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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 03-09-2014, 02:27 PM   #1
Charles Wischmann
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Pricing?

Me and my partners are waiting on our affilation letter to get approved from Crossfit HQ. The thing we are wondering on how much we should charge once we open up our doors. The town we are Population is about 9,500. Theirs a couple of small gyms in the area. aka globo gyms and one personal trainer. we are thinking 150 unlimited but don't want to be too outrageous.

Also do you guys think we should do a 3 days a week class and if so what to charge. thanks
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Old 03-09-2014, 05:28 PM   #2
Brian Strump
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Re: Pricing?

We have been open for 4+ yrs, and only offer unlimited, and an expensive punch card option for those that legitimately travel often(12 classes, $200).

If there is not another affiliate in your city, you're in the driver's seat. Be smart, and keep improving your product.

If there is not another affiliate nearby, I would consider pricing your place with similarities to some yoga studios, BJJ, Krav Maga, etc. It's hard for someone on here that does not know the economics of your area to give you good advice on what to charge.


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Originally Posted by Charles Wischmann View Post
Me and my partners are waiting on our affilation letter to get approved from Crossfit HQ. The thing we are wondering on how much we should charge once we open up our doors. The town we are Population is about 9,500. Theirs a couple of small gyms in the area. aka globo gyms and one personal trainer. we are thinking 150 unlimited but don't want to be too outrageous.

Also do you guys think we should do a 3 days a week class and if so what to charge. thanks
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Old 03-09-2014, 06:08 PM   #3
Charles Wischmann
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Re: Pricing?

Thanks brian.

I will be the only affiliate with in a hour. Also the one personal trainer guy charges 159 dollars for 2 days of train in his gym. i think we will be good with 150.
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Old 03-10-2014, 05:28 AM   #4
Brendan McNamar
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Re: Pricing?

Part of the equation should be size of your gym and number of members you want.

Price X # members = total revenue

Also how busy is the personal trainer? If he has lots of work then there is unmet demand. If he spends all his time marketing then he is having a hard time filling his schedule at his current prices.

What is the overall income level of the town? The higher the disposable income the more you can charge.

What are your fixed cost? The lower your fixed cost the lower your price can be while still having a successful business.

Geographic isolation from competition allows for higher pricing generally.
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Old 03-10-2014, 09:47 PM   #5
Adam Morden
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Re: Pricing?

great advice in this thread already. I like 3x a week memberships. For people who just want to improve their fitness and health CF 3x a week will do wonders and most people can fit that into their schedule. That way people don't feel like they are paying for something they won't use (ie I'm only going to come 2-3x a week but I have to pay for unlimited...)

I really like working backwards to find what you need to charge to make what you want to make. From what you've said the 150 sounds reasonable but like what Brian said, its hard to give specific advice on what to charge without knowing the economic situation of your area.

I've done founders memberships before where I sell a limited number of memberships at a steep discount so that I get enough people in the door from day 1 to cover my operating expenses.

Best of luck!
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Old 03-11-2014, 05:15 AM   #6
Charles Wischmann
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Re: Pricing?

Thanks Adam and Brendan for the advice.

Good new got the email saying we were approved for affiliate but we need to pic a new name. We did send 3 more names hopefully we get a email back soon on our name.
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Old 03-16-2014, 06:47 AM   #7
Matteo Pagetti
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Re: Pricing?

for me, here in Italy, is a bit curious define a correct price.

in opposite to other EU countries, we have a lot of investment on "accessories", so we need to think at a right and reasonable ROI on these things.
adding to this, we don't have the possibility to lease a warehouse for, let me say, one or two year.
so we need to think also for a place that can suit the potential growth.

that's my case:
live in a town about 40ml from Milan, where there's about 8 affiliate, in mine just one (that's a friend)
the potentiality is high (more or less 69k people live here) but the other fix a price about 100$ (75€), where in other cities like mine is much higher (90€)
so, now that I'm find two right places to open, I've a lot f troubles thinking the right price.
higher, for higher services, or make a dump price to obtain people?

here, actually, there isn't yet the "right" mentality, people take CF as alternative for classic globo gym workouts...pretty sad, but true.
the financial part is also important for me in this...as you can understand.
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Old 03-18-2014, 08:16 AM   #8
Boris Wartenberg
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Re: Pricing?

Quote:
Originally Posted by Matteo Pagetti View Post
for me, here in Italy, is a bit curious define a correct price.

in opposite to other EU countries, we have a lot of investment on "accessories", so we need to think at a right and reasonable ROI on these things.
adding to this, we don't have the possibility to lease a warehouse for, let me say, one or two year.
so we need to think also for a place that can suit the potential growth.

that's my case:
live in a town about 40ml from Milan, where there's about 8 affiliate, in mine just one (that's a friend)
the potentiality is high (more or less 69k people live here) but the other fix a price about 100$ (75€), where in other cities like mine is much higher (90€)
so, now that I'm find two right places to open, I've a lot f troubles thinking the right price.
higher, for higher services, or make a dump price to obtain people?

here, actually, there isn't yet the "right" mentality, people take CF as alternative for classic globo gym workouts...pretty sad, but true.
the financial part is also important for me in this...as you can understand.
Ciao Matteo,
same is in my situation, as I am approved, but had to rename.
Prices are from 60,- EUR to 90,- EUR for CrossFit, but people think you are just something similar to a globo gym, wich starts for 19,95 EUR per month!
Renting is a big big point, we do have to rent for 5 years!!!

Pricing for me is a bit like going through the middle, to satisfy new potential customer. For accesoires and eqiupment, you have some partner in Italy, isn´t it?
Best
Boris
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Old 03-19-2014, 12:10 AM   #9
Matteo Pagetti
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Re: Pricing?

Ciao Boris!

thanks for the reply!
I'm really struggling as you on these points.

For the rent, I'm still wait for a warehouse that needs to be finished yet, so the constructor can suit some of my exigencies...as bathrooms and changing rooms.
That's because we have (as usual) some stupid laws that request these and in a specific way.
In a nuthsell, If I want to open as a "gym", I need, let me say, reserve more or less 100mq of 500 for these (!!!) and I need to build separate restrooms, with some specific measures, handicapped ones, blablabla....I don't know which is the situation where you live, but this is the main obstacle, even in terms of investments and incomes...

The second one, as you mentioned, is the rent...no way for a year per year also here...need to sign a 6 year contract...so need to think to choose the right dimension...ok, if I don't have too much clients, can be large...but if I have a lot of clients? Is not a good point lost clients for a smallest box that can't accomodate all...

Globo Gym are the other big deal to struggle with...and their prices.
I think I can position mine, when I open (I hope!!!) around 75/80€ ...is not too much but I think is the correct one for obtain correct revenues.

I've a question for you. In which way you open your box, I mean in legal terms.
Is a society? or is a "single VAT" activity? Here we have legal form for society as "SRL" or "SNC"...but I've seen that other boxes are open as "ASD" that means dilectant sportive association, a sort of no profit structure...do you have some there?

For equipment and other things, I think I'll move with AgainFaster Europe...pricing are good and the customer service is better than Rogue Europe (I have a physical person as a contact, and not only an email...)
We have some producer here such as CrossGym or others, but the quality, in my opinion, is not good...

my best!
Matteo
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