of the reasons Crossfit gyms are generally more expensive...because the users/members ratio is generally much higher.
    lol, no.

    They're generally much higher because they have solid marketing and trend status for now. People pay more for cult trends. Apple is an obvious example.

    so you believe that if Crossfit wasn't the new Hot Thing that membership would be $40 a month, just like 24 Hour Fitness and LA Fitness? did you math that out and everything?
    You really don't think marketing impacts price?

    Interesting.

    of course it does. but you believe that it's the only factor in pricing? or the largest factor in pricing?

    very interesting

    Being a franchise gym, obviously the top three costs are going to be
    1. Franchise fees
    2. Franchise marketing costs
    3. Staff payroll

    If 1 and 2 are high, and both will be due to cult status, then it follows that your general membership fees will be higher than a larger gym. Pretty basic.

    What I am seeing more of is knock off CF, that is all the CF fun, but at a lower price point, and not affiliated with the ex pet project of Rip.
  • Cardio4Cupcakes
    Cardio4Cupcakes Posts: 289 Member
    I go around 4:30AM so it's always pretty dead.
  • ThatMouse
    ThatMouse Posts: 229 Member
    I work at a University, so I go to the Uni gym. New Years itself didn't coincide with term start, but once classes resumed it was much more packed. I go at 6AM and even then, it was still fairly busy. My boyfriend goes at 3PM and despite having $90,000 worth of new equipment, there were still groups of 3 people working in on the power racks. Cardio was off the menu, too.

    But now, two weeks into classes, the rush has died down considerably. Maybe it's just because it was 6AM Monday morning today when I went, but it's been less busy during my AM time.

    Part of me is happy, because I don't have to worry about not having access to a squat rack or enough plates, but part of me is sad to see so many haven't stuck with it. I remember I made sure to arrive at 6AM last Wednesday because there was a girl who promised her friend in the locker room that "6AM Wednesday is my 'workout time' and I have to make it" - I wanted to see her succeed in it and go the gym in the AM.

    Nope. She made that promise to herself on Monday and broke it on Wednesday. It was disappointing.
  • brenstar05
    brenstar05 Posts: 70 Member
    I only work out at the gym from about November to March... I much prefer to run outside. So, I'm probably one of the people that the regular gym-goers think is giving up. I just hate being inside a gym when I can be outside getting the same burn!! :)
  • DavPul
    DavPul Posts: 61,406 Member
    dbmata wrote: »
    DavPul wrote: »
    dbmata wrote: »
    DavPul wrote: »
    dbmata wrote: »
    jofjltncb6 wrote: »
    gshifrin wrote: »
    I think the problem is that the gym's business model depends on people continuing to pay long after they've given up on regular workouts. If everyone showed up regularly the gym would be unusable.

    Personally, I don't see this as a "problem" at all. If the system was pay per use, my costs would skyrocket. I don't mind those paying for a "membership" subsidizing those who actually use the gym at all.

    Related tangent: this is one of the reasons Crossfit gyms are generally more expensive...because the users/members ratio is generally much higher.
    lol, no.

    They're generally much higher because they have solid marketing and trend status for now. People pay more for cult trends. Apple is an obvious example.

    so you believe that if Crossfit wasn't the new Hot Thing that membership would be $40 a month, just like 24 Hour Fitness and LA Fitness? did you math that out and everything?
    You really don't think marketing impacts price?

    Interesting.

    of course it does. but you believe that it's the only factor in pricing? or the largest factor in pricing?

    very interesting

    Being a franchise gym, obviously the top three costs are going to be
    1. Franchise fees
    2. Franchise marketing costs
    3. Staff payroll

    If 1 and 2 are high, and both will be due to cult status, then it follows that your general membership fees will be higher than a larger gym. Pretty basic.

    What I am seeing more of is knock off CF, that is all the CF fun, but at a lower price point, and not affiliated with the ex pet project of Rip.

    lololololololol!

    1. have you checked to see how much CF franchise fees are?
    2. have you checked to see how much per sqft a CF sized space would cost to rent?

