Monday, March 3, 2008
So I can only hope this 'Night of the Living Dead' episode has come to its final conclusion--and the dead stay dead!
It s the old "supply and demand" routine and in this case, like the game of golf, too much supply and not enough demand. Coincidentally ˜Planet Fitness' in Hadley, the New Kids on the Block, just opened their doors (after signing people up for the last six months or so).
According to the Crusty Amherst Bulletin puff piece last October, they spent $1.1 million on renovations and equipment (no wonder it took them so long to finally open).
If you borrowed that amount your monthly payment would be around $10,000 so with those ridiculous $10/month memberships they need 1,000 clients just to cover that mortgage. Then there's rent for 15,000 square feet in a Mall (another 1,000-2,000 members required) salaries, utilities, advertising, insurance (easily another 2,000.) So yeah, if they draw 5,000 members--they got a shot.
Problem is of course ALL the remaining Health Clubs on this side of the river combined don't have a total membership adding up to that.
My original report
Follow Up clarrification