PRESENTATION OUTLINE
ECONOMICS OF OWNING A GYM
Owning a gym there are many opportunities for opportunity cost, you need to think about if you want a hardcore setting or a softer feel. Also if you want more free weights or more machines you have to look at your market and think about what is best.
Labor- You need to hire personal trainers to train clientele, also you need people who clean and run the gym for you.
Seasonal- During the summer you will have to hire lifeguards and other workers for the demand of the season, in January you will need to add more workers for the future expectations on how busy the gym will be.
Demand- The clients at the gym wanting new machines, wanting different fitness classes, and new things to do in the gym like a pool rock climbing etc.
Resource cost- Owning a 24/7 gym costs a lot of money to keep the lights on all day everyday and that is just one expense, so you need to figure out the market equilibrium point for how much you need to make vs. how much your costs are.
Product Markets- When gyms get new machines/weights they have the opportunity to sell their old products to costumers for a price that the gym will make money while giving the customers a good product.
Capital- Gyms having all of the weights, machines, and land gives them the ability to open up new locations or expand their current gym.
Service- The gyms having a cafe where they make products and sell it so there isn't a second party, the employees are from the gym so having the cafe there is a service. Also a service gyms have is a hair salon.
