There are many reasons why you might want to sell your gym. Maybe you’re moving across the country and it’s just not going to be feasible for you to run your gym from there. Or maybe you’ve made enough money and decided to retire. Or maybe you found that your other fitness businesses, such as yoga or dance classes, were doing better in that area. So you’ve decided to stick to those and sell off the gym. Whatever the reason, it’s necessary to present your gym in the best way possible so that potential buyers will fall in love with it. And a gym broker can help you to do this.
If you want your gym to fetch a fair price (or even a price that’s above market value) you’re going to have to maintain it well. If you’ve always maintained your gym in good condition, you won’t have much to do at this point. But if you haven’t, it’s a good idea to go over your gym and check out the condition of all your equipment. Is it in good shape and functioning smoothly?
Do your treadmills or elliptical trainers need to be repaired? Are your weight machines in good shape? Are your free weights gleaming in a row or are they rusted, thus posing a health hazard? You may not want to bother with all these little things, given that you are selling your gym. But taking care of all these problems now will make sure that you get a good price for your gym. When the potential gym owner walks in, they want to see a gym in good working condition, not a fixer-upper.
In addition to functioning equipment, you also need to make sure that your gym looks overall presentable when a potential owner walks in. It doesn’t hurt to give it a coat of paint, get the windows cleaned and fix any leaks that might have occurred over the years.
General cleanliness is also important. It’s a good idea to get professional cleaners to come in and thoroughly clean your gym. Throw out gym mats that are ten years old and get new ones. Make sure your carpet or flooring are clean. And most importantly, make sure your gym is well-lit and has an active feel. This will help you make that sale.
Contact us for more great tips for selling your gym.
The main purpose of starting a business is to make money. When we are talking about opening a gym, the main source of income is going to come from the cost of a membership per person. However, it is always important to generate MORE money and in the fitness industry, there are plenty of opportunities.
Today, we are going to discuss how you can increase your profitability through the sales of supplements.
Pricing & Selling Supplements
A simple way to increase the sales in your club is to offer supplements. To receive the best prices on your inventory find a vendor that can get you the best deals. The trick to successfully profiting off of supplement sales is to have a motivated sales team and make your profit margin realistic (for you and for the members).
The cold hard truth is that your sales team has no reason to care about sales of supplements. You, as the owner, will profit but they get nothing. Motivate your team to care about supplement sales. Consider paying them 10% commission for every supplement they sell (we will break this down for you in a minute). Set your prices however you would like, but keep in mind potential “discounts”. If you want to offer your members 20% off of supplements, be sure to mark your initial prices higher. Also, account for any commission you will be paying to your sales team.
Let’s say you purchased 8 jugs of protein powder from a vendor for $144. This equates to an individual price of $18 per jug. You want to earn back your initial investment, plus earn a profit of AT LEAST 40% on each protein jug.
$18 x 1.4 = $25.20 bottom line price per jug, to produce a 100% return and 40% profit.
However, to actually earn a 40% profit on your initial investment, you need to price each jug of protein at $35. Sound confusing? We can explain. Remember earlier we mentioned the importance of pricing your inventory to account for discounts and commission. Well…
20% off for members means that they will only pay $28.00 ($35 x 0.8 = $28).
10% commission paid to salesperson means you will pay $2.80 per jug sold. ($28 – $2.80 = $25.20).
This is just one of the many ways you can capitalize on your current business and generate more money. If you do not want to pay commission to employees for supplement sales, think of other creative ways to motivate them to WANT to sell. And remember to be mindful when you are pricing your inventory.
For more tips on how to make your club more profitable, check out our blog. If you have additional questions or need specific help with your existing business, feel free to contact us!