    CF fees are basically nothing. take your rent, insurance, utility, maintenance and staff costs and divide that among the average number of members, and you've got a baseline for what to charge for fees. the CF franchise fees are a mere pittance compared to that.
  • dbmata
    dbmata Posts: 12,950 Member
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.
  • freqzinbigd
    freqzinbigd Posts: 56 Member
    DavPul wrote: »
    dbmata wrote: »
    DavPul wrote: »
    dbmata wrote: »
    DavPul wrote: »
    dbmata wrote: »
    jofjltncb6 wrote: »
    gshifrin wrote: »
    I think the problem is that the gym's business model depends on people continuing to pay long after they've given up on regular workouts. If everyone showed up regularly the gym would be unusable.

    Personally, I don't see this as a "problem" at all. If the system was pay per use, my costs would skyrocket. I don't mind those paying for a "membership" subsidizing those who actually use the gym at all.

    Related tangent: this is one of the reasons Crossfit gyms are generally more expensive...because the users/members ratio is generally much higher.
    lol, no.

    They're generally much higher because they have solid marketing and trend status for now. People pay more for cult trends. Apple is an obvious example.

    so you believe that if Crossfit wasn't the new Hot Thing that membership would be $40 a month, just like 24 Hour Fitness and LA Fitness? did you math that out and everything?
    You really don't think marketing impacts price?

    Interesting.

    of course it does. but you believe that it's the only factor in pricing? or the largest factor in pricing?

    very interesting

    Being a franchise gym, obviously the top three costs are going to be
    1. Franchise fees
    2. Franchise marketing costs
    3. Staff payroll

    If 1 and 2 are high, and both will be due to cult status, then it follows that your general membership fees will be higher than a larger gym. Pretty basic.

    What I am seeing more of is knock off CF, that is all the CF fun, but at a lower price point, and not affiliated with the ex pet project of Rip.

    lololololololol!

    1. have you checked to see how much CF franchise fees are?
    2. have you checked to see how much per sqft a CF sized space would cost to rent?

    CF fees are basically nothing. take your rent, insurance, utility, maintenance and staff costs and divide that among the average number of members, and you've got a baseline for what to charge for fees. the CF franchise fees are a mere pittance compared to that.

    CF affiliate fees are ~$3000/year. Dirt cheap. No franchise fees. No percentages off the top. No marketing.

    CFers pay marketing when the buy all the Reebok CF gear :D
  • lasarabande
    lasarabande Posts: 22 Member
    I'm at 24h... if I go to the sport-level gyms it's always full. If I go to the active level ones they're about half capacity at peak hours. There's always room for dem cardio machines at the active level ones.

    There are about maybe.... 5ish 24h gyms around my area so I have a lot of room to choose from.
  • Redheadllena
    Redheadllena Posts: 353 Member
    I have no problem with newbies, anyone giving it a go is awesome. I just don't like it when its crowded!

    Same! I always notice a big upswing in January at the gym but as some others said, it's already dying down. The frigid temps helped move that along I think.
  • 3dogsrunning
    3dogsrunning Posts: 27,167 Member
    edited January 2015
    dbmata wrote: »
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.
    dbmata wrote: »
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.

    Crossfit is an affiliate, not a franchise. The difference being that you do not have the same level of requirement that you see in franchising.
    The crossfit boxes here do next to no marketing. One guy has his truck painted. They have signs on their building. That's about it.
  • I'm a newbie .. the hardest thing is walking through the door for the first time .. so far I'm enjoying it
  • dbmata
    dbmata Posts: 12,950 Member
    dbmata wrote: »
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.
    dbmata wrote: »
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.

    Crossfit is an affiliate, not a franchise. The difference being that you do not have the same level of requirement that you see in franchising.
    The crossfit boxes here do next to no marketing. One guy has his truck painted. They have signs on their building. That's about it.
    So then that's all pure profit.

    No *kitten*.

