Crossfit vs. Traditional Gym?

Rainmanisback · May 13, 2014

My boss is a good friend of mine and he is also a former amateur bodybuilder and power lifter (I think he still holds a bench press record somewhere in California). We've been talking about the possibility of getting into the fitness business down here in Panama city, Panama. He has enough money to invest and he loves fitness. However another person has talked to him into open Crossfit boxes instead of a chain of gyms.

I am not into crossfit, so I tend to incline for a gym that suits different purposes, mainly for athletes and triathletes, with a heated pool and indoor cycle track (money is not an issue)...

If you guys have any experience in the business, which route will you go? 2 or 3 gyms locations (which could even have a CF box), one of them with the assets mentioned above or 5 to 6 crossfit boxes around town?

I know there are MANY variables market wise... for example down here there are several boxes already and I feel crossfit generates loyalty due to the community sense in it... and there is also many people training for triathlons doing it on the street becouse they lack proper facilities.

Thanks in advance

richiec · May 13, 2014

Whatever generates the most income.

Nobody starts a for profit business to make as little as possible.

CrossFit is the next "big thing" and people are eating it up. Gotta sell what your clients want

Google&Pubmed · May 13, 2014

richiec said:
Whatever generates the most income.

Nobody starts a for profit business to make as little as possible.

CrossFit is the next "big thing" and people are eating it up. Gotta sell what your clients want

Yep! And before that it was MMA. Do you remember how many gyms started putting in punching bags and so on? It's a trend and it'll come and go. I do wonder what the next is going to be.

hvwchamp · May 13, 2014

in 5 years you'll have made more money overall with a real gym. You'll be lucky if crossfit even exists in 5 years... something to think about

Rainmanisback · May 14, 2014

I feel the same way you do

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LK3 · May 14, 2014

I feel that triathletes are a hugely untapped market.

my mom started doing triathlons as she got older and I went to a few of her events. I was shocked at the amount of money these people are spending on there sport and at the number of competitors.

from what I saw most had plenty of money as they all had super expensive bike but lacked any kind of real training or direction as was evident from there lack of performance and physical appearance.

I also think that there are lots of gyms that have your standard bs equipment but very few gyms that are genuine world class training facilities.

making a real training facility I think might even be cheaper investment wise then a typical gym. most gyms have tons of redundant machines and really don't deliver much to the client.

I think there is a way to develop are real training facility and make it marketable and profitable. a place where you could have professional athletes training along side BB'ers, training along side house wives ( be it wealthy good looking ones, lol

)

I have worked on several business plans for this, which include ways to properly sell supplements but have lacked the capitol to move forward.

I think crossfit is atrend that can be easily catered to in this type of facility.

don't just make another carbon copy of whats out there, go do something real that you can make a name with and be proud of.

jrock00123 · May 14, 2014

I would think about two things. One, what appeals to the largest potential customer base. Two, what are you going to do to differentiate (please tell me not cost). It would be difficult to compete with LA Fitness for the type if gym you are describing. The CrossFit option is highly specialized. This will required trained instructors and inherently a smaller customer base.

Don't rush into either. If your partner has money hire a good marketing company to help work through these issues. This will allow you to select the best combination of equipment and services. I would seriously consider product also -- apparel, supplements, shake / juice bar.

richiec · May 14, 2014

jrock00123 said:
I would think about two things. One, what appeals to the largest potential customer base. Two, what are you going to do to differentiate (please tell me not cost). It would be difficult to compete with LA Fitness for the type if gym you are describing. The CrossFit option is highly specialized. This will required trained instructors and inherently a smaller customer base.

Don't rush into either. If your partner has money hire a good marketing company to help work through these issues. This will allow you to select the best combination of equipment and services. I would seriously consider product also -- apparel, supplements, shake / juice bar.

Keep in mind this is in Panama. I'm not well versed in everything Panama has to offer, but I would be willing to go out on a limb and guess they don't have 10 gyms in a small town like the states do.

jrock00123 · May 14, 2014

richiec said:
Keep in mind this is in Panama. I'm not well versed in everything Panama has to offer, but I would be willing to go out on a limb and guess they don't have 10 gyms in a small town like the states do.

Missed the Panama part. All the more reason to hire a GOOD marketing firm. Spend some money here. Trust me it will be well worth it. My gut says an LA Fitness type operation if the operational cost and customer incomes can support it.

