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Running a CrossFit Facility Tips and guidance on how to open and operate a CrossFit gym.

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Old 09-18-2006, 03:27 PM   #1
Steve Liberati
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One of my goals in life is to open a Crossfit facility someday. Now I'm sure most affliates are not in it for the money but what kind of profits does a typical facility generate on a monthly basis?
Besides having your own place to workout and orchestrating a tight knit community, is the money enough to account for a second income?




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Old 09-19-2006, 08:34 AM   #2
Skip Chase
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yes, as the only income.
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Old 09-19-2006, 12:57 PM   #3
Steve Liberati
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Thanks Skip! You seem to be the only affiliate who ever responds to this topic. I'm curious to see if they're are more affiliates like yourself who are successfully running crossfit center's.

Besides a grand vision and some (lofty dreams/expectations), I'm having a hard time devising a rough sketch of the financial projections. Trying to figure out stuff like the break-even point, start-up funds, and monthly price range for leasing/owning a garage.

If any more affiliates can share some of their experiences that would be terrific.

Thanks!
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Old 09-19-2006, 03:05 PM   #4
Mike ODonnell
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Not an affiliate...but you probably can do the numbers. Most of them would charge $150 for unlimited workouts...so figure out how many classes you would have (prime hours being before and after work) and how many people you will realistically have in each class (depending on # of trainers, equipment, etc). Lastly add that up and now subtract your overhead as that will vary from place to place (including rent of any kind, equipment costs, etc).

If you get the numbers in the door...it should be able to make money for you.
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Old 09-19-2006, 05:42 PM   #5
Frank DiMeo
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Steve, my affiliate was opended last December.
Our numbers are not huge as yet, however, our clients find it worth their money to invest $45/30 minutes of private CrossFit training.
Our retention rate is very good, most of the clients I prviously have been glad to make the transition to this type of training.
Many of them were previously doing 60 minute sessions, and now do 30 minutes with greater results!
That does not answer your original question, but might help in establishing your fees.
Hope that helps.
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Old 09-19-2006, 07:23 PM   #6
Douglas Chapman
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Fellows, here are some ideas on training

Mike: you are locked on about your insights on numbers.

Imagine this: Income of 10k per month for a studio. Assume half the revenue comes from private training at $65 per hour. (Varies per market but pretty normal)Half revenue coming from classes. Assume that most training clients train twice per week. That works out to approx. 77 sessions per month which works out to about 10 clients for private training. The assumption is that the other people are doing unlimited class for $150 which breaks down to about 33 class clients. So, with about 43 clients your revenue is about 10k per month. So take this model and apply it to your own business mix. (% of classes to private training) A full time private trainer books about 30-35 sessions per week. The question is when or if you want to add classes.

The great thing about the affiliate set up is that the overhead cost is so low. The cost to deck out a CF gym is a VERY small fraction of what it takes to do a regular gym. Hoe about a low overhead/high margin business. It is a no brainer. If you can attract that kind of clientele to your garage it would be a slam dunk. For under 5k in investment, you could have more than enough equipment to train anyone. The key will be to manage your overhead.

The question is: How do you attract those 40 some clients? I am assuming you would be a average CrossFit trainer. (What is average?) As such, you would be better than 99.9% of the good gym trainers. So, it makes sense to start out where somewhere you can stand shoulder to shoulder with them. You will end up with more business than you can train. Save money and your client list and open a small box and run with it.

I hope this helps.

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Old 09-20-2006, 03:36 AM   #7
Mike ODonnell
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Steve,

Excellent info above. Right on. Rent out space for other trainers to bring in clients...I know trainers are always looking for independent gyms in which to train their people (as the big gyms take a huge % otherwise or charge rediculous monthly rent). Have prime hours as your group classes, Off peak times as one on one training. Also find other niche time slots and classes like maybe a "women's only" class at 9:30am for the housewife crowd...or a seniors class at 11am...kids at 4pm....etc. Be creative. Have a nutrition seminar on the weekends and charge. Do programs for people that want to work out at home and you show them a new program every weekend or month...like I said, creativity and the sky is the limit. It may take some time to get it going....or with the right network and word of mouth you could have 40poeple at your door tommorow.
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Old 09-20-2006, 12:47 PM   #8
Steve Liberati
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Very helpful information. Thanks guys!
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Old 09-20-2006, 01:05 PM   #9
Mike ODonnell
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Don't forget the 3 Ls of any business....location..location...location.....you dont have to be in a store front...but it helps being close to people's homes or work so they "feel" like they are not going out of their way...of course once they get hooked on this type of workout that they can get nowhere else...they will come to you.
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Old 09-20-2006, 05:53 PM   #10
Frank DiMeo
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Doug, that is good info.!
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