To Buy or to Hire: Leasing Fitness Equipment is Becoming Easier by the Day
By Mark Davis
Opening a new gym requires many considerations. In case you already have a location in your mind, and you have found your target audience, you need to figure out your budget and find the source of your equipment. Every gym owner faces a significant decision-making step before opening their gym. Do you have to buy all your gym equipment, or can you hire a few from trusted sources?
Since you will be dealing with your consumers directly, you need to think about consumer satisfaction. You need to work on the quality of the equipment, their technology and the variety of services your gym can offer. Simply investing all your capital on treadmills only will not cater to a wide audience. Apart from cardio, people will also want to engage in strength training and resistance training exercises. Some might want something more niche like mixed martial arts or Zumba to keep workout exciting. You need to calculate how many workstations you wish to install, since investing in one of each equipment is not enough for a commercial fitness center. You need the best equipment in bulk to fulfill the demands of your target audience.
How can leasing fitness equipment save your commercial gym?
Sometimes, you need to think out of the box to drive your business towards success. Apart from the location, staff, and finances, you need to think about sourcing the most excellent fitness equipment that does not cost a bomb.
You can have an entire gym on a budget
Hire Fitness Leasing is one of the many ways you can hire fitness equipment for your fitness studio on a budget. Reputed leasing companies offer brand new state-of-the-art fitness equipment to commercial gyms. Providing your members with new and well-maintained equipment can be a big pro for your brand. At the same time, you can exchange the equipment pretty regularly depending on user feedback and demand. You may choose to begin your gym with ten treadmills and ten stationary bikes, but once you see what your members like, you can hire five more treadmills and return five stationary bikes. Choosing the vendor wisely will cut your maintenance cost and equipment downtime significantly.
You can exchange or return hired fitness equipment
Another benefit is the easy maintenance option. Leasing gym equipment comes with secure exchange and replacement options. Not only do you enjoy lower installation costs, but you also enjoy lower maintenance costs. In the event of a breakdown or damage to the equipment, you can contact your leasing company for a replacement. Most leasing sources also replace out-of-date equipment and unused machinery upon remote request. Some companies have a strict replacement and return policies. It is wise to read the fine print before signing the document.
Leasing will help you pay less taxes
One of the most significant benefits of leasing equipment is that you can show the payments as deductibles on your yearly tax returns. They are parts of your business expenses, and it can help you reduce the cost of the new equipment during the first year. Some gym owners report saving up to $500,000 in their first year of business. However, your tax returns will depend upon the size of your operations and the paperwork. Always consult with an expert tax accountant to find out which options are the most beneficial for your business.
Hiring fitness equipment can help you find financing
When people see gym equipment at a franchise fitness center, rarely do they think "ah that looks cheap." Fitness equipment should never look or feel cheap. Yes, it is a considerable investment for a commercial gym or fitness studio, but depending on the status of your financing, you might want to reconsider spending the lion's share of your business capital on your gym equipment. In fact, finding a financial partner might become easy for you, if you work with certain fitness equipment leasing companies. These reputed companies sometimes work with financing institutions that take the unique financial needs of a new small business into considerations.
What is one disadvantage of leasing fitness equipment?
The only caveat of leasing equipment is the higher cost a commercial gym might incur years down the line. However, the rentals are so low that it usually takes many years before the cost of rentals begins to outweigh that of buying brand new gym equipment. Renting makes more sense for new gyms since they do not have a steady profit margin and they usually struggle to fund new equipment in their initial days. Offering the best equipment and service to the members can change the way people perceive your fitness facility.
Even with the long-term implications in mind, buying brand new equipment for a fitness center does not make much sense. People often discount the extensive maintenance time and cost they take. Do not forget that people will sweat over them, misuse them and abuse them in all the ways possible. Therefore, keeping the gym-owned equipment brand new is only a dream that almost every fitness center fails to realize. You need to account for the daily wear and tear that will eventually wear a treadmill, elliptical trainer, stair stepper, or cross trainer out.
What is the consensus?
When you take the high cost of opening a gym into account, along with extensive financing requirements and the pressure to acquire new members, leasing seems like the smarter option for every aspiring gym owner today. Leasing not only cuts the cost of purchasing new machinery, but it also brings forth a much-needed tax break for a nascent business. You may go ahead and invest in weights, floor mats, fixed equipment, and benches. You can divert the leftover capital towards branding and marketing. Give your potential members a live tour of the place. Get some social media influencers to talk about the big inauguration. These are a few ways leasing can help you save money throughout the initial phase of your business.