LK3 · May 14, 2014

richiec said:
Keep in mind this is in Panama. I'm not well versed in everything Panama has to offer, but I would be willing to go out on a limb and guess they don't have 10 gyms in a small town like the states do.

lol!
I thought he meant FL!

I know nothing of Panama the country.

here in argentina there are tons of these little tiny gyms, they offer very little, I think they compete with planet fitness for the weird/poor exercises performed, its kinda like the bad form Olympics. I have yet to see a trainer that looks like one and have been the biggest/lean person in every gym I have gone too, well everywhere else for that matter too. lol!

anyone that I have met here that looks good does so in spite of themselves.

there is a chain of super expensive gyms that I have not worked out in as im not spending that kind of money, but they are basically more like gyms in the states. they run about 1000 pesos a month vs the 200-350 the small neighborhood ones cost.

there is a market here for doing it right.

Brazil is a huge market, btu I haven't gone to any gyms there.

monopoly · May 14, 2014

You say money isn't an issue. It should be. If you want to be in business money is always an issue.

One of the biggest advantages of crossfit is the low up front cost. You can have a badass facility for 40k. For a real gym you are looking at 100k minimum, and that is just basic strength and cardio equipment.

1234trew · May 14, 2014

I have helped people open both, and I can tell you hands down right now it has to be crossfit.
Fixed costs are so much lower and monthly fees are higher with crossfit.
Cross fits need MUCH less equipment and space.
Most cross fit gyms in my area are charging between 59 and 99 per month, whereas gyms are getting 19 to 39.
You can put a crossfit gym in an industrial or less than ideal retail location, rents in the 6 to 12psf range versus a gym which needs to be in a nice retail center 18 to 30psf plus nets.
I have literally seen a crossfit gym spend zero dollars on buildout versus about 10 to 50psf for gym.
Cross fit gyms get into trouble because they often don't take enough space in the beginning and need to expand before their lease is up. I have never run into a traditional gym that needed additional space (always the opposite).
I have done extensive work with a guy that owns a world gym and a crossfit place right next to it. He was making more with the crossfit in the first three months it was open (3500 sq ft versus 18000). We sold the worlds gym and never looked back. Just an fyi the annual membership at the world gym was $360 and a 3 month cross fit pass was $350.

pieguy · May 15, 2014

I don't know why but average gym goers will whine and bitch profusely for a $30+ gym membership, but will eat a $75/month crossfit membership without a peep. Makes no sense. :banghead:

Crossfit seems like a better business venture at the moment until the fad dies. Bet it won't last another 5 years before something new and stupider/trendier hits.

GS · May 15, 2014

I know a guy through a mutual friend who has 1/4 invested into his crossfit gym to my traditional gym that makes some nice coin.
Maybe a fad but allot of guys start fads that go onto another and make more coin?
Somtimes i think i need to quit being so set in my ways ,but you heard you can't teach a old dog old tricks

intenceman · May 15, 2014

It's a tough business even with enough capital. I looked at local rents, about fainted, and looked at the number of $40 a month memberships I would have to have just to pay the lease. Decided to get equipment for my home gym- building in the garage, and invest the capital in retirement and mutual funds. Can train select clients in my garage gym, train without distractions and get a doctorate and end up with as much money as I started, with everything paid for. But everyone's situation is different.

AshopRep · May 15, 2014

I would get hurt if I did crossfit movements.

Rainmanisback · May 15, 2014

Thank you all for your feedback it gave me a LOT to think about. Really appreciated you guys took the time

wizim · May 15, 2014

if you are going to open a crossfit gym you need coaches that know what they are doing.

crossfit will be around for many many years to come. whoever says its a fad that will fade away is clueless.

have you heard of the crossfit games? over 100K competitors registered in the games this year. how many bodybuilders registered for any of the big bb comps? What's New in 2014 | CrossFit Games

i joined a crossfit gym 6 years ago and havent looked back. its more than just a gym. there is a comradery in a good crossfit gym. people become very good friends. i cant tell you how many quality friendships i have made in 6 years. in the 20+ years i spent in traditional gyms ive made maybe 3 friends. in the last 6 years i talk to ONE of those 3 guys 1x/year.

back to coaching. everyone thinks a crossfit gym is easy to open. true, low overhead, low buy in etc. however, if you dont have good programming and the gym down the street (there are 5 crossfit gyms within 10 miles of my house) does you will lose members to the gym that is well coached.