My gym survived my idiot governor’s covid shutdown. Not all gyms were so lucky. With things kind of sort of back to normal, and yet another covid variant on the way (*yawn*), I was wondering what the financial side of gym ownership is.

It turns out not to be so easy to get reliable numbers from public sources. I have little doubt franchisors and multi-location gyms have excellent financial information. The same goes for the various segments of the fitness industry. But it doesn’t look like much of it is publicly available. What follows is what I could cobble together from readily available sources.

The single biggest cost is likely to be rent. It is also the most variable cost. We’re talking real estate, so it is all about square footage and location, location, location. I’ve heard the rent for Tundra’s garage gym is pretty cheap: $20. Same as downtown. Or that might just be rumor.

Equipment costs are another huge variable. The gym’s size and type of equipment will determine the final cost. All those fancy machines with a light show like a slot machine don’t come cheap. It’s hard to nail down any sort of typical number hear. From what I can tell, a large gym will spend about $100,000 per year to rent its equipment.

Video and sound equipment has become a fixture in many gyms. It may look like all those TVs sprouted out of the wall, but someone had to buy them. The (horrible) music they pipe in is very likely licensed unless the gym is playing a local music station.

Like every other business in America, your gym better have insurance. The oaf who drops an 80 lb dumbbell on his foot isn’t responsible. It must be gym’s fault. From what I can find, gym owners should expect to spend at least $10,000 annually on liability insurance.

Staff salaries and training is maddeningly difficult to nail down. I checked fitness trainers’ salaries in my area, and it is very inconsistent. If you work full-time for a national chain, gym pay is about $22 per hour for a full time position. If you work for a smaller outfit, then the position is likely part-time but ranges from $30-$50 per hour. You are also likely to be able to do your side hustle as a trainer at the gym. Does the gym get a cut of your side hustle? I can’t tell.

Gyms will likely pay about 7% of their gross revenue in marketing costs. Interestingly, nothing suggests this varies by size or how long the gym has been open. That can’t be right. One gym consultant did have an excellent bit of advice for owners. He pointed out it costs nine times as much to acquire a new customer as to re-enroll an existing one. When I think about the different gym memberships I’ve had, it appears some owners got the message and others didn’t.

 

Remember when Scott Ian had hair? This week’s music does.