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-   -   Break Even Point (http://board.crossfit.com/showthread.php?t=82339)

Gary Ostroski 06-01-2013 12:25 PM

Break Even Point
 
Searched around a bit but couldnt find anything. I am curious what some of the new and established affiliates have as their break even point in terms of members. I am looking at the numbers I have pulled together and I am seeing between 22 and 26 depending on the contract mix.

Thanks in advance.

Luke Conner 06-01-2013 02:14 PM

Re: Break Even Point
 
No one will be able to give you that answer as it is wholly dependent on your monthly costs and what you're charging for your athletes.

Brian Strump 06-01-2013 04:23 PM

Re: Break Even Point
 
I'm still surprised that people start a business without knowing some answers to key questions.

Gary Ostroski 06-01-2013 05:03 PM

Re: Break Even Point
 
I know my answer. As I said, 22 - 26. Was just curious is all. Wasnt asking what mine would be. Was asking what others might be.

Carl Brenton 06-01-2013 07:22 PM

Re: Break Even Point
 
22-26 is very low and I doubt that would be a break even unless you were in a garage. Obviously it depends on your costs and setup but off the top of my head something like 50 would be more realistic. At 100 you are probably able to pay yourself a salary.

Steve Loeding 06-01-2013 07:29 PM

Re: Break Even Point
 
Only you would know that -

Expenses

Rent
possibly heating / electric / water
insurance
affiliate fees
if you have a website - hosting fees, zen planner fees, processing fees, etc.
Equipment ( new and replacement )
If you have trainers - then you also have to potentially pay salary, not to mention paying someone like paychex etc to process the paychecks for you
Retail stuff that may sit around for awhile
AND TAXES ( don't forget taxes ) - it's about 1/3 of your income (depending, of course)
Your own living expenses, savings for retirement, savings for a rainy day fund, etc

Again, a lot depends on your personal situation. But 25 people seems a bit low.

Gary Ostroski 06-01-2013 08:07 PM

Re: Break Even Point
 
Gotcha. As I said I was just inquiring about others. Not my own. Thanks though.

Brian Strump 06-02-2013 06:34 AM

Re: Break Even Point
 
Quote:

Originally Posted by Gary Ostroski (Post 1169063)
Searched around a bit but couldnt find anything. I am curious what some of the new and established affiliates have as their break even point in terms of members. I am looking at the numbers I have pulled together and I am seeing between 22 and 26 depending on the contract mix.

Thanks in advance.

Gary,

Your website says $175 for month to month. Assuming that you have 25 members all paying that price, equals $4375. Are you paying yourself anything? Trainers pay(There are 15 listed on your website)? I would think your affiliate fee and insurance would eat up at least $300-600/mon depending on those costs.
By the looks of your fb page, you are not in a garage, and have rent and utilities to pay too.

You know your numbers....however, like the others said, they seem quite low; and they can vary greatly from each affiliate that I don't think anyone's answers will offer much help.

Gary Ostroski 06-02-2013 07:04 AM

Re: Break Even Point
 
Thanks Brian. I don't have a site or FB yet though. In week four of waiting for affiliation. I actually have an extremely detailed spreadsheet with cash flow and contribution margin that I have developed. Just creating conversation while waiting.

Brian Strump 06-02-2013 07:43 AM

Re: Break Even Point
 
Ha, not much of a detective. This is where I got my info;
https://www.facebook.com/PUSHCrossFit?fref=ts

Regardless, if that is your break even point, you are lucky to have been able to keep overhead that low.

Good luck!


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