    I'm going to review this more in depth, $3k and a few fees to clean up? yeah bob.
  • DavPul
    DavPul Posts: 61,406 Member
    dbmata wrote: »
    dbmata wrote: »
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.
    dbmata wrote: »
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.

    Crossfit is an affiliate, not a franchise. The difference being that you do not have the same level of requirement that you see in franchising.
    The crossfit boxes here do next to no marketing. One guy has his truck painted. They have signs on their building. That's about it.
    So then that's all pure profit.

    No *kitten*.

    I'm going to review this more in depth, $3k and a few fees to clean up? yeah bob.

    Not so fast chief. Just because you waaaay estimated the franchise fees doesn't mean it's all profit. I think you're still failing to do a proper accounting of what it costs to run a gym and how many members you need to have to turn a profit.

    But maybe next time a little research before accusing a company of soaking it's members just because.....made up reasons.
  • JoRocka
    JoRocka Posts: 17,525 Member
    well. not for nothing but we offer a ripped off version of CF- and it's no more extra for the class than the 29$ we pay for monthly memberships.
  • 3dogsrunning
    3dogsrunning Posts: 27,167 Member
    JoRocka wrote: »
    well. not for nothing but we offer a ripped off version of CF- and it's no more extra for the class than the 29$ we pay for monthly memberships.


    My gym offers yoga for no extra cost. The local yoga studio sessions are way more expensive, between $20-$30 a session depending on the package you buy.
  • dbmata
    dbmata Posts: 12,950 Member
    DavPul wrote: »
    dbmata wrote: »
    dbmata wrote: »
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.
    dbmata wrote: »
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.

    Crossfit is an affiliate, not a franchise. The difference being that you do not have the same level of requirement that you see in franchising.
    The crossfit boxes here do next to no marketing. One guy has his truck painted. They have signs on their building. That's about it.
    So then that's all pure profit.

    No *kitten*.

    I'm going to review this more in depth, $3k and a few fees to clean up? yeah bob.

    Not so fast chief. Just because you waaaay estimated the franchise fees doesn't mean it's all profit. I think you're still failing to do a proper accounting of what it costs to run a gym and how many members you need to have to turn a profit.

    But maybe next time a little research before accusing a company of soaking it's members just because.....made up reasons.

    Cult costs are excessive, and why the average CF gym in my little slice of the outer rim is $150 a month for unlimited.

    Back when I lived in Boston, one opened for the grand discount of $175 a month unlimited. At that price level, they're pricing out most folks, and ensuring that the in-house body count stays at a particular level, but it's pretty damn silly to think that they have to charge that much to run a gym.

    They don't, it's the result of cult marketing pricing. It's even more obvious since the fees are so low, and apparently there aren't your average franchise co-marketing fees, management fees, etc. We're already seeing "knock offs" here, so it's only a matter of time before coherent pricing comes to the CF world.
  • jofjltncb6
    jofjltncb6 Posts: 34,415 Member
    dbmata wrote: »
    DavPul wrote: »
    dbmata wrote: »
    dbmata wrote: »
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.
    dbmata wrote: »
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.

    Crossfit is an affiliate, not a franchise. The difference being that you do not have the same level of requirement that you see in franchising.
    The crossfit boxes here do next to no marketing. One guy has his truck painted. They have signs on their building. That's about it.
    So then that's all pure profit.

    No *kitten*.

    I'm going to review this more in depth, $3k and a few fees to clean up? yeah bob.

    Not so fast chief. Just because you waaaay estimated the franchise fees doesn't mean it's all profit. I think you're still failing to do a proper accounting of what it costs to run a gym and how many members you need to have to turn a profit.

    But maybe next time a little research before accusing a company of soaking it's members just because.....made up reasons.

    Cult costs are excessive, and why the average CF gym in my little slice of the outer rim is $150 a month for unlimited.

    Back when I lived in Boston, one opened for the grand discount of $175 a month unlimited. At that price level, they're pricing out most folks, and ensuring that the in-house body count stays at a particular level, but it's pretty damn silly to think that they have to charge that much to run a gym.

