Originally Posted by Alex Burden
Sean: As you pointed out this box might be worth $0 and they just want to get everything off their hands.
Andy: pointing out the website costs $15 is very trivial that is not a big cost.
I think you need to be careful because you do not want to take over something that will tie you up in debt if things fail for you. You will be taking all the risk.
You know that sometimes you invest money in something and there is no return... this might be the case here for them.... they might take what they can and run with it.
I would also take a look at the local market, where is the competition and what type of competition there is, where is there a box located, can people find it, is the homepage crap, can you find any reviews anywhere on google. You will also need to know what sort of possible clients live in the area, is it a low income area or high unemplyment then the pricing may be out of reach for them. That would mean a change of strategy.
good luck though and let us know how it goes.....
Local market is not saturated, there is only his primary location, 15-20 miles away, and one other gym about 45 minutes away. The community is a fairly wealthy farming community in rural Iowa, so there is not much in the way of competition from other boxes.
The homepage is not good, he updated the primary location to a Barbell Logic website and Wodify and will not be doing that for this location. I would change websites and possibly move to Wodify to make improvements to that and to help with marketing. I know that he has not done much in the way of marketing to the community and the growth potential is pretty good. I have talked to people in the community that have left due to reasons with the management and programming and just a "feeling of being an after thought"
The community backs a lot of the local businesses and would support a local owner who has ties to the town and community. I work currently at the Hospital and with the high school athletes in strength and conditioning and sports teams.