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djlachelt
Dec 6, 2005, 6:59 AM
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I've seen quite a few comments in this forum about how important the revenues from kid's parties are to keeping a climbing gym going, but I have to admit that I'm a bit skeptical.
Just for a point of discussion, if we estimate 2 parties a week at say $200 revenue each, that yields about $20,000 per year. While that is nothing to sneeze at it doesn't seem that would be the thing that makes or breaks a gym... and those numbers seem optimistic to me.
Am I greatly underestimating the number parties that normally happen at a gym? I don't see that many parties happening at the gym I climb at.
Perhaps it's not the revenue from the parties themselves that make the most difference, but the carry-over to further business with all of those young climbers and their families.
Can someone that has real experience in running a gym set me straight?
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pandaclimb
Dec 6, 2005, 10:20 AM
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i dont run the gym.. haha.. but i do belay for the kids parties, and there's definitely more than 2 per week... more like a dozen, and they definitely bring in at least $300 if not more if i have my numbers straight. no it's not the biggest revenue but it's a considerable amount i'd say.
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scottquig
Dec 6, 2005, 1:03 PM
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^|||| Way more than two a week...at least at the gym I used to work at. If I wanted to, I could have belayed for a party nearly every day of the week, and two on the weekends.
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rockguide
Dec 6, 2005, 1:24 PM
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I have been around the industry for years.
Far more than 2 per week at most walls. Birthday parties and youth groups (school mid day during the week, scouts etc. evenings and weekends) are what keep the doors open and the heat turned on.
Brian
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dsafanda
Dec 6, 2005, 1:33 PM
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It totally depends on the area where the gym is located and the demographics of gym memberships. A gym in a large city is probably less dependent on family/children's activities. A gym in the suburbs is obviously going to very dependent on that income.
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roc-dude
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Dec 6, 2005, 1:45 PM
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Look at it this way. The gym I had a membership to had about 300 members paying about $400 a year in dues each. That equals about $120,000 in income a year. I bet that the utilites and rent eat that up pretty quick, not to mention staff for 12 hours a day. It is a tough business without lots of parties.
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supersonick
Dec 6, 2005, 2:02 PM
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I think $200 is too low an estimate for the cost of an average party and 2 per week is too low an estimate for the number of parties per week.
These are the types of things you would learn within the first month of working at a gym. I think you would be ill-advised to open a gym without first at least working at one.
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northerndrawl
Dec 6, 2005, 2:12 PM
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Birthday parties create cash flow. Steady and predictable. 4 birthdays a weekend x 52 weekends. Or whatever your structure/formula may be. Rentals and day users create some regular cash, but a nice big birthday party creates much more for less effort.
Memberships are nice, and keep your place busy, but once paid that's all you get out of that person. If you spend it right away, you're waiting a year before th customer gives you money again. On top of that, some gyms have waves of membership purchase clustered around September (returning students, winter weather) and January (new years resolutions) Few people buy memberships in March, it's now May, your high winter heating bills are over due, you know you'll have a ton of money come fall but in the meantime you've no income but--oh here comes a birthday party filled weekend with all their payments due the day of. Cash flows, bills are paid, no trying to hoard a big pot of money and eke it out over the year, no living off the line of credit.
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ninja_climber
Dec 6, 2005, 3:01 PM
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I worked for a gym before i moved and I can defianlty say we had way more than 2 partys a week. 1 party is 50$ (that includes a cake) that is for 10 people, it is 10$ extra for any extra person. We had about 6-7 parties a week. Ranging from 10 kids to 20 kids...The parties were 2 hours long. You can also can't forget about summer camps and church groups that come in. I think you can do the math.
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moss1956
Dec 6, 2005, 3:02 PM
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As a crusty old guy who goes to the gym when the weather is bad...
I have yet to see a gym that doesn't cater to kids, of all ages. Climbing is about having fun, and everybody who can let go a little bit, and doesn't have some injury or disability that makes it painful or overwhelmingly difficult enjoys climbing. So...
don't get an attitude if you go to the gym and there are members of another demographic group enjoying it.
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mcfoley
Dec 6, 2005, 3:32 PM
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2 parties per week LOL
Try 10 -15...build in minimums kid counts to your contracts too
Then you have boyscout and girlscout groups...
Also add in "after school" Climbing programs....
NOW you are looking at some serious revenue!
SO you are looking at roughtly $1,300 per week in cash revenue(assuming 130 kids for various group functions @ $10 each)...
If you have never worked at a gym before YOU ARE CRAZY TO TRY TO OPEN ONE UP!!!
Do yourself a favor (and your investors) and do some research...
Go work at one for a month , esp on weekends!!! LOL
It's more like running a daycare sometimes...LOL
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crazywacky
Dec 6, 2005, 4:08 PM
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I have to agree with mcfoley on this one..
Worked at a gym part time for almsot 3 years now... Make that very part time. Enough to still climb for free and get gear deals. :-)
But take that per kid charge and double it.. 20 bucks a kid. 10 kid minimum for parties. every kid of that 10 is 20 bucks.
And 10-15 parties ona weekend is normal.
During the week you work the "Team Building" angle.
Get in groups of adults for a few dollars more.
And definitely invest in a portable wall.
Rent that thing out for 250 an hour, 2 hour minimum.
If you have to take it over say an hour away, inclued charges for gas and time to get there and back. Otherwise the gas hog you pull that sucker with will kill your profits.
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ctardi
Dec 8, 2005, 6:21 AM
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Okay, monday to friday - maybe 4 parties total. Friday Saturday and Sunday, maybe 12. $16 per climber, average 12 climbers - $2800 a week. 52 weeks - 149760. Minus $35 per party for staffing is 120640. That MIGHT cover rent, insurance, electrical, water, gas. Plus another 120000 In memberships...To cover what the parties don't, plus gym staff, matinence, advertising, other costs.
I don't see it happening without parties.
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christchurch
Dec 8, 2005, 6:50 AM
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where did the OP state that he was opening a gym??
maybe he just wanted to know why he has to work out in a zoo.
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rockguide
Dec 8, 2005, 6:58 AM
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So,
with more responses to this thread than the OP has posts to the forum (as of now) ,
and all in total agreement,
and no word from the OP ....
I declare this thread played.
Thank you, and good night.
Lets end this here. Step away from the keyboard. That means you.
Brian
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letolives
Dec 8, 2005, 7:27 AM
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Most gyms that I've ever climbed in will take it anyway they can get it.
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djlachelt
Dec 8, 2005, 3:53 PM
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Thanks for all of the replys that set me straight.
Like I said in my opening question I was skeptical since my observations of my local gym don't reveal many parties going on. Certainly not 10-15. Sounds like this gym is leaving some money on the table by not marketing this aspect of the gym more.
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chalkfree
Dec 8, 2005, 4:05 PM
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or maybe you just not in there when the kiddies are. I know I would have been like "b-day parties, not here...." and then I had a day off of classes and went to the gym right as it opened, and low and behold there were kiddies all over the darn place. Also at the gym I work at, (not the one I climb at) all those types of activities are during the times when it's not open for regular business, teambuilding at 10am and suchlike.
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