What it takes to own a gym?

[coffee-guy]

lol ... insurance actually doesn't hurt that bad ... definitely less than $1500 per month. A facility that I've done work with here in Atlanta (a weight box like you're describing) pays only $800 a month for insurance. Their total operating expenses are around $55 K for a 35K sq ft facility with about 2000 active members. The lease is the biggest single expense at about $15k per month. Second biggest is wages.

You should lease equipment (cardio equip, selectorize machines, hammer strength, etc) because the cost to purchase that equipment is extremely high. The lease basically amounts to a low interest rate loan from the equipment companies, so there's no reason not to lease.

If their operating costs are $55K, occupancy taking up $15K followed by payroll, where is the other +/- $30K going (equipment rental etc?). Also, what kind of net would a facility like the one above bring in???

[Curls4dGirls]

These are some numbers from a different gym, just to give you an idea of the breakdown. You also have to consider interest payments if you're taking out a loan.

Labor 20.3%
Equipment 17.3%
Utilities 11.0%
Lease 39.4%
Marketing 7.9%
Accounting / Legal 3.3%
Supplies 0.8%

The money you make depends on how well you run the place. Most struggle to make money.

[coffee-guy]

These are some numbers from a different gym, just to give you an idea of the breakdown. You also have to consider interest payments if you're taking out a loan.

Labor 20.3%
Equipment 17.3%
Utilities 11.0%
Lease 39.4%
Marketing 7.9%
Accounting / Legal 3.3%
Supplies 0.8%

The money you make depends on how well you run the place. Most struggle to make money.

Those numbers are breaking down the gross - what would the net percentages be???

[space mountain]

i manage a world gym that my best friend and me started! been exactly one yaer since we opened!

[Curls4dGirls]

Those numbers are breaking down the gross - what would the net percentages be???

Can you clarify your question? Net of what?

Those percentages are the percentage of total cost.

[Shibby]

I think he was asking how much net money a place like that would make.

[Shibby]

i manage a world gym that my best friend and me started! been exactly one yaer since we opened!

That's kind of what I wanted to do. I want to own one and then find a good manager to run it.

[Bouncer]

I think alot depends on the location to. The gym I go to has changed owner like 3 times in 5 months. I dont think there making much money. Place I used to go to in Jersey was owned by the same people for 35 years and they made a good amount. Its a 50/50 from what I have seen.

[coffee-guy]

Can you clarify your question? Net of what?

Those percentages are the percentage of total cost.

Sorry - what is the take home after cost (what percentage goes in the owner's pocket after EVERYTHING is accounted for - I've seen businesses that run at 25%-30% net profit and some that run at 5%-10% - I'm curious as to what the average would be)...

[Curls4dGirls]

Sorry - what is the take home after cost (what percentage goes in the owner's pocket after EVERYTHING is accounted for - I've seen businesses that run at 25%-30% net profit and some that run at 5%-10% - I'm curious as to what the average would be)...

It's all over the board. Bascially, it boils down to location, the skills of mgmt, and the amount of $$ available for marketing.

[coffee-guy]

It's all over the board. Bascially, it boils down to location, the skills of mgmt, and the amount of $$ available for marketing.

Gotcha - I'll leave it at that - I just thought there might be an average...

I am working towards a degree in physical therapy and had always thought something like owning a gym would work in my favor one day :D...