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Last month I joined a wellness center here in Scottsdale to help with some health issues I've having. I've also belonged to one last year in Pennsylvania.
This particular center has a cold plunge, infrared sauna, cryotherapy chamber, and leg compression. It uses a very small space in an office complex, but doesn't feel crammed at all.
The one I belonged to in Pennsylvania was bigger and had several saunas, 8 automatic massage tables, float tank, red light therapy, and a few other things.
These centers typically charge $150-300 per month for unlimited use. If you're using multiple services every day (or almost every day), it's extremely cheap if you think about the price per session.
I was talking with the owner of the small Scottsdale location. He believes his capacity is about 85 subscribers. He opened less than 2 months ago and is already around 50% capacity.
Average subscription price there is probably $225 per month (there's a couple different packages). That's $19,125/month at full capacity. Single sessions are more pricey and maybe bring it an additional $1-2k per month, so you're looking at just above $20k per month at full capacity.
It seems like there would very little overhead costs. Just some occasional maintenance on the machines.
Staff does not need to be medical professionals. They'll need some training on how the services benefit the body and a bit of sales training as well.
The upfront cost to buy the machines is significant. Their cold plunge costs only $5k but it looks like their cryotherapy machine is minimum $40-50k. Let's say maybe $100k-200k in machine costs depending on the size of your facility.
What seems appealing about this business:
This particular center has a cold plunge, infrared sauna, cryotherapy chamber, and leg compression. It uses a very small space in an office complex, but doesn't feel crammed at all.
The one I belonged to in Pennsylvania was bigger and had several saunas, 8 automatic massage tables, float tank, red light therapy, and a few other things.
These centers typically charge $150-300 per month for unlimited use. If you're using multiple services every day (or almost every day), it's extremely cheap if you think about the price per session.
I was talking with the owner of the small Scottsdale location. He believes his capacity is about 85 subscribers. He opened less than 2 months ago and is already around 50% capacity.
Average subscription price there is probably $225 per month (there's a couple different packages). That's $19,125/month at full capacity. Single sessions are more pricey and maybe bring it an additional $1-2k per month, so you're looking at just above $20k per month at full capacity.
It seems like there would very little overhead costs. Just some occasional maintenance on the machines.
Staff does not need to be medical professionals. They'll need some training on how the services benefit the body and a bit of sales training as well.
The upfront cost to buy the machines is significant. Their cold plunge costs only $5k but it looks like their cryotherapy machine is minimum $40-50k. Let's say maybe $100k-200k in machine costs depending on the size of your facility.
What seems appealing about this business:
- Brick and mortar subscription revenue
- Seems easy to attract customers if you choose the right location
- Low overhead
- Very sellable business
- Likely easy to hire staff
- Somewhat high startup costs? Although I wouldn't necessarily consider that too high
- Scaling requires more locations
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