Originally Posted by Justin Okeson
Excellent post. I am conducting a feasibility analysis right now and I am wondering what your (or anyone else please) thoughts/experience is/are on the following items:
1) Is it better to lease equipment than to buy outright when first starting out
2) What is your customer attrition rate (what % of customers do you loose each month)?
3) What are your best marketing strategies, and your thoughts on groupon/living social strategies?
4) Does consumer demand justify offering different membership options (two days a week vs. unlimited)?
Thanks a lot for everyone's thoughts and responses!
1. I would start with what you can afford. If it's nothing, then it's time to start saving. Do you mean financing? Not leasing? I know some companies offer equipment financing. I think that could be an option for some.
2. I agree with Adam. Some months we'll have 1-2, other times 8-12. On average, I'd say 5-6%.
3. We have never done either. I've heard good and bad stories. If there were a time to do it, it would be when you just open the doors. If you have 75+ members, I can see how an influx of 100-200 new members(for a month, that don't see the value) would be difficult to handle, especially if you are not prepared for it(more coaches available, and increased class times)
4. We offer unlimited and the punch card on our website. We have always done it that way, and it's worked well for us. If a CURRENT member asks me about a lesser option, I'll work with each on an individual basis. Currently, that's 4 members of 200.