Our weekly series of the Business Plan continues with tips on purchasing equipment as the next step in opening your affiliate gym. In this blog we will give tips on what equipment to purchase. Having been affiliate owner's ourselves, we have a great understanding of the equipment process.
At Maxwod, when we receive and inquiry or a call about outfitting a new gym, we ask a few standard questions in order to get a better understanding of what our customers are looking for and to ensure we provide them with products that fits their needs. Below are the questions that we ask, which will help you get a better understanding of your own needs:
- What is your budget?
- What type of equipment are you looking for? Economy, Deluxe or Premium?
- What equipment do you already have?
- Are you paying for the equipment cash or credit card, or financing the gym equipment?
- What are your priority and must have items and what can you wait on?
What Type of Equipment do you Purchase?
When it comes to gear, there are generally three levels available in today’s market. Economy, Deluxe, or Premium. The differences may seem subtle when you look at the equipment, but after a few uses, you’ll soon see what sets the cheap stuff apart.
Economy Affiliate equipment is primarily sourced and manufactured in China by Chinese companies looking to make a cheap knock-off of the higher quality items American brands manufacture there. With the economy-grade equipment, there is no set standard for quality control, and most outfitters or websites who sell the merchandise import it by the container, so quality varies widely. We’ve walked into many new affiliates and seen piles of busted bars and bumpers in the corner – most of it less than three months old. For this reason, Maxwod does not carry economy grade no-name equipment.
Deluxe and Premium grade products are more than just brand names – they are standards of quality and backing for the equipment. While some deluxe and premium equipment is made in the U.S., a lot of it is manufactured overseas, but in factories where there is strict oversight and standards enforcement from representatives of the U.S. firms. There is quality control in place, and equipment is tested before it’s shipped. These manufacturers also stand behind their products, so when something does break, it’s usually easy to replace.
While you may think it makes sense to go for the economy equipment when you’re starting out, you are actually going to get better value and higher returns from the Deluxe or Premium grade purchase. First, your new box probably won’t have 200 members lined up on Day 1 to use the new equipment, so it’s better to spend your budget on lower quantities of really good gear than to buy a lot of junk. Second, the reason most businesses fail in their first year is under-capitalization – running out of money before they even get a chance to stand up on their feet. As a new affiliate owner, you don’t want to blow money on replacing busted equipment you just bought after six months of being in businesses and just eeking out a profit. You could buy the better equipment up front, and as your membership grows, use your profits wisely to add to your inventory of high quality gear, knowing that everything you're purchasing will have a long shelf life.
We’ll be back next week with our next Business Plan to help you open a successful gym, and we’ll talk about how much equipment you should purchase if you’re just starting out, expanding your membership, or just growing into a new space. See you then.