First off, I hope everyone is enjoying their Fourth of July holiday! Enjoy those happy barbeque calories 🙂
I am hoping to gain some insight in regards to the market for fitness studio rentals…
Does anyone here rent fitness studio space?
Would you rent a small (but nice) 1500 sq. ft. studio…minimal equipment…for $500 a month (you are allowed nine 2-hour sessions total per month) if the studio brought you 5-10 trainees each session?
If your own one month private session costs $500 per month, you could easily make up the cost of renting the studio by converting just 1 of the trainees all month.
Would it be something you’d be interested in?
I’m trying to understand your situation, but I’m leaving for vacation so I might not reply immediately after you reply.
What do you mean that the studio is bringing you 5-10 trainees each session? The studio is bringing in 5-10 potential clients, 9 times a month, for a total of 45 to 90 people to take your sessions? Is that a free trial? And then you have to sell them personal training, for which you charge $500 a month? Did I get that correct?
Here’s how I’d think about the math.
$500 a month would get a client 8 sessions from me (twice a week @ 60 a session), so that’s 8 hours of my time. Plus 18 hours of these two-hour sessions. So, breaking even is 26 hours of my time. If I convert 2 clients – that’s $500 net income, it took 34 hours of my time, which converts to about $14.80 an hour. 3 clients, 42 hours of work, net income $1,000, $23.00 per hour.
And, of course, all that is net income before taxes and other expenses. As an independent contractor, you’re paying both the employee and the employer share of FICA and medicare, as well as income tax, so you’re really netting about 70% of what you collect.
Sounds like a decent deal for a new trainer trying to build a business, or an established trainer whose clientele would follow them to the new place. I probably wouldn’t do it because I have very few hours available for training and have built a good business during those hours, so I have not need to upset the apple cart.