Got myself into another project...

[MoneyDoc]

Hey all...

Some of you may know me as the person with 100 ideas and 10 businesses going on at once... I know you're supposed to stick with one and give it your best... but all these opportunities are popping up and I believe it's a sin to say no to a business opportunity.

I have a meeting with Goodlife in one of their stores to show them a product that I believe is so logical for a gym to have... Considering the traffic that comes into Goodlife, it's a wonderful revenue stream for them (they can make their investment back in less than a year).

The product is a type of scale, that's all I can say (some of you probably already know what it is). This idea is very scalable considering Goodlife has over 200+ locations in Just Canada and Anytime fitness has over 2k locations in North America alone.

I'll let you guys know how the meeting goes.

One thing I kinda need help on is if I should present to them a rent model or a purchase model where they purchase the unit straight up. The unit costs anywhere from $3000 USD to $5000 USD for them (I get them for $1400-2500 depending on the model). Would a rent model make sense for this product?

 

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[maleek]

Just thinking out loud,

If you rent them, you would have to ensure that the length of the rental agreement would cover the cost of the scale. Say for example that the rental agreement is a year, but they cancel 4 months in for whatever reason. Now you're screwed because your equipment hasn't paid for itself yet. Is this type of scale beneficial to gyms only? Or can it be beneficial to other places, like Jenny Craig, where they put clients on diet plans for instance? The immediate problem that comes to mind is that if you only have one gym in mind, and they cancel mid contract and pay some penalty, the penalty has to cover your equipment cost. Or you have to have them in multiple franchises, so if one of your clients do cancel, it doesn't hurt cash flow. Never put your eggs in one basket.

Just some food for thought.

 

[MoneyDoc]

Just thinking out loud,

If you rent them, you would have to ensure that the length of the rental agreement would cover the cost of the scale. Say for example that the rental agreement is a year, but they cancel 4 months in for whatever reason. Now you're screwed because your equipment hasn't paid for itself yet. Is this type of scale beneficial to gyms only? Or can it be beneficial to other places, like Jenny Craig, where they put clients on diet plans for instance? The immediate problem that comes to mind is that if you only have one gym in mind, and they cancel mid contract and pay some penalty, the penalty has to cover your equipment cost. Or you have to have them in multiple franchises, so if one of your clients do cancel, it doesn't hurt cash flow. Never put your eggs in one basket.

Just some food for thought.

Thanks for the awesome advice bro. Renting would be a hassle if things don't work out during the contract.

These scales would be perfect for Jenny an Craig, now I have to figure out how to contact them.


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