Fitzroy Vic, Gym and Fitness help

Hey Brains trust!

My partner and I have an opportunity to open a health and fitness club in Fitzroy, the area is as most people know full of arts, music types.

Initially we didn't think it was the right area, we've done some demographic research and its perfect in that sense on realisation. We have a great location right around the big name gyms, located next to $2 per hour parking!

My question is- should we look at the hard facts, high income, dense population accessibility, or should we be taking into account the area is know more so for coffee culture, arts and music.

Please share all thoughts!

Thanks

 

Hey @JKWS , can’t comment much on the area as I’m not from Victoria. But having owned and operated a gym in Sydney for a few years I can tell you it’s a super competitive industry.

how many gyms are around you?
What sort of $$ are they charging?
How much is your rent? How large is the floor space?
How you done the numbers on operating costs?

don’t underestimate the parking issue. So in Sydney the average gym is charging around $15 a week membership and that includes parking. If your in the gym say for 1 - 2 hours per session, let’s allow $4 per day for parking as a member. If I’m a 5 day a week user , that’s $20 a week on parking. I’m paying more for parking then the membership. Don’t know how that will sit with people.

The issue I found was rent for a decent space with parking was astronomical. I was paying $28k a month in rent. Electricity costs were also through the roof as aircon running most of the time. Then there’s staffing costs, but these days you would go the 24 hour set up with electronics managing most of your members access and purchasing.

many things to consider. I found it a painful industry to be in. People did my head in. And considering I have a passion for lifting while I was running the gym it sucked the enjoyment out of my training. At one point I started training at another gym just to get away from people in my own gym.