If you are a current gym owner or possibly considering opening up your own gym, there are certain things you have to consider when keeping an eye on your budget. The very first thing you have to do is find a location that will provide enough traffic so your doors don’t close for good after only a couple months. After you have that settled, then you have to move on to figuring out just how you are going to afford the exercise equipment.
Do You Really Need Commercial Equipment?
Commercial gym equipment is expensive, but it really is the only type of equipment you should consider having in your gym. If you purchase pieces that are not commercial, there is a good chance they will not hold up over time. The difference between a commercial treadmill and a home treadmill is that a commercial one is designed to take a beating 15 hours a day, seven days a week. Your home treadmill is meant to be used an hour or so a day, and has many fewer bells and whistles.
Should You Buy New?
It all comes down to getting people in the door. You want to offer a quality place to workout with up-to-date facilities and equipment that your members are excited to use. There are some gyms out there that have the basics, which is totally fine, but if it looks like it is about ready to breakdown at any second, then not many people will enjoy using it. If your members have to make out their last will and testament before they try out your old school bench press or vertical leg press, then you might not want it for your gym. Your equipment represents not just the facility, but you as well.
However, the problem with purchasing new gym equipment is that it is quite costly. A new treadmill could cost you close to $10,000. And the odds are you will probably want a few of those treadmills so your members do not have to play their own personal Hunger Games to get to use it. If you have a couple hundred grand lying around or have access to a low interest loan, then buying new equipment might be something to consider. However, there are better ways to move forward and not break the bank.
Lease Gym Equipment
Leasing gym equipment is an option for many gym owners. It is very cost effective when you are first opening your doors. It usually does not require a large payment at the beginning. Plus, you are able to switch out your equipment every few years when needed. This is something your members might enjoy. Having the latest and the best equipment on the floor will make your business stand out from the rest. But there are also a couple major drawbacks when leasing your gym equipment.
For one, you will never flat out own the equipment. Think of it like leasing a car. You make all the payments, but you never own the vehicle. Because of this, you aren’t really putting any equity back into the business when you are merely renting your items needed. There is a very good chance leasing will actually be more costly in the long run. Those payments just will never stop every month. Plus, worst case scenario, if your gym does have to close down, it is much easier selling off your own equipment rather than being tied down to payments for the next three years.
There Is Nothing Wrong with Used Gym Equipment
Gym equipment is not like most things in life. Iron is iron, and it will stand up to the test of time. Age does not take away from its performance, but it can decrease its price. This is when you, as a gym owner, need to realize that brand new equipment is not needed. You can purchase used gym equipment at a fraction of the cost of new equipment.
Buying a used commercial treadmill usually ranges anywhere from $1,500 to $2,000. If you purchase a few of them, you probably can even get a better deal. Plus, there is a lot of used inventory to choose from and if you negotiate correctly, you can often get a year warranty on the items you buy. Let other gym owners make the mistake of leasing for three years, and then you can come right in and buy that three-year-old equipment at a hugely discounted price.
The bottom line is that you want to own a successful business and have fun doing it. That is the only thing you should be looking at in the beginning. If you start writing checks in an out-of-control fashion, then you won’t be able to make a profit any time soon. Keep your eye on the prize and find the best deal possible. Do not be afraid to think outside the box and negotiate with several companies at one time. If they know they are competing for your business, they will offer you better deals.
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