    They don't, it's the result of cult marketing pricing. It's even more obvious since the fees are so low, and apparently there aren't your average franchise co-marketing fees, management fees, etc. We're already seeing "knock offs" here, so it's only a matter of time before coherent pricing comes to the CF world.

    Only if their users/members ratio drops closer to that of the globogyms and not the relatively very high ratios of many crossfit gyms. Otherwise, what you are proposing is completely infeasible.

    I'm not sure why you're struggling with this fundamental difference between a standard globo gym and a standard crossfit gym. Their price points are necessarily different because their rate of use are very different. Well, I mean, besides your apparent struggle because Crossfit.


    Full disclosure: I haven't been a member of a Crossfit gym in about two years...(but I am still aware of and understand the fundamental differences in their business models).
  • goddessofawesome
    goddessofawesome Posts: 563 Member
    Nazy_Ak wrote: »
    This is something that terrifies me. As someone who has approx 100lbs to lose, I can't build up the courage to join a gym! I've attempted weightloss a few times, and even before I was so huge I was always active so do have machines at home (bike, rower and few free weights) but have motivation highs and lows. This time feels different and I've been flirting with the idea of joining a gym, seeing other people work out would inspire me but terrified of being judged, 'taking up space', crowding the gym for regulars etc

    I guess I either have to ignore it and go anyway or just stick to my home gym!

    No need to be scared or to let these types of threads scare you off from joining a gym. Everyone had to start off some where and even the people who are complaining here started out as a newbie once too. Just make sure you know the gym "rules" (ie: re-rack your weights, wipe down your equipment, don't hoard equipment, etc). Chances are really good that no one in the gym will even notice you.

    My gym hasn't been too busy with newbies and even if it were I really wouldn't know who was new and who wasn't because I really don't care. I'm focused more on my workout than on someone who just started the gym. Not only that but for all I know you could be someone who used to workout later in the day and switched to mornings.

    Seriously. Just do some research and find a gym that will suit you. There's no reason you shouldn't go.

  • dbmata
    dbmata Posts: 12,950 Member
    I for one am glad you are aware of fundamental differences in business models. That's just a load off my jock.

    I find it cute that you think I am unaware of it or struggling with it. Quite the opposite, my dear. Quite the opposite. If anything, this piqued my interest. My local market is an interesting one, fairly susceptible to control. After a few current projects are complete, I wonder how fun it could be to play around with something like this.
  • jofjltncb6
    jofjltncb6 Posts: 34,415 Member
    dbmata wrote: »
    I for one am glad you are aware of fundamental differences in business models. That's just a load off my jock.

    I find it cute that you think I am unaware of it or struggling with it. Quite the opposite, my dear. Quite the opposite. If anything, this piqued my interest. My local market is an interesting one, fairly susceptible to control. After a few current projects are complete, I wonder how fun it could be to play around with something like this.

    And yet you claim the standard CF pricing is not yet "coherent" in your area? Presumably in comparison to globogym pricing? *shrug*
  • ccburn5
    ccburn5 Posts: 473 Member
    OMG yes!!! My bootcamp offers a Groupon for a 6 week trial and it never fails that there are usually 15-20 more people for the next few weeks and they slowly drop out one by one for the most part. I can't really complain though,I was one of those people 4 years ago.
  • goddessofawesome
    goddessofawesome Posts: 563 Member
    edited January 2015
    Crossfit is an affiliate, not a franchise. The difference being that you do not have the same level of requirement that you see in franchising.
    The crossfit boxes here do next to no marketing. One guy has his truck painted. They have signs on their building. That's about it.

    That doesn't mean he's making bank off of it. Sure the fee is $3k a year but then there's your rent. Depending on how many SF your place is and your location you could be paying $3-4k/month -- or more -- for rent. And then there's your utilities: water, heat, electricity. Not to mention all the insurance you have to carry, plus the cost of all the equipment that has to be bought. Oh, and don't forget about salaries! And with the salaries comes all the employment taxes that you have to pay. Then there's your quarterly taxes, yearly taxes . . .

