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Old 12-25-2009, 12:33 PM   #1
Michael T Price
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Question New Crossfit Gym Opening Less Than 200 Meters Away

Hi Guys
I Have Recently Opened A New Box 8 Weeks Ago In My Home Town.things Are Going Great Due To Alot Of Hard Work.there Is One Other crossfit Here In The City ,that Has A Population Of 2 Million.In 5 Years They Have Managed Only 35-40 Members.In Eight Weeks I Have Managed 25 Full Time And 16 Coming Through The Fundamentals .the Other crossfit have Now Have Decided To Move In 200 Yards From Me Into A Area Of The City I Have Worked Hard To Push The Crossfit Name.

Needless To Say I Am ****ed ,but That Wont Fix The Problem.i Was Wondering If Any Of You Guys Had experienced some Of this Immoral Behavior And What Did You Do About It.

At End Of The Day Cream Rise's To The Top , So I Know I Will Be Ok . It Just Makes More Work Dealin With This , Which Is Hard Enough Already Been A One Man Show
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Old 12-25-2009, 12:39 PM   #2
Mark E. Wallace
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Re: New Crossfit Gym Opening Less Than 200 Meters Away

Holy Punctuation & Capitalization, Batman!!
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Old 12-25-2009, 12:59 PM   #3
Lawrence "Bo" Boland III
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Re: New Crossfit Gym Opening Less Than 200 Meters Away

Michael,

I'm not sure if there is a case of this happening before (to the extreme of being literally across the street from one another), but... it may not be as bad as you think. There is a lot of evidence out there that businesses of the same type, in close proximity, actually create an environment that creates MORE business for both of them. What's going to happen is, that your area of town is now going to be known as the Crossfit area.

Basically, I wouldn't get that mad. Keep doing what you're doing, and make sure that you differentiate yourself from the other affiliate. Do things that they are not doing.
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Old 12-25-2009, 01:08 PM   #4
Mark E. Wallace
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Re: New Crossfit Gym Opening Less Than 200 Meters Away

+1 to Bo's comment re: differentiation.

Not sure at all how this is "immoral behavior." It's business. Deal with it or fade away.
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Old 12-25-2009, 11:13 PM   #5
Jason Flora
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Re: New Crossfit Gym Opening Less Than 200 Meters Away

Glassman says Crossfits can be like Starbucks... There can be one on every corner...
Dont sweat it... It may actually help you out once more people start drinking the Kool-Aid..
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Old 12-26-2009, 10:49 AM   #6
Katherine Derbyshire
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Re: New Crossfit Gym Opening Less Than 200 Meters Away

FWIW, the Starbucks analogy is a terrible one to use. For starters, it's often misunderstood. When two Starbucks open across the street from each other, sales of the first one DO go down. They just don't go down by so much that they offset the new sales from the second store.

All Starbucks stores are owned by the corporate parent, so all that matters is total sales. (Well, total profit, since each store adds overhead.) Since affiliates are independently owned, their interests are not necessarily aligned with those of CFHQ.

There's also a big difference between getting people to stop in for a $5 latte, and getting them to sign up for $100+ in gym dues. They might stop at one Starbucks on the way to work and the other on the way home, but they'll only join one gym.

Finally, it's worth remembering that Starbucks closed a lot of stores recently. I know at least some of the closures were locations near other stores. That suggests that it might be a good idea to dig deeper before adopting the model.

Katherine
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Old 12-26-2009, 11:45 AM   #7
Joe Mercurio
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Re: New Crossfit Gym Opening Less Than 200 Meters Away

Well because Starbucks reached a point of oversaturation within their market. Has CF reached this point? Certainly not nationally, but if 3 CF gyms open up on the same street-corner it can happen locally. Keep in mind though that Santa Cruz now has like 5-6 affiliates? in the same town and most have a positive relationship with each other. Since CF is spread by word-of-mouth, i think it's logical to believe that more than 1 gym in town will increase membership in ALL those gyms.
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Old 12-26-2009, 03:16 PM   #8
Monique T. Ames
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Re: New Crossfit Gym Opening Less Than 200 Meters Away

find your niche within a niche. check out the other cf gym. look at them closely and then look at yourself equally closely. distinguish yourself in a positive way. how is the training different? the community? the programming? the coaching? the prices? the amenities? the facility? the hours? the staff? the management? the owner? focus on YOUR strengths and maximize on them.

as far as starbucks, if there are 2 next to each other, I won't just pick the easiest or the cheapest (I know, it's not possible cause it's a franchise...just stay with me here), I want the BEST one for ME. the experience is similar yet different at every starbucks: the staff, the location, the facility, the layout, the community (yes, the community).

find your niche in the niche.
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Old 12-26-2009, 04:01 PM   #9
John Blount
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Re: New Crossfit Gym Opening Less Than 200 Meters Away

I have often thought of this situation and one idea I had was to go talk to the owner of the other gym and make an agreement to set the prices the same as your gym.

I think one of the worst things about owners moving close to each other is getting into a bidding war and undercutting one another until you effectivly kill both your businesses.

And once y'all are somewhat business buddies you can have your gym vs. his gym competions like once a month for fun.

Anyway, thats just an idea I had to try to help out, if you don't like it please refrain from posting on how stupid you think my idea was; if on the other hand you do like the idea then I'm glad I could help.
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Old 12-26-2009, 04:37 PM   #10
Steven Bowser
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Re: New Crossfit Gym Opening Less Than 200 Meters Away

I dont like the comparison with Starbucks either. Plus I am a Dunkin Donut kind of guy.
Just like everyone is saying - Focus on your training and do what you do best. We have several good crossfit gyms down here. We focus on Strength Training and Oly lifting where another guy is more Endurance and a third is a Kettlebell pro.
Actually I am going to approach the other two and see if we can work together to offer all of our clients workshops. I can do a free workshop at their box, while they can come in and do Endurance and KB workshops at ours. Of course it would be open house for all 3 gyms.
Think outside that square.
Pricing is a whole new topic. I think we are all learning that we all charge much too little. Personally I think our services are worth well over $200 a month however its a difficult time for a lot of people right now. We are at $165 and will be going up in 2010. Post that on your website that you are about to raise your rates and you will get some of those who were thinking about it to make a quick commitment.
Good luck
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