Following on from last week’s post, you now know what kind of gym you want to open. There are so many steps that you can take next, it just depends what you want to focus on. But this week, we’re going to talk about gym equipment. should you buy, or should you lease? What makes the most sense? If you’re unsure about what to do for the best, this post might help you make up your mind.
The first point – and perhaps an obvious one – is that if you choose to purchase your gym equipment, you own the assets from the beginning and you won’t have to worry about keeping up monthly payments. Ultimately, it all comes down to our bottom line each month, so buying your equipment eliminates another monthly cost. Not only that, you’ll most likely be saving money on borrowing costs. However, not everyone is in the position to splash out on gym equipment when they are first opening up. Cash flow, in the beginning, may be little and gym equipment is expensive, so this can be tricky for those on a budget.
A benefit of leasing your equipment is that your hard-earned cash can then be spent in other areas that grow your business, such as marketing, staff and using a gym management software that helps you maintain and grow your members. Additionally, it is wise to (where covered by the manufacturer’s contract) have regular servicing and maintenance carried out on the equipment. That way, you know the equipment will not let you down and your gym will be maintained to a high standard, which is often a criticism from members if things do not work in the club. This benefit is dependent on your contract, but your lease could be set up with a fixed interest rate, so this makes the idea of borrowing even more attractive.
From a branding point of view, if you buy your gym equipment you will be able to customize and cater your equipment to how you want your gym to look and adapt to your gym’s functionality. This can contribute to making your gym more memorable and unique to your members. Then again, you can still do this when you lease your equipment – you could even sign up to a lease that means that you own your equipment at the end of the contract. Moreover, leasing means that it is much easier to update your equipment, so to your customers are going to know that your gym will have the latest equipment – which is definitely an enticing thought for them.
Overall, making the decision on whether to buy or lease your gym equipment is largely down to what you are in a position to do at the time. If you can afford to take the financial plunge into buying your gym equipment up front and can see the benefits in doing so, then this might be the option for you. Alternatively, if you are opening your gym on a strict budget, then it makes more sense to lease your equipment – simply because it is more manageable and comes with the added benefits that we discussed. We hope that this has helped you come to a decision, or at least start thinking about it!