    You would have to have more than one affiliate (not even sure you can do that with this sort of business model) to be profitable. One location ain't going to do it no matter how much you jack the membership fees.
  • 3dogsrunning
    3dogsrunning Posts: 27,167 Member
    Crossfit is an affiliate, not a franchise. The difference being that you do not have the same level of requirement that you see in franchising.
    The crossfit boxes here do next to no marketing. One guy has his truck painted. They have signs on their building. That's about it.

    That doesn't mean he's making bank off of it. Sure the fee is $3k a year but then there's your rent. Depending on how many SF your place is and your location you could be paying $3-4k/month -- or more -- for rent. And then there's your utilities: water, heat, electricity. Not to mention all the insurance you have to carry, plus the cost of all the equipment that has to be bought. Oh, and don't forget about salaries! And with the salaries comes all the employment taxes that you have to pay. Then there's your quarterly taxes, yearly taxes . . .

    You would have to have more than one affiliate (not even sure you can do that with this sort of business model) to be profitable. One location ain't going to do it no matter how much you jack the membership fees.

    My post wasn't meant to imply they were. I was just clearing up the difference between an affiliate and franchise as I understand where the other poster was coming from with the high costs that can be associated with franchises.
    I am in total agreement with you.
    I also don't believe you are allowed to have more than one affiliate. Although I seem to remember seeing some controversy about one owner that was allowed to have two.
  • DavPul
    DavPul Posts: 61,406 Member
    dbmata wrote: »
    DavPul wrote: »
    dbmata wrote: »
    dbmata wrote: »
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.
    dbmata wrote: »
    and how much are the co-marketing costs?

    They aren't spending on equipment, or staffing. Again, we go back to higher costs due to cult status and marketing costs. This isn't magic. It's done every day.

    Exposed franchise fees are a simple $3k yearly plus some derptificate, that's fine. What are the other costs? Considering my one experience with having bought into a food franchise, those costs are fairly extreme, and come with requirements to pay for marketing, regional fees, management fees, logistical fees, etc. etc. etc.

    Again, cult + marketing of cool = excessive membership charge.

    Crossfit is an affiliate, not a franchise. The difference being that you do not have the same level of requirement that you see in franchising.
    The crossfit boxes here do next to no marketing. One guy has his truck painted. They have signs on their building. That's about it.
    So then that's all pure profit.

    No *kitten*.

    I'm going to review this more in depth, $3k and a few fees to clean up? yeah bob.

    Not so fast chief. Just because you waaaay estimated the franchise fees doesn't mean it's all profit. I think you're still failing to do a proper accounting of what it costs to run a gym and how many members you need to have to turn a profit.

    But maybe next time a little research before accusing a company of soaking it's members just because.....made up reasons.

    Cult costs are excessive, and why the average CF gym in my little slice of the outer rim is $150 a month for unlimited.

    Back when I lived in Boston, one opened for the grand discount of $175 a month unlimited. At that price level, they're pricing out most folks, and ensuring that the in-house body count stays at a particular level, but it's pretty damn silly to think that they have to charge that much to run a gym.

    They don't, it's the result of cult marketing pricing. It's even more obvious since the fees are so low, and apparently there aren't your average franchise co-marketing fees, management fees, etc. We're already seeing "knock offs" here, so it's only a matter of time before coherent pricing comes to the CF world.

    wrong wrong wrong. like, record levels of wrongness in here. but i guess it's more fun to take jabs at CF than to try to write a functioning business plan?

    1. $150 per month is cheap. dirt cheap
    2. you're not worried about pricing out a bunch of people, only pricing in your target audience.
    3. i charge $400 per month on average to run my gym and a couple of months back a client laughed in my face because she thought it was too cheap for what she was getting. she said she would have paid double.
    4. not only am i not a cult, no one in my local area knows who i am.
    5. you are comparing a boutique niche service to walmart pricing and you don't seem to realize it.
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