The January Gym Crowd
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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.
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So then that's all pure profit.3dogsrunning 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.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.
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.0 -
So then that's all pure profit.3dogsrunning 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.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.
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).0 -
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.
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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.0 -
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*0 -
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.0
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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.0 -
goddessofawesome wrote: »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.
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So then that's all pure profit.3dogsrunning 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.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.
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.0 -
3dogsrunning wrote: »goddessofawesome wrote: »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.
Gotcha. I misread your original post.
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What you're not realizing, and where my line of thinking is moving towards, is that this model is very susceptible to walmart style pricing, and the fractured affiliate system would make it fairly easy to take over a non-metro market.5. you are comparing a boutique niche service to walmart pricing and you don't seem to realize it.
Now, easy doesn't mean cheap, but that's something else. Once you take over the market, it's easy to monetize out of that. Like I said, it might tickle my pickle to look further into this. A major metro would be a lot more challenging, but some pissant place like where I like right now? Totally doable.
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What you're not realizing, and where my line of thinking is moving towards, is that this model is very susceptible to walmart style pricing, and the fractured affiliate system would make it fairly easy to take over a non-metro market.5. you are comparing a boutique niche service to walmart pricing and you don't seem to realize it.
Now, easy doesn't mean cheap, but that's something else. Once you take over the market, it's easy to monetize out of that. Like I said, it might tickle my pickle to look further into this. A major metro would be a lot more challenging, but some pissant place like where I like right now? Totally doable.
well go get that money son! you've got it all figured out so start clocking them dollars, yo0 -
What do you think I do for a day job? I create money out of nothing.
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I really don't mind new people as long as they clean the machines and ask questions when they are lost.
I haven't noticed a huge number of new people at my current gym, but I am doing a lot of my workouts very late at night and taking some classes at an outside studio right now, so I'm not there at the most peak times. When I noticed the biggest problem with January exercisers was when I lived in a small town with only one gym--horrible.
Most resolution exercisers will be gone/done by next week...if they are in your way, just wait a few days until almost all of them give up.0 -
Yup, a much as I would love to be supportive of all the new members it's hard when classes fill up quickly and you lose your spot in class to someone that isn't going to show up again ever.0
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The gym I go to is even more crowded now because the other "local" gym had closed it's doors at the end of December to make way for a Whole Foods. From what I heard, my gym had over 350 new members sign up in January. It's all good though. Everybody deserves a chance to be healthy and with the hours I work, I can go in the off-peak hours when most people are in work. My neighbor, however, was telling me if you want to get a bike in the spin class, you have to get there at least 1/2 hour before the class starts and wait on line.
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I haven't really noticed any newbies at my gym. It was a bit more crowded early this morning but other than that I haven't seen a big rush. But then again I'm not really paying attention to it. If there ARE newbies there they're pretty much sticking to the cardio machines right now.0
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Lol!0
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